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Morning Notes -


									                                                                       Morning Notes
                                                                                                                                                                                 LKP Advisory
                                                                                                                                                                                      Mar 12, 2014
Indices                          11-Mar      10-Mar           % Chg.    Major Indices                     11-Mar   10-Mar    % Chg.   FII's & DII's in equity                                Rs.Crs
S&P BSE SENSEX                   21,826      21,935           -0.49%    CAC 40 Index                       4,350    4,371    -0.48%   11-Mar                              Buy        Sell      Net
S&P CNX NIFTY                     6,512       6,537           -0.39%    DAX Index                          9,308    9,266     0.46%   FII' Investments                   4407       2935      1471
S&P BSE MID CAP                    6,703         6,723        -0.29%    Dow Jones Industrial Avera        16,351   16,419    -0.41%   DII's Investments                  1050       2382      -1332
S&P BSE SMALL CAP                  6,665         6,663        0.02%     FTSE 100 Index                     6,686    6,689    -0.06%   FII's contribution to the total turnover                 42%
                                                                        Nasdaq Composite Index             4,307    4,334    -0.63%   DII's contribution to the total turnover                 19%
BSE Sectoral Indices
S&P BSE REALTY                     1,424         1,393        2.24%     Major Asian Indices               11-Mar   10-Mar    % Chg.   FII's in Derivatives                                   Rs.Crs
S&P BSE POWER                      1,634         1,623        0.69%     Hang Seng                         22,270   22,265     0.02%   11-Mar             Index Fut Index Opt Stock Fut Stock Opt
S&P BSE IT                         9,303         9,290        0.14%     Nikkei 225                        15,224   15,120     0.69%   Net                       145       528        -588      -133
S&P BSE TECk                       5,105         5,106        -0.01%    Seoul Composite                    1,964    1,954     0.48%   OI                     14651      50750      33905      2620
S&P BSE FMCG                       6,568         6,586        -0.27%    SSE Composite Index (Sha           2,001    1,999     0.11%   Chg.OI                  4.6%       1.5%       1.1%     17.2%
S&P BSE PSU                       5,918       5,940           -0.37%    Taiwan Weighted                    8,702    8,665     0.43%   FIIs' contribution to the total Derivatives turnover     32%
S&P BSE BANKEX                   13,756      13,827           -0.51%
S&P BSE CONSUMER DU                6,095         6,128        -0.55%    Commodities (MCX)                 11-Mar   10-Mar    % Chg.   Futures (NSE)                    11-Mar     10-Mar     % Chg.
S&P BSE OIL & GAS                 9,125       9,178           -0.58%    Aluminium (31MAR2014)               106      107     -1.22%   USDINR 26-MAR-2014                61.18       61.08     0.16%
S&P BSE CAPITAL GOOD             11,458      11,532           -0.64%    Copper (30APR2014)                  403      414     -2.72%   EURINR26-MAR-2014                 84.65       84.72    -0.09%
S&P BSE AUTO                     12,704      12,786           -0.64%    Crude (19MAR2014)                  6,130    6,178    -0.78%   JPYINR 26-MAR-2014(100            59.29       59.15    0.24%
S&P BSE HEALTHCARE               10,096      10,197           -0.99%    Gold (5APR2014)                   30,228   30,123     0.35%   FTSE100 (21-MAR-2014)              6680       6733     -0.79%
S&P BSE METAL                     8,934       9,252           -3.44%    Silver (5MAY2014)                 45,860   45,973    -0.25%   S&P500 (21-MAR-2014)               1874       1879     -0.25%

               Company                 LTP          Chg        % Chg                     Company             LTP   Chg      % Chg
                                                                                                                                      Domestic Market View
               DLF                         178           7        3.9                    TATASTEEL           343    -21       -5.8    Markets to continue the negative trend with a
Top Gainers

                                                                          Top Losers
 CNX Nifty

                                                                          CNX Nifty

               TATAPOWER                    82           3        3.7                    HINDALCO            117     -5       -4.0
                                                                                                                                      soft start

