TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : In a surprise move, the Finance Minister on Friday announced a sharp cut in corporate tax rates in India from
the regular rate of 30 per cent (plus surcharges adding up to 35%) to 22% (plus surcharges adding up to 25.2 per cent) for all domestic
companies. In addition, for new manufacturing companies incorporating after October 01, 2019, there will be lower tax rate of 15 per
cent (17 per cent with surcharge). Our first-cut analysis of the Nifty50 stocks suggests about 20 Nifty stocks should see in excess of 10
per cent earnings upsides due to this announcement, while the Nifty as a whole should see approximately 8 per cent EPS benefit for
FY21. The government has projected Rs 1.45 lakh crore in revenue losses to come from this announcement (this is 19 per cent of the
budgeted corporate tax receipts of the government for FY20), leading to a 6 per cent decline in corporate tax receipts year on year.
Our analysis of BSE500 companies, whose tax contributions account for ~one third of all corporate tax receipts of the govt, should see
a 12 per cent drop in their tax bill on their FY19 numbers. Thus, the government math does not seem too off. This move along with
excess transfers from RBI might have an impact of 30-40bps on fiscal deficit. This gap of ~Rs 90,000 crore may need to be offset by
either curbing expenditure, or disinvestments in excess of target of Rs 1.05 lakh crore. The last time corporate tax rates were cut in
India (FY11 budget) led to 22 per cent corporate tax growth (surprise of 2 per cent growth over budget expectations). However, that
may not be an apt comparison as the economy was in an accelerating phase already (with FY10 exit nominal GDP growth of over 25
per cent). Slashing the corporate taxes, although hits the fiscal deficit space, could attract FDI inflows (where the focus is shifting from
China) and kick start the private investment cycle. This impact, unlike the cash dole outs, may not be very inflationary. This, along with
accommodative monetary policy, can have a positive impact on growth. The Nifty Financial Services index was up with its
components trading higher in Friday's afternoon session. Shares of State Bank of India (up 9.40 per cent), Mahindra & Mahindra
Financial Services (up 8.55 per cent), HDFC Bank (up 8.55 per cent) and ICICI Bank (up 8.42 per cent) were the top performers in the
index.

BANK NIFTY : - Domestic equity markets edged higher in Friday's session, tracking firm cues from global peers, ahead of the

GST council meet later in the day. Stronger crude and relatively lower tax collection by the government, however, capped gains. BSE
benchmark Sensex opened at 36,214.92, up over 100 points while NSE barometer Nifty opened about 0.4 per cent higher at 10,746.
Shrikant Chouhan of Kotak Securities Limited has a buy call on HDFC Bank Ltd.NSE 9.35 % with a target price of Rs 1160. The current
market price of HDFC Bank Ltd. is Rs 1100.4. Time period given by the analyst is Intra Day when HDFC Bank Ltd. price can reach the
defined target. Shrikant Chouhan recommended to keep stoploss at Rs 1080
HDFC Bank Ltd., incorporated in 199HDFC Bank Ltd., incorporated in 1994, has a market cap of Rs 602002.86 crore. HDFC Bank Ltd.
key Products/Revenue Segments include Interest & Discount on Advances & Bills which contributed Rs 77544.19 Crore to Sales Value
(78.34 % of Total Sales), Income From Investment which contributed Rs 19997.46 Crore to Sales Value (20.20 % of Total Sales),
Interest which contributed Rs 794.70 Crore to Sales Value (0.80 % of Total Sales) and Interest On Balances with RBI and Other Inter-
Bank Funds which contributed Rs 635.70 Crore to Sales Value (0.64 % of Total Sales)for the year ending 31-Mar-2019. The Bank has
reported a Gross Non Performing Assets (Gross NPAs) of Rs .00 Crore (.00 % of total assets) and Net Non Performing Assets (Net NPAs)
of Rs .00 Crore (.00% of total assets). For the quarter ended 30-06-2019, the company has reported a Consolidated Interest Income of
Rs 23560.50 Crore, up 3.66 % from last quarter Interest Income of Rs 22727.60 Crore and up 25.25 % from last year same quarter
Interest Income of Rs 18810.08 Crore. The bank has reported net profit after tax of Rs 5690.80 Crore in latest quarter. Crore in latest
quarter. Shares of YES Bank (down 4.21 per cent), ICICI Bank (down 1.84 per cent), IndusInd Bank (down 1.12 per cent), Axis Bank
(down 0.72 per cent) and Kotak Mahindra Bank (down 0.69 per cent) were among the top losers in the index. IDFC First Bank (down
0.60 per cent), Federal Bank (down 0.59 per cent) and RBL Bank (down 0.57 per cent ) were in the red too. The Nifty Private Bank
index was trading 0.78 per cent down at 14,978.95 around 09:24 am

Monday, 23 September 2019

 (NIFTY )

Detail of Chart: On the above given daily chart of Nifty has Applied the,Movinga
average, moving average channel and Bollinger band all the indicators are
indicating that the Nifty to trade in positive . Today nifty gap up open. Nifty has
broken weakly down trend line ( the trend line has been made from june 2019)
Nifty can come upto its resistance 11400
( BANK NIFTY )

Detail of Chart - On the above given daily chart of Bank Nifty has Applied the,

Moving average, Moving average channel and Bollinger band all the indicators
are indicating that the Bank Nifty to trade in positive . nifty Bank gap up open.
Bank nifty has broken weakly down trend line ( the trend line has been made from
july 2019) Nifty can come upto its resistance 26640
 NSE WEEKLY CALLS ( AS PER TECHNICAL ANYLYSIS )

