Morning Notes
6 July, 2017
5-Jul
4-Jul
% Chg.
5-Jul
4-Jul
% Chg.
FII's & DII's in equity
S&P BSE SENSEX
31,246
31,210
0.11%
Dow Jones Industrial Average
21,478
21,479
-0.01%
05-Jul
S&P CNX NIFTY
9,638
9,613
0.25%
Nasdaq Composite Index 6,151
6,110
0.67%
NIFTY MID100 FREE
18,044
17,867
0.99%
CAC 40 Index
5,180
5,175
NIFTY SML100 FREE
7,467
7,368
1.34%
FTSE 100 Index
7,368
7,357
12,454
Indices
Major Indices
DAX Index
‎₹ Crs
Buy
Sell
Net
FII / FPI Investments
3,750
4,584
-834
0.10%
DII's Investments
2,778
2,482
0.14%
FII's contribution to the total turnover
33%
12,437
0.13%
DII's contribution to the total turnover
21%
5-Jul
4-Jul
% Chg.
FII's in Derivatives (F&O)
296
BSE Sectoral Indices
‎₹ Crs
NIFTY REALTY
270
266
1.54%
Major Asian Indices
NIFTY MEDIA
3,024
2,990
1.15%
Hong Kong
25,389
25,784
-1.53%
05-Jul
20,032
20,056
-0.12%
Net
2,381
2,394
-0.58%
OI
3,183
3,196
-0.41%
Chg.OI
10,348
10,413
-0.62%
FIIs' contribution to the total F&O turnover
Index Fut Index Opt
Stock Fut
Stock Opt
NIFTY METAL
3,083
3,050
1.07%
Nikkei 225
NIFTY ENERGY
11,921
11,799
1.03%
Korea
NIFTY PSU BANK
3,313
3,288
0.76%
Shanghai
NIFTY PHARMA
9,589
9,518
0.75%
Taiwan
NIFTY AUTO
10,705
10,630
0.71%
NIFTY BANK
23,353
23,214
0.60%
Commodities (MCX)
5-Jul
4-Jul
% Chg.
Curr. Derivatives (NSE)
5-Jul
4-Jul
NIFTY INFRA
3,226
3,215
0.36%
Aluminium (31JUL2017) 124.9
124.8
0.04%
USDINR 27-JUL-2017
64.99
64.95
0.07%
NIFTY CONSUMPTION
4,414
4,400
0.33%
Copper (31JUL2017)
385.8
-0.88%
EURINR 27-JUL-2017
73.70
73.75
-0.06%
NIFTY FIN SERVICE
382.4
164
457
765
36
20,369
55,259
70,438
3,529
0.4%
1.8%
0.5%
12.8%
20%
% Chg.
9,546
9,525
0.23%
Crude (19JUL2017)
2,938
3,068
-4.24%
JPYINR 27-JUL-2017
57.30
57.45
-0.26%
NIFTY IT
10,161
10,213
-0.52%
Gold ( 04AUG2017)
28,107
28,115
-0.03%
DJIA (21-JUL-2017)
21,460
21,485
-0.12%
NIFTY FMCG
27,349
27,548
-0.72%
Silver (05SEP2017)
37,536
37,188
0.94%
S&P500 (21-JUL-2017)
2,424
2,429
-0.20%
Company
LTP
Chg % Chg
INFY
952
-10
-1.1
257.4
-3
-1.0
BHARTIARTL
377
-3
-0.7
42
4.0
VEDL
262
7
2.6
ZEEL
500
11
2.3
ASIANPAINT
1132
23
2.1
GAIL
363
-2
-0.6
M&M
1383
28
2.1
HDFC
1631
-10
-0.6
SRTRANSFIN
TATAGLOBAL
LUPIN
Chg % Chg
62
6
10.0
1095
49
4.7
156
6
4.1
WIPRO
Company
ITC
Top Losers
BSE 100
IDFCBANK
LTP
Top Losers
CNX Nifty
1086
COLPAL
INFY
1084
40
3.8
WIPRO
BEL
169
6
3.7
ABB
Company
LTP
IDFCBANK
SRTRANSFIN
RCOM
TATAGLOBAL
IDBI
Company
Chg % Chg
Chg % Chg
331
-6
-1.8
1114
-12
-1.1
951
-9
-1.0
258
-2
-0.9
1438
-12
-0.8
Company
LTP
Chg % Chg
MFSL
597
-24
-3.8
TATACOMM
677
-13
-1.9
MPHASIS
588
-11
-1.8
62
6
10.0
49
4.7
22
1
4.3
156
6
4.1
OBEROIRLTY
364
-5
-1.4
56
2
3.7
KANSAINER
441
-6
-1.2
Company
LTP
MSRINDIA
37
-2
-4.9
LTP
Chg % Chg
AKSHOPTFBR
21
4
19.8
TIRUMALCHM
1007
141
16.3
TIMKEN
779
103
15.3
MBECL
63
7
13.2
IDFC
60
6
10.1
LKP Advisory
LTP
1095
Top Losers
BSE Midcap
Top Gainers
BSE 100
Top Gainers
BSE Midcap
Chg % Chg
LUPIN
Company
Top Gainers
BSE Smallcap
LTP
Top Losers
BSE Smallcap
Top Gainers
CNX Nifty
Company
VIRTUALG
Chg % Chg
2
-0.1
-4.7
RELAXO
518
-25
-4.6
LIBERTSHOE
190
-8
-4.2
ASAHIINDIA
249
-10
-3.8
Domestic Market View
Markets to make a muted start lacking any supportive
factor
The Indian markets after a choppy trade managed a
modestly positive close in the last session. Today, the
start is likely to be muted lacking any major supportive
factor and amid sluggish global cues. There will be some
concern in the market with Economist and Nobel
laureate Paul Krugman's warning that India has a very
narrow window to pursue its development agenda as
the era of hyperglobalisation is over and global trade
will at best grow slower or at worst shrink. Krugman
also came down heavily on Indian policymakers for
pursuing a tight monetary and fiscal policy. Markets
however may get some support in latter trade with an
ASSOCHAM study stating that Industry is expected to
contribute $ 280 billion to India's GDP in eight to nine
years due to positive fallout of the Goods and Services
Tax (GST) as structural changes in the ease of doing
business will propel growth. Also, Finance Minister Arun
Jaitley has said that despite the anticipation of initial
disruptions on account of the Goods and Services Tax
(GST), the rollout of the new indirect tax regime from
July 1 was smooth and without any significant glitches.
There will be some buzz in the power sector stocks, as
the Power Ministry has launched a portal for optimum
utilisation of domestic coal by Independent Power
Producers. Producers can reduce power costs by 10
paisa per unit through rationalising of coal supply made
possible through the e-bid portal.
Source: Reuters, ACE Equity & LKP Research
Morning Notes
Domestic Market Overview
Indian equity benchmarks managed to eke out modest gains
A session after displaying a distressing performance, Indian benchmark indices have managed to eke
out moderate gains on Wednesday, tracking positive trade in global markets after focus shifted from
geopolitical tensions around North Korea to minutes from the US Federal Reserve’s last policy
meeting. Sentiments got a boost after India’s services PMI rose to an eight month high in June at 53.1
as against 52.2 in May of 2017. This was also the fifth consecutive month of expansion as business
