TECHNICAL TREND ( NIFTY - BANK NIFTY FUTURES )

NIFTY FIFTY : - Last Week Equity benchmark Nifty traded in a range of 141 points between 8264

and 8123. As per expected line the Federal Reserve raised its benchmark interest rate by 25 basis points

and Global Markets welcomed the move. The Equity benchmark Nifty opened in a negative note on

Monday down by 13 points or 0.16 percent at 8126. The holiday season for the New Year and

Christmas has already set in which might result in a more or less muted market movements. However,

the MSCI Emerging Markets Index, a good reflection of the Emerging markets pack, is trading below

its previous week's low of 855. This is a sign of prevailing weakness in the markets. Nifty too is

expected to trade slightly negative in the days to come in a range of 7876 on the downside and 8294 on

the upside. FII has remained net sellers in the cash market, they have sold 5665 crores in the month of

December. This is a significant figure compared to the current low volume in the present scenario. Thus

we might see further selling in Nifty in coming trading sessions. Nifty would see strong Resistance at

8150 levels some bounce back may seen near 7950-7900 levels. But traders should go short at every

positive rally until Nifty closes above 8150 Levels. Technically, Nifty is still in Negative zone. Market

needs to close above 8150-8170 to enter into Positive zone. Traders can initiate long positions only if

Nifty closes above 8170 levels. Budget hopes are still there and a pre-budget rally can be seen in days

to come. For now, Market would see positive rally if Nifty breaches 8165 levels and would see sharp

downfall if it closes below 7950 levels. The Crucial levels for Nifty is 7950-7900 is down side and

8100-8150 is Up side.

BANK NIFTY : - The Banking Index Bank Nifty opened in a Negative note on Monday down by 54

points or 0.29 per cent at 18258. Banking Shares may be under pressure for not only demonetization

related woes and expected dip in Net Interest Margin; but also from the proposed change in accounting

norms (Ind-AS-109) to be effective from April’18, which may hurt its earnings significantly for the

short term due to computation of “expected credit loses. The Strong support for Bank Nifty is at

17860-17580 and the resistance to the up move is at 18290-18588 levels. The Bank Nifty has to sustain

above 18000 area for any positive move; otherwise it may further fall towards 17800-17750 &

17725-17650 zone for the Upcoming week. The Significance Levels for Bank Nifty is 17950-18116 is

Upside and 17784-17618 is Down side.

Monday, 26 December 2016

TECHNICAL VIEW (NIFTY- BANK NIFTY FUTURES )

NIFTY

DAILY R2 R1 PP S1 S2

8223 8065 7986 7907 7749

WEEKLY R2 R1 PP S1 S2

8588 8210 8021 7832 7454

MONTHLY R2 R1 PP S1 S2

9065 8401 8069 7737 7073

BANK NIFTY

DAILY R2 R1 PP S1 S2

18289 18019 17884 17749 17479

WEEKLY R2 R1 PP S1 S2

19462 18486 17998 17510 16534

MONTHLY R2 R1 PP S1 S2

20874 19052 18141 17230 1 5408

MOVING AVERAGE 21 DAYS 50 DAYS 100 DAYS 200 DAYS

NIFTY 8147 8276 8343 8275

BANK NIFTY 18399 18733 18746 18322

PARABOLIC SAR DAILY WEEKLY MONTHLY

NIFTY 8178 8378 7826

BANK NIFTY 18532 19923 16124

PATTERN FORMATION ( NIFTY )

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

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

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

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

Middle Band Usually a down side is bear Signal as we can see on the above given chart it is Trading

Above its crucial Psychological Level it is around 7900. if it is Sustaining 7950-8000 Level could

lead the Nifty further Up side. Significance Support level of 7900-7950 And Significance Resistance

for Nifty is 8150-8200.

PATTERN FORMATION ( BANK NIFTY )

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

with Parabolic SAR. Both are the leading Indicators and give Signal on Breakout of Upper or Lower

Band. On the Above given chart of Bank Nifty it is trading around Middle Band if it is not able

Sustain the Support level of 17980. From this level we are Expecting the If the Bank Nifty is able to

Sustain the Level of 17650 may go Further Up side to the level of 18150-18260 Level for Next week.

The Significance levels for Bank Nifty is 18040-185560 Up side and 17980-17650 is Down Side.

