TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - The Indian Equity benchmark Nifty 50 opened in a positive note on

Monday up by 29 points or 0.33 per cent at 8612. Benchmark Index Nifty traded in a very

small range of 48 points on Friday, Nifty has taken support of its two month's low of

8550. The Global cues still remain weak which lead Nifty to break its 8550 level, Market

were weak in trading on Monday trading session where Nifty saw a fall of 105 points

from its last trading session High. The Point to be noted here is that there is a downward

gap existed at 8703-8681. last trading session, Nifty touched this gap area. A minimum

requirement for wave 2 is fulfilled. Now Need to watch market reaction at this gap area.

The market can take reverse any time from here on. On the downside 8550 breaking will

be the first indication of completion of wave 2 and begin of Wave 3 downside. Below

8550 spot, next key level 8350. Nifty at crucial level Cautious At Current Levels. Going

Forward Market started moving southward , as investors remained wary about a US rate

hike on horizon which made investors skittish, as a rate hike could affect liquidity flow

for emerging markets. All eyes are on the progress of GST , GST rates may be indicated

Although as per various reports, there may be 4/5 rates ranging From 40% with some

additional cess, it may take some more time for an overall consensus and another meeting

may be called in just before the Winter Parliament session to finalize it. As suspected in

last update, Nifty faced stiff resistance at gap area and reversing lower. Hence, most

probably, by taking into other technical indicators, upside capped at gap area and wave 2

ended at Thursday high. Now Nifty heading lower towards to break 8550 spot level.

Avoid taking long positions. Once 8550 taken out next week , then Nifty moves down in

one direction towards 8350. The crucial levels for Nifty is 8573-8447 down side and

8732-8812 Up side.

BANK NIFTY : - The Bank Nifty opened in a Positive on Monday up by 116 points or

0.59 per cent at 19136. Banking stocks were the strongest, with Bank Nifty jumping up to

19500 with massive short covering seen in various Call strikes that led to a decrease in

open interest. The PSU Banks have always remained in the radar, be it buying or selling.

because of the Financial Performance of Public Sector Banks has been a concern ,

Investors have remained perplexed about holding the holding PSU Banks stocks. Public

sector banks which made losses or experienced sharp dip profit in the last fiscal could

lose their ability to service coupon on additional tier 1 bonds issued under Basel III

Monday, 24 October 2016

capital regulations. rating company Crisil said in a report. Stung by high cost of funds

when demand for loans is at the weakest in nearly a decade, state-run banks, which used to

rely on long-term fixed deposits, are increasingly not accepting any fixed deposit beyond

five years. Bank Nifty has to sustain above 19600-19650* area for further rally towards

19850-19950/20000 & 20200-20350 for the Next Week. On the other side, sustain below

19450-19400 zone, Bank Nifty may further fall towards 19300-19200 & 19040-18900

zone as the session progress. The Crucial level for Bank Nifty is 19850-19960 up side and

19080-19260 is down side.

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

8824 8722 8671 8620 8518

WEEKLY R2 R1 PP S1 S2

9290 8850 8630 8410 7970

MONTHLY R2 R1 PP S1 S2

9557 8957 8657 8357 7757

BANK NIFTY

DAILY R2 R1 PP S1 S2

19969 19713 19585 19457 19201

WEEKLY R2 R1 PP S1 S2

21579 20151 19437 18723 17295

MONTHLY R2 R1 PP S1 S2

22360 20394 19411 18428 16462

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 8700 8709 8527 8050

BANK NIFTY 19500 19498 18817 17255

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8762 8935 7493

BANK NIFTY 18824 20344 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 buywhen 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 a Cautious

mode. However the Nifty Trend Now Seems clear toward the Next level of 8600-8680

both the Indicators are Indicating break above 8720 would be the Important level for the

Nifty. The Crucial Levels of Index For Next Week is 8753-8798 is Up side 8604-8555 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 19900 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 19800 could lead for the target

of 20200-20560 in Near-Term. The Crucial levels for Bank Nifty is 19900-20120 is Up

side and 19560-19480 is down side.

