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					                                                                    Morning Notes
                                                                                                                                                                              LKP Advisory
                                                                                                                                                                                  Nov 3, 2013
Indices                          1-Nov     31-Oct          % Chg.   Major Indices                     1-Nov    31-Oct    % Chg.   FII's & DII's in equity                                  Rs.Crs
S&P BSE SENSEX                   21,197    21,165          0.15%    CAC 40 Index                       4,273    4,300    -0.62%   01-Nov                              Buy        Sell         Net
S&P CNX NIFTY                     6,307     6,299          0.13%    DAX Index                          9,008    9,034    -0.29%   FII' Investments                   2573       2386          187
S&P BSE MID CAP                   6,177        6,107       1.15%    Dow Jones Industrial Ave          15,616   15,546     0.45%   DII's Investments                  1002       1425         -423
S&P BSE SMALL CAP                 5,940        5,896       0.74%    FTSE 100 Index                     6,735    6,731     0.05%   FII's contribution to the total turnover                   29%
                                                                    Nasdaq Composite Index             3,922    3,920     0.06%   DII's contribution to the total turnover                   14%
BSE Sectoral Indices
S&P BSE REALTY                    1,379        1,343       2.61%    Major Asian Indices               1-Nov    31-Oct    % Chg.   FII's in Derivatives                                     Rs.Crs
S&P BSE BANKEX                   13,276    13,087          1.45%    Hang Seng                         23,250   23,206     0.19%   01-Nov             Index Fut Index Opt Stock Fut       Stock Opt
S&P BSE METAL                     9,306        9,176       1.41%    Nikkei 225                        14,202   14,328    -0.88%   Net                       465       624         272          72
S&P BSE AUTO                     12,231    12,075          1.29%    Seoul Composite                    2,039    2,030     0.46%   OI                     16089     42377       27644          747
S&P BSE CAPITAL GOOD              9,265     9,152          1.23%    SSE Composite Index (Sh            2,150    2,142     0.37%   Chg.OI                  2.2%      9.9%        3.0%       255.9%
S&P BSE PSU                       5,863        5,804       1.02%    Taiwan Weighted                    8,388    8,450    -0.73%   FIIs' contribution to the total Derivatives turnover       33%
S&P BSE POWER                     1,609        1,604       0.28%
S&P BSE HEALTHCARE                9,633        9,609       0.25%    Commodities (MCX)                 1-Nov    31-Oct    % Chg.   Futures (NSE)                     1-Nov      31-Oct      % Chg.
S&P BSE TECk                      4,804        4,815       -0.23%   Aluminium                           113      113      0.00%   USDINR27NOV13                     62.17       61.82       0.57%
S&P BSE IT                        8,437        8,478       -0.48%   Copper (29NOV2013)                  453      453      0.00%   EURINR 27NOV13                    84.06       84.42      -0.43%
S&P BSE OIL & GAS                 8,891        8,936       -0.51%   Crude (20NOV2013)                  5,996    5,996     0.00%   JPYINR 227NOV13100 Yen)           63.24       62.95       0.46%
S&P BSE CONSUMER DU               6,261        6,307       -0.73%   Gold (5DEC2013)                   29,793   29,793     0.00%   FTSE100 (15-NOV-2013)              6750       6773       -0.34%
S&P BSE FMCG                      6,752        6,814       -0.92%   Silver (5DEC2013)                 48,431   48,431     0.00%   S&P500 (15-NOV-2013)               1756       1758       -0.11%

               Company                LTP        Chg       % Chg                    Company              LTP    Chg     % Chg

               IDFC                   113              7      6.5                   POWERGRID             98      -3      -3.4
Top Gainers

                                                                     Top Losers
 CNX Nifty

                                                                     CNX Nifty

               PNB                    571          26         4.8                   ONGC                 288      -6      -2.0

               BANKBARODA             672          30         4.6                   NTPC                 146      -3      -2.0

               SBIN                  1875          78         4.4                   ITC                  329    -6.2      -1.9

               M&M                    926          38         4.3                   INFY                3272   -37.9      -1.2

               Company                LTP        Chg       % Chg                    Company              LTP    Chg     % Chg