NSE CASH
NSE CASH BUY RAYMOND ABOVE 583 TARGET 600 Sl 570

NSE CASH BUY UPL ABOVE 585 TARGET 258 SL 550

(On the basis of last week data and the research of our expert you can make profit
of 1 lac on the investment of 3 lacs if you proper follow our guidelines it is also
depends on market condition )
 (NSE FUTURE)

NSE FUTURE SUNPHARMA BELOW 408 TARGET 395 SL 421

NSE FUTURE SELL NTPC BELOW 119 TARGET 114 Sl 123

(On the basis of last week data and the research of our expert you can make
profit of 1 lac on the investment of 3 lacs if you proper follow our guidelines it
is also depends on market condition )
 NIFTY WEEKLY GAINERS/LOOSER

( GAINERS )

(LOOSERS )
( WORLD INDICES )
✍ TOP NEWS OF THE WEEK

Reliance Communications unit misses bond payment, files for bankruptcy A unit of Reliance
Communications Ltd., Anil Ambani’s distressed telecom firm, has filed for bankruptcy protection.
GCX Ltd., which owns the world’s largest private undersea cable system, is the latest company
owned by the tycoon to stumble. The former billionaire’s Reliance Communications itself fell back
into bankruptcy earlier this year. The move by subsidiary GCX comes after it missed payment on its
$350 million of 7 per cent bonds that matured on August 1. Ambani has been waging a war on debt,
and Reliance Group has said that it planned to raise about 217 billion rupees ($3.1 billion) by selling
assets from roads to radio stations in a bid to cut borrowings. Read more about that here. India has
been grappling with the world’s worst bad-loan mess, and a deepening shadow-banking crisis and
hurdles in bankruptcy rules are set to prolong that struggle. We will likely see more
India companies struggling to repay their debt,” said Trung Nguyen, a senior credit analyst at Lucror
Analytics. The situation in India is “highly worrying” with a sharp slowdown in the economy and a
liquidity crunch due to the collapse of the shadow banking system, he added. Reliance Naval &
Engineering Ltd., another firm controlled by Ambani, said recently it is facing an acute cash-flow
crunch after orders dried up amid efforts to restructure a pile of debt. GCX and other firms said that
they plan to implement a prepackaged plan that could include a debt-to-equity swap and also
concurrently, a marketing process to solicit bids for the sale of their business, according to a court
filing. Holders of about 76% of senior notes have committed to the plan, the filing also said. GCX
said in July that it had reached a forbearance pact with holders that provided additional time to discuss
options related to the maturity of its bonds. Moody’s Investors Service cut its rating on the firm to Ca
last month, as it considered the missed payment on the $350 million bonds a default. GCX along with
other associates filed for Chapter 11 bankruptcy protection at the Delaware court, according to a court
filing.

Indian corporates need to follow global standards of governance: K M Birla Indian

corporates need to hold themselves accountable to global standards of governance if India wishes to
re-shape the global economic order, Aditya Birla Group Chairman Kumar Mangalam Birla said on
Tuesday. Speaking at an event here, Birla said that with changing times the core business philosophy
is rapidly moving away from shareholder capitalism to stake holder capitalism which includes
investors, customers, employees and value chain partners. For India to reshape the global economic
order, Indian companies will have to hold themselves accountable to global standards of governance.
I believe this cannot happen by running roughshod over minority shareholders," Birla said. Issues
such as professional CEOs acting as promoters and founders wielding undue and disproportionate
clout also need to change, he added. Issues such as professional CEOs acting as promoters and
founders wielding undue and disproportionate clout also need to change, he added. Birla said that
increasingly all the the stakeholders are demanding a higher value, order, accountability and
additionally the businesses will have to earn their license to operate in the society as a whole. As ease
of doing business improves, the way of doing business needs to change... If we want to make our
mark in the world we have to be prepared for the world to leave its mark on us," he noted. There is
one severely under-exploited sector and that is tourism. Only 11 million foreign tourists come to India
annually. This is roughly the same as Bali and possibly close to half of what Barcelona gets," he said.
If Stonehenge in UK can get close to million tourists in a year, the historic world heritage sites of
Hampi and Gaya and Ajanta Caves have potential to get ten times more, he added. Tourism alone, I
believe can be a $100 billion industry. Same is the story with various sectors in India. The country for
example can be centre for development of healthcare solutions, in the digital domain India can
generate trillions of data points due to its sheer size and hence it could position itself as a hub for data
analytics industry globally," Birla said. So from tourism to health care to data sciences, the sheer scale
of Indian economy will ensure that India's imprint is felt on the world, he added. It will be a two-way
engagement with the world, global companies will seek to harvest India's growing and robust
consumption market which is slated to cross $6 trillion in the next ten years," Birla noted.