NSE EQUITY DAILY LEVELS

COMPANY

NAME

R2 R1 PP S1 S2

ACC EQ 1641 1596 1568 1523 1495

ALBK EQ 79 78 77 76 75

AMBUJACEM EQ 256 251 249 244 242

ASIAN PAINT EQ 1182 1165 1154 1137 1126

AXISBANK EQ 545 537 530 522 515

BAJAJ-AUTO EQ 2832 2816 2799 2783 2766

BANKBARODA EQ 160 158 156 154 152

BANKINDIA EQ 116 114 113 113 111

BHEL EQ 144 143 141 140 138

BHARTIARTL EQ 314 312 308 306 302

CIPLA EQ 610 595 583 568 556

COALINDIA EQ 315 314 313 312 311

DLF EQ 159 158 155 154 151

DRREDDY EQ 3171 3143 3116 3088 3061

GAIL EQ 452 446 441 435 430

GRASIM EQ 997 986 977 966 957

HCLTECH EQ 861 847 834 820 807

HDFC EQ 1372 1354 1342 1324 1312

HDFCBANK EQ 1286 1279 1264 1257 1242

HEROMOTOCO EQ 3390 3374 3359 3343 3328

HINDALCO EQ 157 154 153 150 148

HINDUNILVR EQ 862 857 847 842 832

ICICIBANK EQ 283 280 277 274 271

ITC EQ 242 241 239 238 236

INDUSIND BANK EQ 1241 1233 1217 1209 1193

INFY EQ 1053 1045 1034 1026 1015

JINDALSTEL EQ 79 78 76 75 73

KOTAKBANK EQ 793 787 778 772 763

LT EQ 1528 1520 1507 1499 1486

M&M EQ 1336 1331 1326 1321 1316

MRF EQ 51781 51091 50409 49719 49037

MARUTI EQ 5700 5675 5646 5621 5592

ONGC EQ 284 281 279 276 274

ORIENTBANK EQ 136 133 131 128 126

RCOM EQ 49 48 47 46 45

RELCAPITAL EQ 550 547 542 539 534

RELIANCE EQ 1112 1089 1073 1050 1034

RELINFRA EQ 584 579 574 569 564

RPOWER EQ 50 49 49 48 48

SBIN EQ 262 261 258 257 254

SSLT( VEDL) EQ 210 207 204 201 198

SUNPHARMA EQ 754 751 745 742 736

TATAMOTORS EQ 554 549 545 540 536

TATAPOWER EQ 86 84 83 81 80

TATASTEEL EQ 432 430 425 423 418

UNIONBANK EQ 150 149 146 145 142

TOP 15 ACHIEVERS // TOP 15 LOOSERS

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 INDIAN OIL CORP 643 324 - 49.56 %

2 KAJARIA CHEM 724 615 - 15.05 %

3 NBCC LIMITED 256 241 - 6.02 %

4 MPHASIS LTD 546 518 - 5.10 %

5 ACC LTD. 1640 1566 - 4.52 %

6 MIND TREE LTD 501 479 - 4.40 %

7 ASIAN PAINTS 1205 1153 - 4.33 %

8 CEAT LIMITED 1375 1316 - 4.29 %

9 BHARAT FORGE 916 889 - 2.90 %

10 PETRONET LNG 400 389 - 2.88 %

11 AMBUJA CEMENT 252 247 - 2.35 %

12 TRENT LTD. 210 205 -2.33 %

13 M&M FINSERV 370 362 - 2.29 %

14 M&M 1357 1326 - 2.24 %

15 ALKEM LAB 1696 1659 - 2.22 %

SR.NO SCRIPT NAME PREV CLOSE

CMP % CHANGE

1 ICICI BANK 241 277+14.75 %

2ADANI PORTS 254 285 +12.35 %

3 IDEA CELLULAR 74 80+7.10 %

4TATA POWER CO. 78 83 +6.63 %

5 BHEL 132 141+6.62 %

6WIPRO LIMITED 475 499 +5.09 %

7 YES BANK LTD 1259 1317+4.56 %

8TATA STEEL 412 427 +3.61 %

9 TECH MAHINDRA 419 434+3.58 %

10NTPC 145 149 +3.10 %

11 DR. REDDY LAB 3031 3113+2.72 %

12TCS 2366 2428 +2.64 %

13 SBIN 252 258+2.54 %

14L&T 1474 1510 +2.44 %

15 LUPIN LIMITED 1464 1500+2.42 %

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

WPI inflation to average 1.5% this year: Nomura - Inflation based on wholesale prices

is expected to moderate further in the months ahead and is expected to average 1.5 per

cent this year, says a Nomura report. According to the Japanese financial services major,

despite adverse base effects the Wholesale Price Index-based inflation is set to moderate

further on account of lower food prices and still weak pricing power of firms. "In the

months ahead, we expect WPI inflation to moderate further despite adverse base effects

due to lower food prices and still weak pricing power of firms," Nomura said in a

research note. In its base case, Nomura expects WPI inflation to average 1.5 per cent in