environment for services sector in the country continued to improve. Some support also came with
the report that global & domestic private equity funds have pumped in around $11.3 billion in the
country for the first half of the current year ending June 30, making it the record highest foreign
direct investment into the country. Adding optimism among investors, an Assocham-APAS study
revealed that with the rollout of the Goods and Services Tax (GST), the industry alone is expected to
contribute $280 billion to India's Gross Domestic Product (GDP) in the next eight to nine years.
According to the chamber, the GST will enable positive structural changes in the ease of doing
business, which in turn would propel the growth.
the market breadth remained optimistic, as there were 1706 shares on the gaining side against 968
shares on the losing side, while 142 shares remained unchanged.
Global Market Overview
Asian markets end mostly in green on Wednesday
Asian equity markets ended mostly in green on Wednesday as investors shrugged off geopolitical
worries and looked ahead to the release of minutes of the Fed's June meeting later in the day and
the outcome of G20 summit, beginning Friday in Germany. Japanese shares ended modestly higher
as the yen pared early gains and a private survey showed activity in Japan's services sector expanded
at a faster rate in June. Further, Chinese shares ended higher after the announcement on allowing
foreign investment in the Chinese bond market. Investors shrugged off the latest survey from Caixin
showing that growth in China's services sector slowed in June. The PMI dropped to 51.6 from 52.8 in
May.
US markets closed mostly higher; Dow ends tad lower
The US markets closed mostly higher on Wednesday, while the Dow industrials closed fractionally
lower after the Federal Reserve policy meeting minutes indicated a reduction in the central bank’s
economy-boosting balance sheet could begin soon, and technology stocks rallied amid a
disappointing manufacturing report and decline in crude futures. Federal Reserve policymakers were
increasingly split on the outlook for inflation and how it might affect the future pace of interest rate
rises, according to the minutes of the Fed’s last policy meeting on June 13-14 released. The details of
the meeting, at which the US central bank voted to raise interest rates, also showed that several
officials wanted to announce a start to the process of reducing the Fed’s large portfolio of Treasury
bonds and mortgage-backed securities by the end of August but others wanted to wait until later in
the year. The issue of when to begin reducing the Fed’s $4.2 trillion portfolio of Treasury bonds and
mortgage-backed securities and how it might affect deciding future rate rises also sparked debate. At
the June meeting, the Fed gave a clear outline of its plan this year to reduce its portfolio but gave no
precise timing. The shedding of the bonds and other securities, most of which were purchased in the
wake of the 2007-2009 financial crisis, marks the final chapter in the central bank’s normalization of
monetary policy.
LKP Advisory
Source: Reuters, ACE Equity & LKP Research
Morning Notes
Index Futures
Total Open Interest
Future
Chg
Spot
Chg
Prem /
5-Jul
(%)
5-Jul
(%)
Disc
5-Jul
Chg (%)
9,645
0.22
9,638
0.25
7.7
21,882
1.49
NIFTYIT
10,158
-0.50
10,161
-0.52
-2.6
44
6.60
BANKNIFTY
23,401
0.39
23,353
0.60
48.0
2,551
2.26
(OI in '000 Shares)
NIFTY
Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol
Total OI
5-Jul % Chg.
Del Qty Cash Market
5-Jul
% Del.
Prev
% Del.
Increase
Del Qty
Spot
(‎₹)
Fut
(‎₹)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
TATACHEM
3,626
28%
689,938
43%
45%
347,539
644
649
3.2%
3.5%
5.0
IBREALEST
40,560
23%
3,882,171
13%
11%
2,505,361
210
211
6.1%
6.5%
1.3
UJJIVAN
7,866
11%
1,001,123
34%
34%
550,829
326
327
5.3%
5.3%
1.1
EQUITAS
10,442
10%
2,150,733
46%
41%
1,560,386
159
160
5.5%
5.6%
1.1
RAYMOND
1,854
7%
838,395
23%
11%
752,721
816
818
6.3%
6.3%
2.3
GSFC
8,033
7%
932,648
31%
27%
240,352
126
127
3.4%
3.7%
0.8
351
6%
65,594
42%
33%
21,583
1,714
1,725
3.2%
3.3%
11.0
12,336
6%
831,518
32%
30%
535,197
101
101
5.1%
5.3%
0.6
2,110
6%
172,790
13%
12%
114,637
1,566
1,576
3.4%
3.4%
10.1
561
5%
57,132
51%
41%
24,477
1,565
1,575
0.6%
0.9%
10.6
BALKRISIND
PTC
BEML
SRF
Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol
PVR
Total OI
5-Jul % Chg.
Del Qty Cash Market
5-Jul
% Del.
Prev
% Del.
Increase in
Del Qty
Spot
(‎₹)
Fut
(‎₹)
Spot
Chg (%.)
Fut
Chg (%.)
Prem /
Disc
443
17%
115,756
60%
35%
90,560
1,407
1,416
-1.0%
-1.1%
8.5
INDIANB
3,826
12%
344,402
41%
20%
251,705
280
282
-1.1%
-0.9%
1.9
AMARAJABAT
1,355
8%
315,666
59%
28%
178,459
848
854
-0.9%
-0.8%
5.6
GODFRYPHLP
629
6%
52,756
38%
21%
22,458
1254
1263
-1.0%
-1.0%
9.1
BRITANNIA
342
3%
78,199
65%
50%
12,507
3733
3756
-0.4%
-0.1%
23.0
49,385
3%
8,187,853
65%
54%
1,698,775
331
333
-2.0%
-1.8%
1.9
433
3%
122,811
57%
70%
20,483
982
986
-0.4%
-0.3%
4.6
BAJAJ-AUTO
1,625
2%
317,118
82%
76%
50,626
2771
2724
-0.3%
0.1%
-46.8
ARVIND
6,296
2%
216,590
28%
17%
91,803
368
368
-0.2%
0.3%
-0.1
20,940
2%
2,716,576
79%
77%
421,430
210
211
-0.4%
-0.3%
0.6
ITC
MGL
POWERGRID
LKP Advisory
Morning Notes
Corporate News

