TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

CNX NIFTY - The Nifty gave the gap down opening 7936 on Monday and made the high of 7966 and low of

7922. The expectation was also Neutral from the market due to global and domestic cues. The RBI keep unchange

the repo rate . And the investors are not confident about the market more due to US Fed rate hike fear. The indian

economy is in better shape but the uncertainties of GST bill is also a worry for investors.However market will

remain consolidated for next week also RBI governor said market to be stabilise there could be an initial bout of

volatility following a hike in interest rates by the US Fed, the market would settle down subsequently.But the

expectation is 1-2 per cent movement in Nifty Either Negative or Positive on Fed rate hike Decision. So it is a

period of uncertainties. However, there is absence of any other key trigger for markets and the focus is expected to

shift to the Federal Reserve Policy. The Nifty is expected to consolidate in the 78,00-8,000 range in the coming

week. The Resistance for Nifty is R1 7836 R2 7924.

Bank Nifty Future: The Bank Nifty is also open in red on Monday at 17336 and made the high of 17498 and low

17336 and traded between 17300-17500 the Bank Nifty is currently 17336.The NPA is worry in the Banking

Industry Raghuram Rajan said banks have been given more powers and flexibility to deal with the bad loans. The

RBI also said to banks there is a more room to rate cut by Banks. As the lenders o an average have only passed less

than half of the what RBI cut (1.25 during 2015 ). The hope for Bank Nifty is all over in bullish trend but global

cues can also impact the market like - Fed News, other economic and Banking news. and for next week could

expecting that Bank Nifty Will be Consolidate Trend. The expectation from Banking shares is consolidated trend

and the chance of Bank Nifty to cross the level of 17200 the Resistance for Bank Nifty is 17297-17715 The

Support of Bank Nifty is 16813-16571. According to Technical Analysis Some hot stock in Banking sector is

HDFC Bank ,ICICI Bank, Kotak Mahindra Bank , YES Bank And Bank of India, Can take position for next week.

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S27924 7836 7792 7748 7660

WEEKLY R2 R1 PP S1 S28429 8037 7841 7645 7253

MONTHLY R2 R1 PP S1 S28430 8038 7842 7646 7254

BANK NIFTY

DAILY R2 R1 PP S1 S217297 17055 16934 16813 16571

WEEKLY R2 R1 PP S1 S218947 17715 17099 16483 15251

MONTHLY R2 R1 PP S1 S218930 17704 17091 16478 15252

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 7900 8016 8148 8319

BANK NIFTY 17143 17375 17727 18115

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8013 7727 8526

BANK NIFTY 17593 15986 19813

PATTERN FORMATION ( NIFTY AND BANK NIFTY )

Depiction of Chart - On The Above given daily Chart of MAs lag current price action because they are based on past prices the longerthe time period for the MA, the greater the lag. Thus a 200-day MA will have a much greater degree of lag than a 100-day MA because itcontains prices for the past 200 days. The length of the MA to use depends on the trading objectives, with shorter MAs used for short-termtrading and longer-term MAs more suited for long-term investors. The 50-100-200-days MA is widely followed by investors and traders, withbreaks above and below this moving average considered to be important trading signals.MAs also impart important trading signals on their own, or when two averages cross over. A rising MA indicates that the security is in anuptrend, while a declining MA indicates that it is in a downtrend. Similarly, upward momentum is confirmed with a bullish crossover, whichoccurs when a short-term MA crosses above a longer-term MA. Downward momentum is confirmed with a bearish crossover, which occurswhen a short-term MA crosses below a longer-term MA.While on the Above given Chart both the condition are not following so we canexpect that if the Nifty is crossing the level of 7800 it can make the high of 7900-8150 for Next Week. Weekly Support of Nifty Is 7645-7253And Resistance is 8037-8429.

BANK NIFTY MACD

Details of Chart - On the Above given chart of Bank Nifty Weekly MA for week is giving signal the both the MA working as a supportlevel and the EMA working as a Resistance level it could make high of 17200.The market is in pressure due to global news. However NextSession of Bank nifty Will be in consolidated trend..RBI keep rate unchanged and the US fed rate hike is also fear for investor to bet inBanking industry.So Banking Industry Shares Can open in the consolidated trend on Monday. The Support for Bank Nifty Is 16813 S2 16571And the Resistance for Bank Nifty is R1 17295 R2 17515. The All over trend of nifty will be Negative due to global news impact Although wecan see a sharp bullish opening from next trading session.

NSE EQUITY DAILY LEVELS

COMPANY NAME R2 R1 PP S1 S2

ACC EQ 1347 1341 1337 1331 1327

ALBK EQ 75 75 74 73 73

AMBUJACEM EQ 199 197 196 194 193

ASIAN PAINT EQ 847 841 835 829 823

AXISBANK EQ 465 463 459 457 453

BAJAJ-AUTO EQ 2492 2482 2469 2459 2446

BANKBARODA EQ 172 170 168 165 163

BANKINDIA EQ 126 125 124 123 123

BHEL EQ 173 171 169 167 164

BHARTIARTL EQ 325 323 320 318 315

CIPLA EQ 660 653 648 641 637

COALINDIA EQ 341 338 335 332 329

DLF EQ 120 119 118 116 115

DRREDDY EQ 3233 3214 3197 3178 3161

GAIL EQ 368 363 357 353 347

GRASIM EQ 3772 3752 3736 3716 3700

HCLTECH EQ 856 845 840 829 824

HDFC EQ 1200 1187 1180 1167 1160

HDFCBANK EQ 1079 1070 1065 1057 1052

HEROMOTOCO EQ 2647 2628 2616 2597 2585

HINDALCO EQ 81 80 79 78 77

HINDUNILVR EQ 833 824 814 805 795

ICICIBANK EQ 265 263 262 260 259

ITC EQ 343 340 338 335 333

INDUSIND BANK EQ 950 947 940 937 930

INFY EQ 1076 1064 1052 1040 1028

JINDALSTEL EQ 888 856 838 806 788

KOTAKBANK EQ 679 673 670 664 661

LT EQ 1355 1349 1344 1338 1333

M&M EQ 1354 1335 1325 1306 1296

MRF EQ 39884 39566 39243 38925 38602

MARUTI EQ 4660 4630 4605 4575 4550

ONGC EQ 233 230 228 225 223

ORIENTBANK EQ 150 148 147 144 143

RCOM EQ 90 85 82 77 74

RELCAPITAL EQ 450 444 439 433 428

RELIANCE EQ 983 976 968 961 953

RELINFRA EQ 470 459 453 442 436

RPOWER EQ 55 54 53 52 51

SBIN EQ 244 243 240 239 236

SSLT( VEDL) EQ 94 93 92 90 89

SUNPHARMA EQ 802 778 750 726 698

TATAMOTORS EQ 416 407 403 394 390

TATAPOWER EQ 68 66 65 63 62

TATASTEEL EQ 247 243 240 236 233

UNIONBANK EQ 47 46 46 45 45

TOP 15 ACHIEVERS // TOP 15 LOOSERS

NEXT WEEK STARS (AS PER TECHNICAL ANALYSIS PRIDICTION )

NSE FUTURE

1. CEAT LTD FUTURE - CEAT LTD OPEN AT 1045 AND CLOSE AT 1029 SHOWS BEARISH

MOVEMNET TODAY.ON DAILY CHART OF CEATLTD MOVES IN BEARISH TREND WE CAN

EXPECT FURTHER DOWNSID EMOVEMENT IN CEATLTD. MADE SHORT POSITION IN

CEATLTD BELOW 1025 TGT 980 SL 1040.