2016 as against (-)2.7 per cent in 2015. Reversing its 7-month uptrend, wholesale

inflation eased to 3.57 per cent in September, as good monsoon helped cool food prices.

In September 2015, WPI inflation was (-)4.59 per cent. In August this year it stood at

3.74 per cent. "The positive WPI inflation surprise was mainly driven by a sharp

moderation in food prices, while core WPI inflation was unchanged," Nomura said.

Draft bill on resolution of financial firms credit positive: Moody's - The draft bill on

resolution of financial firms is credit positive for banks as it is an important step to having

a comprehensive framework in place for stressed financial firms, Moody's Investors

Service today said. After enacting a bankruptcy code for time-bound settlement of

insolvency cases in non-financial firms, the finance ministry last month released a draft

bill to set up a resolution corporation to address similar issues among financial firms.

"Currently, the resolution of financial firms in India is based on minor parts of legislation

enacted for other purposes," says Srikanth Vadlamani, a Moody's Vice President and

Senior Credit Officer. "This bill is therefore credit positive for Indian banks in terms of

enhancing overall systemic stability." In a report titled 'Draft Bill on Resolution Will

Enhance Systemic Stability', Moody's said based on the draft bill, bail-ins do not seem to

be the preferred form of resolution, with significant restrictions in place for their usage.

These restrictions include contractual bail-in clauses for instruments that may be bailed in

and requirements that bail-ins should be used only after attempts at recovery have been

made. Consequently, Moody's expects that the Indian banking system will continue to

function without an operational resolution regime, and banks should continue to be rated

under a basic loss given failure framework. Moody's also said the bill ranks depositors

above senior unsecured creditors in a liquidation scenario. In contrast, under existing

laws, senior unsecured creditors rank on equal footing with uninsured depositors.

Current account deficit likely to stay below 1 per cent of GDP this year: DBS report

- India's current account deficit is likely to stay below 1 per cent of GDP this year, largely

due to a sharp fall in the trade deficit as against last year, says a DBS research report.

India's trade deficit in September stood at $ 8.33 billion when the trade gap was the

highest in the last nine months. According to the global financial services major DBS, the

widening of the trade deficit will be "watched closely", especially at a time when the

services sector receiptsand private transfers are under pressure. "That said, a sharp fall in

the trade deficit vis-à-vis last year suggests this year's current account deficit is likely to

stay below 1 per cent of GDP from (-) 1.1 per cent in 2015-16," DBS said in a research

note. In September, exports went up 4.62 per cent to $ 22.9 billion, while the country's

imports contracted by 2.54 per cent to $ 31.22 billion, leaving a trade deficit of $ 8.33

billion. The trade gap was $ 11.66 billion in December 2015 while in September 2015, it

stood at $ 10.16 billion. Regarding inflation and the consequent policy action, the report

said that the Reserve Bank's policy decisions are likely to primarily take direction from

CPI trends.

$ 10 billion unhedged gap in foreign exchange deposit redemptions may put rupee

under pressure - The Indian banking system has left a $ 10-billion position unhedged

amid foreign exchange deposit redemptions, making the rupee vulnerable to a sudden

depreciation in the next few months. On the other hand, such a drop would act as a

booster for exports and possibly narrow the trade deficit although imports of oil and other

commodities would become costlier, said experts, some of whom suggested the gap may

have deliberately been left uncovered. Three years after the Reserve Bank of India sought

to shore up the rupee through foreign currency non resident-bank deposits, the country is

bracing for an outflow as these get redeemed. The rupee was at 66.72 a dollar on Friday.