India Cements MD, Sudha Narayana Murthy among new members of Tirumala BoardY S
Jaganmohan Reddy-led Andhra Pradesh government has appointed new Board members
for Tirumala Tirupati Devasthanam (TTD), which manages the Balaji Temple at Tirumala, one of the
richest in the World. The new Board, headed by Y V Subba Reddy as Chairman, now includes 8
members from AP, 7 from Telangana, 4 from Tamil Nadu, 1 from Delhi, 3 from Karnataka and
another one from Maharashtra. The Andhra Pradesh government-controlled Tirumala Tirupati
Devasthanam (TTD) manages the famous Lord Balaji Temple along with dozen other temples,
educational institutions, hospitals and others. New members include UV Ramana Murthy (MLA),
Mallikharjuna Reddy (MLA), K Parthasaradhi (MLA), Nadendla Subba Rao, DP Aantha, Chippagiri
Prasad Kumar and K Parthasarathy (MLA) from Andhra Pradesh. Leaders including J Rameswara
Rao, B Parthasarathi Reddy, U Venkata Bhaskara Rao, Mooramsetti Ramulu, D Damodar Rao, K
Siva Kumar and Putta Pratapa Reddy from Telangana have also been given the opportunity to serve in
the trust's board. India Cements' Vice Chairman N Srinivasan, Krishnamurthy Vaidyanathan, Nichitha
Muttavarapu and Kumaraguru (MLA) from Tamilnadu, MS Shiva Shankaran from New Delhi,
Ramesh Shetty, Sampath Ravi Narayana and Sudha Narayana Murthy from Karnataka and Rajesh
Sharma from Maharashtra are the other appointees.
The TTD Board functions like a local government – or a well-oiled corporation - headed by a
chairman, who holds a cabinet rank. It also has an executive officer who in turn is assisted by two
joint executive officers. These officials oversee 63 departments. TTD's Budget for 2019-20 is around
Rs 3,116 crore. A large chunk of TTD’s riches come from donations in cash and kind by ordinary
devotees. Of the trust’s budget outlay of Rs 3,116 crore for 2019-20, cash offerings alone are
projected at Rs 1,231 crore. Donations by business houses, interests on the trust’s bank deposits (Rs
846 crore), tickets for darshan and temple rituals (Rs 292 crore), besides sale of human hair (Rs 100-
120 crore) and 'prasad' in the form of laddu (Rs 270 crore) are other sources of income. The temple
also has gold reserves of over 9,000 kg of which some 7,200 kg are with two banks under gold
deposit schemes.

RBI decision to cut risk weights for retail loans credit negative: Moody's Rating agency Moody's
said on Wednesday that Reserve Bank of India's decision to reduce risks weights for
consumer loans from 125 per cent to 100 per cent at a time when economy is slowing down was
credit negative. The reduction in risk weights would encourage banks to increase their exposure to
this loan segment at a time when credit risks are already increasing from a slowing economy, Moody's
said. Moody's said that the reduction of risk weights would lower the capital requirements and thus
the loss absorbing buffer on these loans. Consumer credit like personal loans have been reporting
strong growth in India over the last few years. The segment's compounded annual growth rate
(CAGR) of around 22 per cent over fiscal 2013-2019 far exceeded that of 11 per cent in overall
banking system loans over this period. Personal loan growth has been particularly strong among large
private sector banks. The strong growth of personal loans in recent years was supported by the yields
offered by these unsecured loans which were amongst the highest within retail lending. A benign
credit environment, characterised by relatively low credit costs across all key retail loan segments,
was a key driver of this growth. This prompted banks to focus on personal loans for their higher
yields. The move for reducing risk weights will also encourage banks to further increase their
exposure to this cyclical segment at a time when the macroeconomy is slowing. There has been a
sharp deceleration in economic and consumption growth in the first quarter of fiscal 2020. The
growth in gross domestic product slipped to a multi-year low of 5%, within which private
consumption grew only 3.1%.Such a slow economic growth trend raises concerns that asset risk on
unseasoned personal loans will rise as a result of potential deterioration in household financial
conditions, Moody's added.
Steel stocks gain as govt allows SAIL to sell iron ore from captive mines
Shares of steel companies such as SAIL, Tata Steel, Jindal Steel and JSW Steel rallied nearly up to 4
per cent in the intra-day deals on Wednesday after the government allowed state-run Steel Authority
of India (SAIL) to sell 25 per cent of its iron ore produced from captive mines. In a separate
announcement, the government also allowed the company to dispose of the old stock of 70 million
onnes (MT) of low grade iron fines and ores (including slime), lying dumped across different captive
mines of SAIL. The ministry of steel has stated that more than 162 MT of low-grade iron ore are
available at mine heads in India, as the regulations do not permit SAIL to sell these materials to
domestic end-use companies. The move by the ministry through two separate notifications on
September 16 is seen as an effort to reduce concerns regarding the expiry of mines. Thirty-one
working mines of iron ore are expiring on March 2020. SAIL has the capacity to enhance iron ore
production from its captive mines by around 8 MT in 2019-20 and 12 mt by 2021-22. Ensuring raw
material security for Indian steel industry has been at the top of our agenda. Our Government has
taken several efforts towards this and the orders passed by the Ministry of Mines is an important step
in this direction," Minister of Petroleum and Natural Gas and Steel Shri Dharmendra Pradhan said. At
01:35 pm, Tata Steel was trading 3.54 per cent higher at Rs 357.15 apiece while JSW Steel was
trading nearly 3 per cent higher at Rs 222.05. Jindal Steel & Power was quoting 3 per cent higher at
Rs 105.85 and SAIL was ruling at Rs 33.55 apiece on the NSE. In comparison, the benchmark
Nifty50 index was ruling at 10,839.75 level, up 22 points or 0.20 per cent. In our view, the
government’s decision brings to the fore the larger issue of potential delays in scheduled bidding
process in the domestic iron ore market. If the bidding process is delayed, we estimate a shortfall of at
least 30–35mtpa even if SAIL manages to ramp up production. We also expect the decision on
Donimalai mine (NMDC) shortly; this would add about 7mtpa of supply, potentially ameliorating the
shortfall further," wrote Amit A Dixit and Meera Midha of Edelweiss in a recent report. Adding: "The
latest development spells relief for the stock in the near-term considering potential benefits from
merchant iron ore sales. However, in medium-to-longer term, we remain circumspect about the actual
gains accruing to the company. Maintain ‘REDUCE/SU’ with a TP of INR33. The stock is trading at
5.8x FY21E EBITDA." Other metal stocks, too, gained in the trade. While NMDC rose over 4 per
cent, Vedanta, Welspun Corp, Hindustan Copper and Hindustan Zinc were up in the range of 2.80-
0.50 per cent. The Nifty Metal index was trading over 1 per cent higher at 2,401.95 levels.
Govt approves 78-day wages as productivity bonus to railway employees
The Cabinet on Wednesday approved productivity-linked bonus equivalent to 78 days wages to over
11.52 lakh railway employees, Union Minister Prakash Javadekar has said.This is for the sixth
consecutive year that productivity-linked bonus is being given to railway employees. The bonus for
financial year 2018-19 would benefit 11 lakh employees and would cost the exchequer Rs 2024.40
crore, Javadekar said. Payment of the bonus motivate a large number of railway employees to