               HDIL                       47           4     10.1                   Glenmark Pharma      540     -22      -3.9
Top Gainers

                                                                     Top Losers
 BSE 100

                                                                      BSE 100

               Union Bank             134          11         8.8                   United Brew-$        892     -32      -3.5

               Power Finance          144          10         7.3                   Power Grid Corp       98      -3      -3.2

               IDFC                   113              7      6.6                   Idea Cellular        169      -4      -2.4

               Bank of India          222          12         5.5                   Godrej Cons          848   -20.5      -2.4

               Company                LTP        Chg       % Chg                    Company              LTP    Chg     % Chg

               Indian Bank                93       10        11.9                   Just Dial           1174     -69      -5.6
Top Gainers
BSE Midcap

                                                                     BSE Midcap
                                                                     Top Losers

               HDIL                       47           4     10.1                   Era Infra-$           36      -2      -4.9

               AIA Engineering        428          39        10.1                   Info Edge India      377     -16      -4.0

               Apollo Tyres               74           6      8.4                   Essar Ports           60      -2      -3.2

               Oriental Bank          194          13         7.4                   KPIT CUMMIN          142      -5      -3.2

               Company                LTP        Chg       % Chg                    Company              LTP    Chg     % Chg

               Polyplex Corp          157          25        19.1                   Goenka Diamond        15      -2      -9.9
BSE Smallcap

                                                                     BSE Smallcap
 Top Gainers

                                                                      Top Losers

               Sundram Fast               41           5     12.6                   Rollatainers          99      -8      -7.7

               GVK Power                   8           1     11.3                   Steel Exchange        61      -5      -7.3

               TV Today                   93           9     11.2                   REI Agro               6      0       -5.0

               KEC Intl                   40           4     10.1                   Empire Inds          502     -26      -5.0
                                                                                               LKP Advisory

Domestic Market Overview
Benchmarks make a flat closing after hitting all-time highs

Indian equity benchmarks ended the Friday’s session on flat note due to profit booking seen at higher
levels in late trades after the Sensex hit its all-time highs in intra-day trade. Sentiments remained up-beat
since beginning after core sector industries recorded 8 percent growth in September, highest in the past
11 months. The growth in the eight infrastructure industries was mainly due to expansion in crude oil, steel
and electricity production. Sentiments also got some boost after Department of Economic Affairs
Secretary Arvind Mayaram said that the government will meet the fiscal deficit target of 4.8 percent of
GDP for the current financial year.

However, investors booked some profit off the table after Indian manufacturing activity stuck to its
declining trajectory for third consecutive month in October as order books shrank at quicker space. The
HSBC Purchasing Managers’ Index (PMI), a headline index designed to measure the overall health of the
manufacturing sector, stood unchanged at September’s 49.6 points. Meanwhile the inflation based on
consumer price index for industrial workers (CPI-IW) in the month of September surged to 10.7 percent on
y-o-y basis as against 9.14 percent in same month last year and 10.75 percent for the previous month,
mainly owing to the rise in price of food items, fuel and electricity charges.

domestic benchmarks managed to hold green terrain as some support came in from report that foreign
direct investment (FDI) in India increased by about 35 percent to $13.6 billion during the first half of 2013
with merger and acquisitions accounting for the bulk of inflows. Meanwhile, buying in metal counter too
aided the sentiments. Stocks like Tata Steel, JSW Steel, Bhushan Steel, Hindalco, Hindustan Zinc etc.
edged higher as Chinese manufacturing gauge rose to an 18-month high in October. Meanwhile, public
sector banks such as State Bank of India, Punjab National Bank, Bank of Baroda, Bank of India, Union
Bank of India etc, remained on buyers’ radar for second day in a row on hopes of stabilizing asset quality
and valuations.

