- Jefferies has downgraded Maruti Suzuki to underperform and reduced its target price due to concerns about changing capital allocation policy and lack of clarity on new plant arrangements. Maruti shares are also down on disappointing September sales growth. - Goldman Sachs has reiterated a buy rating on Bharti Airtel and added it to its conviction list, seeing 40% upside potential. It believes the recent share price correction in Bharti is overdone and earnings are set to rise on factors like market share gains. - US stocks rose as investors bet the Federal Reserve will not raise interest rates this year based on a weaker-than-expected US jobs report on Friday. Asian markets also rose on expectations

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Jefferies has downgraded the auto major to underperform from buy. The brokerage has also reduced target price by 19 percent to Rs 3952 from Rs 4876 per
share. Jefferies feels that changing capital allocation policy will make profits unpredictable for Maruti. Another concern that the brokerage has highlighted is
Maruti's reduction of investments in manufacturing, and setting up new distribution network for premium cars. It also says that there is a lack of clarity on
arrangement with Suzuki on new plant that will supply cars from FY18. “Near term outlook is very strong but positives in the price,” Jefferies says. Board of the
four-wheeler manufacturer, meanwhile, has approved contract manufacturing agreement and lease deed proposed to be signed by the company with Suzuki
Motor Gujarat (P) subject to the arrangement being approved by the minority shareholders of MSIL and regulatory approvals, if any. Maruti is facing selling
pressures also due to disappointing sales data in September. The country's largest carmaker reported 3.7 percent rise in total sales in September at 1,13,759 units
as against 1,09,742 units sold in the same month last year. Domestic sales increased by 6.8 per cent during the month to 1,06,083 units as against 99,290 units in
September, 2014, Maruti Suzuki India (MSI) said in a statement. Exports during the month declined by 26.6 per cent to 7,676 units as compared to 10,452 units in
September last year, MSI said, adding that overseas shipment of around 3,500 units was delayed last month.
Technical Outlook : The stock has formed double top formation at 4763.45 levels on daily chart which is bearish reversal pattern. Moreover, price has
formed spinning top formation which is followed by long bearish candle stick with above average volumes. Momentum indictor RSI has moved below
60 levels with negative crossover, which point out for negative breath in the stock. For trading perspective, one could Sell in the range of 4410-4425 for
the Target of 4320 with the SL of 4470.
Goldman Sachs has reiterated buy rating on Bharti Airtel and added it to conviction list as it feels sell-off looks overdone and earnings are set to rise. The stock
has rallied more than 2 percent intraday Monday as the brokerage sees 40 percent upside. Bharti has corrected sharply from its recent peak in July 2015 over
concerns on forex, Reliance Jio’s launch and a correction in Bharti Infratel (a subsidiary). The brokerage believes correction is overdone and Bharti is set for an
earnings upgrade cycle due to higher revenue market share (driven by faster 3G/LTE rollout); increasing data usage with more localised online content; and
further deleveraging in Africa. After attaining highest revenue market share (RMS) in 20 quarters, Goldman expects Bharti’s market share to improve further to
31.2 percent in FY21. It also expects Vodafone/ Idea to lose market share as Bharti’s launched LTE in over 60 cities (including 7 of the top 10), at least 2 quarters
before any other major operator launching LTE; and faster LTE uptake with launch of LTE smartphones priced under Rs 5,000. Any news on deleveraging is likely
to lead to valuation upgrades, says the brokerage. Bharti has tower sales under negotiation in 4 countries in Africa. It is also in talks with Orange to sell
operations in 4 countries. Key risks, according to Goldman Sachs, are lower-than-expected elasticity to price cuts due to Jio’s launch, slower-than-expected data
uptake, forex volatility and continued Africa weakness.
Technical Outlook: On daily chart, prices have been trading in rising channel formation since last 3 years. Moreover, recently stock has taken support of
its lower band of channel formation at 325 levels, which indicates for bounce back move in the prices. On daily chart, price has formed Bullish morning
star candlestick pattern which is bullish reversal formation. Beside, stock has been trading above 200 WEMA which indicates short to long term trend
is up. The momentum indictor RSI has moved above 40 levels, which point out for positive breath in the stock. So for trading perspective, one could
Buy in the range of 344-346 for the Target of 354 with the SL of 340.
MARUTI
BHARTIARTL
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Morning Tea
06th Oct 2015
Buy in the range of 344-346 for the Target of 354 with the SL of 340
Sell in the range of 4410-4425 for the Target of 4320 with the SL of 4470
US stocks jumped on Monday, with the S&P 500 rising for the fifth day in a row, as rising oil prices boosted energy stocks and investors bet the Federal Reserve
would not raise interest rates this year. Friday's US nonfarm payrolls report for September showed job growth slowed in the last three months, increasing
prospects that the era of near-zero interest rates will continue for a while yet. The Fed, which has not raised interest rates since June 2006, kept its benchmark
rate unchanged in September, citing an uncertain global economic outlook and volatile markets. Traders are pricing in only a 31-percent chance of a December
hike, down from 44 percent before the jobs report, according to CME Group's Fed Watch program. The Dow Jones industrial average rose 304.06 points, or 1.85
percent, to 16,776.43, the S&P 500 gained 35.69 points, or 1.83 percent, to 1,987.05and the Nasdaq Composite added 73.49 points, or 1.56 percent, to 4,781.26.
Japan's Nikkei share average rose to a 2-1/2-week high on Tuesday as expectations that the U.S. Federal Reserve will wait longer to raise interest buoyed
investors' risk appetites. Also lifting the mood was news that 12 Pacific Rim countries had reached the most ambitious trade pact in a generation. Investors had
been jittery amid fears of sharper Chinese economic slowdown and a possible U.S. interest rate hike this year. But they have returned to riskier assets after a
weak U.S. jobs report on Friday prompted speculation the Fed will wait longer to start normalizing rates. The Hang Seng index traded at 0.28 % to 21916.40,
Japan's benchmark Nikkei 225 index traded at 1.47% to 18273.31, South Korea's Kospi index up by 0.45 % to 1987.16 levels. The SGX Nifty suggests a positive
opening for our markets as it is trading at 8192.50, up by 56 points.