2. EICHERMOTORS - EICHER MOTORS SHOWS BULLISH TRENDTODAY IT CAN MOVES

UPWARD TREND ON DAILY CHART WE CAN MADE LONG POSITION IN IT ABOVE THE

LEVEL OF 16770 TGT 17200 SL 16700.

3. MRF FUTURE - MRF FUTURE OPEN AT 39160 CLOSE AT 39786 MADE HIGH OF 39875 SHOWS

BULLISH TREND TODAY.WE CAN EXPECT IT MOVES IN UPWARD DIRECTION MADE LONG

POSITION ABOVE THE LEVEL OF 16770 TGT WILL BE 17200 SL 16700.

4. INFRATEL FUTURE - INFRATEL FUTURE MOVES IN BULLISH TREND TODAY ON DAILY

CHART OF INFRATEL IT MOVES IN UPSIDE TREND WE CAN MADE LONG POSITION IN IT

ABOVE 400 TGT 420 SL 394.

SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE

1NATCO PHARMA 2575.50 500.00 - 80.59 %

2 JUST DIAL 929.35 826.05 - 11.12 %

3 J K LAKSHMI CEMENT 350.90 326.70 - 6.90 %

4 MPAHSIS LTD. 516.55 480.95 - 6.89 %

5FINOLEX CABLES 262.35 246.00 - 6.23 %

6 DR. REDDY LABS 3388.60 3180.95 - 6.13 %

7BHARTI AIRTEL 341.25 321.25 - 5.86 %

8 KAVRI SEEDS CO. 428.05 407.50 -4.80 %

9 BAJAJ ELECTRICAL 225.20 214.45 - 4.77 %

10 FIRST SOURCE SOLU.

42.55 40.55 - 4.70 %

11ASHOK LEYLAND 94.75 90.35 - 4.64 %

12 GODREJ INDUSTYRIES

388.85 370.95 - 4.60 %

13UPL 438.15 418.25 - 4.54 %

14 AMARA RAJA BATT.

883.35 843.70 - 4.49 %

15BHARAT FORGE 877.25 838.25 - 4.45 %

SR.NO SCRIPT NAME PREVCLOSE

CMP % CHANGE

1JET AIRWAYS 473.10 555.55

+ 17.43 %

2 INDIAN HOTEL CO. 91.75 107.55 + 17.22 %

3RCOM 71.15 81.35

+ 14.34 %

4 GATI LTD. 154.30 174.85 + 13.32 %

5IDBI BANK LTD. 82.00 91.50

+ 11.59 %

6 FUTURE RETAIL 135.80 151.45 + 11.52 %

7DLF LTD. 107 117.20

+ 9.53 %

8 JSW STEEL 887.90 972.00 + 9.47 %

9MUTHOOT FINANCE 178.50 194.50

+ 8.96 %

10 EMAMI LTD. 931.35 1003.00 + 7.69 %

11TATA STEEL 224.35 240.40

+ 7.24 %

12 SUN PHARMA 707.90 755.55 + 6.73 %

13RELIANCE INFRA 418.80 447.00

+6.73 %

14 OIL INDIA LTD. 371.90 395.50 + 6.35 %

15 BERGER PAINTS LTD. 221.30 233.95

+ 5.72 %

5. JUSTDIAL FUTURE - JUSTDIAL OPEN AT 853.25 MADE LOW OF 816.60 MOVES IN BEARISH

TREND,ON DAILY CHART OF JUSTDIAL FUTURE MOVES IN BEARISH TREND WE CAN

MADE SHORT POSITION IN HUSTDIAL BELOW 816 TGT 750 SL 830.

6. CUB - CUB IS TRADING AROUND A STRONG SUPPORT AREA. LONG POSITION CAN BE

MADE ABOVE 87 FOR TGT OF 94 AND SL 84.50.

7. CHENNPETRO - LONG POSITION CAN BE MADE IN CHENNPETRO ABOVE 206.50 FOR TGT

OF 223 WITH SL OF 199.50.

8. MOTHERSUMI - MOTHERSUMI HAS CORRECTED ABOUT 5% IN LAST WEEEK AND CAN

RECOVER CROM LOWER LEVELS.LONG POSITION CAN BE MADE ABOVE 285 FOR TGT OF

307 WITH SL OF 276.50.

9. TORNTPHARM - TORNTPHARM CAN SHOW UPWARD MOMENTUM ABOVE 1495 .LONG

POSITION CAN BE MADE WITH TGT OF 1614 WITH SL OF 1450.

10. SJVN - LONG POSITION CAN BE MADE IN SJVN ABOVE 30.30 FOR TGT OF 32.75 WITH SL

OF 29.35.

NSE - WEEKLY NEWS LETTERS

TOP NEWS OF THE WEEK

Nifty could gain 4-5 % with GST bill push -Bullish derivative traders are betting on the Nifty gaining in

December on hopes that the NDA government would be able to push through the Goods and Services Tax, the

country's biggest indirect tax reform, in Parliament's ongoing session. Brokers are advising savvy clients to create

options strategies that could help them play the markets if this crucial reform bill passes the upper house of

parliament where the ruling party is in a minority. Here is how a wealthy HNI or individual trader with an appetite

for risk can play this strategy, according to brokers and experts said that. You can start with by playing the bull call

ratio spread strategy which involves the simultaneous purchase of a lower strike Nifty call option and sale of two

higher strike call options. You can buy an 8000 Nifty call and sell two Nifty 8300 calls, which would help reduce

the upfront cost of the lower strike call.Traders buy call options when they expect an underlier - in this case Nifty-

to rise when this happen , the value of the call option rises. Brokers said expectations of passage of the GST bill

-considered a crucial economic reform -could boost the market in the coming days that could drive up Nifty call

option premiums.

