TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - NIFTY - The Equity benchmark Nifty opened in a Positive Note on Monday

up by 16 points or 0.18 per cent at 8709. Benchmark Nifty closed on a Positive note on last

week. The Nifty Index Retesting Long -Term trend line breakout around 8740 levels on

Weekly basis, Still Nifty trading below the Channle line Level of 8737 major Resistance on

Weekly Chart. The Number of Nifty Stocks come out with Their Results, The Market will

discount for as the market open for the market Next week. Nifty 50 closed at 8615 in the

October Series which was the same price at which the series started. The New series has some

major events like FOMC meet in the First week of November and US Presidential elections on

November 8. These events are expected to bring in volatility in all global markets including

India. Close above the 8800 on Weekly basis will push the Nifty to highs of 9000 above with

trend weakning one has to wait for the markets to give clear indication that bulls are still in the

market. The Crucial levels of Nifty for Next week is 8660-8680 Up side and 8580-8520 is

Down side.

BANK NIFTY : - The Bank Nifty opened in a Positive note on Monday Up by 53 points or 0.26

per cent at 19763. Some correction might be seen in Bank Nifty as it is Unable to cross 19800

Resistance Since last four trading sessions. Last week the Bank Nifty was the Performer of the

week Recovering from the lows of 18900 to 19700 odd levels. Banking Stocks in Particular

are big performers in recent week’s With ICICI Bank going up 18 per cent in last few trading

Sessions. Despite lackluster Fundamentals, banking sector stocks have performed poorly from

early September till mid October because of corrective downtrend in Bank Nifty. The down

trend line persisted from September and price action traded in respect to the trend line

perfectly. But the prices rebounded as we near the end of October. Market took support at

19000 and eventually broke the bearish trend line which was intact since September. Traders

should keenly watch the price action in bank nifty; it may offer some high probabilitical

trading setups. Price action broke the trend line at trading intersection of 19500. It is necessary

to decide whether the breakout is valid or not. As we move towards the Diwali occasion,

sometimes seasonality factors may play a major role and influence the price action. The

Significance levels for Bank Nifty is 19721-20291 is Up side and 19333-19151 is down side.

Monday, 02 November 2016

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

8837 8695 8624 8553 8411

WEEKLY R2 R1 PP S1 S2

9199 8827 8641 8455 8083

MONTHLY R2 R1 PP S1 S2

9550 8950 8650 8350 7750

BANK NIFTY

DAILY R2 R1 PP S1 S2

20180 19728 19052 19276 18824

WEEKLY R2 R1 PP S1 S2

21495 20211 19569 19827 17643

MONTHLY R2 R1 PP S1 S2

22628 20494 19427 18360 16226

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 8669 8711 8552 8069

BANK NIFTY 19456 19583 18926 17324

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8715 8910 7493

BANK NIFTY 19090 20253 15079

PATTERN FORMATION ( NIFTY )

Detail of Chart -

On the above given daily Chart of Nifty has Applied Bollinger Band along with Parabolic

SAR both the indicators are Leading Indicators, and gives signal of Buying or Selling.

Although the Uses of Bollinger Band differ from traders to traders Some buy when it break the

Middle Band from below side and some buy when it break Upper Band. We assume that the

Breaking the Middle Band Usually a Bull side Signal as we can see that. Although On the

Above given Chart of Nifty both the Indicators are indicating Bull Movement for next week.

Now the market has Shifted in Bullish mode. and the Nifty Trend Now Seems toward the

Next level of 8780-8860 both the Indicators are Indicating break above 8640 would be the

Important level for the Nifty. The Crucial Levels of Index For Next Week is 8680-8750 is Up

side 8580-8460 is down side.

PATTERN FORMATION ( BANK NIFTY )

Detail of Chart -On the Above given daily Chart of Bank Nifty has Applied the Bollinger Band

along with Parabolic SAR , The Bank Nifty Chart has also formed the Bullish Kicker Kind of

Pattern on the daily chart of Bank Nifty which clearly indicating the Bullish Movement for the

Index in Upcoming week. The Bank Nifty is has Touched the level of 19560 three time in last

week but was not able to Sustain. From here we are Expecting that if Bank Nifty is able to

break the level of 19620 could lead for the target of 19800-19880 in Near-Term. The Crucial

levels for Bank Nifty is 19700-19900 is Up side and 19520-19400 is down side.