               GRASIM                  2824              74       2.7                    SSLT                179     -5       -2.9    The Indian markets after five days of rally showed
               IDFC                        115           3        2.6                    GAIL                370    -11       -2.9    some profit booking and ended lower in last
                                                                                                                                      session. Today, the start of the crucial data heavy
               INDUSINDBK                  478       9.0          1.9                    MARUTI             1752    -49       -2.7
                                                                                                                                      day is likely to be soft and the markets will
                                                                                                                                      continue to remain under pressure tailing weak
               Company                 LTP          Chg        % Chg                     Company             LTP   Chg      % Chg
                                                                                                                                      global cues. The traders will be concerned with
               Reliance Infra              425           20       4.9                    Tata Steel          344    -20       -5.5    India’s merchandise exports falling for the first
Top Gainers

                                                                          Top Losers
 BSE 100

                                                                           BSE 100

               Tata Power                   82           3        4.1                    Crompton Greav      146     -7       -4.6    time in eight months and set to miss its export
               DLF                         178           7        3.9                    SAIL                 57     -3       -4.2
                                                                                                                                      target for the fiscal with exports moving into the
                                                                                                                                      negative zone in February 2014. Traders will also
               IDFC                        116           3        3.1                    Hindalco Inds       117    -4.5      -3.7
                                                                                                                                      be eyeing the December IIP and Consumer Price
               Mahindra & Mah Fin          281           8        2.7                    SSLT                178    -6.7      -3.6    Index (CPI) data, which will be released later in
                                                                                                                                      the day. While, the IIP is expected to remain
               Company                 LTP          Chg        % Chg                     Company             LTP   Chg      % Chg     subdued, CPI inflation may cool off month-on-
               Birla Corp                  255           19       8.1                    Wockhardt           441    -22       -4.7
                                                                                                                                      month basis. There will be some buzz in the
Top Gainers
BSE Midcap

                                                                          BSE Midcap
                                                                          Top Losers

                                                                                                                                      power companies using renewable energy, as the
               Kirloskar Oil Engines       179           11       6.4                    Crompton Greav      146     -7       -4.6
                                                                                                                                      Chairman of Planning Commission Montek Singh
               Engineers India             177           11       6.4                    Alembic Pharma      251    -12       -4.4
                                                                                                                                      Ahluwalia has stressed on lifting of the
               Gujarat Gas                 245           14       6.2                    Aurobindo Phar      488    -20       -4.0    restrictions on renewable energy. Aviation stocks
               Gujarat Pipavav              83           5        5.9                    Blue Dart          3220   -129       -3.9    too will be in action, as the low-cost carriers
                                                                                                                                      SpiceJet and IndiGo have kicked off yet another
               Company                 LTP          Chg        % Chg                     Company             LTP   Chg      % Chg
                                                                                                                                      round of price war in the sector.

               Dalmia Bharat               246           41      20.0                    STAR FERRO           21     -2       -9.7    The Asian markets have made mostly a negative
BSE Smallcap

                                                                          BSE Smallcap
 Top Gainers

                                                                           Top Losers

               GNRL                        113           16      17.1                    Steel Exchange       55     -6       -9.5
                                                                                                                                      start led by the Japanese index which is down by
                                                                                                                                      over two percent amid concern that China’s
               Aarti Inds                  124           16      14.7                    Sunflag Iron         19     -1       -5.8
                                                                                                                                      economy may be faltering.
               OCL India                   187           20      11.9                    Syncom Form-$         6      0       -5.2

               Rollatainers                163           15       9.9                    PTC India Fin        13     -1       -5.1
                                                                                                  LKP Advisory

Domestic Market Overview
Benchmarks snap five days gaining streak ahead of IIP and CPI data

Snapping five days gaining streak, Indian equity benchmarks ended Tuesday’s session in the red with cut of
around half a percentage point, as investors opted to book some profit ahead of IIP data for the month of
January to be announced on Wednesday, which is likely to extend its contraction of -0.6 per cent in December to
-1.10 per cent in January. Traders also awaited consumer price inflation numbers, which is expected to ease at
8.10 per cent in February, as compared to 8.79 per cent registered in the month of January.