FPIs Net Outflow in November At $ 1.5 billion dollar - Foreign investors pulled out more than $1.5 billion from

the country's capital markets this month due to lacklustre quarterly earnings and concerns over a possible rate hike

by the US Federal Reserve. The sell-off came after Foreign Portfolio Investor ( FPI) inflow in the capital markets

hit a seven-month high in October. As per the data compiled by the depositories, net outflow in equities stood at Rs

6,616 crore in November, while it was Rs 3,207 crore from debt, translating into a total of Rs 9,823 crore . One day

trading session is still left for the month. FPIs had made a net investment of Rs 22,350 crore last month, making it

the highest investment by them since March, when they had poured in Rs 20,723 crore into the Indian market. The

huge inflows during October also reversed the outflows seen during the last two months. FPIs pulled out over Rs

23,000 crore from the capital markets in the last two months on fears of an economic slowdown in China, which

triggered a global sell-off. The minutes of the latest US Fed meeting showed that it is ready for a December

lift-off, provided subsequent actions are strongly tied to consistent improvements in the economy, which prompted

investors to withdraw money.

India's economic growth seen picking up, RBI may hold rates steady - India's economic growth likely picked

up in the July-September quarter, outpacing China on improving domestic demand and manufacturing activity that

could persuade the Reserve Bank of India to keep interest rates unchanged on Tuesday.Asia's third-largest

economy likely expanded 7.3 per cent in the second quarter of the current financial year that ends in March,

compared with 7 per cent in April-June, according to analysts polled. Stronger growth would be a boost for Prime

Minister Narendra Modi after a defeat in state elections of India's third-most populous state of Bihar. Modi is

focussing on reforms to accelerate growth and hopes to convince his opponents to implement much-delayed

national sales tax in 2016. Analysts say the goods and services tax - which seeks to unify India's 29 states into a

single market - could help raise GDP growth to around 8 per cent in the next fiscal year. "Higher government

capital spending, as well as efforts to facilitate clearances and simplify approvals have contributed to a pickup in

investment activity," said Aditi Nayar, an economist at ICRA, the Indian arm of credit rating agency Moody's.

Cabinet gives post-facto approval to FDI reforms in 15 sectors - The Union cabinet has given ex-post facto

approval to the changes in the foreign direct investment policy in 15 sectors. Report says that the government had

raised the foreign investment limit for some sectors, eased the conditions for others. The sectors that benefited

include defence, real estate, private banking, defence, civil aviation, single brand retail and news broadcasting.

According to the government data, FDI rose 13% in the first six months of the current fiscal to $16.6 bn.

US economy is ready for rate hike - The U.S. economy has recovered substantially since the Great Recession.

The unemployment rate, which peaked at 10 percent in October 2009, declined to 5 percent in October of this year.

At that level, the unemployment rate is near the median of FOMC participants' most recent estimates of its

longer-run normal level. The economy has created about 13 million jobs since the low point for employment in

early 2010, and total nonfarm payrolls are now almost 4-1/2 million higher than just prior to the recession. Most

recently, after a couple months of relatively modest payroll growth, employers added an estimated 271,000 jobs in

October. This increase brought the average monthly gain since June to about 195,000--close to the monthly pace of

around 210,000 in the first half of the year and still sufficient to be consistent with continued improvement in the

labor market. Regarding U.S. inflation, I anticipate that the drag from the large declines in prices for crude oil and

imports over the past year and a half will diminish next year. With less downward pressure on inflation from these

factors and some upward pressure from a further tightening in U.S. labor and product markets, I expect inflation to

move up to the FOMC's 2 percent objective over the next few years. And The expectation is clear rate hike of

Federal Reserve in December.

Amul expects milk procurement to touch new high by January - Gujarat Cooperative Milk Marketing

Federation expects its milk procurement to touch a record level of ~210 lakh litres per day by January 2016,

reports a business daily.This is because the peak milk producing season has commenced with the onset of winter.

Also, GCMMF may not increase the procurement prices for milk producers in Gujarat at least for the next 4-5

months, a top official of the milk cooperative has been quoted as saying.

Govt rules out disinvestment in BSNL, MTNL - The Government on Wednesday said that it has no plans to

disinvest stake in BSNL and MTNL.Union Telecom Minister Ravi Shankar Prasad said that every attempt is being

undertaken to revive the two companies and make them competitive.“The results are positive. There is no proposal

to disinvest them as part of revival plan,” Prasad said. The Telecom Minister added that the Government has

provided financial support of INR 169.16 crore to BSNL and INR 458.04 crore to MTNL for the surrender of

spectrum in 800 MHz band. Prasad said that INR 7,795.99 crore have been allocated and authorised by BSNL in

2015-16 for the expansion of communication network capacity in various telecom services.

NRIs can invest up to 24% under PIS in TV Today Networks: RBI - The Reserve Bank of India has today

notified that Non Resident Indians can now invest up to 24 per cent of the paid up capital of M/s TV Today

Networks Ltd. under the Portfolio Investment Scheme. The Reserve Bank has stated that the company has passed

resolutions at its Board of Directors’ level and a special resolution by the shareholders, agreeing for enhancing the

limit for the purchase of its equity shares and convertible debentures by NRIs.

India May Go Relatively unscathed from a fed liftoff - The more we seem to be heading toward a liftoff by the

US Federal Reserve, the more the domestic market seems to be getting used to the idea. So much so, the odds of a

crash in domestic equities are diminishing fast with most market veterans now predicting that the India market

would be able to hold out as and when the hike happens. The confidence appears to be emanating from the recent

macro data points that are hinting at incremental growth revival in the economy and also from the fact that

domestic inflows continue to be robust in both equity and debt and this has cushioned much of the damage even

when FII money has been going out in hordes. For the economy itself, signs of a pickup domestic consumption –

especially urban consumption – during the festive season and a big 61 per cent year-on-year jump in the

government Plan capex spending have provided enough stimulants to the economy to keep investors hooked. India

continued to be among the underperforming equity markets during November due to sustained FII selling ( Rs.

6500 Cr.). Historically, sustained selling by FIIs has resulted in a sharp fall in Indian equities, which seems to have

abated in the recent past. One of the key supports for the Indian markets has been DIIs and, that too, mutual funds.

Which bought more than Rs. 20000 Cr. during Sep-Nov period.