Zydus Cadila and Phibro Animal Health Corporation have announced their intention to enter into a long-term arrangement to
license Phibro’s innovative poultry vaccine technologies and know-how to a new vaccine manufacturing facility to be built by Zydus
Cadila to serve the fast growing poultry market in India.

Rashtriya Chemicals and Fertilizers (RCF) has issued Commercial Paper for Rs 120 crore on July 5, 2017, in favour of ICICI Bank,
having maturity date as September 29, 2017. This step has been taken in terms of the guidelines issued by the Reserve Bank of India
(RBI).

NBCC India has secured the total business of around Rs 630 crore in the month of June, 2017. Recently, the company has signed a
Memorandum of Understanding (MoU) with Rail Land Development Authority (RLDA), a statutory authority under the Ministry of
Railways for re-development of 10 Railway stations.

Ramco System has established a wholly owned subsidiary in Vietnam named as ‘Ramco System Vietnam Company’. The Enterprise
Registration Certificate for Single-Member Limited Liability Company dated July 03, 2017 has been received on July 5, 2017. The
company has incorporated wholly owned subsidiary to carry on the business operations in Vietnam.

KEI Industries has invested approximately Rs 1.90 crore in plant, machinery & accessories for setting up PVC manufacturing plant at
new rented location at Building B, Village Dapada, Silvassa. This step has been taken by the company as part of backward
integration. This investment is expected to meet approximately 90% of Silvassa Plant’s total requirement of PVC Compound.

Cyient has signed a non-exclusive business alliance agreement with Kii Corporation, a leading Internet of Things (IoT) solutions
enablement platform provider, to explore, bid and address business opportunities around smart city deployments.

IRB Infrastructure Developers’ Special Purpose Vehicle (SPV) - Udaipur Tollway has successfully achieved financial closure for its
Udaipur - Gujarat Border 6 Laning BOT project. The SPV, in terms of the Concession Agreement executed with the National
Highways Authority of India (NHAI), has tied up with the Consortium of lenders for project finance to the tune of Rs 1,461 crore.

Hero MotoCorp is the country’s largest two-wheeler maker which has crossed 70 million units in cumulative sales during 2016-17.
The company has lined up six new models across segments in the current financial year to spur growth.

Swan Energy has invested Rs 1 lakh in ‘Triumph Offshore’ for purchase of its 100% equity shares, equivalent to 10,000 Equity Shares
of Rs 10 each. By virtue of this, ‘Triumph Offshore’ has become a 100% subsidiary company of Swan Energy.

Rural Electrification Corporation (REC) has launched an issue of $450 million 3.875% Notes due 2027, priced on June 29, 2017. The
Notes will mature on 2027 and all principal and interest payments will be made in US Dollars. The Notes are expected to be settled
by July 7, 2017. The Notes represent direct, unconditional and unsecured obligations of the Issuer and will rank pari passu among
themselves and all other unsecured obligations of the Issuer. The Notes will be listed on the Singapore Exchange (SGX) and the
green segment of the London Stock Exchange's International Securities Market (ISM).

