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Due to the rising electricity demands and excess rainfall a few months back, the coal sector has been witnessing a supply shortage.

The Ministries of Coal, Power and Railways plan to take this weather to their advantage and increase the coal supply. The time gap will help the sector to be ready for the next high demand season - when the northern region experiences winter in full force.

“This month should give us a buffer to prepare ourselves. The three ministries are in regular discussion to prepare a plan for robust coal supply to power sector when the demand increases from  December onwards," sources told the paper.

The demand for coal increases in winter because of heating requirement and agricultural purposes.

According to the Central Electricity Authority (CEA), coal stock at power units has an average of 6 days stock as on November 9, 2017.

The coal shortage arose in August where India was experiencing heavy rainfall, humidity and warm weather. The demand in August had suddenly increased by 18 percent and gradually declined by 2.9 percent and now is in the process of settling down.

Along with the sector using this period to buffer their stocks, the CEA has also issued guidelines for maintaining the coal stocks, supplying the coal and daily stock reviews. The Deccan Chronicle report says the CEA has set up an inter-ministerial subgroup which will keep a check on the coal supply position every week to ensure there is no shortage of coal in the power plants.

The subgroup is constituted by the infrastructure constraints review committee. The subgroup is led by the Coal Joint Secretary (coal) and consists of power, coal and railways representatives, shipping ministries, CEA, Coal India, Singareni Collieries and NTPC.

The move comes after the power plants have complained of the supply constraint and how the industry was unable to meet the fuel and power demands. Coal, which helps in generating power and fuel, was first the only way to generate electricity.

Out of the total 1, 050 rakes, around 400 goes to the coal sector and the rest is shared among iron ore, cement, among other sectors. The power sector claims to be the victim of the coal crunch, even though the railways claim that they give enough to the power sector.

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Minerals worth at least Rs 50,000 crore can be auctioned from 13-15 blocks in the remaining four months of the current fiscal with the upcoming proposed amendments in the auctioning rules, a top official of the Ministry of Mines said.

These 13-15 mines could include limestone, iron ore, emerald and molybdenum among others.

"We would like the progress to pick up. We are certainly hoping that we will easily cross the Rs one lakh crore figure for the current year, with new 13-15 blocks expected in the remaining four months of FY18," Union Mines secretary Arun Kumar said here last evening.

He was speaking on the sidelines of the golden jubilee celebration of Hindustan Copper Ltd.

"We have auctioned about Rs 50,000 crore worth of minerals from 12 mines in this financial year so far,” the senior official said.

The government has been able to auction Rs 1.80 lakh crore worth of minerals for 33 mines during the last two years, he said.

The Mines ministry was in the process of bringing some amendments to fuel an interest from private investors in the mining sector, after some concerns were raised.

"The amendments are now with the Ministry of Law for its approval and the notification of the proposed amendments can be expected by this November, " Kumar said.

The proposed amendments will relax the eligibility criteria, norms for states using discretion in bidding process, making end use terms more favourable, adjustment of royalty and fees from the upfront fees paid by the successful bidder and giving timeline to begin operations block winners.

Kumar said, these new provisions are expected to bring the auction process "easier and attractive".

The new rules will mandate a bidder to begin operations within three years and extension of another two years can be allowed during conditions beyond control, he said.

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Insurance Regulatory and Development Authority of India (IRDAI) will make a proposal to its Board on November 29 which seeks to allow private equity (PE) firms to promote insurance companies.

“We will be allowing PE founders to be promoters for which we are issuing guidelines and are going to our Board for approval. We never had allowed it in the past,” said a senior IRDAI official.

Sources said that not only will the guidelines have a minimum time limit for  PE firms to stay invested in the insurer, there will also be norms around the commitment of additional capital as and when required. This will be discussed in the IRDAI board meeting on November 29.

In September 2017, IRDAI Chairman TS Vijayan had said that short-term investments including those by PE firms are under discussion and added that the regulator may arrive at a decision in a month or so.

On the one hand while some PE firms have approached IRDAI to promote insurance companies, there is also a proposal for the existing promoter wanting to exit the company and sell the stake to a PE firm.

Traditionally, PE firms have an entry and exit strategy for companies that they invest in. To ensure that the stability of an insurance company is not compromised, the regulator will bring out detailed guidelines giving out circumstances under which a PE can enter or exit an insurer.

“We have proposals, including where the shareholder wants to quit and POE wants to enter and another where PE itself wants to start an insurance. Instead of going case by case, we are going to the Board and issuing guidelines on it,” said an official.