Global Market Overview
Asian markets conclude Friday’s trade on mixed note

The Asian markets concluded Friday’s trade on a mixed note despite an official gauge of Chinese factory
activity last month showed encouraging sign. Pressure is rising on China to show it can maintain a recent
stabilization of economic growth after a worrying slowdown in the first half of the year. South Korea’s
exports rose sharply in October due to a jump in overseas demand, after shrinking in the preceding
Wall St. ends higher after factory data; Dow, S&P up for week

U.S. stocks rose on Friday after surprisingly strong manufacturing data overshadowed expectations that
the Federal Reserve might reduce stimulus earlier than expected. The Dow Jones industrial average and
the S&P 500 rose for the week as well, their fourth straight week of gains.

Factory activity expanded around the world, several business surveys showed, with Chinese
manufacturers reporting the fastest upturn in 18 months. The Institute for Supply Management (ISM) said
on Friday its index of U.S. factory activity rose to 56.4 in October, its best reading since April 2011. While
the news underscored views that the Federal Reserve may be considering scaling back its stimulus
sooner than some market participants have been expecting, it also gave investors surprising evidence of
the manufacturing sector's strength.

The Dow Jones industrial average rose 69.80 points, or 0.45 percent, to end at 15,615.55. The Standard
& Poor's 500 Index gained 5.10 points, or 0.29 percent, to finish at 1,761.64. The Nasdaq
Composite Index added 2.34 points, or 0.06 percent, to close at 3,922.04.
                                                                                                                                                  LKP Advisory

                                                 Index Futures
(OI in '000 Shares)    Future        Chg                Spot           Chg      Prem /       Total Open Interest
                       1-Nov          (%)             1-Nov            (%)        Disc            1-Nov    Chg (%)
NIFTY                   6359         0.43              6307           0.13          60            24750        1.50
CNXIT                   8836        -0.36              8800           -0.60        -17                31       -4.6
BANKNIFTY              11731         1.70             11629           1.36       258.2             1765        -0.4

                      Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares)
Symbol                   Total OI               Del Qty Cash Market              Prev           Increase      Spot        Fut      Spot         Fut   Prem /
                       1-Nov % Chg.                   1-Nov       % Del.        % Del.           Del Qty      (Rs.)     (Rs.)   Chg (%.)   Chg (%.)     Disc
SUNTV                   1722         65%            730,179           52%         65%           489,959        431       433       2.5%       2.9%       2.3
PTC                     2412         35%          1,065,638           48%         51%           633,935            57     58       1.6%       1.5%       0.6
RELINFRA                4277         31%            644,713           16%         25%           119,287        454       458       5.1%       5.2%       4.6
TATAGLOBAL              8406         30%          2,136,852           51%         55%           343,889        168       170       2.3%       2.3%       1.9
APOLLOTYRE             19260         21%          8,224,051           54%         44%         6,462,199            74     75       8.4%       8.4%       0.9
HDIL                   24440         17%          5,145,736           22%         21%         3,125,603            47     47      10.2%      11.0%       0.1
DENABANK                8676         16%          4,469,604           19%         30%         1,325,044            57     58       6.4%       6.3%       0.6
AUROPHARMA             14058         16%          1,351,306           36%         24%           931,182        230       232       6.0%       6.0%       2.4
IBREALEST              13908         14%          2,468,658           26%         36%           630,179            66     67       5.2%       5.1%       0.7
ADANIPOWER             20952         13%          3,833,040           49%         51%            95,490            34     35       5.0%       5.1%       0.4