Zydus has commenced the phase II trial of ZYAN1, an oral hypoxia-inducible factor prolyl hydroxylase inhibitor (HIF-PHI), as a
treatment for anemia associated with chronic kidney disease (CKD).

IL&FS Engineering and Construction Company has received Letter of Intents (LOIs) from Jharkand Bijli Vitran Nigam (JBVNL) under
the Integrated Power Development Scheme (IPDS) for a total contract value of Rs 236.76 crore.

Brahmaputra Infrastructure one of the Joint Venture (JV) member of Brahmaputra – VKGA has received a letter of reward for
execution of the Construction of flyover including ROB at Maharana Pratap Chowk, Bilaspur including improvement of slip/ service
roads and Junction, Electrification on Design and Built Basis for the contract price of around Rs 65.77 crore from the Office of
Directorate of Urban Adminstration & Development, Indravati Bhawan, Naya Raipur( C.G.).

Texmaco Rail & Engineering has entered into a non-exclusive Memorandum of Understanding (MoU) with Lesico, Israel for active cooperation between the two organizations to identify potential scope of works and activities in respect of upcoming Tele-Aviv and
LKP Advisory
Source: Reuters, ACE Equity & LKP Research
Morning Notes
Jerusalem Light Rail Transit projects (LRT) on a business case basis. Texmaco expertise has been sought by Lesico for track related
work for the said LRT projects. The overall budget for the projects has been estimated at more than $2 billion.

Brigade Enterprises has won two awards at the CREDAI Karnataka's CARE Awards 2017 held on July 1, 2017 at Bengaluru. Brigade
Palmgrove, Mysuru won the award in the Villas & Row Houses category while Orion East Mall, Bengaluru won in the Shopping Malls
category.

Videocon Telecommunications (VTL), a subsidiary of Videocon Industries has reportedly entered into the security and surveillance
segment with the launch of an analogue and internet-based closed-circuit television (CCTV) camera. The company unveiled an
analogue and internet protocol-based CCTV camera, in the price range of Rs 1500 to Rs 2.5 lakh a unit.

Force Motors has reported the production, sales and export of the products manufactured by the company during the month of
June 2017. The company’s production of Small Commercial Vehicles (SCV) & Light Commercial Vehicles (LCV) stood at 1,741 units
and Utility Vehicles (UV), Sports Utility Vehicles (SUV) & Tractors stood at 710 units.

JSW Steel has reported crude steel production of 3.91 MT in Q1FY18, a growth of 1% compared to 3.87 MT over the corresponding
period in 2017.

Pharma Major Lupin has launched its Moxifloxacin Hydrochloride Ophthalmic solution USP, 0.5% (base) having received an approval
from the United States Food and Drug Administration (USFDA) earlier.

Granules India has received an approval to increase the present limit of FII / FPIs shareholding in the company to 49% of the total
paid-up equity share capital of the company. The board of directors at their meeting held on July 5, 2017, has approved for the
same.

Royal Enfield, the two-wheeler division of Eicher Motors has revised prices for its range of models following change in tax rates
under Goods and Service Tax (GST) system. Prices for the bikes in 350cc category have been decreased, while its higher CC models
have seen a price increase in the range of Rs 301 to Rs 2,717 in Chennai.

Tata Motors has decided to reduce prices of its passenger vehicles. The prices reduction ranges between Rs 3,300 to Rs 2,17,000
depending on the model and variant. The company expects GST to enhance the ease of doing business and usher in a new era for
the economy.

Reliance Industries’ (RIL) telecom arm - Reliance Jio Infocomm (Jio) is reportedly planning to launch its 4G VoLTE feature phone by
this month. The price of the phone could be as low as Rs 500.

Garware-Wall Ropes (GWRL) has entered into a Memorandum of Understanding (MoU) with Israel’s Aero-T showing intention to
combine their capability for manufacturing and supply of advanced aerostats for Indian Defence.

Exide Industries has reportedly increase motorcycle battery prices by 2-11% with effect from July 01, 2017.

Amara Raja Batteries has reportedly hiked motorcycle battery prices by 5 percent with effect from July 01, 2017.

In a bid to become a mass retail bank in five years, IDFC Bank is reportedly planning to accelerate the pace of retail lending and retail
liability acquisition. The bank is planning to double the share of its retail book, systematically bring down the proportion of the
corporate-funded book, and further reduce exposure to infrastructure over the next two to three years.

India’s biggest power producer, NTPC is reportedly planning to build three new plants with a combined capacity of more than 5
gigawatts (GW), nearly double the capacity of those currently being phased out.

HDFC Bank, one of the most prominent private sector lenders, has expanded its foreign exchange offering in Jammu & Kashmir. The
expanded range of offering, include foreign exchange in 20 currencies and Hajj Umrah ForexPlus card, aimed at meeting
requirements of customers as well as businesses.

Mahindra & Mahindra Financial Services (Mahindra Finance), one of the leading non-banking finance companies with customers
primarily in the rural and semi-urban markets of India, will be raising up to Rs 2,000 crore through NCDs. The public issue of the
NCDs will open on July 10 and closes on July 28, 2017.
LKP Advisory
Source: Reuters, ACE Equity & LKP Research
Morning Notes

ICICI Prudential Life Insurance Company is looking to acquire smaller rival Sahara India Life Insurance. The company has expressed its
interest to evaluate taking over policyholders’ liabilities and assets of Sahara Life. The company is evaluating the way forward on the
same. The last reported policyholders’ liabilities of Sahara Life is about Rs 9 billion, which is less than 1% of the company’s Balance
Sheet size.