NSE EQUITY DAILY LEVELS

COMPANY

NAME

R2 R1 PP S1 S2

ACC EQ 1543 1529 1519 1505 1495

ALBK EQ 77 76 75 74 73

AMBUJACEM EQ 246 243 242 239 238

ASIAN PAINT EQ 1109 1093 1079 1063 1049

AXISBANK EQ 498 492 488 482 478

BAJAJ-AUTO EQ 2893 2863 2813 2783 2733

BANKBARODA EQ 158 156 155 153 152

BANKINDIA EQ 116 115 114 113 112

BHEL EQ 140 140 139 138 137

BHARTIARTL EQ 324 321 320 317 316

CIPLA EQ 590 583 579 572 568

COALINDIA EQ 334 330 322 318 310

DLF EQ 153 151 150 148 147

DRREDDY EQ 3447 3413 3364 3330 3281

GAIL EQ 439 437 432 430 425

GRASIM EQ 994 981 967 954 940

HCLTECH EQ 787 778 771 762 755

HDFC EQ 1408 1398 1380 1370 1352

HDFCBANK EQ 1274 1266 1253 1245 1232

HEROMOTOCO EQ 3406 3379 3348 3321 3290

HINDALCO EQ 151 150 149 148 147

HINDUNILVR EQ 850 844 839 833 828

ICICIBANK EQ 285 282 279 276 273

ITC EQ 248 245 242 239 236

INDUSIND BANK EQ 1221 1211 1191 1181 1161

INFY EQ 1012 1005 999 992 986

JINDALSTEL EQ 78 76 76 74 74

KOTAKBANK EQ 832 825 813 806 794

LT EQ 1495 1486 1475 1466 1455

M&M EQ 1326 1319 1304 1297 1282

MRF EQ 49240 48501 47452 46713 45664

MARUTI EQ 5949 5911 5891 5853 5833

ONGC EQ 298 292 289 283 280

ORIENTBANK EQ 134 131 129 126 124

RCOM EQ 48 47 47 46 46

RELCAPITAL EQ 530 524 520 514 510

RELIANCE EQ 1065 1060 1052 1047 1039

RELINFRA EQ 556 550 542 536 528

RPOWER EQ 48 47 47 46 46

SBIN EQ 260 259 256 255 252

SSLT( VEDL) EQ 207 205 201 199 195

SUNPHARMA EQ 756 749 745 738 734

TATAMOTORS EQ 547 542 533 528 519

TATAPOWER EQ 82 80 79 77 76

TATASTEEL EQ 412 408 403 399 394

UNIONBANK EQ 151 150 146 145 141

TOP 15 ACHIEVERS // TOP 15 LOOSERS

NSE FUTURE

NEXT WEEK STARS( AS PER TECHNICAL ANALYSIS )

NSE FUTURE

NSE FUTURE : SELL RELIANCE FUTURE BELOW 1060 TGT 1040 SL 1070

NSE FUTURE : SELL RELIANCE CAPITAL FUTURE BELOW 540 TGT 520 SL 550.

NSE FUTURE : BUY JAINIRRIGATION SYSTEMS FUTURE ABOVE 105 TGT 110 SL 103.

NSE CASH

NSE CASH : BUY ABFRL NSE CASH ABOVE 151 TGT 162 SL 147.

NSE CASH : BUY NOCIL NSE CASH ABOVE 79 TGT 86 SL 75.

NSE CASH : BUY ASHOKLEY NSE CASH ABOVE 87.50 TGT 94 SL 85.

SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE

1 HCL TECH 831 763 - 8.25 %

2 AXIS BANK 526 486 - 7.45 %

3 WIPRO LTD. 499 462 - 7.43 %

4 ASIAN PAINTS 1153 1069 - 7.25 %

5 TATA POWER CO. 83 78 -6.34 %

6 TATA STEEL 427 405 -5.09 %

7 BHARTI INFRA 363 345 - 4.95 %

8 IDEA CELLULAR 80.00 76.20 -4.75 %

9 INFOSYS 1038 997 -3.93 %

10 YES BANK LTD. 1317 1272 -3.42 %

11 ACC 1566 1516 -3.16 %

12 AMBUJA CEMENT 247 241 -2.27 %

13 L&T 1510 1480 -2.00 %

14 INDUSIND BANK 1224 1199 -2.00 %

15 BHEL 141 138 -1.94 %

SR.NO SCRIPT NAME PREV CLOSE

CMP % CHANGE

1 DR.REDDY’S 3113 3363+ 8.02 %

2ADANI PORTS 285 307 + 7.44 %

3 KOTAK BANK 781 819+ 4.84 %

4HDFC 1336 1391 + 4.13 %

5 MARUTI SUZUKI 5650 5876+ 4.00 %

6COAL INDIA LTD. 313 324 + 3.67 %

7 BHARTI AIRTEL 309 318+ 2.94 %

8ONGC 279 286 + 2.54 %

9 NTPC 149 152+ 1.84 %

10BAJAJ-AUTO LTD. 2802 2848 +1.63 %

11 ITC LIMITED 240 243+ 1.23 %

12TECH MAHINDRA 434 435 + 0.36 %

13 BHARAT PETRO 668 669+ 0.12 %

14BANK BARODA 156 156.50 +0.10 %

15 ULTRATECH CEM 3980 3982+0.05 %

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

World will toe GST invoice matching, says Deloitte's David Raistrick nvoice- to-invoice

matching under the proposed goods and service tax in India will make it harder for the cash

economy and other parts of the world will soon like to emulate this feature, says David

Raistrick, Deloitte Global Leader for indirect tax. “India is the only country that is doing it .

This is unique...People will have to comply or they will fall out of the GST chain,” He said

invoice-to-invoice matching will make it harder for people to use cash and for people to be in

business and not pay tax. “Only those who play in the cash economy will feel the pressure as

they will lose credit,” he added. Raistrick, who supports indirect tax practices in Deloitte

member firms and has also worked at the UK tax authority HM Revenue and Customs, sees

introduction of this game-changing feature being done at the opportune time as the country is

going in for a new tax framework and believes other global tax administrations to follow suit.

“It is the right time to do as it’s a new tax. It’s going to happen everywhere. It should generate

more revenues for the government and improve compliance," he said.

Better tax payer services key to direct tax reforms: Arun Jaitley - The Union Finance

Minister Arun Jaitley said that better facilities and services to the taxpayers are central to

Direct Tax Reforms. He said that the tax payers have a right to know the deductions made

from their salary/income on a regular basis. He said that more and more tax payer services

have to be provided in order to make the people tax complaint. He stressed on the

Government’s commitment towards continuously upgrading tax payer services. The Finance

Minister Jaitley was speaking after launching the SMS Alert Service for direct taxes for about

2.5 crore private and Government salaried employees at a function in the national capital here

today. The new step is an effort by the Income Tax Department to directly communicate

deposit of tax deducted, through SMS alerts to salaried taxpayers, at the end of every quarter.

In case of a mismatch, they can contact their deductor for necessary correction.

Simultaneously, SMS alerts will also be sent to deductors who have either failed to deposit

taxes deducted or to e-file their TDS returns by the due date. This initiative will initially

benefit approximately 2.5 crore salaried cases. The CBDT will soon extend this facility to

another 4.4 crore non-salaried taxpayers. The frequency of SMS alerts will be increased, once

the process for filing TDS returns is streamlined to receive such information on a real-time

basis. All taxpayers who wish to receive such SMS alerts are advised to update their mobile

numbers in their e-filing account.The CBDT constantly endeavours to provide better taxpayer

services and reduce taxpayer grievances. New schemes and e-initiatives to redress and reduce

complaints of mismatches in tax deducted at source are key to this effort.

Rediscovering India-Brazil Investment and Trade ties to start a new phase - “Brazil’s

trade with India has immense scope for expansion which currently accounts for 1.21% of

India’s total trade. The total trade between India and Brazil is at US$ 6.69 billion in 2015-16.

