equity research report 26 december 2016 ways2capital
TRANSCRIPT
TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )
NIFTY FIFTY : - Last Week Equity benchmark Nifty traded in a range of 141 points between 8264
and 8123. As per expected line the Federal Reserve raised its benchmark interest rate by 25 basis points
and Global Markets welcomed the move. The Equity benchmark Nifty opened in a negative note on
Monday down by 13 points or 0.16 percent at 8126. The holiday season for the New Year and
Christmas has already set in which might result in a more or less muted market movements. However,
the MSCI Emerging Markets Index, a good reflection of the Emerging markets pack, is trading below
its previous week's low of 855. This is a sign of prevailing weakness in the markets. Nifty too is
expected to trade slightly negative in the days to come in a range of 7876 on the downside and 8294 on
the upside. FII has remained net sellers in the cash market, they have sold 5665 crores in the month of
December. This is a significant figure compared to the current low volume in the present scenario. Thus
we might see further selling in Nifty in coming trading sessions. Nifty would see strong Resistance at
8150 levels some bounce back may seen near 7950-7900 levels. But traders should go short at every
positive rally until Nifty closes above 8150 Levels. Technically, Nifty is still in Negative zone. Market
needs to close above 8150-8170 to enter into Positive zone. Traders can initiate long positions only if
Nifty closes above 8170 levels. Budget hopes are still there and a pre-budget rally can be seen in days
to come. For now, Market would see positive rally if Nifty breaches 8165 levels and would see sharp
downfall if it closes below 7950 levels. The Crucial levels for Nifty is 7950-7900 is down side and
8100-8150 is Up side.
BANK NIFTY : - The Banking Index Bank Nifty opened in a Negative note on Monday down by 54
points or 0.29 per cent at 18258. Banking Shares may be under pressure for not only demonetization
related woes and expected dip in Net Interest Margin; but also from the proposed change in accounting
norms (Ind-AS-109) to be effective from April’18, which may hurt its earnings significantly for the
short term due to computation of “expected credit loses. The Strong support for Bank Nifty is at
17860-17580 and the resistance to the up move is at 18290-18588 levels. The Bank Nifty has to sustain
above 18000 area for any positive move; otherwise it may further fall towards 17800-17750 &
17725-17650 zone for the Upcoming week. The Significance Levels for Bank Nifty is 17950-18116 is
Upside and 17784-17618 is Down side.
Monday, 26 December 2016
TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )
NIFTY
DAILY R2 R1 PP S1 S2
8223 8065 7986 7907 7749
WEEKLY R2 R1 PP S1 S2
8588 8210 8021 7832 7454
MONTHLY R2 R1 PP S1 S2
9065 8401 8069 7737 7073
BANK NIFTY
DAILY R2 R1 PP S1 S2
18289 18019 17884 17749 17479
WEEKLY R2 R1 PP S1 S2
19462 18486 17998 17510 16534
MONTHLY R2 R1 PP S1 S2
20874 19052 18141 17230 1 5408
MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS
NIFTY 8147 8276 8343 8275
BANK NIFTY 18399 18733 18746 18322
PARABOLIC SAR DAILY WEEKLY MONTHLY
NIFTY 8178 8378 7826
BANK NIFTY 18532 19923 16124
PATTERN FORMATION ( NIFTY )
Detail of Chart - On the above given daily Chart of Nifty has Applied Bollinger Band along with
Parabolic SAR both the indicators are Leading Indicators, and gives signal of Buying or Selling.
Although the Uses of Bollinger Band differ from traders to traders Some buy when it break the Lower
Band from below side and some buy when it break Upper Band. We assume that the Breaking the
Middle Band Usually a down side is bear Signal as we can see on the above given chart it is Trading
Above its crucial Psychological Level it is around 7900. if it is Sustaining 7950-8000 Level could
lead the Nifty further Up side. Significance Support level of 7900-7950 And Significance Resistance
for Nifty is 8150-8200.
