1. K E Y N O T E INSTITUTIONAL RESEARCHIndia Morning NoteFriday, May 04, 2012Domestic Markets Snapshot Views on markets today Name of Index May 2 May 3 Change (%) • Indian markets posted their biggest falls in nearly Sensex 17,301.91 17,151.19 -0.87% three weeks and closed on negative note yesterday CNX Nifty 5,239.15 5,188.40 -0.97% after a slump in the rupee exacerbated worries about BSE Mid-cap 6,298.95 6,234.75 -1.02% the countrys fiscal and economic challenges, as well BSE IT 5,746.08 5,786.99 0.71% as about foreign selling on the back of recent tax BSE Banks 11,860.29 11,653.70 -1.74% proposals. Banking shares led the falls a day after the Reserve Bank of India issued guidelines imposed coreFII Activity (`Cr) capital ratios of at least 7%, sparking concerns about Date Buy Sell Net return on equities in the sector. The RBI introduced 30-Apr 2,114 1,573 541 new rules on Wednesday to get banks to comply with 27-Apr 2,084 2,415 -331 upcoming Basel III rules, which would hit leverage Total Apr 36,146 38,012 -1865 levels and ROEs of the banks. The rupee dropped to a 2012 YTD 236,380 192,917 43462 four-month low against the dollar yesterday, sparked by concerns about foreign flows and the countrysMF Activity (`Cr) widening current account deficit. Except IT, all sectoral Date Buy Sell Net indices closed on negative levels with auto, metal, 26-Apr 725 876 -152 bank and real estate stocks were major losers. Auto 25-Apr 448 558 -110 stocks fell for the second day in a row after tepid sales Total Apr 8,237 8,892 -654 growth reported by most auto firms for the month of 2012 YTD 44,182 50,410 -6228 April 2012. However, software services exporters gained on expectations the slide in the rupee wouldVolume & Advances / Declines improve profit margins at a time of waning NSE BSE outsourcing demand. Sugar producers stocks surged Trading Volume (Cr) 55.60 20.21 after the government removed any limits on export Turnover (`Cr) 10,004 1,921 volumes, raising expectations for improved profits in Advances 429 1,055 the sector. Hero MotoCorp dropped 7.7% after missing Declines 1,046 1,719 earnings estimates, and on worries about the impact from the expiration of a state tax exemption it Unchanged 68 107 currently enjoys in Haridwar of northern India. Total 1,543 2,881Global Markets • Market breadth was lower at ~0.61x as investors sold large cap stocks. On provisional basis, FIIs bought Index Latest Values Change (%) equity of `0.73bn while domestic institutions sold DJIA 13,206.59 -0.47% equity of `3.47bn in cash segment. NASDAQ 3,024.30 -1.16% • Asian markets fell for a second day, as U.S. service Nikkei * 9,380.25 0.31% industries expanded less than forecast and falling Hang Seng * 21,077.87 -0.81% commodity prices weakened the earnings outlook for* as of 8.25AM IST exporters and raw-material producers.Currencies / Commodities Snapshot • We expect a weak opening for the Indian markets, Latest Previous tracking the cues from the Asian markets and global Quote Close economic developments. Indian Rupee per $ 53.37 52.98 Indian Rupee per € 70.20 69.66 Economic and Corporate Developments NYMEX Crude Oil($/bbl) 102.68 102.54 • HSBCs business activity index or services PMI, Gold ($/oz) 1,636.20 1,634.20 compiled by its service Markit, rose to 52.8 in April Silver ($/oz) 30.12 29.98 from 52.3 in March.Keynote Capitals Institutional Research (email@example.com) (+9122-30266000) Keynote Capitals Institutional Research is also available onBloomberg KNTE <GO>, Thomson One Analytics, Reuters Knowledge, Capital IQ, TheMarkets.com and securities.com Keynote Capitals Institutional Research - winner of “India’s Best IPO Analyst Award 2009” by MCX-Zee Business To unsubscribe from this mailing list, please reply to firstname.lastname@example.org