Experts baffled by RBI move. The Indian currency was at 66.68 a dollar a week back and

may weaken to 67.50-68.00 a dollar by December, dealers said. According to a note

prepared by one of India’s top private sector banks, there’s a $ 9.5-billion gap between $

22.4 billion of FCNR-B maturities and $ 12.9 billion of forward contracts for October and

November. “There is high possibility of a systemic rupee depreciation in the coming

months on account of FCNR-B outflows,” said KN Dey, executive director at Mecklai

Financial. “The rupee has been steady for almost 10 months and a fall will boost exports

and in turn, reduce trade deficit.”

India is double-digit growth market for cargo deliveries' - India continues to be one of

the main growth markets for DHL Express which opened a new USD 100 million South

Asia Hub in Singapore today. India-led South Asian markets accounted for 30 per cent

growth in express cargo deliveries for DHL between 2012-15, the company's executives

said, adding that India itself is a double-digit growth market. The company, which

inaugurated the new 140 million Singapore dollar South Asia Hub here, serves India with

two dedicated daily flights to Bangalore and Delhi as well as commercial flights for

express cargo deliveries to Mumbai, the officials said. The two dedicated flights to

Bangalore and Delhi offers 195 tonnes per flight six times a week. South Asia accounts

for 30 per cent of the company's daily shipment growth between 2012-2015, said Ken

Lee, CEO of DHL Express Asia Pacific. Oceania accounts 50 per cent and South East

Asia about 25 per cent, he said. "India is a double-digit growth market for DHL Express,"

said Sean Wall, executive vice president for network, operations and aviation for Asia

Pacific.

India Inc's Janyary-September M&A tally at $ 28 billion: Grant Thornton - Corporate

India's shopping spree continued unabated in the third quarter of this year, with merger

and acquisition deals worth $ 12.17 billion were announced, taking the year-to-date tally

to $ 28 billion, says a report. In the July-September quarter, there were 140 M&A deals

worth $ 12.17 billion as against 146 M&A transactions worth $ 6.87 billion in the year-

ago period. According to global audit, tax and assurance firm Grant Thornton, the

significant rise in M&A deal activity in the September quarter was majorly driven by $ 3

billion deals contributing to over 50 per cent of the values. The quarter also witnessed

two mega mergers in telecom and banking sectors. Overall M&A values saw a 33 per

cent rise in the first nine months of this year largely owing to increase in domestic deals

along with big ticket mergers and restructurings. During January-September period, there

were 244 domestic deals worth $ 11.84 billion, and 13 mergers and internal restructuring

worth $ 4.94 billion. However, cross border M&A activity declined by 13 per cent owing

to fewer big-ticket transactions. There were 17 deals over $ 100 million so far this year as

compared to 26 such deals in January-September 2015.

✍ TOP ECONOMY NEWS

Indian companies have raised close to Rs. 240 billion by issuing non-convertible

debentures in the first half of the current fiscal to meet their business needs.

The crucial three-day meeting of the all-powerful GST Council, will decide on the tax

rate and sort out issues like compensation formula for rollout of the new indirect tax

regime from April 1, 2017.

The Centre is likely to propose a four tier-tax structure under the goods and service tax

with a peak slab of 26%. Almost a fourth of all taxable goods, including those consumed

by the middle class, may come under the peak rate.

Consumer Price Index based inflation eased to 4.31% in September as against 5.05% in

August. It was 4.41% in September 2015.

Net direct tax collections grew 8.95% in the first half of the fiscal, amounting to Rs. 3.27

trillion.

The Cabinet Committee on Economic Affairs cleared a proposal to come up with a new

mechanism for revision of ethanol price for supply to public sector oil marketing

companies to carry out the Ethanol Blended Petrol programme. Through this, the prices

of ethanol for blending will be cut by about 21% from December 1.

The country plans to more than double its liquefied natural gas import capacity to 50 MT

in the next one year.

India's rooftop solar energy capacity has crossed 1 GW mark this year with 513 MW

generation capacity added over the past 12 months.

The much-awaited decision on GST rates did not come at the last day of the third round

of GST Council meeting. These will be discussed further at the next meeting of the

Council, slated for November three and four.

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

3.2mn 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.

