Index

Market View 1

Company Update 2

Around theEconomy 3

Knowledge Corner 3

Mutual Fund 4

Commodity Corner 5

Forex Corner 6

Report Card 7

Editor & ContributorMargi Shah

Special ContributorsAshesh TrivediAditya Nahar

For suggestions, feedbackand queriesjstreet@jhaveritrade.com

Market View:

The king of the financial world, US Dollar is gaining strength day by day in expectation of thefirst rate hike after almost a decade which can change a lot of equations. Even the possibilityof passing the GST Bill by The Government has not deterred FIIs from selling yesterday.Regarding the GST Bill, the opinion of some of the FIIs is that “GST is not a game changer butgood for the economy and capital market”. Considering the above development, one shouldevaluate the medium term outlook of the market. It was hoped in the month of April 2015 thatthe earning cycle will revive after a quarter or two. The two quarters have already been passedbut the earning revival seems to be in back seat. The silver lining is pickup in auto demand,demand in white goods and FMCG. The real test for the economy at present is credit growth.Bankers are having their fingers crossed for the credit growth and are hopeful for the revival.The cumulative effect of power reforms and introduction of Bankruptcy Act will definitelychange the color of banking stocks going forward. The Auto sector is enjoying good days withauto ancillary stocks experiencing good demand revival. But the real question and test will beat the time of rate hike by US Fed and it’s after effects.

In short, the market will remain ranged bound in short to medium term between 7700 to 8150and one should remain stock specific and remain invested with cash on hand to invest more incase of remarkable fall. Technically any rise above 7950 will take the market to 8050 and8150. Any fall below 7850 may take it to 7690.

Kamal JhaveriMD- Jhaveri Securities

- 1 -

Vol.: 27130th November,2015

- 2-

Company Basics

BSE Code 508933

NSE Symbol WELSYNTEX

EQUITY (` in Cr.) 39.24

MKT.CAP (` in Cr.) 434.39

Financial BasicsFV (`) 10.00EPS (`) 11.37P/E (x) 9.74P/BV (x) 2.97BETA 1.3904RONW (%) 30.61

Share Holding PatternHolder's Name % HoldingForeign 0.66Institutions 1.10Promoters 70.10Non Prom. 0.00Public & Others 23.16Government 5.00

Company OverviewWelspun Syntex is a flagship company of the Welspun Group. Welspun group is one of the leading and largest growingbusiness conglomerates in India. Welspun Syntex Limited was established in 1983 and is the flagship companyunder the Welspun umbrella. Since its inception WSL has grown manifold and is amongst the largestmanufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India. With plantslocated at Silvassa and Palghar (Thane), India WSL is well equipped to meet the domestic as well as internationaldemand. It has marketing offices located at Surat and Mumbai in India that facilitate big business ventures.Investment rationalPolycycle- a unique kind of Yarn with unique advantagesWSL has unique positioning in the BCF segment with POLYCYCLE. Polycycle is a 100% recycled Polyester yarnextruded (derived) from used PET bottles (plastic bottles) using patented process called ReNew. This polyesterhas same feature and better quality like normal Vargin polyester. Vargin polyester is derived crude feed stock likePTA and MEG. So fluctuation in crude oil prices are less concern.Stable crude oil prices helps to maintain operating marginMan made yarn mainly consumes crude oil based derivatives as Raw material (chips constitutes ~50-60% whereas other textures consumes ~40% -45% of total RM cost ). RM cost as % of sales fell from 68.41 to 60.95 YoY, one ofthe lowest in last five year, largely because of fall in key components like purified terephthalic acid (PTA) andmono-ethylene glycol (MEG) which have touched multi-year lows on account of lower crude prices.Strategically located plant in Union Territory and Maharashtra

The company has two state of the art manufacturing plants in Silvasa (UT) and Palghar. Silvassa plant is perfectlylocated between the two most important Textiles States of India, Gujarat and Maharashtra. This location issituated near sea ports of JNPT and Mumbai and it becomes possible to deliver the finished products and receivethe imported raw materials to and from the ports. This location helps Welsun to deliver finished products to itscustomers in India and overseas.