As per current regulatory norms, firms holding 10 percent or more in an insurance company are classified as promoters while those holding less than that are called investors. PE-VC firms, unlike promoters, invest in companies based on business prospects and exit when the returns do not correlate to the investments.

IRDAI follows a principle of issuing exposure drafts for all new regulations. Only after the comments of all the stakeholders are received do they bring out final guidelines.

It is anticipated that the past track records of the PE companies and their investments will also be looked into while assessing the proposals to promote insurance companies.

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Private life insurance companies are seeing an increased business opportunity in the protection (pure term) space. While savings used to be the dominant growth driver, protection products have also seen an increase in the past few quarters.

Sandeep Batra, Executive Director, ICICI Prudential Life Insurance said that while currently protection constitutes approximately 4.2 percent of their business mix, their protection annualised premium equivalent (APE) grew by 31.6 percent.

Protection constitutes pure vanilla products like pure term. Here, a customer pays a premium every year and if he/she happens to die during the policy term, the sum assured is given to the family as a lump sum death claim amount.

Senior sector officials said that while earlier there was a trend for customers to go for endowment products where the premium amount would be returned with any interest accrued if the policyholder survived the premium payment term, that is slowly changing.

“The customer always wanted to get something back at the end of the tenure which was not possible in a pure term product. However, awareness has gone up to have a higher protection cover and agents have also been forthcoming to sell such products because the regulator has enabled higher commissions for these products,” said the head of products at a mid-size private life insurer

Anilkumar Singh, Chief Actuarial Officer, Aditya Birla Sun Life Insurance said that as on October 2017,  5 percent of the product mix is pure protection solutions, but added that the protection mix has witnessed a growth rate of 127 percent year on year in FY18.

“Our recent study on protection highlighted that people in the country are uncertain about their jobs, child’s education and living a healthy and active life, but have low preparedness in terms of protecting their needs,” said Singh.

However, he said that they are aware and hold intent to opt for protection solutions which poses an immense opportunity for life insurance companies.

Apart from the push by agents, the companies themselves are seeing a business opportunity. “First of all there is enough opportunity in selling plain vanilla protection. As we have been saying most people spend more on their car insurance than on pure life protection products. We always have our ear to the ground to pick up changes in consumer needs. Our strategy for launching new products is based on filling in need gaps in the market,” said Batra.

In endowment products, the pure protection element is lower than the one offered in pure term products. According to an earlier report by global reinsurance major Swiss Re, the mortality protection gap in India was USD 8,555 billion in 2014.

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Topic :- Share Market Closing Note

Benchmark indices as well as broader markets closed sharply lower on Tuesday as rising crude oil prices may impact fiscal deficit and raw material cost of companies which are dependent upon oil.

The 30-share BSE Sensex was down 360.43 points or 1.07 percent at 33,370.76 and the 50-share NSE Nifty fell 101.60 points or 0.97 percent to 10,350.20.

About 1,869 shares declined against 877 advancing shares on the BSE.

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Topic :- Time:3.10 PM

Data To Watch Out For:

Europe retail sales MM will occur at 10.00 GMT. Previous results were -0.5%.

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Topic :- Time:3.05 PM

Nifty Future close above 10420 will result in some quick upmove in coming trading sessions and if it closes below above mentioned level then some sluggish movement can be seen in the coming days. Avoid open positions for tomorrow.

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Topic :- Time:2.30 PM

COPPER Trading View:

COPPER is trading at 450.80. If it breaks below 450 level then expect some quick profit booking in it and if it manages to trade and sustain above 451.60 level then some upmove can be seen in it.

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Topic :- Time:1.30 PM

CHANA Trading View:

CHANA is trading at 4842 in NCDEX. If it manages to trade and sustain above 4850 level then it is likely to show some quick upmove and is expected to test 4900 level quite soon and if it breaks and trade below 4835 level then some softness can be seen in it.

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Topic :- Time:1.00 PM

Nifty is still trading in same small range. No major movement in the market. Nifty spot once manages to trade and sustain above 10440 level then upmove is expected and below 10400 some profit booking. Avoid big trades as off now.

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Topic :- Time:12.45 PM

Just In:

RCom to sell DTH business - BIG TV - to Veecon Media & Television.

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Topic :- Time:12.30 PM

GOLD Trading View:

GOLD is trading at 29370.If it manages to trade and sustain above 29400 level then it is likely to show some quick upmove and if it breaks and trade below 29350 level then some profit booking can be seen in it.

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Topic :- Time:12.20 PM

Jet Airways, SpiceJet and IndiGo fall 3-5% post crude price surge:

Shares of aviation companies, Jet Airways, SpiceJet, and InterGlobe Aviation, fell 3-5 percent on the back of surge in crude oil prices on a global scale.