PATTERN FORMATION ( BANK NIFTY )
Detail of Chart -On the Above given daily Chart of Bank Nifty has Applied the Bollinger Band along
with Parabolic SAR. Both are the leading Indicators and give Signal on Breakout of Upper or Lower
Band. On the Above given chart of Bank Nifty it is trading around Middle Band if it is not able
Sustain the Support level of 17980. From this level we are Expecting the If the Bank Nifty is able to
Sustain the Level of 17650 may go Further Up side to the level of 18150-18260 Level for Next week.
The Significance levels for Bank Nifty is 18040-185560 Up side and 17980-17650 is Down Side.
NSE EQUITY DAILY LEVELS
COMPANY NAME R2 R1 PP S1 S2ACC EQ 1314 1303 1294 1283 1274
ADANI PORTS EQ 272 267 263 258 254
AMBUJACEM EQ 204 202 200 198 196
ASIAN PAINT EQ 898 888 874 864 850
AXISBANK EQ 453 446 441 434 429
BAJAJ-AUTO EQ 2679 2646 2599 2566 2519
BANKBARODA EQ 158 155 154 151 150
BPCL EQ 621 617 612 608 603
BHEL EQ 121 120 119 118 117
BHARTIARTL EQ 299 297 294 292 289
BOSCH LTD EQ 19879 19742 19484 19347 19089
BHARTI INFRATEL EQ 343 339 335 331 327
CIPLA EQ 567 561 556 550 545
COALINDIA EQ 290 289 287 286 284
CAIRN INDIA LTD EQ 252 248 242 238 232
DRREDDY EQ 3057 3036 3018 2997 2979
GAIL EQ 441 435 427 421 413
GRASIM EQ 843 835 824 816 805
HCLTECH EQ 824 810 803 789 782
HDFC EQ 1246 1235 1222 1211 1198
HDFCBANK EQ 1195 1190 1179 1174 1163
HEROMOTOCO EQ 3075 3053 3021 2999 2967
HINDALCO EQ 164 161 160 157 156
HINDUNILVR EQ 807 797 789 779 771
ICICIBANK EQ 256 253 252 249 248
ITC EQ 229 226 225 225 221
INDUSIND BANK EQ 1087 1074 1055 1042 1023
INFY EQ 1022 1006 789 973 956
IDEA CELLULAR EQ 73 72 71 70 69
KOTAKBANK EQ 717 713 709 705 701
LT EQ 1365 1350 1326 1311 1287
M&M EQ 1195 1182 1169 1156 1143
MRF EQ 50617 49831 48900 48114 47183
MARUTI SUZUKI EQ 5305 5246 5143 5084 4981
ONGC EQ 199 196 194 191 189
NTPC EQ 164 162 160 158 156
RCOM EQ 36 35 35 34 34
RELCAPITAL EQ 452 444 440 432 428
RELIANCE EQ 1075 1066 1059 1055 1043
RELINFRA EQ 494 486 478 470 462
RPOWER EQ 43 42 41 40 39
SBIN EQ 253 250 249 246 245
SSLT( VEDL) EQ 223 220 215 212 207
SUNPHARMA EQ 639 631 621 613 603
TATA MOTORSDVR EQ 299 296 293 290 287
TCS EQ 2331 2307 2292 2268 2253
TATAMOTORS EQ 472 469 464 461 456
TATAPOWER EQ 78 76 74 72 70
TATASTEEL EQ 399 394 391 386 383
UNIONBANK EQ 129 128 126 125 123
YES BANK LIMITED EQ 1145 1134 1128 1117 1111
ZEEL EQ 456 448 438 430 420
TOP 15 ACHIEVERS // TOP 15 LOOSERS
SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE
1 AXIS BANK LTD. 472 438 - 7.34 %
2 IDEA CELLULAR 76.20 70.80 - 7.09 %
3 HINDALCO INDUS 170 159 -6.40 %
4AURO PHARMA
690 647 - 6.24 %
5 ADANI PORTS 280 262 - 6.19 %
6 SBIN 264 249 - 5.89 %
7 TATA STEEL 414 390 - 5.60 %
8 BHARTI INFR 355 336 - 5.41 %
9 YES BANK LTD. 1182 1124 - 4.86 %
10 BHARTI AIRTEL 310 295 - 4.74 %
11 ONGC 201 192 - 4.34 %
12 BANK BARODA 159 153 -4.17 %
13 SUN PHARMA 647 623 - 3.68 %
14 DR. REDDY LAB 3107 2998 - 3.52 %
15 HDFC 1269 1224 - 3.49 %
SR.NO SCRIPT NAME PREVCLOSE
CMP % CHANGE
1EDELWEISS FIN 82.80 98.20