Valuation : Currently, WELSYNTEX is trading at `135. We recommend “Buy” with target price of `171,

valuing stock 10xFY18E EPS of `17.18.The stock currently trades at 10.06x of FY16E and 8.38xof FY17E

and 6.99x of FY18E.

Company Update : Welspun Syntex Ltd.

Vol.: 27130th November,2015

- 3-

Weekly Market Recap :

The month long winter session of the parliament began on Thursday, 26 November 2015. Expectations that theconstitutional amendment bill on goods and services tax (GST) will be passed during the winter session of parliamentaided fresh upmove on the domestic bourses. The winter session of the parliament began on Thursday, 26 November2015, and will continue till 23 December 2015.

Market rose last week on expectations that the constitutional amendment bill on goods and services tax (GST) will bepassed during the winter session of parliament.

Trading was volatile during the week as the November 2015 contracts expired in the futures & options (F&O) segment onThursday, 26 November 2015. The Sensex settled above the psychological 26,000 mark. The Sensex and the Nifty,both, settled at their highest level in three weeks.

Market Eye Week ahead :

The Indian stock market investors will closely watch parliamentary proceedings this week as the government seeks topass the crucial Goods and Services tax while the central bank's monetary policy review and data on economic growth willbe the other major triggers.

Data showing gross domestic product growth likely accelerated in the July-September quarter may keep hopes buoyed fora revival of the economy. The Reserve Bank of India' comments at its monetary policy review, where it is widely expectedto stand pat on interest rates, will also be closely followed. Data on purchasing managers' index surveys on manufacturingand services will also be released this week.

Besides the GST bill, another closely watched event by the markets will be the report by a panel headed by chiefeconomic advisor Arvind Subramanian on GST that will be made public this week.

KEY EVENTS/FACTORS TO WATCH

1. Mon : Q2 FY16 GDP, Fiscal Deficit, Sale of Bonds with various maturity ; Tue : RBI Monetary Policy ,2. Thu : Nikkei India PMI Composite3. Fri : Sales of Various treasury bills

Put-Call Ratio The Put/Call Ratio is an indicator that shows put volume relative to call volume. Put options are used to hedge against market

weakness or bet on a decline. Call options are used to hedge against market strength or bet on advance.

The Put/Call Ratio is above 1 when put volume exceeds call volume and below 1 when call volume exceeds put volume.

Typically, this indicator is used to gauge market sentiment. Sentiment is deemed excessively bearish when the Put/Call Ratio is trad-ing at relatively high levels, and excessively bullish when at relatively low levels.

Around The World

Vol.: 27130th November,2015

Knowledge Corner :

Mutual Fund Corner

- 4-

Source : - www.valueresearchonline.com

Fund NameScheme Name Open-ended and Hybrid: Equity-oriented

AMC L&T Investment Management Ltd

Type Open-ended

Category Hybrid: Equity-oriented

Launch Date January 2011

Fund Manager Vikram Chopra, Soumendra Nath, Lahiri

Net Assets(` In crore ) Rs. 901.9 Cr. as on Oct 31, 2015

Top 10 Sector Break-UpsFund (%)

Financials 17.01Technology 8.64Construction 6.59Services 5.20Automobile 5.01FMCG 4.62Engineering 4.29Healthcare 4.27Chemicals 2.93Textiles 2.40

Composition (%)Equity 66.25

Debt 28.20

Cash 5.55

Risk AnalysisVolatility MeasuresStandard Deviation 11.02Sharpe Ratio 1.28Beta 0.91R-Squared 0.82Alpha 9.65

History 2012 2013 2014 2015NAV (Rs) 11.47 12.51 18.08 19.72

Total Return (%) 31.36 9.10 44.48 9.05

+/- VR Balanced 8.82 2.72 18.53 -

Rank (Fund/Category) 6/30 7/32 26/57 4/72

52 Week High (Rs) 11.47 12.51 18.19 20.36

52 Week Low (Rs) 8.76 10.58 12.11 17.95

Net Assets (Rs.Cr) - - 127.46 -

Expense Ratio (%) 2.50 2.91 3.02 2.93

Fund StyleInvestment StyleGrowth Blend Value Large

Medium

Small

Capitalization

Vol.: 27130th November,2015

Fund Performance v/s S&P CNX Nifty

—– Fund—– CNX Nify(Rebased to 10,000)