improve the performance and enhance the productivity levels further, besides maintaining industrial
peace, an official statement later said. However, railway unions are not happy with the benefit and
said that they had expected an enhanced bonus. We had discussed this issue with the Railway Board
at the appropriate level, wherein we had requested for enhancement in the number of days for
payment of PLB on account of enhanced productivity given by the railway employees," a letter from
the All India Railwaymen's Federation to the Railway Board chairman stated. "Railwaymen working
under arduous conditions in all the weathers had expected some enhanced PLB this year, but
unfortunately, that has not been done," it added. In the letter, general secretary of All India
Railwaymen's Federation Shiva Gopal Mishra said though they appreciate the efforts made by the
Ministry of Railways for enhanced PLB to railwaymen, it is their submission that, based on the
productivity, the ministry should consider "suitable compensation" to railwaymen for the performance
they have given last year.

Motilal Oswal's PE arm exits Kolte Patil Developers with 23 % IRR Motilal Oswal Real Estate
(MORE), the real estate private equity arm of Motilal Oswal Group, has exited from its investment in
a project being developed by Kolte Patil Developers in Pune. MORE had invested Rs 58 crore
through its funds IREF II and IREF III in December 2015 by taking an equity stake in the project and
has now exited with an IRR of more than 23 per cent. Kolte Patil is a real estate developer having
operations in Pune, Mumbai and Bangalore markets. The investment was made through two funds -
India Realty Excellence Fund II (IREF II) and India Realty Excellence Fund III (IREF III) - in a
project called City Avenue, which is adjacent to the Kolte Patil project Western Avenue in Wakad,
Pune. City Avenue is spread across 2.8 lakh sq ft and comprises one residential and one commercial
tower. The construction for the project commenced in 2016 and within just three years, the residential
portion was fully sold and delivered with OC. Work on the commercial portion is underway. IREF II
is the second fund launched by MORE and achieved its final close in April 2015 at Rs 500 crore. Till
date the fund has made 14 investments and has secured 10 exits at an average IRR of 21.4 per cent.
The fund has returned 129 per cent of fund corpus within four years from its final close. The fund has
another 30% capital invested across its remaining four investments which would be divested over the
next one year. IREF III is the third fund launched by MORE. It achieved its final close in August
2017 at Rs 1,000 crore and has till date made 22 investments. The fund has secured 6 exits at an
average IRR of 22.4% and has returned 26% of fund corpus within a period of two years from its final
close. IREF IV, the fourth fund launched by MORE, recently achieved its third close at Rs 1,050
crore. The fund has made 6 investments till date. At a time when fresh disbursements by NBFCs and
HFCs have slowed down considerably, MORE has been actively assessing new propositions. In the
last three-four months, MORE has committed Rs 280 crore across four investments through its funds
IREF III and IREF IV. This amount has been committed across projects with developers like
Casagrand Group (in its residential projects in Chennai and Bangalore) and with Phoenix Group in its
project in Hyderabad. The ticket size for each of these investments is between Rs 50-80 crore.

TOP ECONOMY NEWS

Advance tax mop-up posts dismal growth, rises by just 6% in H1FY20

The tax authorities are faced with a steep revenue collection target for 2019-20, with advance tax
mop-up posting dismal growth in the first half of the financial year, indicating a deepening economic
slowdown. The overall advance tax collection, including corporate and personal income tax, grew by
6 per cent between April and mid-September as against 18 per cent in the year-ago period, according
to sources in the know. Direct tax collection has seen a growth rate of mere 5 per cent so far this year,
which means that collections will need to expand by at least 27 per cent in the remaining half to
achieve the Budget target of 17.3 per cent growth. Advance tax collection after the second instalment
stood at Rs 2.2 trillion. The gross direct tax collection has touched Rs 5.5 trillion as against the full-
year target of Rs 13.35 trillion. Within the advance tax collection, corporation tax mop-up grew by
6.5 per cent and personal income tax by 3.5 per cent. The revenue situation remains grim on account
of the economy expanding slower than expected and key industries being impacted. If the situation
does not improve, meeting the collection target will be impossible,” said a government official.
India’s gross domestic product (GDP) growth plummeted to a 25-quarter low of 5 per cent in the first
quarter of FY20. The tax buoyancy estimated this year at 1.44 is higher than 1.21 achieved last year.
In simple terms, it means if nominal GDP expands by 10 per cent, direct tax collection will grow by
14.4 per cent, which appears near impossible in the current situation. Nominal GDP grew by just 8
per cent in the first quarter as against 12 per cent budgeted for FY20. Several institutions, including
the International Monetary Fund (IMF) and the Reserve Bank of India (RBI), have cut India’s growth
forecast. Broad sentiment suggests that the actual economic growth may be lower, somewhere around
10 per cent. This will mean the direct tax collection will be somewhere around 12-13 per cent,” said
another official.
Hero MotoCorp asks govt for phased GST reduction to avoid revenue losses Hero MotoCorp on
Thursday urged the government to consider a phase-wise reduction in GST on automobiles, cutting
rates for two-wheelers in the first stage, and deferring tax cut on four-wheelers to a later stage. The
country's largest two-wheeler maker said the move would help the government contain potential
revenue loss, and at the same time provide relief to around 20 million probable two-wheeler buyers
across the country. I understand that potential adverse impact on government revenue is becoming a
constraint (for GST rate cut). While increased sales should take care of that, even if we assume a
shortfall in revenue, a resolution can be found if we approach this topic in phases," Hero