India’s November services PMI hits 5-month low - India's services activity broadly stagnated in November with

the Nikkei Services Business Activity Index posting a five-month low of 50.2 compared with 52.6 in October,

which was an eight-month high. Weak demand across the country meant services companies had the slowest rise

in incoming new work since July. As a consequence, business activity stood still and confidence waned. A reading

above 50 on the survey-based index shows expansion, while a figure below that indicates contraction. Sub-sector

data showed that output growth in post and telecommunication, renting and 'other services' categories was offset

by declines in transport and storage, and hotels and restaurant firms, the latter recording a sharper rate of

reduction. Following an improvement in the prior month, India's economic growth moved closer to stagnation in

November. Gloomy PMI data show a broadbased weakness in output, with little prospect of a rebound apparent in

the near term," said Pollyanna de lima, economist at Markit, which compiles the survey.

RBI Signs MoU On Supervisory Cooperation & Exchange Of Supervisory Info With UK - The Reserve Bank

of India signed separate Memoranda of Understanding on “Supervisory Cooperation and Exchange of Supervisory

Information” with Prudential Regulation Authority and Financial Conduct Authority , United Kingdom. The MoU

with PRA was signed by Mr. Andrew Bailey, Chief Executive Officer of the Prudential Regulation Authority and

Deputy Governor, Prudential Regulation, Bank of England on behalf of PRA and Shri S. S. Mundra, Deputy

Governor on behalf of the Reserve Bank of India. The MoU with FCA was signed by Mr. John Griffith Jones,

Chairman on behalf of FCA and Shri S. S. Mundra, Deputy Governor on behalf of the Reserve Bank of India.

Shree Cement to acquire Bhilai Jaypee Cement - Shree Cement has completed the acquisition of a cement

grinding unit of Jaiprakash Associates for Rs 358.22 crore. The acquisition of a 1.5 mtpa cement grinding unit of

Jaiprakash Associates Ltd, situated at Panipat, has been consummated on April 27, 2015 for an aggregate

consideration of Rs 358.22 crore, Shree Cement said in a filing to the BSE on Monday. In August last year, the

board of Jaiprakash Associates Ltd had approved the sale of the unit on a going concern basis to Shree Cement

Ltd. Post this transaction, Jaypee Cement continues to be India's third largest manufacturer with an aggregate

capacity of over 29 million tonnes per annum. After the acquisition, Sree Cement's capacity stands at 19 mtpa with

facilities in Rajasthan, Uttarakhand, Bihar and Haryana. The company sells cement under the brand name of Shree

Ultra and Bangur.

India’s $900 bn exports goal faces structural headwinds: CRISIL - India has set an ambitious target of

doubling exports of goods and services to $900 billion by fiscal 2020 from $470 billion in fiscal 2015. While the

current global cyclical slowdown and the new Trans Pacific Partnership are casting a long shadow, the bigger

challenge is structural. Falling trade intensity of global growth is the external structural constraint while declining

competitiveness, infrastructural bottlenecks and labour market rigidity are domestic. CRISIL Research said, apart

from investing massively in vocational ecosystems that generate a large number of skilled workers, India also

needs to quickly in develop its infrastructure if it has to attract foreign investment and become a world-class

exporting hub

India – FMCG: Selective price increases, the way forward? - Promotional intensity has decreased over the past

few months in 5 out of 12 categories globally. Only two categories experienced an increase; others remained

unchanged. HUL took the lead in the soaps category by providing extra grammage and freebies with huge family

packs. Parle maintained its promotional intensity across categories to protect its market share from Britannia and

ITC. Price increases by other companies will be helpful in checking the sluggish demand. Sequentially, price

increase has remained muted as per the brokerage. Notwithstanding the above, HUL has increased its prices by

~1-5% in the detergents category.This is a good development from the sector's perspective. The ability of

companies to accommodate price increases albeit selectively will be crucial from the sector's long-term growth

perspective. Categories such as biscuits and personal products experienced relatively good price increases, but

shampoos saw quasi price cuts through price offs.

US rate hike fears! Sensex, Nifty down again - The Indian equity market extended its losing streak to the second

consecutive session on Thursday after Fed Chief Janet Yellen indicated that a December rate hike is likely. Yellen

elaborated that if Fed procrastinates the process of policy normalization then the central bank will be compelled to

tighten monetary policy relatively rapidly in order to avert certain economic parameters from substantially

exceeding the prescribed limits. After opening with a negative gap down, indices constantly declined throughout

the day. The metals, FMCG, healthcare and banking stocks led the decline which saw indices close near days low.

Even the mid-cap and small-cap stocks closed with losses. On the other hand, realty stocks managed to eke out

gains. Meanwhile, services sector PMI hit a 5-month low, down from October’s 8-month high of 53.2 to 50.1 in

November.

Moody's: Economic benefits of structural reforms may be smaller than reported - While structural reforms

can boost a country's GDP growth and living standards, their economic benefits and potential impact on credit

strength may be smaller than is commonly believed, Moody's Investors Service said in a report published today. At

a time of muted growth in many euro area countries, structural reforms have been widely touted as an important

tool to increase growth and incomes when there may be limited appetite, or policy space, for fiscal or monetary

stimulus. "Structural reform is currently being heralded as a potential source of economic growth in advanced

economies," said Colin Ellis, Managing Director -- Chief Credit Officer and co-author of the report. "While gains

in GDP growth would be credit positive, it is essential to make an accurate assessment of the potential gains from

these reforms.

Rs. 50,000 crore! Call Drop compensations to push Telecom Sector into losses - It seems that the government

and the telecom companies will continue fighting this battle till the end. In a move that has no precedents across

the world, government is pushing to implement a call-drop mechanism where customers will be compensated if

call disconnects unexpectedly mid-conversation.The telecom players are projecting the cost of this compensation

to a mammoth Rs 50,000 crores. According to them, such a mechanism will lead to unprecedented gaming of the

system. The sector regulator TRAI on other hand estimated this cost to be Rs 700 crores. TRAI is also accusing

that a false impression is being created that regulation is being imposed, without considering the technical

feasibility.

Cape of Good Hope! Government may scrap 1% inter-state tax in proposed GST - There is hope in the air for

a conciliation between the government and the opposition on the stalemate of Goods and Service Tax (GST), as

news reports have emerged that the government is planning to scrap 1% tax on interstate sales, which was

proposed to compensate manufacturing states such as Maharashtra, Gujarat and Tamil Nadu , according to reports.

The purpose of 1% additional tax is to compensate the manufacturing States for loss of revenue while moving to

GST. Congress had expressed its reservations on the bill saying that there are three major points that needs to be

looked upon: 1% tax for manufacturers, the constitutional cap of 18 percent for GST rate and an independent

dispute resolution mechanism for GST. Unless the government responds to these, they are unwilling to accede to

the passage of the bill. GST has been the single largest taxation reforms measure to be undertaken since

independence, and the BJP government has been fighting hard to broker a deal with all the parties. "We are making

efforts for its passage. The public mood is almost one-sided in favour of the GST," Parliamentary Affairs Minister

M Venkaiah Naidu told reporters.