The market opportunities exist in the areas of food and drinks coffee, tea, fruits, cocoa, and

confectionary products, home and building , machinery and equipment , mineral products and

chemicals. Brazil has recently launched a new infrastructure Program, ‘Crescer’ meaning

‘grow’ which will focus on concession, privatization and public-private partnerships, Brazil

and India should rather look for complementarities and synergies between their respective

markets and mind-sets in order to increase and upgrade their business potential. For more

business to take place there should be more people to people exchanges. I am a strong believer

of people-to-people relations to cement long-term and sustainable partnerships”, said Rosimar

da Silva Suzano, Consul General, Consulate General of Brazil in Mumbai at the International

Business Round Table organized by World Trade Centre Mumbai, All India Association of

Industries, .Under the ‘Make in India’ initiative, India is undergoing a series of reforms that

are in the process of enhancing the competitiveness of the country.

Indian companies not adhering to environment guidelines could be snubbed by global

investors - In April 2016, pension funds managed by Norges Bank sold off its equity

investments in seven Indian companies worth roughly Rs 700 crore. The selloff in Coal India

CESC, Reliance Power, Gujarat Mineral Development Corporation, NTPC, Tata Power and

Reliance Infrastructure was part of the global strategy of Norges, the Norwegian financial

services behemoth, to get rid of portfolio constituents that dealt with coal. Due to its high

carbon intensity and consequent damage on the environment, coal is anathema to institutions

like Norges that believe in sustainable investments. The seven companies did not adhere to the

so-called environment, social and governance code of the $ 530 billion fund. Forty five other

global companies that mined or used coal to fire up their production facilities met the same

fate. Thomas Sevang, the official spokesman of Norges, says the bank addresses ESG issues at

meetings with company representatives, adding that it has expectation documents on children's

rights, water management, climate change and human rights. "We expect companies to address

these issues in their strategy and reporting."

✍ TOP ECONOMY NEWS

Regulator DGCA and aviation security agency BCAS are all set to get powers to impose

fines on violators, with the government preparing to amend the legislation in this regard.

FIPB will this week take up 19 foreign investment proposals.

Sebi has eased curbs on 40 entities against whom it had taken action in two different cases of

alleged misuse of stock market platform for tax evasion and suspected money-laundering.

Banks in India will either replace or ask users to change the security codes of as many as 3.2

million debit cards in what's emerging as one of the biggest ever breaches of financial data in

India.

Reserve Bank of India has eased norms for foreign investment in start-ups. The banking

regulator said that any Foreign Venture Capital Investors which is registered under the

Securities and Exchange Board of India Regulations can invest in equity or equity linked

instrument or debt instrument issued by an Indian 'start-up' irrespective of the sector in which

the start-up is engaged. They will not require any approval from RBI.

Union Labour Minister said that the Employees Provident Fund Organisation has invested

over Rs. 90 billion in Exchange Traded Funds till September 30 this year with a Return on

Investment of 9.43%.

Simplifying external commercial borrowing norms, RBI delegated powers to banks to

approve requests from borrowers for extension of matured but unpaid ECB.

The Centre is "determined" to implement the Goods and Services Tax from April 1 next year.

India and the European Free Trade Association, a bloc of four European countries —

Switzerland, Iceland, Norway and Liechtenstein — will resume the long-stalled negotiations

for a proposed free trade agreement this week in Geneva to iron out differences.

The government expects the entire Insolvency and Bankruptcy Law to become operational by

end-December.

As many as 210 merger and acquisition deals, worth a total value of USD 11.3 billion,

involving Indian companies were signed during the September quarter.

Airports Authority of India has paid a final dividend of Rs. 4.82 billion to the government for

2015-16 financial year.

After pinning its hopes on a significant improvement in the World Bank’s ease of doing

business index, India has managed to move up by only a single rank in the latest Doing

Business Report 2017 by the bank.

Around 7.8 million new assessees started filing income tax returns between assessment years

2012-13 and 2014-15, pushing up the total number of filers to 39.13 million.

The Income Tax Department has unearthed cases of tax evasion worth about Rs. 380 billion

involving around 1,000 entities, and has issued notices to 147 individuals.

A consortium of 19 public sector banks could look at conversion of their loans worth about

Rs. 100 billion to Air India into equity. If the proposal goes through, then, as much of 40% of

Air India equity could be held by the consortium of public sector banks.