Indian equity benchmarks failed to extend their initial gains and entered into red terrain after the economy
received a sudden jolt, as the country’s merchandise exports declined once again after a span of seven months.
Exports came down by 3.67% at $25.68 billion in February compared to $26.66 billion in the same month last
year significantly weakening chances of meeting the export target of $325 billion in the present fiscal. Though,
trade deficit for February narrowed to $8.13 billion compared to $9.92 billion recorded in January. It was $14.12
billion in the same period last year. Meanwhile, imports were at $33.81 billion compared to $36.49 billion month-
on-month. They were down 17% on a y-o-y basis. Oil imports for Feb were at $13.7 billion as against $14.13 y-

Markets continued reeling under pressure as Indian rupee, after hitting a seven-month high of 60.5925 earlier in
the session, fell marginally and was trading at 60.87/88 at the time of equity markets closing versus its previous
close of 60.85/86 after government sources said plans for inclusion in a global bond index have been put on
hold. Sentiments also remained dampened after shares of metal companies remained under pressure for
second day in a row after LMEX, a gauge of six metals traded on the London Metal Exchange (LME), hit seven-
month low on February 10, 2014, after latest data showed China's exports slumped in February 2014.

Global Market Overview
Asian markets conclude Tuesday’s trade in green

The Asian markets concluded Tuesday’s trade in green with Hong Kong closing flat, as an early rally fuelled by
bargain hunting fizzled out in the afternoon. China’s yuan and money market rates fell after exports shrank last
month, indicating the central bank may take measures to support trade and curb interest arbitrage. Japan’s
economy grew at a slower pace than initially thought in the last quarter of 2013, underscoring concerns about
the pace of recovery under Prime Minister Shinzo Abe’s policy blitz. The fresh figures will turn the focus onto
Bank of Japan policymakers as they start a two-day meeting, with speculation they could unveil further monetary
easing measures to counter a possible slowdown from a sales tax rise next month. The Bank of Japan board
has decided by a unanimous vote to leave the bank’s policy target unchanged while noting weaker exports and
slightly higher business investment and factory output. Japan’s Economy Watchers Current Index fell to a
seasonally adjusted 53.0, from 54.7 in the preceding month.

US markets fell in a light day of economic data release

The US markets ended lower on Tuesday, as investors appeared to take a pause in a day light on economic
data releases and concern of faltering Chinese economy. On the economy front, US wholesale inventories rose
0.6% in January, while wholesale sales fell by 1.9%. At January’s sales pace, the inventory-to-sales ratio rose to
1.20 months from 1.18 in December. Inventories of durable goods rose 0.4% in January, and inventories of
nondurables increased by 0.8%. Small-business sentiment slumped in February, on concerns over sales, the
economy and employment driving the downturn. The National Federation of Independent Business stated that its
small-business index dropped 2.7 points to 91.4. Six components fell, one rose, and three were steady. The
index hasn’t been over 100 since 2006.

The Dow Jones Industrial Average lost 67.43 points or 0.41 percent, to 16,351.25, the Nasdaq Composite was
down by 27.26 points or 0.63 percent, to 4,307.19 while the S&P 500 dropped 9.54 points or 0.51 percent, to
close at 1,867.63.
                                                                                                                                                  LKP Advisory

                                                 Index Futures
(OI in '000 Shares)    Future        Chg                Spot        Chg       Prem /       Total Open Interest
                      11-Mar          (%)            11-Mar           (%)       Disc           11-Mar    Chg (%)
NIFTY                   6545        -0.34              6512        -0.39          33            21412            2.1
CNXIT                   9857        -0.02              9829        0.19           28                38           0.4
BANKNIFTY              12109        -0.35             12043        -0.54          66             2377        -1.5