Aditya Birla group firm Ultratech Cement has reduced prices of its products by 2-3 percent, extending benefits of tax reduction under
the Goods and Service Tax (GST) regime. The company has started supply of batches on new rates from July 1 from its warehouses,
when the new tax structure came into force.

SSK Lifestyles’ wholly owned subsidiary - Genesis IBRC has acquired 100% stake in ‘Genesis Biosciences IBKC’, a partnership firm
engaged in manufacturing and marketing of pro-biotic products for aquaculture and fisheries.

Bharat Earth Movers (BEML) has signed an agreement with the defence ministry for production of various weapons platforms for the
armed forces in 2017-18, setting a revenue target of Rs 3,000 crore for the year. The memorandum of understanding (MoU) outlines
targets on various performance parameters for the company during the year.

Overskud Multi Asset Management has sold 1.41 lakh shares of Octaware Technologies. The Asset Management Company has sold
the same at Rs 91.94 on the BSE on July 4, 2017. However, Sajankumar Rameshwarlal Bajaj has bought 1.41 lakh shares at Rs 92 on
the same day.

ABC Bearings has received an approval for merger of the company into Timken India through a Scheme of Amalgamation and
Arrangement amongst ABC Bearing, Timken India and their respective shareholders and creditors. The board of directors at its
meeting held on July 4, 2017 has approved for the same.

Wipro has entered into partnership with Ramot, the Business Engagement Center at Tel Aviv University (TAU), for joint research in
emerging technologies. The partnership envisages the creation of joint research capability at TAU, supported by Wipro to pursue
core as well as applied research in fast-developing technologies in the Artificial Intelligence (AI) space.

Yes Bank has inked a memorandum of understanding (MoU) with Santander UK plc to help boost UK- India trade and local business
networking opportunities.

Confidence Petroleum India has bagged orders worth Rs 361.96 core for supply of 30 lakh & odd LPG cylinders from Bharat
Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), and Indian Oil Corporation (IOCL). The order has been
awarded to the company and its subsidiaries with option of order for equivalent quantity next year.

Mahindra & Mahindra (M&M) has revised prices of its vehicles pursuant to the implementation of GST, with immediate effect. The
prices of vehicles for end-customers on large UVs and SUVs have been reduced by an average of 6.9%, while those that come under
small car segment have been reduced by an average of 1.4%.

NMDC has revised the prices of iron ore with effect from July 05, 2017. The prices of Lump Ore have been fixed at Rs 2,225 wet
metric tonnes (WMT), while the prices of Fines have been fixed at Rs 1,985 WMT. The above FOR prices are excluding Royalty, DMF,
NMET, Cess, Forest Permit Fee etc.
Economy

India’s June services PMI rises to eight-month high of 53.1
On the back of accelerated and solid upturn in new work orders, activity in India's dominant service sector rose to an eight-month
high in the month of June. The seasonally adjusted Nikkei Services Business Activity Index rose above the watershed ‘50’ mark for the
fifth month running in June, registering reading at 53.1 in June as against the previous month's 52.2. The Nikkei India Composite
PMI Output Index which measures both manufacturing and services also rose to an eight-month high of 52.7 in June from 52.5 in
May. As per the survey report, inflows of new business in services companies grew strongly in June due to improved demand
conditions and marketing efforts. Factory orders also increased, but at the weakest rate in four months. Furthermore, employment
across the services sector rose modestly but at a rate that equaled May’s near four-year peak, while manufacturing jobs increased
fractionally.
LKP Advisory
Source: Reuters, ACE Equity & LKP Research
Morning Notes
On the inflation front, the survey highlighted that inflationary pressures gathered speed in June month, with both input costs and
output charges rising at quicker rates. Average cost burdens at services firms accelerated to a 3-month high, driven by higher prices
of food and fuel and purchase costs at manufacturers rose at the slowest rate since last August. Going forward the output is
expected by services firms to remain on an upward trajectory in the coming 12 months, on the back of better market conditions, the
introduction of the goods & services tax and promotional activities.

Fertiliser prices to come down marginally due to lower tax rate: ICRA

With Goods and Services Tax (GST) rate being lower than 6% levy prevailing in a majority of the states, domestic credit rating agency,
ICRA in its latest report has said that retail prices of fertiliser will come down marginally, which would in turn benefit the farmers.
Nevertheless, it also said that a few states such as Haryana, Punjab and Andhra Pradesh, where fertiliser sales were exempt from
value-added tax (VAT) and attract only 1% excise duty, will face increased tax incidence of 5% and thus prices will see upward
movement in these states.
The rating agency said that the government has paid attention to the industry and farmer demand to reduce the GST on fertilisers to
5% from 12%, which is positive for the farming community. It noted that the earlier 12% tax rate would have led to an increase in
fertiliser prices by 6-10% and could have impacted the demand. Though, it said that the new rate of 5% will result in a marginal
reduction in retail prices of fertilisers. Besides, ICRA expects that the move would reduce the cost of a 50 kg bag of urea by Rs 3.
However, it added that the decision is credit neutral for the industry as the working capital requirement would remain unchanged as
before.
According to the report, for DAP and NPK manufacturers there is no relief as the tax on the key raw materials, that is phosphoric acid
and ammonia, has been retained at 18%, giving rise to an inverted duty structure, where the final output (DAP or NPK) fertilisers are
taxed at 5%, while raw material is taxed at 18%. As a result, it noted that the competitiveness of domestic manufacturers against
importers will erode. It pointed out that a timely refund of excess input tax credit by the government will be the key to the liquidity
position of both domestic manufacturers and importers of P&K fertilisers.