The Cabinet gave in-principle approval to strategic sale and disinvestment in the public sector

units as recommended by the NITI Aayog.

The finance ministry is examining the possibility of cutting the corporation tax rate by 1 - 2

percentage points, even as the revenue department is set to kickstart Budget consultations with

industry and consultants from the first week of November. The ministry’s thinking is part of

bringing down the corporation tax rate to 25% by the end of 2018-19, from 30% at present.

The government has allowed 100% foreign direct investment in ‘other financial services’

carried out by non-banking finance companies, continuing with the liberalisation of the

overseas investments regime.

Just a week before the next Goods and Service Tax Council meeting on November 3 and 4,

the view of states being compensated through a cess rather than a hike in the proposed GST

rate has gained strength, with the Centre telling them that an increase in the tax rate has to

yield around Rs. 1.72 trillion. On the other hand, a cess which will yield Rs. 500 billion a year

would be enough to compensate states.

Union minister said the Phase-III auction of radio channels, which started in July last year, is

likely to bring in an estimated USD 390 million revenue to the government.

Markets regulator Sebi has begun looking into the high profile Tata-Mistry case for any

possible breach of corporate governance norms and listing regulations at various listed

companies of the over USD 100 billion conglomerate.

✍ TOP CORPORATE NEWS -

Larsen and Toubro Limited plans to raise as much as USD 500 million or Rs. 33.50 billion

by selling shares to institutional investors, joining the league of a group of large companies

taking advantage of a liquidity-driven market rally to fund their capital requirements.

Procter & Gamble , is exploring a long-term partnership with Future Group akin to the one it

has with Walmart in the US, that could involve joint sales forecasting and planning, exclusive

product releases, embedding officials at each others’ headquarters and even supply-chain

initiatives.

Wanbury Limited, manufacturers of metformin hydrochloride — a diabetic drug — was

caught by the Maharashtra Food and Drug Administration for illegally exporting this drug to

Mexico, Brazil, Bangladesh and Pakistan.

Reliance Industries Limited is set to buy six very large ethane carriers from South Korea’s

Samsung Heavy Industries Co Limited for USD 600 million.

IDFC Limited Alternatives is buying three solar projects in Punjab and Rajasthan from Punj

Lloyd Infrastructure as part of the parent's plans to establish a presence in the renewable

energy space through acquisitions — as much as 1,000 mw in a year or so.

Inox Wind Limited has bagged a repeat order from ReNew Power Ventures for a 50 MW

wind power project in Gujarat.

Emami Group is aiming at capacity of 15-20 MT in the next three to five years, from the

existing 2.4 MT, investing Rs. 85 billion to do so.

Corporation Bank, Oriental Bank of Commerce and United Bank of India may be sensing

victory against Airbus as debt recovery tribunal has directed the French aircraft maker to

deposit with it Rs192.5bn it had received from these Indian lenders, but they are unlikely to

get the refund in a hurry, going by the past experience of the functioning of DRTs.

Parth Jindal led company has initiated talks for a potential buyout of Shiva Cement in which

ACC Limited holds a 12.65% stake.

Foreign investors have been allowed to raise their stake in Aditya Birla Nuvo Limited to up

to 30%.

CCI said it had approved RPG Life Sciences acquiring seven brands of Sun Pharmaceutical

Industries. Earlier this year, Sun Pharma had signed a deal in this regard with RPG, for Rs.

0.41 billion.

Glenmark Pharmaceuticals Limited has received final approval from the US health

regulator for anti—fungal ointment nystatin and triamcinolone acetonide.

Tata Power Company Limited will invest in renewable plants in India as it plans to increase

its clean energy footprint to 30-40% by 2025.

Kirloskar Oil Engines Limited has launched a new range of high horsepower gensets to

address the growing market for data centres, malls and other commercial establishments.

Tata Power Renewable Energy Limited , a wholly owned subsidiary of Tata Power

Company Limited, has inked a Power Purchase Agreement for a 100 MW solar project at

Anantapuram solar park in Andhra Pradesh with the Solar Corporation of India.