Oil prices hit their highest since July 2015 on Monday as Saudi Arabias crown prince cemented his power over the weekend through an anti-corruption crackdown, while markets continued to tighten.

A surge in these crude prices is generally seen as increase in fuel costs for aviation companies.

Brent crude futures were trading 26 cents higher at USD 62.33 a barrel by 1012 GMT, after hitting a session peak of USD 62.90, a 28-month high.

U.S. West Texas Intermediate (WTI) crude rose 25 cents to USD 55.89 a barrel, breaking above USD 56 for the first time since July 2015.

Saudi Crown Prince Mohammed bin Salman tightened his grip with the arrest of royals, ministers and investors including prominent billionaire Alwaleed bin Talal and the powerful head of the National Guard, Prince Miteb bin Abdullah.

India needs to keep a cautious eye on the surge in global crude prices as every $1 per barrel rise in crude prices leads to its import bill rising by $ 1.33 billion. Also, a rising import bill can put downward pressure on rupee ...an exuberant Indian equity market needs to digest the far-reaching implications of the grave geo-political developments unfolding in the Middle-East seriously/

At 12:05 hrs Jet Airways was quoting at Rs 603.60, down Rs 19.10, or 3.07 percent, on the BSE, while InterGlobe Aviation was quoting at Rs 1,223.75, down Rs 20.40, or 1.64 percent. Meanwhile, SpiceJet was quoting at Rs 144.30, down Rs 4.05, or 2.73 percent.

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Topic :- Time:12.00 PM

Nifty is trading at a very critical point. Nifty spot if manages to trade and sustain above 10440 level then expect some quick upmove in the market and if it breaks and trade below 10400 level then some fall can be seen. 

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Topic :- Time:11.30 AM

News Wrap Up:

1. Sensex turns negative, Nifty slips below 10,450; RIL down 2%

2. Sebi plans further rise in public float

3. Note ban biggest shocker for Indians in a decade

4. Jewellery helps Titan become third-most valuable Tata firm

5. Infosys CEO hunt continues: Ashok Vemuri seen as frontrunner

6. HDFC Life IPO opens today

7. Nifty IT index hits 52-week high; TCS nears record high

8. Prince Pipes plans to raise Rs 800 cr via IPO

9. RCom says in talks with parties over sale of tower biz

10. Aircel may soon be left with no choice but to shut down India operations

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Topic :- Time:11.00 AM

All Asian markets are trading in positive zone. Nifty is likely to follow global trend. Nifty spot if manages to trade and sustain above 10440 level then expect some quick upmove and if it breaks and trade below 10400 level then some softness can be seen in the Indian stock market.

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Topic :- Time:10.30 AM

After positive start nifty slided in negative zone. Nifty spot if breaks and trade below 10380 level then further decline is expected in the market and if it manages to trade and sustain above 10460 level then some upmove can be seen in the market.

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Topic :- Share Market Opening Note

Indian Stock Market Trading View For 07 Nov,2017:

Nifty to turn volatile as the day progresses. Avoid big trades and trade as per market trend. Global cues to be eyed.

Nifty spot if manages to trade and sustain above 10460 level then further upmove is expected in the market and if it breaks and trade below 10380 level then some decline can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.

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Prime Minister Narendra Modi today assured all assistance to rain-ravaged Tamil Nadu in tackling the fallout of the heavy downpour in the capital and some districts, including Kancheepuram and Tiruvallur.

Modi also asked the media to have healthy competition and urged them to take extra effort to maintain credibility.

"I assure all possible support to the Tamil Nadu government to tackle the situation due to rains," Modi said at a function to celebrate the 75th anniversary celebrations of Tamil daily Dina Thanthi.

The prime minister expressed grief over the death of those who had died in the rain over the last few days. Nine people died across the state in the recent round of heavy rain.

It should ensured that the freedom to write and decide should not include the freedom to be "factually incorrect".

During his address at the Madras University Auditorium, Modi mourned the death of senior journalist and general secretary of the Madras Union of Journalists R Mohan (54) who died following a cardiac attack yesterday.

Modi was received by Governor Banwarilal Purohit and Chief Minister K Palaniswami at the Chennai airport from where he proceeded to INS Adyar by helicopter.

Tight security was in place in view of the prime minister's visit.

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Topic :- Share Market Closing Note

Equity benchmarks ended at fresh record closing high on Friday, driven by banks after PNB earnings.

The 30-share BSE Sensex was up 112.34 points at 33,685.56 and the 50-share NSE Nifty rose 28.70 points to 10,452.50.

About 1,429 shares advanced against 1,316 declining shares on the BSE.