                                Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares)
Symbol                   Total OI               Del Qty Cash Market              Prev        Increase in      Spot        Fut      Spot         Fut   Prem /
                       1-Nov % Chg.                   1-Nov       % Del.        % Del.           Del Qty      (Rs.)     (Rs.)   Chg (%.)   Chg (%.)     Disc
UBL                      130         60%            158,441           33%         32%            43,413        893       903      -3.4%      -3.3%       9.6
POWERGRID              16234         15%          4,518,174           79%         65%         1,430,781            98     98      -3.4%      -2.2%       0.5
DABUR                   2128          7%            941,929           71%         65%           115,843        177       178      -1.0%      -0.6%       1.0
TECHM                   2403          6%            439,340           63%         49%           186,187       1526      1541      -1.6%      -1.6%     15.0
TITAN                   7736          2%          2,290,355           46%         33%           752,340        262       264      -2.1%      -1.6%       2.5

                                    Open Interest Break-up
(Rs. in Cr.)                          01-Nov               31-Oct             Change in OI      % Chg
INDEX FUTURES                          17,990             17,671                      320          1.81
INDEX OPTIONS                          64,679             57,678                    7,001        12.14
TOTAL INDEX                            82,669             75,349                    7,320          9.72
STOCK FUTURES                          29,641             28,230                    1,411          5.00
STOCK OPTIONS                           4,420                 2,844                 1,577        55.44
TOTAL STOCKS                           34,062             31,074                    2,988          9.61
GRAND TOTAL                          116,731             106,423                   10,308          9.69
FII's                                  86,857             81,356                     5501          6.76
Others                                 29,873             25,066                     4807         19.18
                                                                                                                                 LKP Advisory

Corporate News
  Sona Koyo Steering Systems, an auto component major has sold its entire holding of 4,929,636 numbers of equity shares of Euro 1 each
  of Fuji Autotech Europe S.A.S. at a total consideration of Euro 7.75 million to Fuji Kiko Europe S.A.S.

  Butterfly Gandhimathi Appliances is eyeing to achieve growth of 25% to 30% in its branded retail sales for Financial Year 2013-14. By
  the end of Q2 FY14, the company has already launched 50 new SKUs and is on track to bring a total of 70 to 75 new SKUs as planned for
  the Financial Year 2013-14. The company’s business in new markets is steadily improving.

  Good Luck Steel Tubes is coming up with a new green field manufacturing plant with the capacity to manufacture CDW/ERW precision
  tubes around 40,000 tonnes per annum. The company has taken this step on identifying the huge potential of CDW/ERW precision tubes
  in overseas and Indian market with the growing demand in oil & gas industry, infrastructure and automobile usages.

  Tata Motors' total sales (including exports) of Tata commercial and passenger vehicles in October 2013 were 51,638 vehicles. The
  company's domestic sales of Tata commercial and passenger vehicles for October 2013 were 46,926 units. Cumulative sales (including
  exports) for the company for the fiscal were 356,380 units.

  IL&FS Engineering and Construction Company has received a Letter of Award (LoA) from Neelkamal Realtor Tower (NRTPL) for
  construction of 'Orchid Heights', a high-rise residential project at Byculla in Mumbai. The total value of Shell & Core portion of the contract
  is Rs 675 crore, which is to be completed in 39 months. The timeline for committed scope of Finishing, and Mechanical, Electrical and
  Plumbing (MEP) work shall get decided during the course of execution which will further enhance the contract valu

  Mahindra & Mahindra’s (M&M) Farm Equipment Sector (FES), a part of the $16.2 billion Mahindra Group, has reported 29% growth in
  October 2013. Total tractor sales (domestic plus exports) in October 2013 stood at 38263 units, as against 29,565 units for the same
  month last year.

  Force Motors, a Pune-based commercial vehicle maker, has reported the production, sales and export of the products manufactured by
  the company during the month of October 2013. The company’s production of Small Commercial Vehicles (SCV), Light Commercial
  Vehicles (LCV), Utility Vehicles & Sports Utility Vehicles (UV & SUV) and Tractors stood at 290 units, 711 units, 968 units and 360 units

  Mahindra Two Wheelers (MTWL), a part of the USD 16.2 billion Mahindra Group, continued to grow its presence in the two wheeler
  segment during October 2013. The company reported record sales of 29,696 units during October 2013, a growth of 155%. Domestic
  volumes stood at 28,604 units, a growth of 157% over the previous year.