India’s gems & jewellery exports increase by 11.13% during April-May 2017
Driven by demand in major markets like the US, the current financial year has begun well for the country’s gems and jewellery
sector, as exports increased by 11.13 per cent to $6.78 billion during first two months (April-May) of the financial year 2017,
compared to $6.1 billion exports from the sector in April-May period of the last financial year.
As per the data from Gems & Jewellery Export Promotion Council (GJEPC), the rise in demand for silver jewellery and gold
medallions & coins among other items led to rise in the shipments. In the reported period, silver jewellery exports surged by 125 per
cent to $1.51 billion from $0.67 billion, while gold medallions & coins exports grew by 49.95 per cent to $1 billion from $0.67 billion.
Besides, the exports of rough diamonds went up by 15.31 per cent to $0.25 billion. Similarly, shipments of cut & polished diamonds
and coloured gem stones registered a growth of 1.09 percent and 1.47 per cent respectively. However, the gold jewellery exports
declined by 35.59 per cent to $0.54 billion during April-May 2017, while imports of rough diamonds rose by about 6 per cent to
$3.60 billion in April-May 2017.

Govt monitoring price, supply of goods to ensure no disruptions post GST: Adhia
With the implementation of the landmark Goods and Services Tax (GST), Revenue Secretary Hasmukh Adhia has said that the
government is keeping a close watch on price and supply of goods, particularly essential and daily-use commodities in order to
ensure there are no disruptions post introduction of the new tax regime.
Adhia has stated that there have been no reports of any disruptions post GST implementation and a central monitoring committee,
comprising of 15 top secretaries of the government, will meet every Tuesday to review the situation. In addition, he said that as many
as 175 officers of joint secretary and additional secretary have been given charge of 4-5 districts each to monitor the GST
implementation. Talking on the issue of registration for GST, he noted that about two lakh new registrations have been done on GST
Network and of these, 39,000 have already been approved.
LKP Advisory
Source: Reuters, ACE Equity & LKP Research
Morning Notes
Clearing misconception regarding the national sales tax, Revenue Secretary has explained that small traders need not issue bills as
they are covered under a composition scheme that requires them to pay a fixed tax. He noted that bigger businesses with a turnover
above Rs 75 lakh are required to issue bills with break-up of GST but not necessarily a computer generated receipts. He added that
these can also be hand-written receipts with a proper invoice number that can be added and filed in returns. For clearing unsold preGST goods, he said that the government has allowed companies to use additional stickers for indicating revised price of a commodity
for three months. He explained that a revision in the rate of a pre-packaged commodity post GST implementation has to be intimated
through advertisement in at least two newspapers and thereafter additional stickers over and above the MRP can be used. Besides,
he said that toll, mandi charges and fee on vehicle entry into states are not subsumed in the GST and will continue to be charged by
local bodies or state governments.