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Topic :- Time:2.30 PM

NATURALGAS Trading View:

NATURALGAS is trading at 190.90. If it manages to trade and sustain above 191.20 level then it is further likely to show some upmove and if it breaks and trade below 189.80 level then some profit booking can be seen in it. 

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Topic :- Time:2.15 PM

Abu Dhabis NMDC may buy stake in Dredging Corporation:

Abu Dhabis National Marine Dredging Corporation (NMDC) is planning to pick-up stake in the government-owned Dredging Corporation, reports the Hindu BusinessLine.

On Wednesday, the Cabinet approved sale of the governments entire 73.47 percent stake in Dredging Corporation of India (DCI), according to official sources.

DCI would be a most suitable and best fit for us,Mahesh Zagade, director at National Marine and Infrastructure India Pvt Ltd, told the newspaper.

We are weighing plans to submit a bid, he added.

National Marine and Infrastructure India Pvt Ltd is the Indian unit of the Abu Dhabi stock exchange-listed company in which the Abu Dhabi government has a 32 percent stake.

The move will help create a global giant to fight competition from Dutch and Belgian majors that are market dominants in the sector. The UAE-based NMDC is the sixth biggest dredging contractor in the world and joining hands with DCI will bring it a notch up to spot 5.

According to the report, there were talks between the two companies to bring DICs dredgers in the global market. However, that deal did not work out.

Currently, NMDC has a USD 316 million EPC contract with Swan Energys floating storage unit-based LNG port near Jafrabad in Gujarat. It had also worked on the expansion of the Suez Cana in 2015.

As for DCI, the company is involved in maintenance dredging, capital dredging, beach nourishment, land reclamation, shallow water dredging, project management consultancy and marine construction. It is under the administrative control of the shipping ministry.

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Topic :- Time:2.00 PM

Indian stock market is moving finally.Nifty spot is at 10457. If it manages to trade and sustain above 10460 level then expect some further upmove in it and if it breaks and trade below 10440 level then some decline can be seen in the market.

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Topic :- Time:1.30 PM

CRUDEOIL Trading View:

CRUDEOIL is trading at 3543. If it manages to trade and sustain above 3550 level then expect some quick upmove and if it breaks and trade below 3530 level then some profit booking can be seen in it.

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Topic :- Time:1.30 PM

CRUDEOIL Trading View:

CRUDEOIL is trading at 3543. If it manages to trade and sustain above 3550 level then expect some quick upmove and if it breaks and trade below 3530 level then some profit booking can be seen in it.

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Topic :- Time:1.25 PM

Just In:

Reliance Nippon IPO Allotment Date:  Allotment is out

Reliance Nippon IPO Listing Date: 06-Nov-2017

Reliance Nippon IPO Basis of Allotment: 9:2

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Topic :- Time:1.00 PM

Nifty is trading flat with Advance at 25 and Decline at 25. Bulls and bears both are in a tug of war. Nifty immediate resistance is at 10450-10460 spot levels and immediate support is at 10400. Avoid big positions by the time nifty is trading in this range.

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Topic :- Time:12.30 PM

COPPER Trading View:

COPPER is trading at 448.80. If it manages to trade and sustain above 450 level then expect some upmove in it and if it breaks and trade below 447 level then some profit booking can be seen in it.

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Topic :- Time:12.20 PM

INDIGO Stock Trading View:

INDIGO is trading at 1256. If it manages to trade and sustain above 1265 level then expect some upmove and is expected to test 1295 quickly however if it fails to trade and hold above it then it can slide little.

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Topic :- Time:12.15 PM

Just In:

Sunil Mittal-led Bharti Airtel to invest Rs 25,000 crore on 4G network.

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Topic :- Time:12.10 PM

Nifty is trading flat however stocks are showing some strength and movement. Nifty spot above 10460 will show some good upmove and if it breaks and trade below 10420 level then some profit booking can follow however 10400 spot will act as immediate minor support to watch out for.

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Topic :- Time:11.45 PM

Securities in Ban For Trade Date 03-NOV-2017:

1. HDIL

2. IBREALEST

3. JSWENERGY

4. WOCKPHARMA

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Topic :- Time:11.40 AM

News Wrap Up:

1. A customs spat could derail Modis plan to get India 100 gigawatts of solar power

2. Headcount cut as companies rush to automate IT

3. Torrent to buy Unichems domestic biz for Rs 3,500 cr; announcement today

4. Piramal Group in race to buy stakes in Binani Cement, Electrosteel Steels

5. China again blocks US move to ban Masood Azhar, India disappointed

6. Bharti Airtel up 4% after huge block deal

7. Sebi lens on now-defunct Kingfisher Airlines directors

8. JSW Steel: Firm profit outlook will help sustain sentiment

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Topic :- Time:11.00 AM

After positive start nifty is trading bit volatile in a range. Nifty spot if manages to trade and sustain above 10450 level then expect further upmove in the market and if it breaks and trade below 10420 level then some softness can be seen in the Nifty.

