- The key Indian stock indices declined slightly, with the Sensex falling 0.42% and Nifty down 0.44%, as investors took profits amid volatility in global markets and concerns over domestic inflation and trade deficit numbers. - Asian stocks advanced modestly while European markets opened mixed. FIIs were net sellers of Indian stocks worth Rs. 5,553 crore in August so far. - Key events scheduled for the day include the release of industrial production data and the listing of L&T Finance Holdings.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, August 12, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Aug 10 Aug 11 Change (%)
Sensex 17,130.51 17,059.40 -0.42% • BSE Sensex lost 71.11 points or 0.42% to settle at
CNX Nifty 5,161.00 5,138.30 -0.44% 17,059.40, while the S&P CNX Nifty declined by 22.70
BSE Mid-cap 6,554.22 6,543.72 -0.16% points or 0.44% to close at 5,138.30. Indian
BSE IT 5,163.08 5,129.99 -0.64% benchmarks failed to extend the gaining momentum
on Thursday as jittery investors chose to take profits
BSE Banks 11,953.78 11,829.54 -1.04%
off the table amid extreme volatility and uncertainty
FII Activity (`Cr) over the direction of market in the backdrop of
Date Buy Sell Net lingering worries emerging from both sides of the
9-Aug 2415 4376 -1961 Atlantic added by domestic food inflation numbers
8-Aug 1857 2967 -1110 which was highest since last four and half months to
9.9%. On top of that India’s trade data came, showing
Total Aug 14486 20039 -5553
trade deficit widened to $11.1 billion in the month of
2011 YTD 398079 394898 3181
July from $7.7 billion in June. The only positive thing
MF Activity (`Cr) about the trade numbers was that India's exports in
Date Buy Sell Net July rose by a staggering 82% to $29.3 billion. The
8-Aug 926 601 325
only gainer on the BSE sectoral space was FMCG, up
by 0.03%. While, Bankex down 1.04%, TECk down by
5-Aug 1212 855 357
0.86%, Realty down by 0.86%, Consumer Durables
Total Aug 4061 3470 591
(CD) down 0.84% and Capital Good (CG) down 0.69%
2011 YTD 83723 79627 4368 were the top losers on the BSE sectoral space.
Volume & Advances / Declines • The market breadth was firm at 0.90x due to the
NSE BSE instability created over the last few days among US
Trading Volume (`Cr) 2,375 10,236 and European nations. FIIs sold equity worth
Advances 624 1,305 Rs59.79Crs and DIIs bought equity worth Rs266.25Cr.
• Asian stocks advance, although moves are relatively
Declines 804 1,521
modest compared to the sharp volatility generally
Unchanged 56 109
seen in global markets this week. Japanese Nikkei
Total 1,484 2,935
came down from its high while the Hang Seng is
Global Markets strong.
Index Latest Values Change (%) • We expect a positive opening for the Indian markets
DJIA 11,143.31 3.9% today as the Asian markets are strong. IIP data
NASDAQ 2,492.68 4.7% announcement today will create some volatility.
Nikkei * 8,997.55 0.8% Key events today
Hang Seng * 19,883.26 1.1%
• IIP data
* as of 8.45AM IST
• Listing of L&T Finance Holdings
Currencies / Commodities Snapshot
Latest Previous Economic and Corporate Developments
Quote Close
Indian Rupee per $ 45.18 45.27 • Food inflation rose an annual 9.90% in the week to July
30, rising from 8.04% in the previous week. Fuel and
Indian Rupee per € 64.11 64.69
power category remained almost unchanged at 12.2%
NYMEX Crude Oil($/bbl) 85.02 85.72
for the week, against 12.1% in the previous week.
Gold ($/oz) 1,760.70 1,748.80
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stock
(BSE A-Group)
• Suzlon Energy has won an order from the Malpani
Previous Current Change Group to set up, operate and maintain projects
Company Name
Close (`) Price (`) (%) totaling 29.70 MW.
Tata Comm 201.15 216.45 7.61
• NTPC signed an agreement with Inland Waterways
Rashtriya Chem 81.60 86.15 5.58
Authority of India and Jindal ITF for transporting
Jain Irrigation 162.05 169.40 4.54
imported coal from ports to NTPC stations using
Exide Inds 152.90 159.35 4.22
inland waterways.
Emami-$ 477.50 496.30 3.94 • India's largest bank SBI (Banks) and India's largest
(BSE Mid-Cap) private sector bank ICICI Bank (Banks) hiked rates by
50 basis points (bps).
Previous Current Change
Company Name
Close(`) Price(`) (%) • GMR Energy, a subsidiary of GMR Infrastructure, has
Blue Dart 1578.75 1759.75 11.46 entered into an agreement to acquire 30% stake in T
Page Inds 2380.60 2592.65 8.91 Golden Energy Mines Tbk (GEMS), a Sinar Mas Group
Tata Comm 201.15 216.45 7.61 company in Indonesia. The deal is valued at $450-
COX KINGS 214.85 230.15 7.12 550mn.
Rashtriya Chem 81.60 86.15 5.58 • Reliance Industries has completed turnaround of its
production facility at an oil field in its showpiece KG-
D6 block off the Andhra coast.
TOP LOSERS
• Indian Oil Corp.'s 300,000 barrels per day (bpd)
(BSE A-Group) Paradip refinery in Orissa is likely to be completed in
Previous Current Change early 2013, minister of state for petroleum and
Company Name
Close(`) Price(`) (%) natural gas R.P.N. Singh said on Thursday, a delay of
Financial Tech 766.60 719.35 -6.16 nearly a year from its initial plan.
Apollo Tyres 70.90 67.20 -5.22
• Adani Gas, an arm of Adani Enterprise, will pick up
Jet Air India 410.05 388.85 -5.17 20% equity in Green Gas Limited, a joint venture
Adani Enter 601.95 572.15 -4.95 between Gail and the Indian Oil Corporation (IOC).
JUBL FOOD 825.00 787.20 -4.58
US markets
(BSE Mid-Cap)
Dow rose as much as 558.96 points by end of the
Previous Current Change day, however, last moment sell-off led the losses of
Company Name
Close(`) Price(`) (%)
almost 130 points and it ended up 423.37 points to
Mindtree 389.05 364.90 -6.21 11,143.31, or 4% higher. Cisco Systems Inc. rallied
Hotel Leela 45.95 43.10 -6.20 16% a day after the technology bellwether reported
Financial Tech 766.60 719.35 -6.16 upbeat results.
Apollo Tyres 70.90 67.20 -5.22
The S&P 500 Index gained 51.88 points, or 4.6%, to
Jet Air India 410.05 388.85 -5.17
1,172.64, with financials leading the rise, which
included all 10 of its industry groups. News Corp.'s
shares were the biggest percentage gainer in the
S&P 500, jumping 19% to $16.35 in Thursday
afternoon trading. Cisco was second, climbing 17%
to $16.01. AOL shares, meanwhile, rose 13% to
$11.54.
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