GST to boost India’s GDP growth in long-term but poses short-term risks: Fitch
Global ratings agency, Fitch ratings in its latest report has said that the newly launched one nation one tax, namely Goods and
Services Tax (GST) is likely to remove domestic trade barriers and will boost revenue indirectly over the long term as it supports Gross
Domestic Product (GDP) growth and encourages tax compliance. But it also said that it poses significant short-term risks, emphasised
by the late changes to the bill and the disruptive roll-out of demonetization. Fitch has said that the landmark tax reform that came
into effect from July 1, 2017, is relatively complex, including multiple tax rates for different goods - ranging from 0-28%, or higher
where ‘sin taxes’ are applied - and requires frequent filing in all states in which a company operate. The ratings agency however said
that it is ‘far simpler’ than the previous system, under which each state set its own sales taxes - in addition to the central government and imposed border taxes on goods entering the state.
The US-based credit rating agency also said that the unified national system should offer significant opportunities for productivity
and added that it will become much quicker and less costly to move goods across the country now that trucks will not be held up at
checkpoints at state borders. It added that smoother logistics should reduce retailers’ need for working capital and allow them to
operate centralised warehouses, rather than in every state. Supply chains could extend, encouraging specialisation, now that there is
less incentive to source goods within state border. Tax filing may also become less time-consuming as a result of the new electronic
system. Large companies will now have an incentive to pressure smaller suppliers into compliance.
.
LKP Advisory
Source: Reuters, ACE Equity & LKP Research
Tech View
CNX Nifty
Technical View
Nifty Spot (9637.60) Nifty Spot took support of 9605 (low 9607) and bounced back smartly towards 9654 ( high 9643). Nifty is trading
in a small range after start of week rally with a positive bias. Has to clear 9654 for a strong move on the upside. Support now placed at
9605-9592-9580. Also as had indicated Monday open 9587 will be important and Nifty spot till sustains above it will remain bullish. On
the higher side clears will see 9666-9678-9690.
Banking stock performed mix and on the upside banknifty hurdle 23409-23447-23486-23524-23563 and support 23333-23219
LKP Advisory
Tech View
PIVOT POINTS
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
CGPOWER
83
87
85
83
81
79
1,594
1,626
1,605
1,589
1,572
1,551
CIPLA
546
554
549
545
541
536
ADANIENT
135
139
137
135
132
130
COALINDIA
248
251
249
248
246
244
ADANIPORTS
373
377
375
373
371
369
COLPAL
1,114
1,134
1,124
1,116
1,108
1,098
ADANIPOWER
29
30
29
29
28
28
CONCOR
1,166
1,195
1,180
1,167
1,155
1,139
AJANTPHARM
1,538
1,560
1,546
1,535
1,523
1,509
CUMMINSIND
914
934
923
915
906
895
67
69
68
67
66
65
DABUR
298
304
300
296
293
288
AMARAJABAT
848
878
864
852
841
827
DALMIABHA
2,609
2,690
2,648
2,615
2,581
2,539
AMBUJACEM
253
260
256
252
248
244
DCBBANK
194
198
196
194
193
191
55
57
55
54
54
52
DHFL
436
443
439
436
433
429
1,275
1,299
1,285
1,273
1,262
1,247
81
83
82
81
81
80
APOLLOTYRE
255
264
259
254
250
245
DIVISLAB
653
675
664
654
645
633
ARVIND
368
375
371
368
364
360
DLF
197
201
199
197
195
192
ABIRLANUVO
ACC
ALBK
ANDHRABANK
APOLLOHOSP
ASHOKLEY
DISHTV
102
105
103
101
99
97
2,665
2,717
2,681
2,652
2,622
2,586
1,127
1,160
1,140
1,123
1,107
1,087
EICHERMOT
28,067
28,497
28,211
27,980
27,749
27,463
AUROPHARMA
678
699
687
678
668
656
ENGINERSIN
157
161
158
156
154
152
AXISBANK
514
523
517
512
508
502
EQUITAS
159
169
162
156
150
143
BAJAJ-AUTO
2,771
2,815
2,790
2,769
2,748
2,723
ESCORTS
668
689
677
668
658
647
BAJFINANCE
ASIANPAINT
DRREDDY
1,399
1,443
1,415
1,392
1,369
1,341
EXIDEIND
228
234
231
228
225
221
BANKBARODA
161
166
163
161
158
155
FEDERALBNK
115
119
116
114
112
109
BANKINDIA
138
141
139
138
136
134
GAIL
363
373
368
364
360
355
BATAINDIA
570
588
580
573
566
557
GLENMARK
657
677
663
652
641
627
BEL
170
178
172
167
163
157
GMRINFRA
19
20
19
19
18
18
1,566
1,651
1,598
1,555
1,512
1,459
GODREJCP
982
1,011
996
984
972
956
741
773
752
734
717
696
GODREJIND
659
674
665
659
652
644
1,111
1,139
1,122
1,108
1,095
1,078
GRANULES
144
150
146
142
139
134
BHARTIARTL
376
383
379
376
373
369
GRASIM
1,287
1,331
1,302
1,279
1,256
1,227
BHEL
134
136
135
134
133
132
HAVELLS
472
487
476
468
460
450
BIOCON
340
348
343
338
333
327
HCLTECH
838
846
842
838
834
830
23,723
24,175
23,900
23,678
23,455
23,181
HDFC
1,629
1,655
1,641
1,630
1,619
1,606
662
671
665
661
656
651
HDFCBANK
1,649
1,671
1,660
1,651
1,642
1,631
BRITANNIA
3,733
3,814
3,773
3,739
3,706
3,665
86
89
87
86
85
83
CADILAHC
517
535
524
516
507
497
3,710
3,737
3,721
3,708
3,695
3,679
HEXAWARE
240
248
244
241
238
235
BEML
BHARATFIN
BHARATFORG
BOSCHLTD
BPCL
HDIL
HEROMOTOCO
CANBK
332
339
335
332
329
326
HINDALCO
199
202
200
199
197
195
CAPF
697
718
704
693
682
668
HINDPETRO
517
530
521
514
508
499
CASTROLIND
400
405
402
400
398
396
HINDUNILVR
1,097
1,114
1,102
1,092