Commodity Corner

- 5-

FUNDAMENTAL: Gold prices on weekly basis ended with more than half percent losses due to firm dollar and prospects of a U.S. interest rate hikenext month whereas silver prices ended with small gains as prices were seen supported tracking firmness in base metals counters. The FederalReserve is widely expected to raise U.S. rates for the first time in nearly a decade when it meets next on Dec. 15-16. Investors continued to price ina series of key monetary policy decisions by Central Banks over the next month, starting with the European Central Bank's Governing Council'smeeting in Frankfurt on Thursday. In recent weeks, ECB president Mario Draghi has sent strong indications that the central bank could increase thescope of its comprehensive €60 billion a month quantitative easing program at the meeting. The ECB could also impose a two-tiered penalty nextweek for banks that leave deposits at its facility. The ECB's benchmark refinancing rate is at a record low of 0.05%, while rates at the deposit facilityare already in negative territory at minus-0.20%. The U.S. Commerce Department reported that new home sales rose by 10.7% to 495,000 unitslast month. The report came shortly after the U.S. Department of Labor said initial jobless claims declined by 12,000 last week to 260,000. Aseparate report showed that durable goods orders jumped 3.0% in October, easily surpassing forecasts for 1.5%. Core durable goods orders,excluding volatile transportation items, rose 0.5%, beating expectations for an increase of 0.3%. India's gold imports may hit an all-time high ofover 1,000 tonnes in 2015 buoyed by sharp fall in global prices, according to the All India Gems and Jewellery Trade Federation. The world'ssecond- biggest gold consumer had imported around 900 tonnes in 2014, it said. According to the federation, India has imported 850 tonnes of goldduring January-September period of 2015 as against 650 tonnes in the year-ago period. In a latest report, the World Gold Council has said India'sgold demand in fourth (October - December) quarter would be more muted. India's gold buying in the key December quarter is likely to fall to thelowest level in eight years, hurt by poor investment demand and back-toback droughts that have slashed earnings for the country's millions offarmers. The sluggish demand could halve imports by the world's secondbiggest gold consumer in U.S. dollar terms in the final quarter, puttingfurther pressure on global prices that hit a five-year low earlier this month.RECOMMENDATION : SELL GOLD FEB @ 25500 SL 25950 24900-24650,SELL SILVER MAR @ 35000 SL 36200 TGT 33800-32800

FUNDAMENTAL: Base metals prices recovered last week while in last 2 days prices swung between gains and losses as investors weighed theimpact of potential output cuts and volatility in China’s stock market. Lastweek Lead outperformed metal complex with the gain's nearly 2.95%,while Nickel and Aluminium rallied more than 1.50% least in the complex Copper and Zinc gain near to 1%. Investors aren’t giving too much weightto any major impact from possible production cuts by smelters next year, focusing instead on slowing demand in China, where President Xi Jinping issteering the country’s economy away from a reliance on investment and infrastructure. Volatility in China’s equities market is again feeding intometals prices by underscoring uncertainty over the course of financial and economic reforms. Also China’s zinc and nickel smelters have alreadypledged to reduce output next year, although the amounts haven’t been enough to dramatically arrest the drop in prices. This week outlook remainweak as China’s manufacturing PMI slated for release this week should remain low, with eurozone manufacturing PMI up slightly. The indicator fromthe US is expected to fall marginally. Sluggish raw material prices and weak demand compound to weigh on ex-works prices of industrial products.Industrial output in China and eurozone is also impacted, and market expectations of an interest rate hike in the US constrained consumption loan.The US dollar index has been pushed up to 100 as US non-farm employment numbers in November are expected to improve further. The U.S. dollarhas gained amid widening divergence between the monetary policies of the Federal Reserve and European Central Bank. The WSJ Dollar Index,which tracks the dollar’s value against 16 currencies, hit a 13-year high on Friday in the US. Also European Central Bank will announce its interestrate decision for December this Thursday, and is expected to expand quantitative easing, pushing up the US dollar. News that Chinese nonferrousmetals sector will cut some output will be absorbed early this week. Nine largest copper smelters in China decided November 28 to cut output by200,000 mt next year, but any positive effects from this will be short-lived. Also Friday, the key U.S. payrolls report will be even more closelywatched than usual It could cement expectations that the Fed will deliver its first hike in almost a decade, or lead investors to pare back dollar bets.The diverging monetary policy pathways between the ECB and the Fed have led to an increase in bullish bets on the U.S. currency.RECOMMENDATION : SELL COPPER FEB @ 310 SL 318 TGT 302-296 ,SELL ZINC DEC @ 106.50 SL 109.50 TGT 103.20-100 , SELL NICKELDEC @ 605 SL 620 TGT 590-570 , SELL ALUMINIUM DEC @ 99 SL 101 TGT 97.50-95 ,SELL LEAD DEC @ 111 SL 114 .50 TGT 107.50-104.