                      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 /
                      11-Mar % Chg.                  11-Mar      % Del.       % Del.           Del Qty      (Rs.)       (Rs.)   Chg (%.)   Chg (%.)     Disc
ONGC                    8711         13%          4,643,110        75%          63%         1,058,864        323         321       1.0%       1.3%      -2.6
CESC                     846          9%            147,458        34%          22%            70,682        485         488       1.2%       1.4%       3.5
HINDUNILVR              6132          6%          1,424,158        69%          68%           231,095        560         564       0.6%       0.6%       3.8
HEXAWARE                8014          6%            938,238        24%          31%           540,705        158         158       2.6%       2.2%      -0.1
BANKINDIA              10970          5%          1,720,298        17%          15%           529,128        203         204       2.2%       2.3%       1.3
MRF                       38          5%              5,283        31%          24%             2,518      20786       20942       0.6%       1.4%    155.8
IBREALEST              22468          5%          2,260,114        18%          15%         1,217,169            55       55       0.4%       0.5%       0.4
COLPAL                   359          4%             32,363        63%          61%               810       1327        1337       0.7%       0.7%     10.0
BHARATFORG              2367          3%            890,969        50%          63%           154,054        391         394       1.1%       1.1%       2.5
APOLLOTYRE             18024          3%          2,863,402        34%          36%         1,342,542        130         131       2.2%       2.1%       0.7

                                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 /
                      11-Mar % Chg.                  11-Mar      % Del.       % Del.           Del Qty      (Rs.)       (Rs.)   Chg (%.)   Chg (%.)     Disc
GSKCONS                   10         15%             12,311        68%          65%               990       4096        4119      -2.7%      -2.8%     23.3
SUNPHARMA               7378         15%          2,713,187        72%          62%           929,634        580         584      -2.8%      -2.6%       3.8
TATASTEEL              17781         13%          4,536,050        41%          26%         3,055,480        344         345      -5.6%      -5.6%       1.0
AUROPHARMA             12342          8%            812,727        21%          18%           111,358        487         490      -4.0%      -3.8%       3.1
TATACHEM                1682          7%            187,545        28%          33%            47,205        286         288      -0.1%      -0.1%       2.2
APOLLOHOSP               211          6%            100,579        67%          64%             1,923        855         861      -2.0%      -1.9%       5.8
SSLT                   24184          4%          2,810,717        52%          48%           954,168        178         179      -3.3%      -3.5%       0.8
JPASSOCIAT             67328          4%         12,086,840        19%          13%         4,968,128            49       49      -2.3%      -2.3%       0.3
DIVISLAB                 710          4%            108,288        59%          52%             7,978       1374        1383      -0.1%      -0.1%       8.7
HINDZINC               12406          4%          1,367,566        70%          70%           365,848        117         118      -2.9%      -2.7%       0.5

                                    Open Interest Break-up
(Rs. in Cr.)                          11-Mar              10-Mar            Change in OI      % Chg
INDEX FUTURES                          17,067             16,888                    179          1.06
INDEX OPTIONS                          92,584             91,323                  1,261          1.38
TOTAL INDEX                          109,651             108,211                  1,440          1.33
STOCK FUTURES                          36,181             35,659                    522          1.47
STOCK OPTIONS                          12,062             10,970                  1,091          9.95
TOTAL STOCKS                           48,243             46,629                  1,614          3.46
GRAND TOTAL                          157,894             154,840                  3,054          1.97
FII's                                101,925              99,796                   2129          2.13
Others                                 55,969             55,044                    925          1.68
                                                                                                                                           LKP Advisory

Corporate News
  In a bid to repay its debt, realty major Unitech has sold almost 10 acres of land in Bangalore and Mysore for about Rs 100-130 crore. These land
  parcels were non-core assets for the company.

  Rajshree Sugars & Chemicals has reported the operational data of Unit-I, Unit-II and Unit-III of the company’s sugar factories for the month of
  February 2014. The company’s Unit-I located at Varadarajnagar in Theni district has crushed 50,158 MTs of cane in month of February compared
  to 66,849 MTs cane crushed in corresponding month previous year. The sugar production stood at 4,547 MTs compared to 7,723 MTs while sales
  stood at 2,610 MTs compared to 2,884 MTs in the same month previous year. The unit has produced 1,872 MTs of molasses in the month of
  February 2014 while consumption & sales stood at 2,663 MTs. It has generated 28.23 lakh units of power, captive consumption stood at 20.08 lakh
  units while export to grid stood at 8.15 lakh units.

  In order to rationalize operations, Nucleus Software Exports has closed down its step-down subsidiary by the name of VirStra i-Technology
  (Singapore) with effect from February 19, 2014. The name of the Company has been struck off and published in the final gazette notification issued
  by Accounting and Corporate Regulatory Authority, Singapore. Earlier, the company had incorporated a wholly owned subsidiary (WOS) named
  ‘Nucleus Software Australia’ on February 03, 2014. The company is incorporated with a view to tap the business potential in Australia Region.