1,082
1,070
CEATLTD
1,866
1,902
1,881
1,864
1,848
1,827
HINDZINC
270
276
272
269
266
262
CENTURYTEX
1,128
1,148
1,137
1,129
1,120
1,109
IBREALEST
210
228
216
205
195
182
875
885
879
875
870
864
1,061
1,087
1,070
1,057
1,044
1,027
CESC
LKP Advisory
IBULHSGFIN
Tech View
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
ICICIBANK
293
299
295
292
288
284
MRF
ICIL
166
170
167
165
162
160
MUTHOOTFIN
70,607
71,852
71,194
70,663
70,131
69,473
451
467
459
452
446
438
IDBI
56
59
57
55
53
51
NCC
91
93
91
90
89
88
IDEA
84
85
84
84
83
82
NHPC
31
32
32
31
31
30
IDFC
60
67
62
59
55
50
NIITTECH
568
577
571
567
562
556
IDFCBANK
62
72
66
IFCI
26
27
26
61
56
50
NMDC
111
113
112
111
110
109
26
25
24
NTPC
159
162
160
159
158
156
IGL
1,072
1,096
1,082
1,071
1,059
1,045
OFSS
3,619
3,687
3,640
3,602
3,565
3,518
INDIACEM
206
211
208
205
202
198
OIL
267
272
269
266
264
261
INDIANB
280
290
285
282
278
273
ONGC
163
167
164
162
160
157
INDIGO
1,216
1,265
1,233
1,207
1,181
1,149
ORIENTBANK
INDUSINDBK
1,516
1,541
1,525
1,512
1,499
1,483
PAGEIND
INFIBEAM
1,133
1,177
1,154
1,136
1,118
1,096
PCJEWELLER
INFRATEL
403
413
407
402
397
391
PEL
INFY
951
971
960
952
943
933
IOC
386
394
389
384
380
IRB
213
216
215
213
212
ITC
331
344
338
333
JETAIRWAYS
582
597
587
JINDALSTEL
131
138
JISLJALEQS
107
JPASSOCIAT
21
JSWENERGY
142
146
143
141
139
136
17,782
18,478
18,077
17,752
17,428
17,027
502
519
510
502
494
485
2,820
2,873
2,844
2,821
2,798
2,769
PETRONET
215
219
217
215
213
211
375
PFC
124
127
125
123
122
120
211
PIDILITIND
828
845
834
826
818
808
328
323
PNB
137
140
138
136
135
133
579
571
561
POWERGRID
210
213
212
210
209
208
133
129
125
120
PTC
101
108
103
99
95
90
114
109
105
101
96
PVR
1,407
1,455
1,432
1,414
1,395
1,373
24
22
21
19
18
RCOM
22
24
22
21
20
19
68
72
69
67
66
63
RDEL
61
62
62
61
60
60
212
218
214
211
208
204
RECLTD
172
176
174
172
170
168
1,049
1,085
1,063
1,045
1,027
1,005
RELCAPITAL
663
681
669
659
648
636
JUSTDIAL
366
375
370
365
361
355
RELIANCE
1,443
1,470
1,453
1,438
1,424
1,406
KOTAKBANK
960
972
965
959
953
946
RELINFRA
507
519
511
505
499
491
KPIT
129
137
132
128
123
118
RPOWER
42
44
43
42
42
41
KSCL
650
666
657
649
642
633
SAIL
60
62
60
59
58
57
KTKBANK
167
172
168
166
163
160
SBIN
275
279
276
274
272
270
L&TFH
149
152
150
149
148
146
SHREECEM
17,958
18,460
18,115
17,836
17,558
17,213
LICHSGFIN
753
763
756
751
746
739
SIEMENS
1,355
1,379
1,363
1,351
1,338
1,323
LT
1,695
1,718
1,703
1,691
1,680
1,665
SINTEX
26
27
26
26
25
25
LUPIN
1,084
1,155
1,109
1,072
1,035
989
SOUTHBANK
28
28
28
28
27
27
M&M
1,385
1,427
1,402
1,381
1,360
1,334
SRF
1,565
1,602
1,579
1,560
1,542
1,519
360
367
362
358
354
349
SRTRANSFIN
1,096
1,152
1,114
1,083
1,051
1,013
JSWSTEEL
JUBLFOOD
M&MFIN
MARICO
326
334
328
324
320
315
STAR
977
1,003
990
979
969
955
MARUTI
7,378
7,454
7,406
7,368
7,330
7,282
SUNPHARMA
551
570
561
553
546
537
MCDOWELL-N
2,595
2,673
2,621
2,578
2,536
2,483
SUNTV
825
838
830
823
816
808
MFSL
597
650
625
605
586
561
SUZLON
19
19
19
19
18
18
MINDTREE
542
556
547
541
534
526
SYNDIBANK
75
77
75
74
73
71
MOTHERSUMI
305
313
309
305
302
297
TATACHEM
644
671
653
638
623
604
LKP Advisory
Tech View
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
TATACOMM
677
719
699
683
667
647
TATAELXSI
1,695
1,739
1,713
1,691
1,670
1,644
TATAGLOBAL
156
164
159
154
150
145
TATAMOTORS
432
440
435
431
427
422
TATAMTRDVR
265
271
268
265
262
259
TATAPOWER
82
83
82
82
81
81
TATASTEEL
550
561
554
549
544
537
2,356
2,383
2,368
2,355
2,343
2,328
TECHM
377
385
381
378
375
371
TITAN
532
548
540
534
528
520
TORNTPHARM
1,273
1,329
1,296
1,270
1,244
1,212
TORNTPOWER
190
197
193
188
184
180
38
39
38
38
37
36
TVSMOTOR
547
559
553
547
542
536
UBL
806
851
828
809
791
768
UJJIVAN
326
347
333
321
309
295
TCS
TV18BRDCST
ULTRACEMCO
4,088
4,184
4,123
4,074
4,024
3,963
UNIONBANK
149
153
151
149
147
144
UPL
854
867
859
852
846
837
VEDL
261
270
264
259
255
249
VOLTAS
476
496
483
472
461
448
WIPRO
258
264
261
258
256
253
WOCKPHARMA
596
616
603
593
583
570
1,506
1,532
1,515
1,501
1,487
1,470
500
513
504
497
489
481
YESBANK
ZEEL
LKP Advisory
Scrip Name
CMP
RB2
RB1
PP
SB1
SB2
DISCLAIMERS AND DISCLOSURES
LKP Sec. ltd. (CIN-U67120MH1994PLC080039, www. Lkpsec.com) and its affiliates are a full-fledged, brokerage and financing group. LKP was established in 1992
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LKP offers research services to clients. The analyst for this report certifies that all of the views expressed in this report accurately reflect his or her personal views
about the subject company or companies and its or their securities, and no part of his or her compensation was, is or will be, directly or indirectly related to specific
recommendations or views expressed in this report.
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Research Analyst or his/her relative’s financial interest in the subject company. (NO)
LKP or its associates may have financial interest in the subject company.
LKP or its associates and Research Analyst or his/her relative’s does not have any material conflict of interest in the subject company. The research Analyst or
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