Overweight on India, see 7.9% GDP growth in FY17: Goldman - Timothy Moe, Goldman Sachs expects 5

percent dollar returns for the Morgan Stanley Asia Ex-Japan in 2016, driven by mid-single digit EPS growth, little

overall valuation change, 5 percent forex depreciation and a 3.4 percent dividend yield. Fed tightening and China

slowing are pointing to a soft Q1, he feels. He has started 2016 with overweight rating on India as he believes the

strategic case for India is one of the most positive in the region. Moe expects the Indian government to continue to

push forward on its extensive program of economic reforms which will enable growth to accelerate to 7.9 percent

next fiscal year and ultimately to its potential growth of over 8 percent in later years. He favours urban

consumption, software, private banks and downstream energy to start the year.

TOP ECONOMY NEWS

Surging Ahead! Eight Core Industries grow at 3.2%, cement, fertilizers star performers - The Eight Core

Industries comprise nearly 38 % of the weight of items included in the Index of Industrial Production . The

combined Index of Eight Core Industries stands at 175.4 in October, 2015, which was 3.2 % higher compared to

the index of October, 2014. Its cumulative growth during April to October, 2015-16 was 2.5 %.

Coal - Coal production %) increased by 6.3 % in October, 2015 over October, 2014. Its cumulative index during

April to October, 2015-16 increased by 4.5 % over corresponding period of previous year.

Crude Oil - Crude Oil production decreased by 2.1 % in October, 2015 over October, 2014. Its cumulative index

during April to October, 2015-16 increased by 0.03 % over the corresponding period of previous year.

Natural Gas - The Natural Gas production (weight: 1.71 %) declined by 1.8 % in October, 2015. Its cumulative

index during April to October, 2015-16 declined by 2.1 % over the corresponding period of previous year.

Petroleum Refinery production (weight: 5.94%) declined by 4.4 % in October, 2015. Its cumulative index during

April to October, 2015-16 increased by 2.4 % over the corresponding period of previous year.

Fertilizers - Fertilizer production increased by 16.2 % in October, 2015. Its cumulative index during April to

October, 2015-16 increased by 9.2% over the corresponding period of previous year.Steel production declined by

1.2 % in October, 2015. Its cumulative index during April to October, 2015-16 declined by 0.5 % over the

corresponding period of previous year.

Cement - Cement production (weight: 2.41%) increased by 11.7 % in October, 2015. Its cumulative index during

April to October, 2015-16 increased by 2.6% over the corresponding period of previous year.

Electricity - Electricity generation increased by 8.8 % in October, 2015. Its cumulative index during April to

October, 2015-16 increased by 4.7% over the corresponding period of previous year.

Apr-Oct fiscal deficit stands at Rs. 4.1 lakh crore Govt - According to Government data, the Apr-Oct Fiscal

deficit stands at Rs 4 Lk crore. Apr-October fiscal deficit is approximately 73% of Budget Estimate. April-October

net tax receipts stands at Rs. 4.29 Lakh crore, says Govt data.The April-October revenue deficit was at Rs 2.88

lakh crore. While April-October Non-plan spend is at Rs 7.51 Lk crore.

China's slowdown is not a big surprise, says Arvind Panagariya - The impact of China's economic slowdown

on India will be largely dependent on how the country proceeds on policy reforms, NITI Aayog Vice Chairman

Arvind Panagariya reportedly said. Panagariya reported that China's slowdown is not a big surprise, but quite

contrary if it continued at 10% for the fifth decade that would be a surprise. "First of all the Chinese slowdown is

not unexpected. It is too much to think that China will continue to grow, Panagariya said. Panagariya added that

China's economy has dipped below 7 percent to 6.9 percent in the third quarter.

India-Japan ink deal for metros - India and Japan have inked an agreement for Rs 55bn official development

assistance for Chennai and Ahmedabad metros, a finance ministry statement said. The government said it has

advanced the date for implementation of the roll out of Bharat Stage stage V and VI norms for four-wheelers by 3

years. The Finance Ministry will hold a review meeting with banks and RBI representatives on Tuesday to assess

the gold monetisation scheme, which has seen a “slow response” since the launch earlier this month, to make it

more attractive.

Increasing Manufacturing competitiveness! India may spend US$95bn on railways over 5 yrs - The Indian

Government is expected to spend US$95 billion on ramping up its rail infrastructure, a step that will help in

increasing the country’s manufacturing competitiveness, says a report by US investment bank Morgan Stanley.

FinMin to meet banks head on Dec 1 - The finance ministry will hold a review meeting with banks and RBI

representatives on Tuesday to assess the gold monetisation scheme, according to reports.Report says that the

meeting is also likely to be attended by RBI deputy governor HR Khan.

India needs to grow at 8%: Jayant Sinha - India needs to grow at 8% for decades, the Minister of State for

Finance, Jayant Sinha reportedly said.“Our economic approach is fundamentally different from the previous

government. We have the same philosophy as the Vajpayee government” Sinha added.Sinha said that there were

several key concepts that underpinned the government’s philosophy on economic principles."Our States are larger

than more European countries. We want them to have the finances and opportunities to prosper,” Sinha reported.

1. India will sign a road agreement with Myanmar and Thailand in March next in an attempt to link the

North-East to the two East-Asian countries, Union Road Transport and Highways Minister Nitin Gadkari

said.

2. Domestic mutual funds have been on a buying spree in the equity segment and have invested over Rs. 1tn

during the past 18 months even as the overseas investors preferred to stay on the sidelines.

3. The Reserve Bank of India said it would be buying Rs. 100 bn of bonds from the secondary market under its

open market operations programme, in addition to infusing 28-day liquidity through Rs. 250bn of repo

auctions, in order to ease liquidity deficit in the banking system.

Maharashtra is the biggest economy of India: Brickwork Ratings - GSDP: Maharashtra is the biggest state in

India by size of economy at 16.87 lakh crores for FY15 followed by followed by Tamilnadu and Uttar Pradesh at

9.67 lakh crores. The GSDP of the state has grown by 11.69% for FY15.

Industry: In FY 15, Gujarat and Maharashtra which accounted for 27.26% and 25.18% of GSDP respectively in

2014-15, lead other state economies in terms of level of contribution from manufacturing sector. Other states with

higher manufacturing sector share are Tamil Nadu (19.1%), Jharkhand (18.8) and Haryana (18.1%)

Services: The growth of services sector is largely due to that of IT/BPO/ KPO sector led by Karnataka, Tamil

Nadu, Maharashtra and Andhra Pradesh.