MotoCorp CFO Niranjan Gupta told PTI. The government may look at reducing the GST for only
two-wheelers as the first step and defer it for four-wheelers, he added. This will contain the potential
revenue loss, and also cover around 20 million buyers," Gupta said. To begin with, the government
can even look at bringing two-wheelers up to 150 cc into the 18 per cent goods and services
tax (GST) slab, he said, adding that this will provide relief to almost 16 million probable customers -
mostly in small towns and rural areas - with minimal revenue impact. Thereafter, the same can be
extended to other segments, basis the outcome and fiscal space that the government may have," Gupta
said. The two-wheeler market in India is pegged at around 20 million units per year with lower than
150-cc bikes accounting for the bulk of sales. Gupta said that the company, for some time now, has
been pointing out that two-wheelers below 150 cc are definitely not items of luxury or sin goods.
They are drivers of economy, especially in the heart of the nation, in tier II, III cities and villages.
They not only provide mobility to millions, but also make them employable and support small
businesses. Thus, it is unfair to club them under the same category as four-wheelers or expensive
motorcycles," Gupta said. Hence, the GST council needs to have a separate slab for two-wheelers
below 150 cc category at 18 per cent, he added. When asked if the GST rate cut should come now or
close to BS-VI transition, he said: "We believe that it needs to be an immediate step, as it will help in
boosting the sentiment right now and increase sales, and also help insulate the BS-VI impact." The
current slowdown in the industry is due to a significant price increase through multiple policy and
structural changes over the past couple of years. This, along with other factors such as liquidity
crunch, low economic sentiments, reduced rural incomes, has put a cumulative impact on sales, Gupta
said.

Digitising small businesses an $80 bn opportunity over 5 years, says study With smartphone and
internet penetration going up, millions of small businesses are moving online. A recent study, by
consulting firm Zinnov, estimates that over $80 billion of digital services may be consumed by this
new class of small and medium businesses (SMBs) in the country over the next five years. According
to the report, there are 75 million SMBs at present and this number is expected to grow to 105 million
by 2024. About over 50 million SMBs are already using digital technologies, over smartphones,
computers and the internet in their business workflows. The study noted that over 600 aggregator
businesses, many of whom are new-age startups such as Udaan, Oyo, Meesho, Ola, Swiggy, and
Rivigo, have already enabled over 10 million SMBs to adopt digital and will continue to play a vital
role in SMB digitisation. Digitally-empowered SMBs are leveraging a combination of digital services
in connectivity and communications, payments, discoverability, productivity-focused technologies,
and are starting to expand into the world of artificial intelligence (AI), automation, and Internet of
Things (IOT). Global tech giants and tech ISVs are committing huge investments to the Indian SMB
market. Private equity and venture capital interest in the SMB aggregators and start-ups is at an all-
time high and is resulting in the rapid valuation enhancement of such companies,” said Praveen
Bhadada, partner and global head - digital transformation, Zinnov By 2024, we expect the SMBs’
contribution to India's GDP to grow from the current 40% to about 50%, on the back of pervasive
digitalisation. The rising performance of digital SMBs will support adding 4 million new jobs in the
next 5 years, anchoring this segment as the linchpin for the Indian economy, especially in light of the
purported economic slowdown, in the years to come,” added Bhadada. The gig economy, which
essentially comprises freelancers or independent entrepreneurs growing their business through new-
age “platforms, is a major contributor to the digital economy. While traditional industries like retail,
manufacturing, logistics, etc. account for a large base of SMBs, it’s the newer categories of SMBs
such as housewife resellers, cab drivers, delivery partners, and media content creators that are
expanding the SMB base rapidly, and already account for 10% of the total SMBs in India,"said
Bhadada.

Rate cut, infusion of liquidity will end credit crisis: Edelweiss chairman
One of India’s top shadow financiers by assets is betting that central bank easing will bring an end to
the nation’s prolonged credit crisis, even as fresh strains in the sector emerged this week. “Interest-
rate cuts and infusion of liquidity by the RBI will give a boost to the bond markets and aid the credit
market to return to normalcy by December,” Rashesh Shah, chairman of Edelweiss Financial
Services Ltd., said in an interview from the company’s steel-and-glass headquarters in Mumbai.
“Steps taken by the government will also help alleviate concerns around non-bank lenders.” Pushed
by a year of distress in India’s shadow banking sector, policy makers have announced a series of
measures to calm the credit market. The steps included providing a liquidity backstop for banks to
buy non-bank lenders’ assets and a cash infusion into the financial system. Still, Shah’s views seem at
odds with a non-stop flow of bad news about the sector. Pushed by a year of distress in India’s
shadow banking sector, policy makers have announced a series of measures to calm the credit market.
The steps included providing a liquidity backstop for banks to buy non-bank lenders’ assets and a
cash infusion into the financial system. Still, Shah’s views seem at odds with a non-stop flow of bad
news about the sector. That said, policy moves do seem to be yielding results. The premium that top-
rated non-bank lenders pay over sovereign debt to borrow fell to the lowest in a year last week. “Rates
have come down. Now, it’s more of a risk aversion issue, but that can be overcome,” Shah, 55, said.
Troubles for India’s credit markets kicked off in 2018 when IL&FS Group unexpectedly defaulted on
its debt, creating a challenge for many financiers, which are now struggling to roll over borrowings.
Axis Bank Ltd. also expects shadow banking woes to ease over the next few quarters hopefully. In
response to the crisis, Edelweiss is shifting its loan book of about 350 billion rupees ($4.9 billion)
toward retail from wholesale lending. It plans to increase loans to individuals to about 75% of the
total in the next three years, from 50% currently, Shah said. Shares of Edelweiss have declined nearly
60% in the past year amid concerns about its wholesale exposure. In his 30-year long career, Shah
said he’s never seen a time where a slowdown was coupled with a cash crunch and extreme risk
aversion. India’s economic growth has decelerated for five straight quarters to the weakest level since
early 2013 as cash crunch among shadow lenders cooled consumer spending.This is a very rare and
strong combination,” he said. “But, the worst is certainly over now.”