2. K E Y N O T E INSTITUTIONAL RESEARCHTOP GAINERS Buzzing Stocks(BSE A-Group) • Cairn India to invest $5bn in Barmer block to Previous Current Change increase output. Company Name Close(`) Price(`) (%) • Delhi High Court adjourns hearing in IGL vs PNGRB Pipavav Defence 79.90 86.70 8.51 matter to May 8. United Phos 119.75 126.85 5.93 • Dr Reddys gets US nod for osteoporosis drug Boniva Godrej Cons 548.00 566.75 3.42 150 mg generic. Glenmark Ph 329.75 337.15 2.24 Hind Unilever 425.00 433.60 2.02 • Pheonix Mills board clears raising `1000Cr via QIP route.(BSE Mid-Cap) • Bosch to invest `300Cr in Nashik plant expansion. Previous Current Change Company Name • Mcnally Bharat Engineering receives 2 orders worth Close(`) Price(`) (%) Pipavav Defence 79.90 86.70 8.51 `177Cr from NTPC and Unitech Hi-Tech (NTPC United Phos 119.75 126.85 5.93 Thermal Project worth `170Cr). Core Projects 279.10 294.75 5.61 • GAAR may be put off by a year, tax amount of `10- Arvind 85.80 89.90 4.78 15Cr may be the threshold above which rule could Amara Raja 289.25 302.00 4.41 be invoked. • Taib Bank investment in Anantraj Industries couldTOP LOSERS come under scanner of ED & IT for violation of FDI(BSE A-Group) norms. Previous Current Change • Reliance Industries fined `6600Cr for KG D6 output Company Name Close(`) Price(`) (%) fall. IRB Infra 167.95 149.65 -10.90 US markets Hero MotoCorp 2245.00 2072.35 -7.69 U.S. stocks fell, amid disappointing service industries Aditya Birla Nuv 931.10 884.40 -5.02 data and as investors awaited for jobs report to gauge JUBL FOOD 1183.75 1128.20 -4.69 the pace of growth at the world’s largest economy. Bank of India 347.80 333.60 -4.08 The S&P 500 retreated 0.8 percent to 1,391.57 while(BSE Mid-Cap) the Dow Jones Industrial Average declined 61.98 points, Previous Current Change or 0.5 percent, to 13,206.59. Company Name Close(`) Price(`) (%) Stocks dropped after service industries grew at a IRB Infra 167.95 149.65 -10.90 slower pace than projected in April, a sign the largest VIP Inds 93.00 86.75 -6.72 part of the economy may struggle to accelerate. The TVS Motor 41.50 39.20 -5.54 report overshadowed data showing that jobless claims Educomp Sol 197.20 186.55 -5.40 fell to 365,000 in the week ended April 28, a one-month Sintex Inds 71.20 67.45 -5.27 low.Keynote Capitals Institutional Research (email@example.com) (+9122-30266000)
3. K E Y N O T E INSTIT UT IONAL R ES EAR C H India and Global Economic Calendar Countries / Friday Monday Tuesday Wednesday Regions 4/May 7/May 8/May 9/May India Forex Reserves Data Weekly Supplement of RBI US Average Hourly Consumer Credit NFIB Small Business wholesale Earnings (YoY & Change Optimism Index inventories MoM) & Average Weekly Hours Nonfarm Payrolls ICSC-Goldman Store Sales Unemployment Rate Global UKs RICS Housing Germany trade Price Balance balance data Germanys Industrial Production s.a. (MoM) KEYNOTE CAPITALS LTD. The Ruby, 9th Floor, Senapati Bapat Marg, Dadar (W), Mumbai – 400 028 Tel. : +9122-30266000 • www.keynotecapitals.comDisclaimer: This report is purely for information purpose and is based on public information. News content is attributable tovarious media, unless specified otherwise. All market related statistical data pertains to the immediately preceding trading day,unless stated otherwise. Neither the information nor any opinion expressed in this report constitutes an offer, or an invitation tomake an offer, to buy or sell the securities mentioned herein. We or any of our directors, officers or employees shall not in anyway be responsible for any loss arising from the use of this report. Investors are advised to apply their own judgment beforeacting on the contents of this report. The report has not been edited due to time constraints.