RBI policy - The Reserve Bank of India held its repo rate steady at 6.75%, having cut the policy rate by as much

as 75 basis points in three tranches earlier this year. India will soon become an urea surplus state from a deficit

state and start exporting it, Union Fertilizer Minister Ananth Kumar said. Export Import Bank today said it has

inked an agreement with its counterpart in Malaysia to strengthen financial cooperation.

FDI rises 13% to US$16.63bn during H1 FY16: Govt - Foreign Direct Investment into India grew by 13 per

cent to US$16.63 billion during the April-September period of the current fiscal year, according to the Department

of Industrial Policy & Promotion. FDI stood at US$14.69 bn during April-September 2014. Maximum FDI during

the fist half of FY16 came from Singapore followed by Mauritius, the Netherlands (US$1.09 billion) and Japan

(US$815 million). Sectors which attracted the highest FDI in the period under review include computer software

& hardware (US$3.05 billion), trading (US$2.30 billion), services & automobiles (US$1.46 billion each) and

telecommunications (US$659 million). During FY15, FDI had grown by 27 per cent to US$30.93 billion from

US$24.29 bn in 2013-14.

RBI toes the line! Doesn’t tinker with rates at its fifth bi-monthly monetary policy - Much in line with market

consensus, Reserve Bank of India did not tinker with rates at its fifth bi-monthly monetary policy review on

Tuesday. Keeping the policy a “non-event”, RBI left policy repo rate under the liquidity adjustment facility

unchanged at 6.75% and consequently, the reverse repo rate under the LAF at 5.75% and the marginal standing

facility rate and the Bank Rate remained untouched at 7.75%. Further, the governor kept economic growth

projection unchanged at 7.4% for FY16, but threw an element of caution by highlighting uptick in CPI inflation,

ex-food and fuel warranting vigilance.

DIIs to determine market behaviour post Fed hike - When the US Fed eventually decides to lift interest rates,

behavior of the domestic equity market will be underpinned by outflows the decision triggers. The domestic

institutional investors will have to infuse some investment into the market to bridge the gap that will likely be

created in the aftermath of a US Fed hike.That can not affect the market for long time. Some estimates show that

the annual buying of equity by DIIs so far has touched a record of Rs 60,368 crore in FY16 compared with a net

FII outflow of Rs 14,212 crore, which is the highest in the past seven financial years.

Climbing the recovery ladder - GDP at 7.4% in Q2 - According to Crisil, Growth has picked up pace in the first

half of FY16, on the back of green shoots in manufacturing, modest recovery in consumption and support from

government spending. GDP growth at 7.4% y-o-y in Q2 FY16 was higher than 7.0% in Q1 FY16. Investment

growth picked up by 200 basis points while private consumption growth moderated to 6.8% as rural demand

remained muted. Net-exports (exports minus imports) continued to be a drag on growth in the second quarter,

albeit the decline in both exports and imports slowed. On the supply side, as expected, agriculture growth was

below trend at 2.2% while the non-agriculture sector rose by 8.1%. In Q2, nominal growth stood at 6% as inflation

measured via the GDP deflator remained subdued at -1.3%. This was in line with the decline in WPI inflation to -

4.5 % in Q2.

S&P says India to grow at 7.4% this fiscal - India's economy will grow at 7.4% in the current fiscal, which will

further improve to over 8% in 2016-17, Standard & Poor's Ratings Services reportedly said. S&P added that

significant reforms are required with Indian corporates and banks currently facing a weak operating environment.

Indian economy grew at 7.3% in last fiscal.

7th Central Pay Commission report: Rs. 4.5 tn consumption stimulus? - The 7th Central Pay Commission

report starts a once-in-a-decade massive process of cash transfer in the economy. 34 mn workers and pensioners

should benefit as state governments and central PSUs follow the centre. The centre could implement a 27-29%

hike vs the recommended 24%: this would take rise in the comprehensive wage bill to Rs4.5-4.8 tn spread over

two years with 75% in FY17: it starts with central increases ; states/CPSU should hike later.

TOP CORPORATE NEWS

Mahindra Tractors sells 20,819 units in India during November 2015 - Mahindra & Mahindra Ltd.’s Farm

Equipment Sector, a part of the USD 16.9 billion Mahindra Group, announced its sales numbers for November

2015. Domestic sales in November 2015 stood at 20,819 units, as against 14,207 units during November 2014.

Total tractor sales during November 2015 stood at 21,717 units, as against 15,333 units for the same period last

year. Exports for the month stood at 898 units.

YES Bank - YES Bank has invoked 3.02% of United Breweries’ stake pledged by Vijay Mallya and valued at Rs

7.7bn for loans defaulted by the defunct Kingfisher Airlines.

PVR - Multiplex chain operator PVR expects to add at least 23 screens in the current financial year to take the

total to 500 in the same fiscal.

Emami Ltd. - Emami Paper Mills Ltd, the country's largest newsprint manufacturer, has decided to increase

investment in paperboards to Rs 20bn in the next three years to strengthen its diversification to the high-margin

segment.

Spice Jet - Budget airline SpiceJet plans to order more than 150 planes in the current financial year, the airline's

chairman said.

Indiabulls Housing Finance - Indiabulls Housing Finance plans to raise $500mn by selling rupee denominated

bonds in the next four months, its vice-chairman and managing director Gagan Banga said.

Reliance Industries - Reliance industries is facing a 40% cut in the marketing margin it charges on selling its

KG-D6 gas to fertilizer and LPG plants after the government notified a ceiling of Rs 200 per thousand standard

cubic meters.

Cipla Ltd. - Cipla said it has inked an investment agreement with FIL Capital Investments II Limited for its

consumer healthcare business.

Nestle India - Nestle India said that its pasta product -Maggi Pazzta is safe and that the Lucknow lab, where the

alleged test was undertaken was not NABL accredited. -4.5% in Q2.

MMTC - State-owned trading firm MMTC said it will invest about Rs. 6,000 crore to double the capacity of

Neelachal Ispat Nigam in the next four years.

Bharti Airtel Ltd. - Bharti Airtel Ltd, India’s largest telecommunications service provider, has started what is

being billed as the largest network transformation that the country has ever seen. The company expects to spend as

much as Rs.60,000 crore over the next three years on the 10-point programme called Project leap.

Tata Motors - Homegrown auto major Tata Motors will launch its new compact car Zica early next year as part of

its drive to enhance position in the passenger vehicles segment.

Rajesh Exports - Jewellery firm Rajesh Exports said it has bagged an export order worth Rs 1,122 crore for gold

and diamond studded jewellery and medallions from the UAE.

DLF - Fair trade regulator CCI has rejected allegations of anti-competitive business practice against two DLF

Group firms

Tata Global Beverages - India's second largest tea maker Tata Global Beverages has forayed into instant coffee

business in the country by launching Tata Coffee Grand, which will compete with Nestle's Nescafe and Hindustan

Unilever's Bru.