  Bharat Heavy Electricals (BHEL) has bagged a prestigious contract for supply of Steam Generator Package for two thermal units of 500
  MW each. The contract worth Rs 2,569 crore was bagged in the face of stiff International Competitive Bidding (ICB). The order has been
  placed on BHEL by Neyveli Lignite Corporation (NLC) for the upcoming 1,000 MW Thermal Power Project (TPP) in Neyveli. Significantly,
  these Steam Generators will be the highest rating Pulverised Lignite fired Steam-Generators in the country.

  Mahindra & Mahindra (M&M), India’s leading SUV manufacturer, has reported 5.39% fall in its auto sales numbers for October 2013,
  which stood at 50,558 units as against 53,439 units during October 2012.

  Hero MotoCorp, country’s largest two-wheeler maker, has registered 18.17% rise in its total sales at 6,25,420 units for October 2013 as
  compared to 5,29,215 units sold in the same month previous year.

  TVS Motor Company has registered 3.92% increase in total sales in October 2013 which stood at 1,97,905 units as against 1,90,438 units
  in the same month last year. The company’s total two-wheeler sales stood at 1,89,979 units in the month against 1,86,376 units in the
  year ago period, up 1.93%. Domestic two-wheeler sales surged 1.78% at 1,73,229 units in the month under review against 1,70,273 units
  in October 2012.

  Escorts, one of India's leading engineering conglomerates’ Agri Machinery Segment (EAM) sold 9,209 tractors in the domestic market, a
  growth of 25% against 7,371 tractors in October 2012. The total tractor sales including both the domestic sales and export in October 2013
                                                                                                                             LKP Advisory
stood at 9,307 units as against 7,475 tractors sold in the month of October 2012. Exports for the month of October 2013 stood at 98
tractors as that of 104 tractors in October 2012.

Maruti Suzuki India, country’s largest car maker, has registered jump of 1.9% in its total car sales (Domestic + Export) for the month of
October at 105087 units, as against 103108 units in October 2012. The company’s domestic sales also rose by 0.1% in October 2013 at
96062 units, as against 96002 units in corresponding month last year.

Atul has received permeation from Maharashtra Pollution Control Board (MPCB) to restart manufacturing activities at the Tarapur factory
of the Company. Earlier on October 22, 2013, the company had stopped the manufacturing activity at its Tarapur factory after MPCB
issued notice directing to stop manufacturing activities.

Atul Auto has registered 21.55% growth in its October 2013 sales. The company has sold 4,050 units in the month against 3,332 units
sold in October 2012. The total sales from April- October 2014 were 21,194 vehicles, a rise of 19.40% as compared to 17,751 vehicles sold
in the same period in 2012.

ITC is reportedly all set to foray into branded ready-to-drink juices business. In this regard, the company is close to acquiring Bangalore-
based Balan Natural Food’s B Natural brand to roll out packaged fruit juices under its foods category. The deal is in the final stages and
could be valued at Rs 100-200 crore.

Norges Bank has reportedly acquired 22.70 lakh shares or 1.16% stake in IL&FS Transportation Networks for about Rs 24.31 crore. The
shares were purchased on an average price of Rs 107 through the open market route.

Piramal Enterprises (formerly Piramal Healthcare) has acquired the over-the-counter (OTC) brand CALADRYL in India from Valeant
Pharmaceuticals International, Inc. The brand CALADRYL in India was owned by Valeant Pharmaceuticals International, Inc (Valeant). The
rights to this brand were acquired by Valeant from Johnson & Johnson in the year 2012. CALADRYL is an anti-pruritic solution known for
dermatosis application for minor skin irritations and itching.

Tata Motors has received the Reserve Bank of India’s (RBI’s) approval to increase Foreign Institutional Investor (FII) investment limit
through differential voting right shares up to 75%. However, the FII limit for ordinary shares of the company will remain unchanged at
35%. Under the scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India. The RBI
permission comes after the boards of companies approve hiking FII investment limit.