+18.60 %
2INDIAN METAL 512 558 +8.82 %
3FIEM INDUSTRIES 1031 1093
+ 6.01 %
4BEML LIMITED 916 971 + 6.00 %
5INDIAN OIL CORP 296 313
+ 5.70 %
6ENGINEERS INDIA 306 323 + 5.68 %
7INFIBEAM 1106 1160
+ 4.89 %
8 GAYATRI 600 628 + 4.74 %
9MMTC LTIMITED 49.35 51.40
+ 4.15 %
10GAIL INDIA LTD. 415 431 + 3.96 %
11CIPLA LIMITED 566 582
+ 2.84 %
12GATI LIMITED 113 114.95 + 1.59 %
13GRASIM INDUS 817 828
+ 1.46 %
14BATA INDIA 418 424 + 1.35 %
15NTPC 160 161
+0.66 %
NSE CASH
NSE CASH : BUY NTPC NSE CASH ABOVE 162 TGT 172 SL 158
NSE CASH : BUY VEDL NSE CASH ABOVE 221 TGT 235 SL 215
NSE CASH : BUY M&MFIN NSE CASH ABOVE 260 TGT 278 SL 253
NSE - WEEKLY NEWS LETTERS
✍ TOP NEWS OF THE WEEK
Near term growth risks for India on downside: Goldman Sachs - Indian economy has
outperformed in recent years but the near term growth risks for the country is on the downside
relatively to a lot of consensus estimates, according to Goldman Sachs. Jan Hatzius, chief
economist and head of Global Economics and Markets Research at Goldman Sachs said India as
an economy has outperformed in recent years and it has been growing quite strongly. "At the
moment, there is a quite a slowdown in India basically because of the currency reform that was
introduced by the Modi government several weeks ago," Hatzius said. He further noted that "right
now the economy is slowing quite a bit. We think in the near term risks are definitely on the
downside relatively to a lot of the consensus estimates out there." Goldman Sachs expects global
growth in 2017 to be around 3.5 per cent led by the US. "Our expectations for economic policy
under the Trump administration and under unified Republican control are that there will be tax
reform coupled with some fiscal easing and also some increase in infrastructure spending. And
we do expect that to provide a positive impulse to economic growth," he said.
Mauritius top source of FDI in India - Mauritius accounted for 20.8 per cent of FDI in India
followed by the US, the UK, Singapore and Japan up till March 2016, the Reserve Bank said
while releasing the Census on Foreign Liabilities and Assets of Indian Direct Investment
Companies for 2015-16. The destination for Overseas Direct Investment of Indian companies was
largely Singapore, Mauritius, the Netherlands and the US. "Equity participation had a much larger
share (93.4 per cent) than debt in total inward FDI, which stood at Rs 20,140 billion at market
value in March 2016 (Rs 19,813.4 billion a year ago). "Total ODI was placed at Rs 5,79,020 crore
at market value (Rs 5,63,700 crore a year ago). Under ODI too, equity participation had a large
share (80.5 per cent)" the data said. The ratio of outward to inward direct investment, at market
value, increased marginally from 28.5 per cent to 28.7 per cent over this period. Both
manufacturing and services sectors attract foreign equity participation. Total FDI stock at market
value in the manufacturing and services sectors stood at Rs 10,00,630 crore in March 2016 and
Rs 8,59,080 crore, respectively.