NSE EQUITY DAILY LEVELS

COMPANY NAME R2 R1 PP S1 S2ACC EQ 1314 1303 1294 1283 1274

ADANI PORTS EQ 272 267 263 258 254

AMBUJACEM EQ 204 202 200 198 196

ASIAN PAINT EQ 898 888 874 864 850

AXISBANK EQ 453 446 441 434 429

BAJAJ-AUTO EQ 2679 2646 2599 2566 2519

BANKBARODA EQ 158 155 154 151 150

BPCL EQ 621 617 612 608 603

BHEL EQ 121 120 119 118 117

BHARTIARTL EQ 299 297 294 292 289

BOSCH LTD EQ 19879 19742 19484 19347 19089

BHARTI INFRATEL EQ 343 339 335 331 327

CIPLA EQ 567 561 556 550 545

COALINDIA EQ 290 289 287 286 284

CAIRN INDIA LTD EQ 252 248 242 238 232

DRREDDY EQ 3057 3036 3018 2997 2979

GAIL EQ 441 435 427 421 413

GRASIM EQ 843 835 824 816 805

HCLTECH EQ 824 810 803 789 782

HDFC EQ 1246 1235 1222 1211 1198

HDFCBANK EQ 1195 1190 1179 1174 1163

HEROMOTOCO EQ 3075 3053 3021 2999 2967

HINDALCO EQ 164 161 160 157 156

HINDUNILVR EQ 807 797 789 779 771

ICICIBANK EQ 256 253 252 249 248

ITC EQ 229 226 225 225 221

INDUSIND BANK EQ 1087 1074 1055 1042 1023

INFY EQ 1022 1006 789 973 956

IDEA CELLULAR EQ 73 72 71 70 69

KOTAKBANK EQ 717 713 709 705 701

LT EQ 1365 1350 1326 1311 1287

M&M EQ 1195 1182 1169 1156 1143

MRF EQ 50617 49831 48900 48114 47183

MARUTI SUZUKI EQ 5305 5246 5143 5084 4981

ONGC EQ 199 196 194 191 189

NTPC EQ 164 162 160 158 156

RCOM EQ 36 35 35 34 34

RELCAPITAL EQ 452 444 440 432 428

RELIANCE EQ 1075 1066 1059 1055 1043

RELINFRA EQ 494 486 478 470 462

RPOWER EQ 43 42 41 40 39

SBIN EQ 253 250 249 246 245

SSLT( VEDL) EQ 223 220 215 212 207

SUNPHARMA EQ 639 631 621 613 603

TATA MOTORSDVR EQ 299 296 293 290 287

TCS EQ 2331 2307 2292 2268 2253

TATAMOTORS EQ 472 469 464 461 456

TATAPOWER EQ 78 76 74 72 70

TATASTEEL EQ 399 394 391 386 383

UNIONBANK EQ 129 128 126 125 123

YES BANK LIMITED EQ 1145 1134 1128 1117 1111

ZEEL EQ 456 448 438 430 420

TOP 15 ACHIEVERS // TOP 15 LOOSERS

SR.NO SCRIPT NAME PREV CLOSE CMP % CHANGE

1 AXIS BANK LTD. 472 438 - 7.34 %

2 IDEA CELLULAR 76.20 70.80 - 7.09 %

3 HINDALCO INDUS 170 159 -6.40 %

4AURO PHARMA

690 647 - 6.24 %

5 ADANI PORTS 280 262 - 6.19 %

6 SBIN 264 249 - 5.89 %

7 TATA STEEL 414 390 - 5.60 %

8 BHARTI INFR 355 336 - 5.41 %

9 YES BANK LTD. 1182 1124 - 4.86 %

10 BHARTI AIRTEL 310 295 - 4.74 %

11 ONGC 201 192 - 4.34 %

12 BANK BARODA 159 153 -4.17 %

13 SUN PHARMA 647 623 - 3.68 %

14 DR. REDDY LAB 3107 2998 - 3.52 %

15 HDFC 1269 1224 - 3.49 %

SR.NO SCRIPT NAME PREVCLOSE

CMP % CHANGE

1EDELWEISS FIN 82.80 98.20

+18.60 %

2INDIAN METAL 512 558 +8.82 %

3FIEM INDUSTRIES 1031 1093

+ 6.01 %

4BEML LIMITED 916 971 + 6.00 %

5INDIAN OIL CORP 296 313

+ 5.70 %

6ENGINEERS INDIA 306 323 + 5.68 %

7INFIBEAM 1106 1160

+ 4.89 %

8 GAYATRI 600 628 + 4.74 %

9MMTC LTIMITED 49.35 51.40

+ 4.15 %

10GAIL INDIA LTD. 415 431 + 3.96 %

11CIPLA LIMITED 566 582

+ 2.84 %

12GATI LIMITED 113 114.95 + 1.59 %

13GRASIM INDUS 817 828

+ 1.46 %

14BATA INDIA 418 424 + 1.35 %

15NTPC 160 161

+0.66 %

NSE CASH

NSE CASH : BUY NTPC NSE CASH ABOVE 162 TGT 172 SL 158

NSE CASH : BUY VEDL NSE CASH ABOVE 221 TGT 235 SL 215

NSE CASH : BUY M&MFIN NSE CASH ABOVE 260 TGT 278 SL 253

NSE - WEEKLY NEWS LETTERS

✍ TOP NEWS OF THE WEEK

Near term growth risks for India on downside: Goldman Sachs - Indian economy has

outperformed in recent years but the near term growth risks for the country is on the downside

relatively to a lot of consensus estimates, according to Goldman Sachs. Jan Hatzius, chief

economist and head of Global Economics and Markets Research at Goldman Sachs said India as

an economy has outperformed in recent years and it has been growing quite strongly. "At the

moment, there is a quite a slowdown in India basically because of the currency reform that was