  Industrial Development Bank of India (IDBI) has reportedly sold 17.36 lakh shares of S Kumars Nationwide through the open market route. The
  shares were sold on an average price of Rs 3.03 valuing the transaction to Rs 52.61 lakh.

  Ranbaxy Laboratories, India’s largest pharmaceutical company has recalled some batches of its generic version of cholesterol-lowering Lipitor
  drug in the United States after a dosage mix-up was detected. The company voluntarily recalled 64,626 bottles containing atorvastatin calcium
  tablets, the generic version of Pfizer Inc's cholesterol fighter Lipitor, after a pharmacist found a 20-milligram tablet in a sealed bottle marked for 10-
  milligram tablets.

  Mindtree, a global technology solutions company, will now be providing application support and evolutionary maintenance services to SITA, the
  world’s leading specialist in air transport communications and IT solutions, for its new Strategic Finance System (SFS) platform.

  NMDC has reported the details of Production/Despatches achieved of 11 months up to February, 2014 and prices of Iron Ore fixed for the month of
  March, 2013. The company has achieved production and despatches of iron ore of 26.42 million tonnes and 27.43 million tonnes respectively
  (Provisional) up to February 2014.

  Aurionpro, a leading provider of expert-level consulting services and software solutions and a Platinum-level member of Oracle PartnerNetwork
  (OPN) has achieved OPN Specialized status for Oracle Access Management Suite Plus 11g (OAM).

  Reliance Infrastructure’s arm Reliance Cement’s 2-million tonnes per annum (MTPA) plant in Rae Bareli has become operational. In this regard,
  the company has spend around Rs 500 crore in the Rae Bareli plant, which would also consume about 6,00,000 tonnes of fly ash annually.

  Hinduja Group's flagship company, Ashok Leyland, has begun exporting its multi-utility vehicle (MUV) STiLE. The first export destination is Africa,
  as the company wants to increase its footprint in the African market, which will be done gradually.

  Tata Teleservices (Maharashtra) (TTML) has reported the subscriber figures as on February 28, 2014. The company’s total subscribers stood at
  10,516,868 of which Wireline contributes 773,111, FWT 743,972 and Mobile 8,999,785 subscribers.

  Reserve Bank of India (RBI) has increased foreign institutional investors' (FIIs) investment limit in Manappuram Finance to 49% of its paid-up
  capital. RBI has notified that FIIs, through primary market and stock exchanges, can now purchase up to 49% of the paid up capital of
  Manappuram Finance under the Portfolio Investment Scheme. The company has passed resolutions at the board of directors' level and a special
  resolution by the shareholders, agreeing to enhance the limit for the purchase of its equity shares and convertible debentures by FIIs.

  Steel Authority of India (SAIL) has hiked flat product prices by 500-750 per tonne for the month of March. The company has also raised long
  product prices by 500-1000 per tonne for March.
                                                                                                                                        LKP Advisory
  Indian Oil Corporation (IOC) is planning to invest Rs 3,150 crore for setting up a polypropylene unit in the Petroleum, Chemicals and
  Petrochemical Investment Region (PCPIR) proposed at Paradip. The plant is likely to be commissioned by 2017. The polypropylene unit coming up
  at the petrochemical complex will be of 0.7 million tonne per annum capacity. IOC is the anchor tenant for the PCPIR project that is expected to pull
  investments worth Rs 2.74 lakh crore.

  Bannari Amman Spinning Mills’ wholly owned subsidiary - Abirami Amman Mills has inked Memorandum of Understanding (MoU) with
  Tamilnadu Government for setting up of a Textile Project near Dindigul, Tamilnadu.

  Essar Steel has prepaid Rs 205 crore of loans taken from Axis Bank. The company has prepaid the same by issuing secured redeemable non-
  convertible debentures (NCDs) of Rs 10 lakh each aggregating Rs 205 crore to the private sector lender.

  HCL Technologies has entered into an agreement with UK-based government firm Student Loans Company (SLC) to offer lending and payments
  services. The company’s subsidiary -- HCL Great Britain -- will work with financial advisory services firm Deloitte and banking and management
  solutions provider Misys to provide an automated, secure and streamlined customer experience across multiple channels, including digital.