Bosch Limited unveiled a range of connected and smart solutions for diverse industrial

sectors to enhance productivity and operational efficiency.

The Centre has won an international arbitration involving potential claim of more than USD 1

billion, initiated six years ago by Reliance Industries Limited and the Indian arm of BG

following a gas price and royalty dispute in the Panna Mukta and Tapti fields off the Mumbai

coast.

Arvind Limited has divested 10% stake in its brand business subsidiary Arvind Lifestyle

Brands to Multiples, the private equity firm founded by Renuka Ramnath.

Bharti Airtel Limited has launched 4G services in Madhya Pradesh and Chhattisgarh on 10

MHz of 1800 MHz band spectrum.

Cairn India Limited plans to invest USD 100 million with focus on Rajasthan gas fields.

Hero MotoCorp Limited has invested Rs. 2.05 billion to pick up 26-30% stake in domestic

electric vehicle maker Ather Energy.

NMDC Limited and Mishra Dhatu Nigam have signed a memorandum of understanding to

develop tungsten mines and processing technology for the metal, a key ingredient in making

heavy-alloy ammunition systems for the armed forces.

Sun Pharmaceutical Industries has launched generic versions of Daiichi Sankyo medicines,

used in the treatment of high blood pressure, in the US market.

The board of Oil and Natural Gas Corporation gave its nod for issuance of one bonus share

of Rs. 5 each for every two shares held in the company.

MMTC has joined hands with HDFC Bank,, ICICI Bank and Andhra Bank to retail gold

coins with a new buyback option.

Sagar Cements Limited has decided to raise Rs. 3 billion by way of issuance of securities,

including the issue of equity shares on a preferential basis to promoter and promoter group and

to others.

Nava Bharat Ventures Limited has recently concluded sale of 100% shares in one of its

overseas subsidiary Nava Bharat Lao Energy Pte Limited, and thereby its 70% shareholding in

Namphak Power Company Limited.

The British subsidiary of ICICI Bank -- ICICI Bank UK Plc -- announced the launch of

online money transfer services to facilitate transaction from any bank accounts in Sweden,

Norway and Denmark to any recipent account based in India.

The government is yet again looking to monetise its stake in Hindustan Zinc Limited and

may suggest a share buyback offer to the company controlled by Vedanta's Sterlite Industries

besides seeking a special dividend. The government owns 29.59% stake in the firm that is

worth over Rs. 300 billion at current market prices.

Reliance Industries Limited has raised a term loan of USD 573 million to partially finance

the construction of its six very large ethane ships.

Idea Cellular Limited managing director Himanshu Kapania said has not violated any quality

of service norms on the issue of providing points of interconnection to Reliance Jio Infocomm,

and would shortly approach the department of telecommunications on the matter.

The Suzlon group has entered into a joint venture with Ostro Energy for the development and

construction of a 50-MW solar project in Telangana.

The Navneet Education Limited signs an agreement to acquire Britannica’s Indian

curriculum business for Rs. 0.88 billion. This move will help expand Navneet’s range of

curricular offerings in the Indian school market.

ONGC Limited by deploying a record number of rigs, including one from China, has

embarked on an aggressive road-map to explore more natural gas in the northeastern state of

Tripura, bordering Bangladesh.

LIC picked up more than half of the NBCC Limited shares sold by the government in the Rs.

22.18 billion disinvestment.

Dr. Reddy's Laboratories Limited has entered into a strategic collaboration with Gland

Pharma to market and distribute a diverse portfolio of eight injectable Abbreviated New Drug

Applications , or alternatively called as generic drug approvals.

Sun Pharmaceuticals Industries Limited will acquire Ocular Technologies, Sarl of Auven

Therapeutics, an international private equity company focused on therapeutic drugs.

Gulf Oil Lubricants India Limited has entered into a tie-up with Bajaj Auto Limited to

manufacture and supply lubricants.

✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK

London-based professional services firm Ernst & Young said on Monday that there is a large

untapped rural population in India waiting to be covered under the financial net, which is only

possible through mobile-based services. With over 90% of the villages in India without a

commercial bank branch, and over 350 million rural mobile subscribers, there is a large

untapped population to be covered under the financial net, the company said in its finding.