introduced by the Modi government several weeks ago," Hatzius said. He further noted that "right

now the economy is slowing quite a bit. We think in the near term risks are definitely on the

downside relatively to a lot of the consensus estimates out there." Goldman Sachs expects global

growth in 2017 to be around 3.5 per cent led by the US. "Our expectations for economic policy

under the Trump administration and under unified Republican control are that there will be tax

reform coupled with some fiscal easing and also some increase in infrastructure spending. And

we do expect that to provide a positive impulse to economic growth," he said.

Mauritius top source of FDI in India - Mauritius accounted for 20.8 per cent of FDI in India

followed by the US, the UK, Singapore and Japan up till March 2016, the Reserve Bank said

while releasing the Census on Foreign Liabilities and Assets of Indian Direct Investment

Companies for 2015-16. The destination for Overseas Direct Investment of Indian companies was

largely Singapore, Mauritius, the Netherlands and the US. "Equity participation had a much larger

share (93.4 per cent) than debt in total inward FDI, which stood at Rs 20,140 billion at market

value in March 2016 (Rs 19,813.4 billion a year ago). "Total ODI was placed at Rs 5,79,020 crore

at market value (Rs 5,63,700 crore a year ago). Under ODI too, equity participation had a large

share (80.5 per cent)" the data said. The ratio of outward to inward direct investment, at market

value, increased marginally from 28.5 per cent to 28.7 per cent over this period. Both

manufacturing and services sectors attract foreign equity participation. Total FDI stock at market

value in the manufacturing and services sectors stood at Rs 10,00,630 crore in March 2016 and

Rs 8,59,080 crore, respectively.

India's crackdown on cash imperils pivotal tax reform GST - Prime Minister Narendra Modi's

crackdown on the cash economy has shattered the consensus needed for a new national sales tax,

GST, plunging his boldest reform into limbo and threatening to entrench an economic slowdown.

Modi's government already had its work cut out to finalise a deal with 29 states to launch a Goods

and Services Tax on April 1 that would transform Asia's third largest economy into a single

market for the first time. But his decision to scrap 86 per cent of the cash in circulation, in a bid to

purge the economy of illicit "black money", has caused huge disruption. A slump in business

activity stemming from the cash crunch has caused the revenue of state governments, which

collect value-added tax on goods and other duties, to slump by 25-40 per cent. The states won't

risk another setback by rushing the sales tax into force. "The investment and economic

environment in the country is in bad shape," said West Bengal Finance Minister Amit Mitra, who

earlier head a panel tasked with building a consensus on the GST. "How is the country going to

absorb the dual shock of GST and demonetisation?." The GST is India's biggest tax overhaul

since independence in 1947. It would replace a plethora of federal and state levies with one tax,

easing compliance, broadening the revenue base and boosting productivity.

India remains fastest-growing large economy, beating China: EIU - The Economist

Intelligence Unit , the research and analysis division of The Economist Group in its global

economic outlook in December said that India continues to be the fastest-growing large economy

beating China. Tweeting the highlights of the session, Director of Global Forecasting at the EIU

Joseph Lake said, "India remains fastest-growing large economy, beating China. Iran looks good.