  Accentia Technologies has received an approval for the south Asia business plan for its innovative Nirbhaya phones. The board of directors at its
  meeting held on March 10, 2014 has approved for the same. Nirbhaya phones is the Safest GSM/GPS based Communication devices developed
  specifically for the weaker and vulnerable members of the society in India.

  Apollo Hospitals Enterprise is planning to add a cancer care unit to its upcoming Navi Mumbai facility, the project which is under development.
  The company will invest around Rs 87 crore for the cancer care unit.

  Idea Cellular has entered into a partnership with Gameloft, a global publisher of digital and social games. As per the partnership, Gameloft will
  offer quality gaming to more than 130 million subscribers of the country’s third largest telecom operator. Gameloft has popular franchises like
  Asphalt, Modern Combat and Real Football under its portfolio. This tie up will enable Idea subscribers to avail games from the Gameloft Game
  Store and also through Idea’s mobile portal.

  Prime Focus Technologies (PFT), the technology subsidiary of Prime Focus, has signed a definitive agreement to acquire DAX, a leading
  provider of cloud-based production workflow and media asset management applications to the entertainment industry for a base consideration of
  $9.1 million amounting Rs 56 crore in a uniquely structured performance linked transaction.

  Petron Engineering Construction has received Letter of Award (LoA) for Civil Contract at Nagpur Cement Works, Village Tarsa, Tehsil Mauda,
  Nagpur district in state of Maharashtra from UltraTech Cement, Nagpur Cement Works unit for a total contract value of Rs 54.70 crore plus service

  Andhra Petrochemicals has commenced the production from its plant situated at Visakhapatnam with effect from March 09, 2014. The plant was
  shut-down with effect from November 17, 2013 due to non-supply of major raw material Propylene from its supplier Hindustan Petroleum
  Corporation (HPCL).

  Ujaas Energy has received an approval for incorporating / establishing wholly / partially owned foreign subsidiaries at different countries outside
  India. The board of directors at its meeting held on March 10, 2014, has approved for the same.

  Shipping Corporation of India (SCI) has sold its ship - 70T. Bollard Pull, Anchor Handling, Towing & Supply Vessel (AHTSV) OSV ‘SCI-02’ and
  delivered to its buyer on March 07, 2014.

  Feb trade deficit narrows; records its steepest fall since September 2013

  India's trade deficit recorded its steepest fall since September 2013 in the month of February to $8.13 billion from $14.12 billion in the year ago
  period and $9.92 in January, led by sharp decline in imports, especially oil and non-oil imports. Signaling that government's efforts at containing
  deficit had started reaping benefits, country’s import slid by a steep 17% on Year-on-Year (Y-o-Y) basis. While oil imports were down to $13.7
  billion from $14.13 billion in February 2013, non-oil imports too showed a decline of 24.5% to $20.12 billion from $26.65 billion (Y-o-Y) basis.
                                                                                                                                      LKP Advisory
However, in a jolt to the economy, exports declined once again after a span of seven months. Exports came down by 3.67% at $25.68 billion in
February compared to $26.66 billion in the same month last year, thereby casting doubts over chances of achieving export target of $325 billion for
the present fiscal.

According to data released by the ministry of commerce and industry, cumulative value of exports for the period April-February 2013 -14 grew by
4.79% at $282.78 billion as against $269.86 billion. On the flip side, cumulatively imports during that period slid by 8.65% at $449.79 billion as
against $410.86 billion in the same period last year. Consequently, trade deficit for Apr-Feb period narrowed down to $128.08 billion from $179.93
billion (Y-o-Y), thereby making government's current account deficit target of sub $50 billion by March 2014 more achievable.

India planning to build nearly 200 low-cost airports in next 20 years

The government is planning to build nearly 200 low-cost airports in the next 20 years to expand connectivity to Tier-II and Tier-III cities. Joint
Secretary of Civil Aviation G Ashok Kumar has asserted that the idea to expand low cost airports to meet the demand for air travel.