OECD slashes India's economic growth forecast from 7.2% to 5.9% The Organisation for
Economic Co-operation and Development (OECD) appears to be the most pessimistic on India's
economy among think tanks, as it cut the GDP growth forecast by 1.3 percentage points to 5.9 per
cent for 2019-20. For the next year, the OECD has projected the Indian economy to grow 6.3 per cent,
bringing down its earlier forecast by 1.1 percentage points. The Paris-based policy forum said the
trade war between the US and China has sent global growth momentum tumbling toward lows last
seen during the financial crisis. The OECD predicted that the global economy will see its weakest
growth since the 2008-2009 financial crisis, slowing from 3.6 per cent last year to 2.9 per cent this
year; it predicted 3 per cent growth for the next year. Developments in many emerging-market
economies were softer than projected, including in India, Mexico and other commodity-exporting
countries," the OECD said in its latest economic outlook, analysis, and forecasts, released on
Thursday. If the Indian economy indeed grows 5.9 per cent in 2019-20, it will be lower than 6.4 per
cent in 2013-14 -- the last year of the UPA-II government -- which is termed as the policy paralysis
year. Also, India is likely to lose the tag of the fastest-growing major economy, as China is projected
to grow 6.1 per cent in 2019. The OECD's growth forecast, however, is higher than 5.5 per cent in
2012-13, another policy-paralysis year under the UPA-II government.India is among seven countries
whose economic growth projections are cut by the OECD by more than 0.6 percentage points. The
other countries are Argentina, Brazil, Saudi Arabia, South Africa and Australia. The OECD cut
India's growth for FY20 following the latest official data, which showed that the country's economy
expanded by just 5 per cent in the first quarter of 2019-20, the lowest in over six years. "GDP growth
in India has proved surprisingly weak in the recent quarters with consumer spending having slowed
and tight financial conditions restraining investments," the OECD said. For the next year,
India's economic growth rate is projected race past China's (5.7 per cent), and it will again become the
fastest-growing large economy. Lower interest rates and stronger benefits from reform efforts should
all help private sector demand to strengthen," the organisation said.

Festival bonanza from FM: Corporation tax rate slashed to boost investments
In her fourth set of packages for the industry, finance minister Nirmala Sitharaman on Friday
announced corporation tax rate cuts for companies not availing of any exemptions and setting up
manufacturing facilities in the country from the next month. The minister also announced doing away
with surcharge announced in the Budget for the capital markets. The measures will hit the exchequer
by Rs 1.45 trillion a year amid the already grim situation, but the finance minister said the cut in taxes
also expands the basket. Sitharaman announced that the corporation tax rate has been cut to 22 per
cent from 30 per cent for companies not availing the benefits of exemptions. Currently, the total tax
burden after surcharges and cesses come to about 34.94 per cent, which has been reduced to 25.17 per
cent or about ten percentage points. The companies which are enjoying exemptions and tax holidays
and are not willing to join the new tax regime can do so after sun set clause on their tax breaks kicks
in. However, once they come to the new tax regime, they have to stay there. Companies incorporated
from the next month and starting production before March 31, 2023 would get reduction in
corporation tax rate from 25 per cent to 15 per cent. With cess and surcharges this comes to 29.12 per
cent at present and with new rate structure that would be cut to 17.01 per cent or about 12 percentage
points. These companies also need not pay any minimum alternate tax (MAT). The government also
reduced the minimum alternate tax (MAT) to 15 per cent from the current 18.5 per cent. With cess
and surcharge this comes to 21-22 per cent at present, which will be reduced to 17 per cent. To give a
boost to the capital markets, the minister announced that enhanced surcharge will not apply to capital
gains on sale of equity or units in equity oriented trusts. Also, tax on buy back will not be charged for
those companies making this announcement before July five this year. The government also expanded
the scope of corporate social responsibility to include incubators funded by the Centre or state
governments, public sector units and making contribution to public-funded research institutions and
universities such as ICAR, CSIR and ICMR. All the tax measures have been announced through an
ordinance promulgated today to amend the Income Tax Act, 1961 and the Finance Act, 2019.