Strong showing from Africa: Tanzania, Ghana, Kenya, Rwanda." The group however slashed

India's economic growth forecast from 7.3 percent to 6.5 percent in 2016-17 because of cash

shortage from "botched implementation of demonetisation". It however, said that India remains

fastest growing large economy in world as growth will accelerate after liquidity shortage eases

and public investment ramps up. The group also warned that the health of the Chinese economy

remains the biggest risk to the global economy, saying, "That growth in China will lurch down

from 6.2 percent in 2017 to 4.2 percent in 2018." "This kind of shift is unprecedented in modern

China and will come at a time when the global economy is uniquely unprepared to react.

Consequently, 2018 will be a year of anxiety around the world, characterised by volatility in real

economies and financial markets," said the group.

How Modi government lobbied Moody's for a ratings upgrade, but failed - India criticised

Moody's ratings methods and pushed aggressively for an upgrade, documents reviewed by

Reuters show, but the US-based agency declined to budge citing concerns over the country's debt

levels and fragile banks. Winning a better credit rating on India's sovereign debt would have been

a much-needed endorsement of Prime Minister Narendra Modi's economic stewardship, helping

to attract foreign investment and accelerate growth. Since storming to power in 2014, Modi has

unveiled measures to boost investment, cool inflation and narrow the fiscal and current account

deficits, but his policies have not been rewarded with a ratings upgrade from any of the "big

three" global ratings agencies, who say more is needed. Previously unpublished correspondence

between India's finance ministry and Moody's shows New Delhi failed to assuage the ratings

agency's concerns about the cost of its debt burden and a banking sector weighed down by $ 136

billion in bad loans.

Dent on growth will be bigger than RBI's estimates: Nomura - Damage to India's economic

growth is likely to be bigger than the RBI's estimates, as there could be a sharper slowdown in the

near-term as cash shortage is likely to extend into the first quarter of next year, says a Nomura

report. "We concur with the RBI's view that the impact of demonetisation is likely to be

transitory. However, with the cash shortage spilling over into Q1 2017, our leading indicators are

pointing to a sharper slowdown in near-term growth," " the Japanese financial services major said

in a research note. Nomura further said, "As such, we expect the growth damage to be larger than

the RBI's estimates". The report also said November's CPI readings suggest that demonetisation

contributed 25-30 bps to the fall in headline CPI inflation via lower perishable item prices,

slightly more than the RBI's estimate of 10-15 bps, and most core inflation measures eased by 20

bps in November.

✍ TOP ECONOMY NEWS

EPFO decided to lower the interest on EPF deposits for the current fiscal to 8.65%, from 8.8%

provided in 2015-16, for its over 40 million subscribers.

The index of mineral production of the mining and quarrying sector for October declined by

1.1% while the total value of the mineral output during the month was estimated at Rs. 193.59

billion.

Rights issuances have seen an 85% drop this year due to volatility in the market and uncertain

economic environment.

Gold imports witnessed a fall of 30.5% to USD 15.74 billion in April-November of the current

financial year, which is expected to keep a lid on the current account deficit.

The Government will start easing restrictions on cash withdrawals once 80 per cent of the new

currency introduced following demonetisation is re-channelised through bank deposits.

Restrictions on cash withdrawals will be first eased in the case of cooperative banks and then for

all the scheduled commercial banks.

The Supreme Court ordered a ban on all liquor shops on national as well as state highways

across the country and made it clear that licences of existing shops will not be renewed after

March 31 next year.

Expanding for the third straight month, exports rose 2.29% to US$20 billion in November.

Imports too increased by 10.44% to US$33 billion, leaving a trade deficit of US$13 billion in

November.

The Income-Tax department will soon begin sharing personal data—like PAN, residential

address and mobile number—of a taxpayer earning over Rs. 1 million Per Annum with the Oil

Ministry as part of government’s initiative to effectively block subsidised cooking gas to higher

income groups.

Mauritius accounted for 20.8% of foreign direct investment in India followed by the US, the UK,

Singapore and Japan till March 2016, the Reserve Bank of India said while releasing the Census

on Foreign Liabilities and Assets of Indian Direct Investment Companies for 2015-16.

Japan has dragged India to the World Trade Organisation's dispute settlement body for imposing

safeguard measures on steel products and minimum import price on iron and steel products.

Investments in domestic capital markets through participatory notes plunged to its lowest level in

nearly three years to Rs 1.79 trn in end-November.

According to the latest clarification issued by the tax authority, indirect taxes would be applicable on

internal transfers India-dedicated funds-investment vehicles that deployed more than half of their total

investments in domestic securities.