India's crackdown on cash imperils pivotal tax reform GST - Prime Minister Narendra Modi's
crackdown on the cash economy has shattered the consensus needed for a new national sales tax,
GST, plunging his boldest reform into limbo and threatening to entrench an economic slowdown.
Modi's government already had its work cut out to finalise a deal with 29 states to launch a Goods
and Services Tax on April 1 that would transform Asia's third largest economy into a single
market for the first time. But his decision to scrap 86 per cent of the cash in circulation, in a bid to
purge the economy of illicit "black money", has caused huge disruption. A slump in business
activity stemming from the cash crunch has caused the revenue of state governments, which
collect value-added tax on goods and other duties, to slump by 25-40 per cent. The states won't
risk another setback by rushing the sales tax into force. "The investment and economic
environment in the country is in bad shape," said West Bengal Finance Minister Amit Mitra, who
earlier head a panel tasked with building a consensus on the GST. "How is the country going to
absorb the dual shock of GST and demonetisation?." The GST is India's biggest tax overhaul
since independence in 1947. It would replace a plethora of federal and state levies with one tax,
easing compliance, broadening the revenue base and boosting productivity.
India remains fastest-growing large economy, beating China: EIU - The Economist
Intelligence Unit , the research and analysis division of The Economist Group in its global
economic outlook in December said that India continues to be the fastest-growing large economy
beating China. Tweeting the highlights of the session, Director of Global Forecasting at the EIU
Joseph Lake said, "India remains fastest-growing large economy, beating China. Iran looks good.
Strong showing from Africa: Tanzania, Ghana, Kenya, Rwanda." The group however slashed
India's economic growth forecast from 7.3 percent to 6.5 percent in 2016-17 because of cash
shortage from "botched implementation of demonetisation". It however, said that India remains
fastest growing large economy in world as growth will accelerate after liquidity shortage eases
and public investment ramps up. The group also warned that the health of the Chinese economy
remains the biggest risk to the global economy, saying, "That growth in China will lurch down
from 6.2 percent in 2017 to 4.2 percent in 2018." "This kind of shift is unprecedented in modern
China and will come at a time when the global economy is uniquely unprepared to react.
Consequently, 2018 will be a year of anxiety around the world, characterised by volatility in real
economies and financial markets," said the group.
How Modi government lobbied Moody's for a ratings upgrade, but failed - India criticised
Moody's ratings methods and pushed aggressively for an upgrade, documents reviewed by
Reuters show, but the US-based agency declined to budge citing concerns over the country's debt
levels and fragile banks. Winning a better credit rating on India's sovereign debt would have been
a much-needed endorsement of Prime Minister Narendra Modi's economic stewardship, helping
to attract foreign investment and accelerate growth. Since storming to power in 2014, Modi has
unveiled measures to boost investment, cool inflation and narrow the fiscal and current account
deficits, but his policies have not been rewarded with a ratings upgrade from any of the "big
three" global ratings agencies, who say more is needed. Previously unpublished correspondence
between India's finance ministry and Moody's shows New Delhi failed to assuage the ratings
agency's concerns about the cost of its debt burden and a banking sector weighed down by $ 136
billion in bad loans.