G Ashok Kumar further added that non-metro airports presently account for only about 30% of the total air traffic, which is expected to increase to
45% in the next few years. Referring to current issues to Indian aviation industry, Joint Secretary asserted that the industry is facing multiple
challenges including high Aviation Turbine Fuel (ATF) costs, VAT, high landing and other operational costs and falling tariffs. The state
governments are not reducing the Value Added Tax (VAT) and other rates on ATF, he added. Ashok Kumar also announced the fourth edition of
the international exhibition and conference on Civil Aviation-India Aviation 2014. The five-day event, with the theme of enhancing air connectivity of
India, will held on March 12, jointly organised by the Ministry of Civil Aviation, Government of India and the Federation of Indian Chambers of
Commerce and Industry.

Car sales up by 1.39 percent in February driven by excise cut

Showing a positive trend after a few months of contraction, domestic passenger cars sales increased by 1.39 percent to 1.60 lakh units in the
month of February as compared to 1.58 lakh units in the corresponding month last year fuelled by a cut in excise duty.

Total two-wheelers sales also went up by 9.69 percent to 12.20 lakh units in February’2014 against 11.12 lakh units in February 2013. In two
wheelers segment, scooter sales were up by 28 percent to 3.11 lakh units in February against 2.43 lakh units in the same month of last year, while,
motorcycles sales rose 5.39 percent to 8.43 lakh units in reported month from 8 lakh a year ago. However, commercial vehicles segment is still in
negative zone with sales declined by 30 per cent to 47,982 units in the month compared with 68,388 units in February 2013. Three-wheelers sales
were also down 14 percent in February on year-on-year basis.

India to ask US to ease restrictions on exporting gas to non-FTA countries

In order to meet the rising energy needs of the country and to import oil and gas from the US, India is going to ask the US to ease restrictions on
exporting gas to non-FTA countries. At present, India does not have an FTA (free trade agreement) with the US. On the other hand, the gas-
surplus US has allowed conditional export of liquefied natural gas (LNG) from five of its projects to nations with which the US does not have a free
trade agreement, so-called ‘non-FTA’ countries.

India would discuss the issue of LNG exports to non-FTA nations at the Indo-US Energy Dialogue. The US can use five terminals such as Sabine
Pass, Freeport, Lake Charles Exports, Dominion Cove Point LNG and Cameron LNG LLC terminal in Louisiana to export LNG to non-FTA
countries. Indian companies led by state-owned GAIL have already signed agreements with the US firms to buy as much as 3.5 million tonnes a
year of LNG.

India Ratings maintains stable outlook on consolidated finance of state govts

India Ratings and Research has maintained a stable outlook on the consolidated finances of Indian state administrations, which the agency feels
would remain resilient against the backdrop of current economic downturn, despite a marginal increase in the combined deficits of states. The
agency estimates consolidated fiscal deficit of states to increase to 2.3 per cent of GDP in FY14 as against the budget estimate of 2.2 per cent.
However, this is not expected to affect their consolidated credit profile.
                                                                                                                                                                           LKP Advisory
      Further, the rating agency also has a stable outlook in its rated state-government guaranteed debt programmes and is likely to affirm all other state
      government guaranteed debt programmes ratings in FY15. However, the ratings on the Andhra government guaranteed debt programme have
      been put on rating watch following the bifurcation of the state.

      FDI in service sector plummets by 60% in first nine months of FY14

      Foreign direct investment (FDI) into the services sector, which includes banking, insurance, outsourcing, R&D, courier and technology testing and
      which contributes over 60% to India's GDP, declined by about 60% to $1.59 billion in the first nine months of this financial year. Total FDI worth
      $4.04 billion was received during April-December period of 2012 in the sector.

      With the drop in FDI in services, overall foreign inflows in the country slid by 3% to $22 billion during the nine-month period. Investments of $22.78
      billion were made in April-December 2012. Meanwhile, other sectors where inflows have declined include construction development, metallurgical
      industries and hotel and tourism.

      Uncertainty over which government would come to power from the coming financial year is mainly keeping foreign institutional investors (FIIs) on
      tenterhooks. Across the globe, foreign investors are eagerly waiting for elections and would take a final call once new government steps in.                                                                                  Source: Reuters, Ace Equity & LKP Research

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