FUNDAMENTAL: Crude oil prices last week ended with around half percent losses as disappointing Chinese data and worries over a supply glutovershadowed geopolitical concerns. However, the trading volume was muted also on Friday, following Thanksgiving Day in the US. The biggestdownside risk for the oil market is the ongoing global supply glut and weak demand. Crude stocks in the US climbed by 961,000 barrels in the weekto November 20, coming in at slightly less than the 1 million barrel gain expected. Total reserves reached 488.2 million barrels, the highest since lateApril when stockpiles reached record highs. The International Energy Agency estimated earlier this month that global reserves have swollen to anunprecedented 3 billion barrels. For now, oil traders are shifting their focus to the upcoming OPEC meeting, scheduled for December 4, with a major-ity of analysts expecting no changes to the group's oil production target, currently set for 30 million barrels per day. However, some investors saywe may see some action from the oil cartel to help prices to recover. The EIA said gasoline stockpiles rose 2.5 million barrels, versus the 938,000-barrel build forecasted. Inventories of distillates, which include diesel and heating oil, rose by 1.0 million barrels, versus expectations for a 417,000barrels drop. Naturalgas prices extended losses as market players continued to focus on healthy stockpiles of the fuel. Data showed that natural gassupplies in storage increased by 9 billion cubic feet last week, above expectations for a build of 5 billion. That compared with a build of 15 billioncubic feet in the prior week, a withdrawal of 141 billion cubic feet in the same week last year, while the five-year average change for the week is adrawdown of 36 billion cubic feet. Total U.S. natural gas storage stood at an all-time high of 4.009 trillion cubic feet, 13.8% higher than levels atthis time a year ago and 6.3% above the five-year average for this time of year. Last spring, supplies were 55% below the five-year average, indi-cating producers have more than made up for all of last winter’s unusually strong demand. Inventories of the gas are typically built up during thewarm summer months and then drawn down in the winter as cold temperatures increase demand for the fuel. But market experts warned that stock-pile buildups will probably continue for at least another week, two weeks beyond what is normal, due to tepid winter heating demand so far.

RECOMMENDATION : BUY CRUDE OIL DEC ABV 2900 SL 2780 TGT 3040-3150 , SELL NAT.GAS DEC @ 155 SL 165 TGT 148-136.

BULLION

BASE METALS

ENERGY

Vol.: 27130th November,2015

- 4 -

Commodity Corner

USD/INR

- 6-

Forex Corner

EUR/INR

GBP/INR

JPY/INR

Market Eye Week ahead :

The USD/INR gained and ended higher at 67.08 in comparison to last week. We had clearly said last week the daily chart seemsto very bullish. The rupee fell against the US dollar last week, marking its seventh straight weekly loss, as the greenback heldhigh ahead of key central banks' policy decisions in the coming weeks.