✍ TOP CORPORATE NEWS -

Lupin Limited announced the launch of a generic version of its voriconazole tablets and oral

suspension used for the treatment of fungal infections in children.

Cipla Limited has received final approval from the US health regulator for lipid regulating

Fenofibrate tablets.

Steel Authority of India Limited is in talks with Japan's Nippon Steel & Sumitomo MetalCorp

and Kobe Steel Ltd for potential technical agreements to help the firm expand its global footprint.

The board of directors of Pennar Industries Limited is evaluating the merger of its subsidiary

Pennar Enviro Ltd into Pennar Industries.

Stung by fluctuation in price of coking coal, Steel Authority of India Limited is desperately

seeking an alternative solution to reduce its dependence on imports.

The government over the next few days will examine the status of 72 coal blocks allocated either

through allotment or auction route to companies like NTPC Limited, JSW Steel, Hindalco and

SAIL.

Jindal Steel and Power Limited has lined up Rs80bn additional investment for its Odisha

operations. The money will be spent on the addition of a blast furnace to take its Angul steel plant

capacity to 6mt, setting up of a cement plant, laying of the slurry pipeline to carry iron ore from

mines to the steel plant and setting up of a pellet plant.

Divi's Laboratories Limited has chalked out alternate plans to keep the capacity expansion

going after the Rs5bn greenfield project near Kakinada ran into rough weather, first by the local

protests and later by an interim order issued by Hyderabad high court pertaining to the project

land.

Glenmark Pharmaceuticals Limited is developing specialty respiratory and dermatology

products as a part of its long-term growth strategy.

Bajaj Hindusthan Sugar Ltd plans to sell its co-generation power business to its group

company Lalitpur Power Generation Company Ltd for about Rs. 18 billion.

Welspun Enterprises Limited said its board of directors will meet later this week to consider

buyback of equity shares.

Sun Pharmaceuticals Industries Limited said one of its subsidiaries has voluntarily requested

the US health regulator to withdraw approval for 28 abbreviated new drug applications belonging

to Ranbaxy Laboratories.

Future Enterprises Limited will be selling 16% stake in Future Lifestyle for Rs3.80bn, a notice

to the stock exchanges. FEL owns the physical assets or the store formats and infrastructure assets

in the stores of Future Retail and Bharti retail.

8K Miles Software Services Limited has announced the acquisition of Cornerstone Advisors

Group LLC for USD 10.25 million. The acquisition, through its US-subsidiary, is subject to

customary closing conditions and is expected to conclude in the quarter ending March 31, 2017.

Tridevi Capital Partners to invest USD 20 million in Prabha Energy Private Limited, a

subsidiary of Deep Industries Limited. The subsidiary valuation is estimated to be USD 50

million.

Jubilant Life Sciences Limited, a global leader in the pyridine, picolines and nutrition industry,

announced a price increase of up to 15% on select products.

Cognizant Technology Solutions has acquired the technology and business process services unit

of Frontica Business Solutions AS, helping it gain access to capabilities in the oil and gas sector.

The US Food and Drug Administration has issued Form 483 observations against Unit I of

Aurobindo Pharma Limited in Hyderabad.

Oil and Natural Gas Corporation has tied up with Hughes Communications India to revamp

and upgrade its existing satellite network across India.

Vedanta Limited Resources has been ordered by London High Court to pay over USD 100

million to a Zambian investment company related to a 2013 copper price agreement.

Bharti Airtel Limited said its subsidiary Network i2i has entered into a definitive agreement

with Egyptian firm Orascom to acquire the latter’s entire equity stake in Middle East North Africa

Submarine Cable Systems for an undisclosed amount.

Reliance Communications signed binding agreements with Brookfield Infrastructure and

institutional partners to sell its tower business for an upfront cash payment of Rs. 110 billion.

The Cabinet approved the sale of surplus and vacant land of Hindustan Antibiotics Limited in

Pimpri, Pune to meet liabilities worth Rs. 8.21 billion.

Titan Company Limited inaugurated its revamped store in the upmarket Jubilee Hills area of the

city, bringing together their retail chains -- World of Titan and Helios -- under one roof.

Jubilant Cadista Pharmaceuticals Inc, part of the Jubilant Group, is recalling over 1,500

bottles of glucocorticoid Methylprednisolone tablets in the US market due to incorrect labelling.

RBL Bank Limited has reduced the marginal cost of funds based lending rates by 0.30-0.45%

across different tenures.