IDBI Bank - The government is in talks with the International Finance Corp. on the disposal of a stake in state-run

IDBI Bank as it looks to kick off strategic sales of public sector entities.

Ashok Leyland - Hinduja Group flagship firm Ashok Leyland has bagged order for 3,600 vehicles worth $200mn

from Cote D'Ivoire.

Eicher Motors -Eicher Motors’ owned Royal Enfield announced entry into the Thailand market as part of its

strategy to expand operations in the international markets.

Aurobindo Pharma - Aurobindo Pharma said it has received final approval from USFDA to manufacture and

market generic version of Risedronate Sodium tablets, used in the treatment of Osteoporosis, in the American

market.

Spice Jet - Low-cost carrier flydubai has denied it is in talks for a partnership with SpiceJet.

Infosys Ltd. -Infosys is pushing the use of renewable energy across all its facilities in India by putting up solar

panels and buying green energy from wind energy producers.

PVR Ltd. - India’s largest multiplex chain PVR Ltd may have to sell some of its screens in Delhi to get clearance

for its Rs.500-crore acquisition of DT Cinemas, two people familiar with the development said.

Tata Steel - Global steel major Tata Steel today said its Singapore arm has executed pacts worth USD 1.5 billion

for refinancing its debt.

Wipro Ltd. Wipro has entered into an agreement with Landesbank Baden-Wuerttemberg to acquire Cellent AG, a

leading IT Consulting and Software Services company in Germany for Euro 73.5 million

Wockhard Pharma - Wockhardt got a regulatory boost after the UK drug regulatory authority cleared its

Maharashtra-based Chikalthana facility lifting import restrictions completely.

Coal India Ltd. - Coal India's production jumped 8.8% to 321mt during April-November period of the current

fiscal, while off-take soared by 9.8%.

HDFC Ltd - HDFC Ltd. has sold a part of the United Spirits shares pledged with it by Vijay Mallya for a total

value of nearly Rs 470mn.

Natco Pharma - Natco Pharma said its active pharmaceuticals ingredient plant at Chennai has suspended

operations due to flooding caused by rains.

Coffee Day Enterprises- owned Cafe Coffee Day will now deliver its coffee and snacking items at your doorstep.

It has tied up with online food delivery startup Swiggy for the initiative.

Bhushan Steel - Debt-laden Bhushan Steel is in the processing of realising Rs 30bn from sale and lease-back

arrangements for two of its critical assets, the oxygen and coke oven plants.

IL&FS - Engineering and Construction Company announced that the company has bagged road projects worth Rs

6.75bn from Ministry of Road Transport and Highways.

Coal India Ltd. -Coal India Ltd has estimated a capital investment of Rs. 570bn over the next five years to

increase the production to 908.1 MT, as part of the road-map for one billion tonne coal production by 2020.

Reliance Infrastructure’s Ltd. - Eight more bidders have joined the race to buy Reliance Infrastructure's cement

business apart from Aditya Birla Group's UltraTech Cement.

Astra Zeneca - Drug firm AstraZeneca Pharma India will close its Active Pharmaceutical Ingredient unit at

Bengaluru due to low demand for the product in the export markets.

Ajanta Pharma - Ajanta Pharma has launched its generic Montelukast Sodium tablets used for treatment of

asthma and seasonal allergies in the American market.

Titan Ltd. -Titan Ltd. has set up a joint venture with global luxury brand Maison Montblanc to set up its luxury

boutiques in India.

Two Wheeler Industry - The government is considering selling off Scooters India, four years after shelving a

similar plan for the state-run manufacturer of Vikram three-wheelers because of opposition from the then ruling

Congress party.

Dena Bank - Dena Bank plans to raise equity capital by issuing new shares and reduce the holding of Government

of India from 65% to up to 52%.

SpiceJet - Spicejet raise up to Rs. 5,000 Cr to fund fleet expansion its fleet According to company Annual report.

Cipla Ltd. - Cipla, a global pharmaceutical company announced today that it has launched a novel 5-in-1

anti-ageing skin care product Cutisera developed by Stempeutics.

Titan Ltd. - Titan Co. Ltd, India’s largest watch maker, has decided to start the retail operation of its joint venture

with global luxury brand Montblanc International, the company informed BSE on Thursday.

Chennai Petroleum Corp Ltd - Company had shut its 210,000 barrels per day Manali refinery on Wednesday

night due to heavy flooding in the southern state of Tamil Nadu.

Bharat Forge ltd. - Musashi Seimitsu Industry Co. and Bharat Forge Ltd are among companies weighing bids for

the German unit of cash-strapped car-parts maker Amtek Auto Ltd, people familiar with the matter said.

TV Today Network surges 4% on hike in FII investment limi t - Shares of TV Today Network Ltd was up by

4% at Rs. 286 after the company said that it has received shareholders's approval to increase the limit of foreign

investment. The investment limit has been hiked to 26% for foreign portfolio investors/ foreign institutional

investors and non-resident Indians under portfolio investment scheme.

TOP BANKING AND FINANCIAL NEWS OF THE WEEK

Government talks with IFC for a strategic sale in IDBI bank - The government is in talks with the

International Finance Corp. on the disposal of a stake in state-run IDBI Bank as it looks to kick off strategic sales

of public sector entities. The World Bank arm that invests in private sector may pick up a 15% holding, said a

senior government official aware of the talks. This could be a fresh issue that will infuse more capital into the

lender, a stake sale by the government or a combination of the two. The government currently holds a 76.5% stake

in the bank and it is looking to lower this to 49%.

India Inc wants banks to fully transmit previous rate cuts - With RBI Governor Raghuram Rajan keeping the

repo rate unchanged on Tuesday, India Inc on Tuesday called upon banks to fully transmit the rate cuts effected so

far this year to revive weak rural demand and investments. Rajan left the key policy rate steady at 6.75 per cent at

the Reserve Bank's fifth bi-monthly policy review of 2015-16 on Tuesday.

YES Bank inks $265-mn pacts with US firms for SME lending - Private sector lender YES Bank said on

Tuesday it has signed loan agreements worth $265 million with OPIC and Wells Fargo to support small business

growth in India. YES Bank has signed an agreement with Overseas Private Investment Corporation, the US

government's Development Finance Institution, for debt financing of $245 million to increase lending to micro,

small and medium enterprises in India, the bank said in a regulatory filing.

RBI's efforts to bring down inflation credit positive: Moody's - Moody's Investors Service on Tuesday said the

Reserve Bank's efforts in bringing down inflation is credit positive for the country and hoped that the central bank

will continue to remain vigilant in sticking to the target level. The high inflation, it added, has been a constraint on

the credit profile of the country in the past and food price volatility makes India vulnerable to inflation spikes.