Vedanta group firm Cairn India has been ranked fastest growing energy firm in the world by energy and metals trade benchmarking
organization, Platts, ahead of Cnooc of China, Valero Energy of the US, PetroChina, Essar Energy and Russian Rosneft.

Sequent Scientific has received an approval for transfer of Veterinary Formulations Division along with all related assets and liabilities of
the company by way of slump sale to a wholly owned subsidiary (WOS) of the company. The board of directors at its meeting held on
October 30, 2013 has approved for the same.

State-owned Life Insurance Corporation (LIC) has trimmed its stake in Tata Global Beverages by 2.02%, selling 1.25 crore shares in the
open market between December 27, 2012 and October 29, 2013. Consequently, LIC’s stake in the company has reduced to 5.60% from
7.63% earlier

Jumbo Bag has declared a partial lockout at the company’s Unit I located at Thatchur Koot Road, Ponneri, Chennai with immediate effect.
The company expects that there will be minimal loss of sales and production as the company has diverted the production activities to its
other factory and various production agencies located around Ponneri.

Visa Steel has received an approval for acquisition of trading business of carbon products from VISA Resources India, on a going concern
basis at a consideration equal to the net book value of the assets and liabilities of the trading business and subject to the necessary
approvals as may be required. The board of directors at its meeting held on October 31, 2013 has approved for the same.

Indian Metals & Ferro Alloys’ operations at Mahagiri Chromite Mines has been stopped with effect from October 29, 2013 since
compliance of certain conditions imposed by Ministry of Environment & Forests (MoEF), Government of India could not be completed
                                                                                                                                    LKP Advisory
  within the stipulated time. The company is taking the necessary actions to comply with the same and it expects to resume mining
  operations soon.

  Religare Enterprises has received an in-principal approval to raise funds up to Rs 1,000 crore through further issue of capital. The board
  of directors at its meeting held on October 31, 2013 has approved for the same. The company will also be obtaining approval of
  shareholders through postal ballot in due course of time.

  HCL Technologies has received approval whereby the limit for purchase of the equity shares of the company under the Portfolio
  Investment Scheme, under Foreign Exchange Management Act 1999 by Foreign Institutional Investors (FII's) through primary market and
  stock exchanges is increased from 30% to 49% of the paid up equity share capital of the company. The said limit is increased with effect
  from October 31, 2013 as notified by the Reserve Bank of India (RBI).

  Bank of India has received an approval for raising of Tier-1 capital by issue of fresh equity shares to the Government of India (Promoters)
  aggregating Rs 1,000 crore including premium amount, on preferential basis, subject to necessary approvals. The board of directors at its
  meeting held on October 31, 2013 has approved for the same.


  Factory activity continues to contract in October

  Indian manufacturing activity stuck to its declining trajectory for third consecutive month in October as order books shrank at quicker space. The
  HSBC Purchasing Managers’ Index (PMI), a headline index designed to measure the overall health of the manufacturing sector, stood unchanged
  at September’s 49.6 points. Albeit marginal, successive deterioration of business conditions across India, indicate continued contraction in the
  sector as a reading above 50 indicates growth and below that depicts contraction. Slowdown in manufacturing sector activities and declined new
  business orders underscores the prolonged period of slowdown in Asia’s economy, despite mark up in overseas demand which prompted firms to
  hire more workers.

  The new orders sub-index fell to 48.9 in October as against 49.6 in September, remaining below watershed 50 for the fifth consecutive month.
  Order flows remained weak, despite a bounce-back in export orders. Encouragingly, export business expanded for the first time in three months
  during October on the back of weaker Rupee. However, the overall pace of growth was, however, moderate and weaker than the series average.