What keeps the chief executive of the world’s most valuable lender JPMorgan Chase Jamie

Dimon awake at nights is not a blow up in trading books, regulatory nightmares or shrinking

bond markets, but cyber crimes that are becoming as routine an affair as daily trading. The US

bank spends nearly $ 600 million a year on cyber security. Pose the same question to Indian

banks, the top ones, including State Bank of India, ICICI Bank, HDFC Bank and Axis

Bank, and Axis Bank, are not even willing to engage in conversations over the topic. Canara

Bank is the only bank which replied saying that they have budgeted Rs. 520 crore for IT

security for the current financial year.

Indian private sector lenders HDFC Bank Limited and Kotak Mahindra Bank Limited

reported second-quarter net profit rose on higher interest and fee income, while their bad-loan

ratios were lower than the previous quarter. HDFC Bank, the nation's second-biggest private

sector lender, said on Tuesday net profit for July-September climbed 20 percent from a year

ago to 34.55 billion rupees , just beating analysts' estimate of 34.15 billion rupees. India's

banking sector has been burdened with about $ 138 billion of stressed loans, but the bulk of

the bad assets are with nearly two dozen state-run banks. HDFC's gross bad loans were 1.02

percent of total loans outstanding as of Sept. 30, down from 1.04 percent at the end of June.

The bank, an investor favourite due to its strong retail banking business and relatively small

exposure to project finance, has the lowest bad-loan ratio among the bigger lenders.

A month after the biggest financial data leak from Indian banks, regulator Reserve Bank of

India is looking to take matters in its own hands and scrutinise security of banks, two people

with direct knowledge of the matter said. The RBI is looking to rope in outside help that

would try and exploit holes in the information technology systems of the bank to fortify them

against similar breaches of security in the future. “It won’t be investigations per say, but I

would say it will be like an audit,” a person in the know told. “RBI would check cybersecurity

of the banks from the inside as well as outside,” he said.

The Supreme Court asked the Reserve Bank of India why the names of borrowers that owe

more than Rs. 500 crore to the country;s banks shouldn't be made public. "The borrower may

complain, but why should the RBI have a complaint?" chief justice TS Thakur said after the

central bank's counsel resisted the suggestion on the ground that all may not be "wilful

defaulters." "Why should they be considered wilful defaulters? This is public money. The

public must know. The amounts involved are phenomenal. The public must know the

magnitude of the problem," said Thakur, who was sitting alongside justices L Nageshwar Rao

and DY Chandrachud. Thakur estimated debt to the public banking system that had not been

restructured at Rs 3-4 lakh crore. He pegged restructured loans at Rs 10 lakh crore.

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The reports are prepared by analysts who are employed by High Brow Market Research

Investment Advisor Pvt. Ltd. All the views expressed in this report herein accurately

reflects personal views about the subject company or companies & their securities and

no part of compensation was, is or will be directly or indirectly related to the specific

recommendations or views contained in this research report.

Disclosure in terms of Conflict of Interest:

(a) High Brow Market Research Pvt. Ltd. or his associate or his relative has no financial

interest in the subject company and the nature of such financial interest;

(b) High Brow Market Research Pvt. Ltd. or its associates or relatives, have no

actual/beneficial ownership of one percent or more in the securities of the subject

company,

(c) High Brow Market Research Pvt. Ltd. or its associate has no other material conflict

of interest at the time of publication of the research report or at the time of public

appearance;

Disclosure in terms of Compensation:

High Brow Market Research Investment Advisor Pvt. Ltd. policy prohibits its analysts,

professionals reporting to analysts from owning securities of any company in the

analyst's area of coverage.

Analyst compensation: Analysts are salary based permanent employees of High Brow

Market Research Pvt. Ltd.

Disclosure in terms of Public Appearance:

(a) High Brow Market Research Pvt. Ltd. or its associates have not received any

compensation from the subject company in the past twelve months;

(b) The subject company is not now or never a client during twelve months preceding

the date of distribution of the research report.

(c) High Brow Market Research Pvt. Ltd. or its associates has never served as an

officer, director or employee of the subject company;

(d) High Brow Market Research Pvt. Ltd. has never been engaged in market making

activity for the subject company.