✍ TOP CORPORATE NEWS -

After establishing itself in benzene-based derivatives for over three decades, Aarti

Industries Limited diversified into toluene-based derivatives in this financial year by

setting up 30,000 tpa greenfield capacity at Jhagadia Gujarat.

Suven Life Sciences Limited has been granted one product patent each by Europe and

Israel for a drug used in the treatment of neuro-degenerative diseases.

Vedanta group company Cairn India Limited plea for permission to export excess

crude from its oil field in Rajasthan was dismissed by the Delhi High Court.

Cochin Shipyard Limited has signed a MoU with Engineers India Limited for design

and construction of small-scale LNG carriers.

Ceat Limited has introduced a new range of puncture-safe tyres for motorcycles, thereby

creating a new segment.

ABG Shipyard Limited will soon be getting a new owner as promoters of the company

are in advance talks with a Russian shipbuilder for sale of the controlling stake.

PTC India Financial Services Limited has taken recourse to SARFAESI law to recover

stressed loans from two power projects after the Centre in August explicitly allowed

certain NBFCs to use this route for recovery of dues.

Apollo Health and Lifestyle, a subsidiary of Apollo Hospitals Enterprise Limited, is

planning to raise Rs. 4.50 billion by selling the equity in the company. The company aims

to double the network of clinics to 150 centres in the next three years by utilising these

funds.

Granules India Limited said its Gagillapur facility in Hyderabad has completed USFDA

inspection without any observations.

Ashok Leyland Limited launched ‘Circuit’ Series – first Electric Bus Made in India.

IFCI Limited lowered short-term lending rate by a steep 0.80% following the 0.25%

repo rate cut by the Reserve Bank of India.

Jet Airways Limited is set to introduce wide-body services on the busiest domestic

routes in a move that will significantly enhance connectivity.

After Maruti Suzuki India Limited signed a pact with the government for transportation

of vehicles through inland waterways, Mahindra & Mahindra and Honda are also

trying for one.

Shriram EPC Limited has bagged a Rs. 0.61 billion contract for a water supply scheme

in Bengaluru. It has bagged the contract for a water supply scheme to Robertsonpet City

under the Centre’s Atal Mission for Rejuvenation and Urban Transformation scheme.

Nokia has bagged USD 230 million 4G network deal from Bharti Airtel Limited in nine

telecom service areas.

Sun Pharmaceuticals Industries Limited announced a new collaboration with

International Centre for Genetic Engineering and Biotechnology for development of

dengue vaccine targeted against all four serotypes of the virus.

L&T Technology Services Limited, an arm of Larsen and Toubro, has secured a multi-

million dollar contract from a large global semi-conductor company to provide

verification support on their expansive portfolio of offerings and products.

Bharti Airtel Limited launched a 10 GB data offer for Rs. 259 for consumers buying a

new 4G mobile device, offering data at effectively just over Rs. 25 a GB to take on

aggressive pricing from new entrant Reliance Jio Infocomm.

Coal India Limited will begin special spot e-auction of coal and will put on offer 20 MT

of the fossil fuel for various sectors, including power, amid government’s efforts for 24x7

power to all.

Hindustan Zinc Limited will come out with its specialised product -- zinc die casting

alloy -- through which it looks to meet requirements of auto, household appliances and

defence sectors.

The government will sell 15% stake in NBCC India Limited at a floor price of Rs.

246.50 /share, which is expected to fetch around Rs. 22 billion.

The Supreme Court directed Unitech Limited to refund the principal cost of flats to 39

buyers who had booked apartments in a Gurgaon project seven years back and have still

not got possession of their houses.

Mahindra & Mahindra Limited said that it will buy 60% stake in Classic Legends , a

company engaged in manufacturing and marketing two-wheelers, for Rs. 60 million.

Suzlon Energy Limited announced a joint venture with Canadian Solar for developing

two solar projects of 15 MW each in Telangana.

The NCC-BGR Consortium has been awarded the Pachhwara North Coal Block Mine

Developer and Operator Project by the West Bengal Power Development Corporation

Limited.

Nestle India Limited said Maggi noodles in India has reported sustained recovery,

regaining market share in the country almost a year after it was relaunched following a 5-

month ban in 2015.

Wipro Limited has acquired US-based consultancy firm Appirio, a services firm with a

large offshore firm that helps corporates implement cloud applications such as

SalesForce.