Dent on growth will be bigger than RBI's estimates: Nomura - Damage to India's economic
growth is likely to be bigger than the RBI's estimates, as there could be a sharper slowdown in the
near-term as cash shortage is likely to extend into the first quarter of next year, says a Nomura
report. "We concur with the RBI's view that the impact of demonetisation is likely to be
transitory. However, with the cash shortage spilling over into Q1 2017, our leading indicators are
pointing to a sharper slowdown in near-term growth," " the Japanese financial services major said
in a research note. Nomura further said, "As such, we expect the growth damage to be larger than
the RBI's estimates". The report also said November's CPI readings suggest that demonetisation
contributed 25-30 bps to the fall in headline CPI inflation via lower perishable item prices,
slightly more than the RBI's estimate of 10-15 bps, and most core inflation measures eased by 20
bps in November.
✍ TOP ECONOMY NEWS
EPFO decided to lower the interest on EPF deposits for the current fiscal to 8.65%, from 8.8%
provided in 2015-16, for its over 40 million subscribers.
The index of mineral production of the mining and quarrying sector for October declined by
1.1% while the total value of the mineral output during the month was estimated at Rs. 193.59
billion.
Rights issuances have seen an 85% drop this year due to volatility in the market and uncertain
economic environment.
Gold imports witnessed a fall of 30.5% to USD 15.74 billion in April-November of the current
financial year, which is expected to keep a lid on the current account deficit.
The Government will start easing restrictions on cash withdrawals once 80 per cent of the new
currency introduced following demonetisation is re-channelised through bank deposits.
Restrictions on cash withdrawals will be first eased in the case of cooperative banks and then for
all the scheduled commercial banks.
The Supreme Court ordered a ban on all liquor shops on national as well as state highways
across the country and made it clear that licences of existing shops will not be renewed after
March 31 next year.
Expanding for the third straight month, exports rose 2.29% to US$20 billion in November.
Imports too increased by 10.44% to US$33 billion, leaving a trade deficit of US$13 billion in
November.
The Income-Tax department will soon begin sharing personal data—like PAN, residential
address and mobile number—of a taxpayer earning over Rs. 1 million Per Annum with the Oil
Ministry as part of government’s initiative to effectively block subsidised cooking gas to higher
income groups.
Mauritius accounted for 20.8% of foreign direct investment in India followed by the US, the UK,
Singapore and Japan till March 2016, the Reserve Bank of India said while releasing the Census
on Foreign Liabilities and Assets of Indian Direct Investment Companies for 2015-16.
Japan has dragged India to the World Trade Organisation's dispute settlement body for imposing
safeguard measures on steel products and minimum import price on iron and steel products.
Investments in domestic capital markets through participatory notes plunged to its lowest level in
nearly three years to Rs 1.79 trn in end-November.
According to the latest clarification issued by the tax authority, indirect taxes would be applicable on
internal transfers India-dedicated funds-investment vehicles that deployed more than half of their total
investments in domestic securities.
✍ TOP CORPORATE NEWS -
Lupin Limited announced the launch of a generic version of its voriconazole tablets and oral
suspension used for the treatment of fungal infections in children.
Cipla Limited has received final approval from the US health regulator for lipid regulating
Fenofibrate tablets.
Steel Authority of India Limited is in talks with Japan's Nippon Steel & Sumitomo MetalCorp
and Kobe Steel Ltd for potential technical agreements to help the firm expand its global footprint.
The board of directors of Pennar Industries Limited is evaluating the merger of its subsidiary
Pennar Enviro Ltd into Pennar Industries.
Stung by fluctuation in price of coking coal, Steel Authority of India Limited is desperately
seeking an alternative solution to reduce its dependence on imports.
The government over the next few days will examine the status of 72 coal blocks allocated either
through allotment or auction route to companies like NTPC Limited, JSW Steel, Hindalco and
SAIL.
Jindal Steel and Power Limited has lined up Rs80bn additional investment for its Odisha
operations. The money will be spent on the addition of a blast furnace to take its Angul steel plant
capacity to 6mt, setting up of a cement plant, laying of the slurry pipeline to carry iron ore from
mines to the steel plant and setting up of a pellet plant.