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Topic :- Share Market Opening Note

Indian Stock Market Trading View For 03 Nov,2017:

Nifty to turn volatile as the day progresses. Stock specific movement will be there in the market.

Nifty spot if manages to trade and sustain above 10460 level then expect some quick upmove in the market and if it breaks and trade below 10400 level then some softness can be seen in the market. Please note this is just opening view and should not be considered as the view for the whole day.

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Cumulative foreign direct investment (FDI) equity flows into India reached USD 114.4 billion during the last two financial years – 2015-16 and 2016-17, according to a latest report by global accounting firm KPMG.

This is about 40 per cent higher than the USD 81.8 billion recorded in the preceding three years, from 2011-12 to 2013-14. UAE investors announced USD 2.5 billion worth of investments in India in a single month – October 2017 – including USD 1 billion investment by Abu Dhabi Investment Authority (ADIA), USD 1 billion by NRI-Emirati Investor's Group and a further USD 462 million investment by Lulu Group in Andhra Pradesh.

The report was prepared for the first India-UAE Partnership Summit (IUPS) held here last week.

Cumulative FDI into India reached USD 498.9 billion in 17 years from April, 2000 to June, 2017, according to the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.

"In the financial year 2016-17, the country received the highest-ever FDI flow worth USD 43.5 billion," KPMG said.

"India also witnessed an increase in private equity/venture capital investments led by its growing start-up segment. Between January and September, 2017, India received USD 17.6 billion of private equity/venture capital spread across 402 deals," it said.

The report – released at the IUPS, organised by the Business Leaders Forum (BLF) and commissioned by KPMG headed by Vikas Papriwal, Partner and Head of Markets, KPMG in the Lower Gulf and Middle East South Asia – comes in the backdrop of the latest announcement of USD 1 billion by the newly- formed NRI-Emirati Investors' Group in addition to a further USD 1 billion by ADIA.

The Asian Development Bank (ADB) said the infrastructure sector in India requires USD 5.2 trillion worth of investments to sustain the economic growth and lend support to several government flagship programmes.

"The infrastructure sector is one of the key drivers of the Indian economy. India's infrastructure market, currently the third-largest in Asia, is anticipated to reach USD 6.6 trillion by 2025, constituting 12.5 per cent of the Asia- Pacific region. As of 2016, the sector contributes nearly 8 per cent to India's GDP," said the report.

Roadways and highways are key to the development of the infrastructure sector as they offer the required base for intra- and inter-state connectivity. The government has been trying to provide the necessary impetus to boost the sector.

In the federal budget 2017–18, the government has allocated USD 9.8 billion for national highways (an increase of 11 per cent from the previous year). The states are expected to provide an additional USD 1.2 billion for road development. In addition, the government has also announced the construction of 2,000 kms of coastal connectivity roads.

The country is witnessing increased investments in the sector on the back of reforms and higher budgetary allocation by the government, greater funding support from international lending institutions and several MoUs being signed with several countries.

In the federal budget 2017–18, the total capital and development expenditure of railways has been estimated at USD 20 billion, which includes USD 8.4 billion provided by the government.

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The government could ask cash-rich central public sector enterprises (CPSEs) to invest in the Rs 1.35 lakh crore bonds to recapitalise public banks.

In October this year, the government had announced recapitalisation package of Rs 2.11 lakh crore for banks. Of the total amount, Rs 1.35 lakh crore is to come from recapitalisation bonds and rest Rs 76,000 crore from budgetary support and stake sale in banks.

In case of recapitalisation, if banks participate then government will issue bonds that the banks will buy. The funds raised by the government will then be infused as capital into the banks.

In case where the banks don't participate, banks will get cash in lieu of equity, the report said.

According to an earlier report, state-owned Life Insurance Corporation could also be roped into participate in the recapitalisation process.

By the way of process, LIC could increase its holding in the public sector banks. LIC could also participate in a non-operating holding company structure (NOHC) where the government could transfer its holding in various public companies.

This NOHC will then issue recapitalistaion bonds worth Rs 1.35 lakh crore. Nature of these bonds is yet to be decided by the government.

This won't be the first time when LIC would invest into PSBs. LIC, in the past, has pumped capital in public banks via share allotment and QIPs.