Ashok Leyland Limited has won USD 170 million order from the government of

United Republic of Tanzania.

Quess Corp Limited said it will acquire stake in three companies – Terrier Securities,

Simpliance and Comtel Solutions -- helping it to offer increased services and expand the

share of the wallet from its clients.

Government has received over Rs. 324 billion in upfront payments for telecom spectrum

that was sold in the recently-held auction with five operators, including Bharti Airtel

Limited and newcomer Reliance Jio, paying Rs. 199.81 billion.

Insurance Regulatory and Development Authority of India has said that the final decision

of the surveyor in a claim payment case to Nectar Life Sciences Limited by New India

Assurance in a Rs14.30bn policy will be final. The surveyor has said that it is not payable

as the loss occurred due to delay in transit, which is an exclusion in the policy and not due

to fire.

✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK

A month ago, an official of Axis Bank Limited — India’s third-largest private sector

lender — received an unexpected telephone call. The caller, an engineer at Kaspersky

Lab, the well-known Moscow based cyber security firm, rattled off the names of several

Axis computers which, he claimed, have been breached. The Kaspersky man said his firm

had stumbled on the information in the course of a separate probe. When an Axis team

looked into the bank’s servers, it found out that there was indeed an unauthorised login by

an unnamed, offshore hacker.

Last week, Axis filed a preliminary report about the breach to Reserve Bank of India.

The bank has hired EY, the audit and advisory firm, to carry out an investigation. Till

now, there are no reports of any fund transfers, but the bank and EY are trying to figure

out the extent of damage, data loss if any, and most importantly whether the virus is still

crawling in the institution’s server zone, said a banker who is aware of the breach.

Billionaire Uday Kotak did something unusual last month. He signed off on his Kotak

Mahindra Bank valued at Rs 1.4 lakh crore for buying BSS Micro Finance, a tiny lender

which does not even have 1% of the assets the bank has. And Kotak is not alone in the

hunt for companies which make money out of lending to people who need a few thousand

rupees to do their business – like a vegetable vendor, a carpenter, or an auto rickshaw

driver. Those who minted money lending to businessmen in South Mumbai and in New

Delhi for their BMWs or Mercs, are setting their eyes on towns and villages like Sanchi

or Mettur. At last, the big banks in India are beginning to act on management guru CK

Prahalad’s ‘Bottom of the Pyramid’ story. Things may be falling in place for small towns

and villages which have been credit starved despite the lofty principles of making credit

available to everyone on which banks were nationalised.

India’s largest private sector lender, ICICI Bank Limited had tied up with Emirates NBD

— a leading banking group in the Middle East — to execute transactions in international

trade finance and remittance using blockchain technology. ICICI Bank Limited is the

first few banks globally to exchange and authenticate remittance transaction messages

electronically on blockchain in real time. The usage of blockchain technology simplifies

the process and makes it almost instant—to only a few minutes.

Public sector banks which made losses or experienced sharp dip profit in the last fiscal

could lose their ability to service coupon on additional tier 1 bonds issued under Basel III

capital regulations. rating company Crisil said in a report. A sharp dip in profitability and

mounting losses could wipe out the revenue reserves of some public sector banks, Crisil

said. As many as 13 of the 21 public sector lenders taking the State Bank of India and

its associates as a consolidated entity reported losses for fiscal 2016, and almost half of

them could do so again this fiscal, the rating company said.

Stung by high cost of funds when demand for loans is at the weakest in nearly a decade,

state-run banks, which used to rely on long-term fixed deposits, are increasingly not

accepting any fixed deposit beyond five years. This also reflects a dip in demand for

long-term loans for infrastructure projects like power plants or ports, which require

funding for anywhere between seven and twelve years, say bankers. Lenders like State

Bank of India, UCO Bank and Punjab National Bank are discouraging depositors

from locking up funds at a higher rate for longer periods. By not contracting long-term,

high-cost funds banks are also playing safe in a falling interest rate regime where

customers avoid borrowing for longer periods.

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Clients are advised to consider information provided in the report as opinion only

& make investment decision of their own. Clients are also advised to read &

understand terms & conditions of services published on website. No litigations

have been filed against the company since the incorporation of the company.

Disclosure Appendix:

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.