After Jet Airways, IndiGo has too launched discount sale on domestic routes.

Quess Corp Limited and TeamLease Services are among the few that are benefiting from

demonetisation as the process has led to a spike in the demand for temporary staff, particularly

from banks.

Texmaco Rail & Engineering Limited and Kalindee Rail Nirman have received Delhi High

Court’s approval to merge the latter with former, the companies notified the bourses.

Nearly 90% of the shareholders present at theThe Indian Hotels Company Limited EGM voted

in favour of removing Nusli Wadia as the independent director of the company. Only 9.20%

voters backed Wadia.

Sun Pharma is acquiring Odomzo, from Novartis for an upfront payment of USD175mn and

additional milestone payments.

Jet Airways Limited plans to raise USD 100 million, or almost Rs. 6.80 billion, in US

dollar-denominated debt by March 2017 to refinance rupee-based loans, so that it can almost

halve its borrowing rate.

Sun Pharmaceuticals Industries Limited Advanced Research Company said the US health

regulator has not approved its new drug application for Xelpros, a preservative-free eye drop.

Moody's Investors Service said that Reliance Communications' ratings will "remain on review

for downgrade" despite the company signing an agreement with Canada-based Brookfield

Infrastructure to sell its tower assets.

Power Grid Corporation of India, should sell stakes in its projects to unlock capital for future

expansion.

Engineers India Limited will set up a 1mtpa petrochemical complex near the Kakinada port in

Andhra Pradesh.

Welspun Enterprises Limited announced plans to buy back up to 25% of its share capital at a

price of Rs62/equity share.

✍ TOP BANKING AND FINANCIAL NEWS OF THE WEEK

The falling yields due to the liquidity flush post-demonetisation is likely to deliver a Rs.

38,200-crore bonanza to the bleeding banks through treasury gains, a report today said.

"Softening of yields due to surplus liquidity could help the NPA-saddled banks register Rs.

38,200 crore in potential treasury gains in the current financial year," said the report by India

Ratings.

Finance Minister Arun Jaitley said on December 19 no questions would be asked if any amount

of demonetised currency is deposited at one go but repeated deposits might raise queries. Yet,

depositors are being subjected to a veritable inquisition at some banks. Everyone who wants to

deposit more than Rs 5,000 in demonetised notes in a bank account must fill in a form that asks

the depositor two questions—Why the amount could not be deposited earlier, and what is your

source of funds? This form-filling process is a requirement we found by personally visiting a

bank.

The ED has written to about 100 cooperative bank branches across the country seeking details

about activities in their dormant accounts and other suspicious transactions as part of its

anti-black money probe post demonstration. The Person in knowledge with matter Officials said

the agency has sought details from these banks after it got reports about suspicious activities of

some huge transactions being reported from the bank accounts in these branches.

In another measure to promote digital payments, the government has directed staterun banks not

to charge fees for transactions settled on Immediate Payment Service and Unified Payments

Interface in excess of that levied for National Electronic Funds Transfer of over Rs 1,000.

After peaking at nearly Rs. 75,000 crore, Jan Dhan deposits have started to decline even much

before the deadline for depositing old Rs 500 and Rs 1,000 notes ends on December 30.

Amid rising decibels of the demonetisation debate banks are silently preparing for an upcoming

event: Ind AS 109 or Indian Accounting Standard, a global accounting practice that lenders are

mandated to adopt that may lead to initial credit losses. Banks including private sector ones like

ICICI, HDFC and Axis are actively working on this as they have submitted estimates for such

losses to Reserve Bank of India, which is now expected to come out with fresh guidelines on

computation of expected credit losses, a key to banks’ future earnings, three sources familiar with

the matter told ET.

Members of All India Bank Officers' Confederation today held demonstrations at various RBI

offices, including Mint Road headquarters in Mumbai, demanding adequate cash availability to

banks and complete withdrawal of deposit cap rules. Besides Delhi, demonstrations were held at

various offices of RBI, including its head offices in Kolkata, Chennai, Bengaluru and Jaipur.

Banks today began accepting the junked Rs 500/1000 notes in KYC-compliant accounts without any

questions following RBI's rollback of its stiff conditions a day after customers were subjected to

queries while depositing old currency. With hardly 10 days to go before the deadline ends for

depositing the scrapped notes, banks continued to witness rush with tempers flaring occasionally as

the RBI notification came during the banking hours, not before the start of the day.

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employee of the subject company;

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

subject company.