  FDI in India increases by 35% to $13.6 billion in January-July’ 2013

  Foreign direct investment (FDI) in India has surged by about 35 percent to $13.6 billion during the first half of 2013 with merger and
  acquisitions (M&A) accounting for the bulk of inflows. The United Nations Conference on Trade and Development (UNCTAD) report said
  that foreign investment through M&A registered a growth of 65.7 percent during the first half of 2013 to $1.8 billion as against $1.1 billion in
  January-June 2012. However, FDI in new projects has declined by 48.7 percent to $8.8 billion during the period.

  Increasing FDI inflows into the country reflect that the government’s measures to enhance foreign investment has have started yielding.
  FDI is considered crucial for economic development of a country and to attract maximum FDI into the country, the government has been
  liberalizing the foreign investment policy. The government has relaxed FDI norms in around 12 sectors which include telecom, tea, pension
  and petroleum and natural gas. India would require around $1 trillion in the 12th five year plan (2012-2017), to overhaul its infrastructure
  sector such as ports, airports and highways to boost growth.

  Retail inflation for industrial workers rises to 10.7% in September

  The inflation based on consumer price index for industrial workers (CPI-IW) in the month of September has surged to 10.7 percent on y-o-y
  basis as against 9.14 percent in same month last year and 10.75 percent for the previous month, mainly owing to the rise in price of food
  items, fuel and electricity charges.
                                                                                                                                                                           LKP Advisory
      The food inflation for industrial workers was stood at 13.36 percent as against 11.00 percent in same month of last year and 13.91 percent
      recorded in the August, 2013. The rise in food inflation was mainly due to the rise in prices of Arhar Dal, Goat Meat, Dairy Milk, Milk (Cow
      & Buffalo), Pure Ghee, Snack Saltish, Tea Leaves, Onion, Electricity Charges.

      More trouble brewing for Chidambaram; Fiscal Deficit touches 76% of full-year target

      The finance minister P Chidambaram has time and again reiterated that the government will adhere to the fiscal deficit target of Rs
      5,42,499 crore or 4.8% of the GDP (gross domestic product). However, the latest set of data fails to re-assure this, given that country’s
      fiscal deficit, difference between what a government earns and what it spends, stood at Rs 4,12,000 crore ($67.22 billion) during April-
      September, or 76% of the full-year target.

      This is tad higher than the 74.6% reached by August end 2013. A 67% jump in net tax receipts from the previous month helped rein in the
      deficit in September. While, net tax receipts touched Rs 3,08,000 crore in the first half of the current fiscal year to March 2014, the total
      expenditure stood at Rs 8,09,000 crore .

      Core sector springs up positive surprise; grows by 8% in Sept

      In a positive surprise, the core industries, which include coal, natural gas, refinery products and crude oil, with a weight of about 38% in the
      Index of Industrial Production (IIP), grew at a year high of 8% in September against 3.7% growth in the previous month, on account of good
      performance by crude oil, steel and electricity sectors. However, the recorded growth was comparatively lower than the growth of 8.3%
      registered in September, 2012.

      Out of eight industries, Electricity, which has weight of 10.32% in the index, grew by sharp 12.6% in September compared to 3.9% in
      September last year, Cement, registered growth of 11.5% against 13.3% in the same period last year. Meanwhile, growth in the Coal
      sector, stood at 12.5% during the reported month against 22.2% growth. On the flip side, contraction in output of natural gas continued this
      month as well and remained at 14.1% against contraction of 14.8% over September, 2012. Natural gas has been on contracting spree
      since December 2010. Petroleum refinery products slowed down to 8% in September over a high 34.9% growth in September 2012.                                                                                     Source: Reuters, Ace Equity & LKP Research

The information in this documents has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true and is for general guidance
only. While every effort is made to ensure the accuracy and completeness of information contained, the company makes no guarantee and assumes no liability for any errors or
omissions of the information. No one can use the information as the basis for any claim, demand or cause of action. LKP Securities Ltd., and affiliates, including the analyst who have
issued this report, may, on the date of this report, and from time to time, have long or short positions in, and buy or sell the securities of the companies mentioned herein or engage in
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