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Bulk Deal
Corporate Action / Result Calendar
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Morning Tea
Corporate Action:
Cadila Healthcare Limited; Face Value Split (Sub-Division) - From Rs 5/- Per Share To Re 1/- Per
Share.
06th Oct 2015
Security in Ban
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Sr.No Deal Date Security Code Security Name Client Name Deal Type Quantity Price
1 5/10/2015 513216 UTTAMSTL CRESTA FUND LTD S 10750000 33.70
2 5/10/2015 513216 UTTAMSTL ERISKA INVESTMENT FUND LTD B 10750000 33.70
3 5/10/2015 539351 PRABHAT RELIANCE MUTUAL FUND B 1150000 117.00
4 5/10/2015 514034 JBFIND ERISKA INVESTMENT FUND LTD B 950000 224.50
5 5/10/2015 514034 JBFIND CRESTA FUND LIMITED S 950000 224.50
6 5/10/2015 538295 KAUSAMBI AMITKUMAR RAMESHCHANDRA RANA S 436969 5.14
7 5/10/2015 521174 ARORAFIB ARVIND SATPAUL GUPTA S 382171 9.25
8 5/10/2015 533155 JUBLFOOD COPTHALL MAURITIUS INVESTMENT LIMITED S 378000 1679.97
9 5/10/2015 521174 ARORAFIB ALKA RAJESH AGARWAL B 200001 9.25
10 5/10/2015 521174 ARORAFIB RAKESH R AGARWAL B 200000 9.25

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Research Team
Mr. Sumeet Bagadia Associate Director
Kunal Parmar Research Associate
Ritesh Patel Research Associate
Amit Pathania Research Associate
Vikas Chaudhari Research Associate
Rajnath Yadav Research Associate
Satish Kumar Research Associate
Morning Tea
06th Oct 2015
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Kunal Parmar
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email=kunal.parmar@choiceindia.com, c=IN
Date: 2015.10.06 08:39:35 +05'30'