Divi's Laboratories Limited has chalked out alternate plans to keep the capacity expansion
going after the Rs5bn greenfield project near Kakinada ran into rough weather, first by the local
protests and later by an interim order issued by Hyderabad high court pertaining to the project
land.
Glenmark Pharmaceuticals Limited is developing specialty respiratory and dermatology
products as a part of its long-term growth strategy.
Bajaj Hindusthan Sugar Ltd plans to sell its co-generation power business to its group
company Lalitpur Power Generation Company Ltd for about Rs. 18 billion.
Welspun Enterprises Limited said its board of directors will meet later this week to consider
buyback of equity shares.
Sun Pharmaceuticals Industries Limited said one of its subsidiaries has voluntarily requested
the US health regulator to withdraw approval for 28 abbreviated new drug applications belonging
to Ranbaxy Laboratories.
Future Enterprises Limited will be selling 16% stake in Future Lifestyle for Rs3.80bn, a notice
to the stock exchanges. FEL owns the physical assets or the store formats and infrastructure assets
in the stores of Future Retail and Bharti retail.
8K Miles Software Services Limited has announced the acquisition of Cornerstone Advisors
Group LLC for USD 10.25 million. The acquisition, through its US-subsidiary, is subject to
customary closing conditions and is expected to conclude in the quarter ending March 31, 2017.
Tridevi Capital Partners to invest USD 20 million in Prabha Energy Private Limited, a
subsidiary of Deep Industries Limited. The subsidiary valuation is estimated to be USD 50
million.
Jubilant Life Sciences Limited, a global leader in the pyridine, picolines and nutrition industry,
announced a price increase of up to 15% on select products.
Cognizant Technology Solutions has acquired the technology and business process services unit
of Frontica Business Solutions AS, helping it gain access to capabilities in the oil and gas sector.
The US Food and Drug Administration has issued Form 483 observations against Unit I of
Aurobindo Pharma Limited in Hyderabad.
Oil and Natural Gas Corporation has tied up with Hughes Communications India to revamp
and upgrade its existing satellite network across India.
Vedanta Limited Resources has been ordered by London High Court to pay over USD 100
million to a Zambian investment company related to a 2013 copper price agreement.
Bharti Airtel Limited said its subsidiary Network i2i has entered into a definitive agreement
with Egyptian firm Orascom to acquire the latter’s entire equity stake in Middle East North Africa
Submarine Cable Systems for an undisclosed amount.
Reliance Communications signed binding agreements with Brookfield Infrastructure and
institutional partners to sell its tower business for an upfront cash payment of Rs. 110 billion.
The Cabinet approved the sale of surplus and vacant land of Hindustan Antibiotics Limited in
Pimpri, Pune to meet liabilities worth Rs. 8.21 billion.
Titan Company Limited inaugurated its revamped store in the upmarket Jubilee Hills area of the
city, bringing together their retail chains -- World of Titan and Helios -- under one roof.
Jubilant Cadista Pharmaceuticals Inc, part of the Jubilant Group, is recalling over 1,500
bottles of glucocorticoid Methylprednisolone tablets in the US market due to incorrect labelling.
RBL Bank Limited has reduced the marginal cost of funds based lending rates by 0.30-0.45%
across different tenures.
After Jet Airways, IndiGo has too launched discount sale on domestic routes.
Quess Corp Limited and TeamLease Services are among the few that are benefiting from
demonetisation as the process has led to a spike in the demand for temporary staff, particularly
from banks.
Texmaco Rail & Engineering Limited and Kalindee Rail Nirman have received Delhi High
Court’s approval to merge the latter with former, the companies notified the bourses.
Nearly 90% of the shareholders present at theThe Indian Hotels Company Limited EGM voted
in favour of removing Nusli Wadia as the independent director of the company. Only 9.20%
voters backed Wadia.
Sun Pharma is acquiring Odomzo, from Novartis for an upfront payment of USD175mn and
additional milestone payments.