Room for rate cuts, not fiscal expansion, says RBI governor Shaktikanta Das

Reserve Bank of India (RBI) Governor Shaktikanta Das said there was space for rate cuts even as the
government had little room for any fiscal expansion and the inflation is well below the mandated
level. The Monetary Policy Committee (MPC) is due to announce its policy decision on October 4.
Analysts expect. 25-40 basis points cut in the policy. The governor, however, was not willing to
comment about the potential real interest rate of India that the central bank should fixate upon as
the MPC cannot pursue multiple targets. The governor’s statements, on the sidelines of the
Bloomberg India Economic Forum on Thursday evening, are important as the government tries to
shore up the economy through various measures, but falls short of the market expectations, which
clamour for more substantial packages. Economic growth has fallen sharply, surprising observers.
The six-year low growth rate of 5 per cent was a surprise even for Das. The RBI had predicted growth
at 5.8 per cent. “Nobody predicted less than 5.5 per cent. The number came as a surprise, worse than
all predictions,” said the governor in an interview to CNBC TV 18 earlier. The policy objective of
the MPC is to maintain price stability, keeping in mind the objective of growth. Today, when we see
that price stability is maintained, and our inflation is well below 4 per cent and expected to be slow in
the next 12-month horizon, there is room for a rate cut, especially when growth has slowed down,”
said Das on Thursday. But the government might not be in a situation to give a fiscal push, the
governor indicated. However, he said the decision on this would be taken by the monetary policy
committee when they meet in October. “Within the policy framework the MPC will consider these
aspects as well as several other factors including the assessment of growth and inflation projections.
The final decision will be taken in the ensuing MPC meetings in October 2019,” Das said.
Government’s fiscal space itself is quite limited. The fiscal deficit is at 3.3 per cent (of the GDP).
There is a lot of talk about public sector borrowings by the government so both put together there is
very little fiscal space for the government,” Das said. Whatever measures announced by the
government don’t upset the fiscal math, according to the RBI governor. “The government has
remained prudent as they have not announced any counter-cyclical measures in terms of fiscal
expansion. They have taken some administrative measure with regards to automobile, export, and
banking sectors. And most of these don’t have a fiscal pressure,” Das said. In his speech, Das said
rupee was fairly valued, even by standards laid out by the International Monetary Fund (IMF), which
sees zero gap between the rupee’s exchange rate and the real effective exchange rate (REER, which
measures the rupee’s relative strength against a basket of currencies). India’s exchange rate regime is
flexible and market-driven, with the exchange rate being determined by the forces of demand and
supply. The RBI has no target or band for the level of the exchange rate. Interventions are intended to
manage undue volatility,” Das said in his speech, even as he concluded that heightened volatility in
the exchange rate in the past two years has been because of global spillovers. Bond yields have been
going up too because of external factors, and the universe of negative yielding bonds is growing
disconcertingly large, posing a potential threat to financial stability,” he said in his speech.
✍ TOP CORPORATE NEWS –
(Auto, cement )

Shares of automobile and cement companies rallied the most, gaining up to 16 per cent on the BSE on
Friday, after Finance Minister Nirmala Sitharaman announced a cut in the corporate taxes as part of
its fiscal measure to boost the flagging economy. Eicher Motors and Maruti Suzuki India surged 16
per cent and 11 per cent, respectively in the intra-day trade today. Meanwhile, Mahindra & Mahindra
(M&M), Ashok Leyland, TVS Motor, Escorts, Tata Motors and Bajaj Auto from the automobiles
added between 5 per cent and 8 per cent. Among the cement stocks, Shree Cement surged 14 per cent,
while UltraTech Cement, Shree Cement, Ambuja Cements, ACC, Birla Corporation and India
Cements gained in the range of 5 to 7 per cent on the BSE. At 11:19 am, the S&P BSE Auto index,
the largest gainer among the sector indices, was up 6.3 per cent, as compared to a 3.4 per cent rise in
the benchmark S&P BSE Sensex. Among the key fiscal measures, Finance Minister Nirmala
Sitharaman proposed to cut corporation tax rate to 22 per cent (effective rate 25.17 per cent including
cess and surcharge). This would be subject to the condition that these companies do not avail of any
tax incentives or exemptions. Moreover, no Minimum Alternative Tax (MAT) would be imposed on
these companies.
(ZEE )

Shares of Essel Group companies Zee Entertainment Enterprises (ZEE), Dish TV Network and Zee
Media Corporation got hammered for the second day in a row, falling by up to 19 per cent on the
BSE on Friday, on reports that promoter Subhash Chandra was asked by a court to not sell his
unpledged stake in the company till next month. Among the individual stocks, Dish TV India tanked
19 per cent to Rs 16, hitting an over 10-year low in the early morning deal. It was trading at its lowest
level since December 2008 on the BSE. Meanwhile, ZEE slipped 12 per cent to Rs 272 today, falling
19 per cent in past two trading days on the back of heavy volumes. The stock was quoting at its
lowest level since August 2014. Till 10:24 am, a combined 21.6 million equity shares, representing
2.2 per cent of total equity, of the company changed hands on the NSE and BSE. Investors' sentiment
dented after reports suggested that the court order could impact the group’s future monetisation plans
in Zee Entertainment. Further, promoters of mutual funds (MFs) with a debt exposure to Essel Group
companies are likely to be given more time to repay about Rs 3,000 crore of dues beyond the
September 30 deadline, a Business Standard report said quoting industry sources.
(Hero Cycles )