Clustered dollar outflows amid month-end importer demand also weighed on the local currency. With the US Fed signalinghigher interest rates, and whenever the certainty arises, there could be capital outflows from the emerging market economies &USD/INR is expected to see some depreciation pressure in line with other Asian currencies.

Level S2 S1 CP R1 R2 High Low Close

USD/INR 66.47 65.85 66.83 67.45 67.81 67.2 66.22 67.08

Level S2 S1 CP R1 R2 High Low Close

JPY/INR 54.05 53.36 54.46 55.15 55.56 54.88 53.78 54.73

Level S2 S1 CP R1 R2 High Low Close

GBP/INR 100.27 99.74 100.83 101.36 101.92 101.39 100.3 100.8

Level S2 S1 CP R1 R2 High Low CloseEUR/INR 70.48 69.87 70.95 71.56 72.03 71.43 70.35 71.08

Market Recap :

The Indian rupee on Thursday closed at over11-week low against the US dollar, after foreign in-stitutional investors (FIIs) continued to liquidate theirinvestment in the local equity and debt market.

Traders were also cautious ahead of gross domesticproduct data, to be released on 30 November, andthe Reserve Bank of India and European CentralBank (ECB) monetary policy decisions on 1st and3rd December, respectively.

The rupee fell against the US dollar last week,marking its seventh straight weekly loss, as thegreenback held high ahead of key central banks'policy decisions in the coming weeks.

Last week ECB chief Mario Draghi who expressedwillingness to add more stimulus to the euro zoneeconomy to raise inflation thus giving some upsideroom to dollar index. The USD/INR gained andended higher at 67.08 in comparison to last week.

Vol.: 27130th November,2015

Nifty finally closed the week at 7942.72 thereby showed a net rise of 86 points on week to week basis. We are currently ina pullback of the fall from 8336 to 7714. The retracement levels for pullback are 8025 and 8099. Strong Momentum inbuying will only come if Nifty manages to crosses and close above 8100 on daily basis. Any rise at current situation isexpect to form a lower top in relation to the earlier lower top of 8336. Support cluster points are in the range of 7850-7710-7620.

The macroeconomic data, trend in global markets, investment by foreign portfolio investors (FPIs), the movement of ru-pee against the dollar and winter session of parliament will dictate trend on the bourses in the truncated week ahead.

- 7-

J Street Recommendations Report Card

Top Fundamental Stocks

Stocks Rec. Date CMP on Rec. CMP TargetAbsoluteReturn @

CMPStatus

Welspun syntax Ltd. 23/11/2015 121 135 171 12% Buy

Natco Pharma 02/11/2015 509 544 636 7% Buy

SRF Ltd. 21/09/2015 1140 1249 1374 10% Accumulate

Ahluwalia contracts 24/08/2015 235 265 368 13% Buy

Sun Pharma 03/07/2015 831 739 1041 -11% Buy

Infinite Computer Sol. 20/07/2015 190 215 255 13% Buy

Nitin Spinners Ltd. 06/07/2015 79 68 94 -14% Buy

Bank of Baroda 01/06/2015 163 179 217 10% Buy

Ambika Cotton Mills 18/05/2015 880 861 1149 -2% Buy

Sadbhav EngineeringLtd.

04/05/2015 298 345 430 16% Buy

Omkar specialityChemicals

16/03/2015 152 197 251 30% Buy

DHFL 16/02/2015 252 222 368 -12% Buy

TV Today Network 27/01/2015 222 259 337 17% Buy

M&M 12/1/2015 1238 1348 1452 9% Buy

Havells India 27/10/2014 274 287 346 5% Buy

All Cargo Logistics 05/08/2014 260 380 342 46% Exit

PTC India Fin. Ser. 07/07/2014 39 41 45 5% Buy

Adani Port 05/07/2014 280 268 347 -4% Buy

L & T 05/07/2014 1750 1363 1866 -22% Buy

It's not important whether you are right or wrong, It’s about how much money you make when you're right and howmuch you lose when you're wrong.”

Vol.: 27130th November,2015

Vol.: 27130th November,2015