Jet Airways Limited plans to raise USD 100 million, or almost Rs. 6.80 billion, in US
dollar-denominated debt by March 2017 to refinance rupee-based loans, so that it can almost
halve its borrowing rate.
Sun Pharmaceuticals Industries Limited Advanced Research Company said the US health
regulator has not approved its new drug application for Xelpros, a preservative-free eye drop.
Moody's Investors Service said that Reliance Communications' ratings will "remain on review
for downgrade" despite the company signing an agreement with Canada-based Brookfield
Infrastructure to sell its tower assets.
Power Grid Corporation of India, should sell stakes in its projects to unlock capital for future
expansion.
Engineers India Limited will set up a 1mtpa petrochemical complex near the Kakinada port in
Andhra Pradesh.
Welspun Enterprises Limited announced plans to buy back up to 25% of its share capital at a
price of Rs62/equity share.
✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK
The falling yields due to the liquidity flush post-demonetisation is likely to deliver a Rs.
38,200-crore bonanza to the bleeding banks through treasury gains, a report today said.
"Softening of yields due to surplus liquidity could help the NPA-saddled banks register Rs.
38,200 crore in potential treasury gains in the current financial year," said the report by India
Ratings.
Finance Minister Arun Jaitley said on December 19 no questions would be asked if any amount
of demonetised currency is deposited at one go but repeated deposits might raise queries. Yet,
depositors are being subjected to a veritable inquisition at some banks. Everyone who wants to
deposit more than Rs 5,000 in demonetised notes in a bank account must fill in a form that asks
the depositor two questions—Why the amount could not be deposited earlier, and what is your
source of funds? This form-filling process is a requirement we found by personally visiting a
bank.
The ED has written to about 100 cooperative bank branches across the country seeking details
about activities in their dormant accounts and other suspicious transactions as part of its
anti-black money probe post demonstration. The Person in knowledge with matter Officials said
the agency has sought details from these banks after it got reports about suspicious activities of
some huge transactions being reported from the bank accounts in these branches.
In another measure to promote digital payments, the government has directed staterun banks not
to charge fees for transactions settled on Immediate Payment Service and Unified Payments
Interface in excess of that levied for National Electronic Funds Transfer of over Rs 1,000.
After peaking at nearly Rs. 75,000 crore, Jan Dhan deposits have started to decline even much
before the deadline for depositing old Rs 500 and Rs 1,000 notes ends on December 30.
Amid rising decibels of the demonetisation debate banks are silently preparing for an upcoming
event: Ind AS 109 or Indian Accounting Standard, a global accounting practice that lenders are
mandated to adopt that may lead to initial credit losses. Banks including private sector ones like
ICICI, HDFC and Axis are actively working on this as they have submitted estimates for such
losses to Reserve Bank of India, which is now expected to come out with fresh guidelines on
computation of expected credit losses, a key to banks’ future earnings, three sources familiar with
the matter told ET.
Members of All India Bank Officers' Confederation today held demonstrations at various RBI
offices, including Mint Road headquarters in Mumbai, demanding adequate cash availability to
banks and complete withdrawal of deposit cap rules. Besides Delhi, demonstrations were held at
various offices of RBI, including its head offices in Kolkata, Chennai, Bengaluru and Jaipur.
Banks today began accepting the junked Rs 500/1000 notes in KYC-compliant accounts without any
questions following RBI's rollback of its stiff conditions a day after customers were subjected to
queries while depositing old currency. With hardly 10 days to go before the deadline ends for
depositing the scrapped notes, banks continued to witness rush with tempers flaring occasionally as
the RBI notification came during the banking hours, not before the start of the day.
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(c) High Brow Market Research Pvt. Ltd. or its associates has never served as an officer, director or
employee of the subject company;
(d) High Brow Market Research Pvt. Ltd. has never been engaged in market making activity for the
subject company.