Hero Cycles is planning to invest around Rs 1,000 crore to support its e-cycles business. The money
will be utilised for strengthening global design and R&D and for setting up a manufacturing unit. A
part of the investment might also be used for building a strong retail distribution network. Hero
Cycles is planning to invest around Rs 1,000 crore to support its e-cycles business. The money will be
utilised for strengthening global design and R&D and for setting up a manufacturing unit. A part of
the investment might also be used for building a strong retail distribution network. Recently, the
company partnered with Japan’s Yamaha Motor Co Ltd to launch the 'Lectro E-cycle powered by
Yamaha', India’s first center motor E-cycle, which is priced at Rs 1.35 lakh, and targets adventure e-
cycling in India. The high performance E-cycle powered by Yamaha is the latest addition to Hero
Cycles' popular E-cycle range - Lectro. Lectro EHX20 is the first branded E-cycle which is driven by
a center motor. The E-cycle can travel 60-70 km on a charge time of 3.5 hours. The premium product
is the first outcome of the three-way strategic partnership formed last year between Hero Cycles Ltd,
Yamaha Motor Co Ltd and Mitsui & Co Ltd. The alliance, brought together by Mitsui & Co Ltd, is
aimed at creating technologically superior high performance products through collaboration
between Hero Cycles and Yamaha Motor's electric drive units, with go-to-market sales, distribution &
marketing support by Mitsui & Co Ltd, said Aditya Munjal, Director of Firefox Cycles Limited and
Hexi. The company is planning to sell around 45,000 units of Lectro this year, with around 50 per
cent to be exported to the UK and EU. Hero Cycles will use its already existing distribution network
through UK-based Avocet Sports, which it acquired in 2015, to export and sell Lectro in Britain and
the EU. In the domestic market, the company is targeting mainly metros and urban markets.
(D-Mart)

Shares of consumption related companies including Hindustan Unilever (HUL), Nestle India, Bata
India, Avenue Supermarts (D-Mart), Asian Paints, Berger Paints, Colgate-Palmolive India and
GlaxoSmithKline Consumer Healthcare hit their respective all-time highs on Friday after the
government announced a fiscal measures to revive the animal spirits in the Indian economy. Among
the individual stocks, HUL, GSK Consumer, Asian Paints, Bata India and Nestle India have rallied 6
per cent each, while Avenue Supermarts, Berger Paints and Colgate-Palmolive India were up 5 per
cent each on the BSE. In a major move, Finance Minister, Nirmala Sitharaman made several
announcements for the corporate sector. Notably, the minister announced sharp cuts in corporation tax
from over 25 per cent to 22 per cent among a series of announcements. Sitharaman said the total
revenue forgone on account of today's measures would be Rs 1.45 trillion per year. In a major move,
Finance Minister, Nirmala Sitharaman made several announcements for the corporate sector. The
minister announced sharp cuts in corporation tax among a series of announcements. Sitharaman said
the total revenue forgone on account of today's measures would be Rs 1.45 trillion per year.
(Astral Poly )

Shares of Astral Poly Technik tanked around 17 per cent to Rs 960 apiece on the BSE -- its biggest
fall in the past four years -- in the early morning deals on Friday after nearly 3 per cent equity of the
company changed hands via block deals. At 09:15 am, around 3.86 million equity shares, representing
2.6 per cent of total equity of Astral Poly Technik, changed hands on the BSE, the exchange data
shows. The names of the buyers and sellers were not ascertained immediately. Earlier on July 3, 2015,
the stock plunged 20 per cent on the BSE in the intra-day trade. As per latest shareholding pattern,
among the public shareholders, Axis Mutual Fund Trustee Limited A/C Axis Mutual Fund A/C Axis
Long Term Equity Fund and Steadview Capital Mauritius Limited hold 3.18 per cent and 9.10 per
cent stake, respectively, in the company. Thus far in the calendar year 2019, Astral Poly Technik has
outperformed the market by surging 27 per cent, as compared to a marginal 0.07 per cent rise in the
S&P BSE Sensex till Thursday. The stock hit an all-time high of Rs 1,255 on September 16, 2019 in
intra-day trade. The bonus share allotment committee of board of directors of the company on
Thursday, September 19, had approved the allotment of 30 million bonus equity shares in the ratio of
1:4 that is 1 bonus share for every 4 shares to the members whose name appeared in the register of
members / list of beneficial owners as on September 17, 2019, the record date fixed for the purpose.
(Textile industry )

The textile industry is seeking a cut on goods and services tax (GST) from the GST Council meeting
on Friday. At a recent meeting with Union Finance Minister Nirmala Sitharaman, it had urged a
uniform GST rate for the entire industry. Currently, the cotton textile value chain — yarn, fabric,
apparel, and others — attracts a uniform GST rate of five per cent. Purified terephthalic acid (PTA),
the key input in making polyester yarn and fabric attracts 18 per cent. And, polyester yarn and fabric
are taxed at 12 per cent and five per cent, respectively. Because of the current inverted tax structure,
the requirement of working capital for synthetic yarn goes up to the extent of six per cent due to
higher GST incidence on raw material than finished products. Therefore, there is a need to rationalise
GST across the value chain from PTA, yarn and fabric to five per cent. The cut in rate would enhance
cash flow and reduce prices of synthetic yarn and fabric,” says Madhu Sudhan Bhageria, chairman,
Filatex India. In cotton fabric, there is no such inverted duty structure. At the said meeting, the
finance minister had assured a re-look on the matter. Polyester yarn is 78 per cent of the total volume
of man-made fibres produced in India. Ujjwal Lahoti, chairman of The Cotton Textiles Export
Promotion Council, calls for a uniform five per cent of GST across the entire textile value chain.
“While the cotton textile industry is enjoying five per cent GST, the same should be applicable for
synthetic textile players as well. A uniform duty structure would help with long-term decision making
on investment and competitiveness,” he said.
(Axis Bank )

Private lender Axis Bank on Thursday fixed the floor price for its qualified institutional placement
(QIP) issue at at Rs 661.50 per equity share. The private lender has said that the board will meet again
on September 25 to approve QIP issue to investors. The bank, in an exchange filing, has also said that
a discount of 5 per cent can be offered on the base price at the discretion of the board. While the issue
size was not revealed, the bank’s board in July has approved a proposal to raise upto Rs 18,000 crore
through issue of equity shares, depository receipts or convertible securities.
The bank’s scrip was down 1.5 per cent down at Rs 638.25 at the BSE.

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