Base rate calculation guidelines for banks soon: RBI - The Reserve Bank of India on Tuesday said it will

shortly announce methodology for determining the base rate taking into account the marginal cost of funds, a

move aimed at ensuring that banks pass on policy rate cuts to borrowers. "In the meantime, since the rate reduction

cycle that commenced in January, less than half of the cumulative policy repo rate reduction of 125 basis points

has been transmitted by banks. The median base lending rate has declined only by 60 basis point," RBI said in its

fifth bi-monthly monetary policy statement, 2015-16.

RBI holds rates on accelerated GDP, inflation concerns - The Reserve Bank of India kept the interest rates

unchanged at 6.75 per cent in its fifth bi-monthly monetary policy review meet on Tuesday. The central bank's

decision to hold rates comes in the backdrop of accelerated second quarter GDP data of 7.4 per cent released on

Monday and concerns over rising inflation. "We are still accomodative, but vigilant on inflation. See uptick in

inflation till December," RBI Governor Raghuram Rajan said in a press conference after the policy meet on

Tuesday.

FinMin to set up high-level panel to tackle bad loans in PSU banks - Concerned over mounting bad loans, the

government is planning to set up a high-level panel to effectively deal with the issue, said a senior Finance

Ministry official. "That was discussed at the meeting of the finance minister with the heads of PSU banks. It's too

early to get into specifics... it will certainly have a more focused look on certain sectors," Department of Financial

Services Secretary Anjuly Chib Duggal said when asked if a panel on NPAs, which is likely to be headed by

Minister of State for Finance Jayant Sinha, is in the offing. The gross NPAs of PSBs rose to 6.03 per cent at the

end of June 2015, as against 5.20 per cent in March 2015. "NPA is a matter of concern and the government is

vigilant in this regard. The government is looking into the problems faced by steel, aluminium and textile sectors,"

she said. These are the sectors which have a high share of total NPAs of public sector banks.

Axis Bank launches country's first 'display variant' debit card - Country's third largest private sector lender

Axis Bank today said it has launched a 'display variant' debit card which does away with the hassles of generating

one time password over SMS while transacting. The card, which is being made available for high-value NRE

customers, has an embedded EMV chip, a display screen and a touch-sensitive button which helps generating the

OTP on the card itself."This OTP, in conjunction with the user ID and password, allows the customer to transact

on internet banking without having to wait for OTP delivery via SMS or email," a bank statement said, adding that

it is the first lender in the country to offer the facility.

Yes Bank wins 'Bank of the Year' award in UK - India's fifth largest private sector bank Yes BankBSE -0.69 %

has bagged the prestigious 'Bank of the Year' award as it plans overseas expansion. 'The Banker' magazine's annual

"Banker Bank of the Year Awards" are widely regarded as the Oscars for the banking Industry. "In the past it has

gone to large banks but for somebody like Yes Bank, which is a fairly young bank at only 11 odd years old, to win

this recognition is very prestigious," said Arun Agrawal, Yes Bank's Group President for International Banking &

MNC Relationship, who collected the award at a ceremony here yesterday.

Dena Bank gets board approval to dilute government stake - Public sector lender Dena Bank has got board

approval for dilution of government holding to up to 52 per cent and raise capital up to Rs 2,500 crore from

various bonds.

"To raise equity capital of the Bank by diluting GOI holding up to 52 per cent, on obtaining necessary approval

government," the bank said in a BSE filing.

Foreign banks top rate-cut charts; public sector lenders lag - RBI Governor Raghuram Rajan's repeated nudge

to banks to pass on the rate-cut benefits seems to be falling on deaf ears, as the transmission has been less than

one-fifth in some cases, government data showed today. The Reserve Bank has lowered its policy rate by 1.25 per

cent so far in 2015, while Rajan has been consistently chiding banks on their slow transmission of rate cuts to

borrowers.

RBI revises priority sector lending norms for RRBs - The Reserve Bank of India on Thursday revised the

priority sector lending target for regional rural banks to 75% of total outstanding loans from 60% earlier, effective

January 2016. In a statement, the central bank said that during the last decade, RRBs have undergone significant

structural and operational changes, be it two-phased amalgamation, implementation of CBS platform or

recapitalisation. “Considering the growing significance of RRBs in pursuit of financial inclusion agenda, it has

been decided to revise the priority sector guidelines for RRBs,” it explained.

Bond yields slump on RBI’s OMO plan to infuse liquidity - Sovereign bond yields tumbled on Thursday after

the Reserve Bank of India announced bond purchases of up to 100 billion rupees to infuse liquidity into the

banking system.

The RBI will conduct the bond purchases via open market operations on Dec. 7, it said in a release after market

hours on Wednesday.

RBI monetary policy review: Why Raghuram Rajan stressed more on bad loans this time - With banks

reeling under huge bad debt and on the day RBI monetary policy review was announced, Governor Raghuram

Rajan said steps taken by the central bank and the government should help lenders clean up their balance sheets by

March 2017.Raghuram Rajan said banks have been given more powers and flexibility to deal with the bad loans,

which have crossed 6 per cent as of June quarter. The gross NPAs of the public sector banks rose to 6.03 per cent

as of June 2015 from 5.20 per cent in March 2015.

Repo rate in India a ‘blunt instrument’: SBI chief Arundhati Bhattacharya - Terming the repo rate as a

“blunt” tool for determining the base rate of commercial banks, State Bank of India chairman Arundhati

Bhattacharya on Thursday said the proposed changes in the process of determining base rates of commercial banks

based on marginal cost pricing may not work.

The head of the largest lender of the country pointed out that banks need to have a better balance between

liabilities and assets for faster monetary transmission.

Sun Life to up Birla Sun Life Insurance stake to 49% at Rs 1,664 crore - Sun Life Financial of Canada will

increase its stake in Birla Sun Life Insuranc, a joint venture with Aditya Birla Nuvo, from 26% to 49% at an

investment R1,664 crore. The transaction is expected to close by the end of current financial year, subject to the

regulatory approvals in India and Canada and customary closing conditions.

RBI's tricky strategy to ease market's pre-Fed jitters - Haunted by memories of 2013 markets' crash, the

country's central bank is engaging in a tricky balancing act with domestic yields to keep volatility out of its bond

markets ahead of the Federal Reserve's historic policy decision this month. The Reserve Bank of India is seeking

to prevent wild swings in bond markets by agreeing to pay higher interest rates to investors at bond auctions,

people with knowledge of the central bank's operations say, while also buying bonds in the open market to stop

yields rising too much.

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