1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, August 22, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Aug 18 Aug 19 Change (%)
• Sell-off in the Indian markets continued for second
Sensex 16,469.79 16,141.67 -1.99%
straight session on Friday and closed on negative note
CNX Nifty 4,944.15 4,845.65 -1.99%
as rising concerns of the US economy slipping into
BSE Mid-cap 6,211.55 6,127.10 -1.36%
double-dip recession, financial crisis in Europe and
BSE IT 4,956.62 4,738.11 -4.41% slowdown in domestic economy due rising to interest
BSE Banks 10,971.66 10,763.34 -1.90% rates force the investors to liquidated positions. Indian
FII Activity (`Cr) markets, which is down 21% this year, extended its
losses to 14% in four straight weeks, its longest
Date Buy Sell Net
weekly losing streak since September 2008. Except
17-Aug 2253 2661 -408
real estate, all sectoral indices closed on negative note
16-Aug 2531 2741 -210
with IT, capital goods, banks and consumer durables
Total Aug 27357 33590 -6233
stocks were major losers. Bargain hunting helped most
2011 YTD 410949 408450 2500
auto stocks reverse initial slide caused on concerns
MF Activity (`Cr) higher interest rates could crimp sales of automobiles.
Date Buy Sell Net Software stocks also saw an across the board slide on
17-Aug 432 465 -33 concerns that a likely economic slowdown in the US
and Europe will hit technology spending by overseas
16-Aug 388 299 89
clients. L&T closed down 5.1% on concerns that a
Total Aug 8338 6733 1605
slowdown in the country's economic growth would
2011 YTD 88000 82890 5382
crimp investment in infrastructure projects. GTL closed
Volume & Advances / Declines 6.3% after the telecoms infrastructure firm reported a
NSE BSE 68% drop in its April-June quarter net profit. Reliance
Trading Volume (`Cr) 12,649 2,763 Communications dropped 2.4% on the news that the
Advances 353 773 company has hired UBS to sell its stake in its tower
Declines 1,127 2,083
unit and has reached out to several strategic and
private-equity firms.
Unchanged 44 105
Total 1,524 2,961 • Market breadth was weak at ~0.37x as investors sold
large cap stocks. FIIs sold equities worth `9.02bn while
Global Markets
domestic institutions bought equities of `4.23bn.
Index Latest Values Change (%)
DJIA 10,817.65 -1.6% • After a positive opening, the Asian stocks are losing
NASDAQ 2,341.84 -1.6% ground. However, they are still in positive territory.
Nikkei * 8,735.57 0.2% • We expect a positive opening for the Indian markets
Hang Seng * 19,494.03 0.5% as the investors may try to recoup their sell positions
* as of 8.45AM IST and the cues from the Asian markets are not very
Currencies / Commodities Snapshot discouraging.
Latest Previous Economic and Corporate Developments
Quote Close
Indian Rupee per $ 45.74 45.75 • Government won’t divest PSU stake till market looks
up.
Indian Rupee per € 65.74 65.72
NYMEX Crude Oil($/bbl) 82.75 82.38 • Government examining capital raising proposal of SBI.
Gold ($/oz) 1,856.00 1,822.00
• Parliamentary panel asks coal ministry to expedite
Silver ($/oz) 43.28 42.90
Coal India’s acquisitions abroad.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stock
(BSE A-Group)
• Jindal Steel has raised Rs2,137Cr through the
Previous Current Change
takeout financing route, to part finance expansion
Company Name
Close (`) Price (`) (%)
IRB Infra 137.20 147.65 7.62
plans overseas and making it one of the largest such
Ashok Leyland 23.90 25.40 6.28 transactions by an Indian company.
JSW Steel 633.95 665.40 4.96 • State-owned aluminium producer NALCO plans to
Petronet LNG 163.20 169.80 4.04 invest Rs57,903Cr by 2020 on expansion and also
Indiabul Real Est 76.10 79.05 3.88 setting up two large aluminium smelters in India and
(BSE Mid-Cap) Indonesia.
Previous Current Change • Maruti Suzuki India is aiming higher with plans to roll
Company Name
Close(`) Price(`) (%)
out a global car by 2017.
Graphite India 68.85 75.90 10.24
IRB Infra 137.20 147.65 7.62 • RIL to close $7.2bn BP deal this month.
Spicejet 20.65 22.10 7.02
• Elder Pharma plans to launch 12 New product in
Ashok Leyland 23.90 25.40 6.28
FY12.
3M India 4554.90 4825.35 5.94
• Corporation Bank seeks Rs300Cr Loan from Govt.
TOP LOSERS
• Reliance Infrastructure arm seeks Rs700Cr relief for
(BSE A-Group)
two key projects.
Previous Current Change
Company Name
Close(`) Price(`) (%) • Nalco gets mining lease of Utkal E-Coal block.
Voltas 129.80 116.80 -10.02
US markets
Apollo Tyres 56.70 52.75 -6.97
Educomp Sol 234.35 219.85 -6.19 US stocks on Friday closed down 1.5% levels as the
Shre Renuka Sug 55.80 52.45 -6.00 discouraging HP guidance and global uncertainties
Infosys 2362.05 2225.40 -5.79 weighed. The Dow Jones Industrial Average fell
(BSE Mid-Cap) 172.93 points, or 1.6%, to 10,817.65. The S&P 500
ended down 17.12 points, or 1.5%, to 1,123.53. The
Previous Current Change
Company Name Nasdaq Composite lost 38.59 points, or 1.6%, to
Close(`) Price(`) (%)
Voltas 129.80 116.80 -10.02 2,341.84.
Rolta India 102.20 93.05 -8.95
CMC 1002.55 918.45 -8.39
HATHWAY CAB 85.30 79.20 -7.15
REI Agro 25.00 23.25 -7.00
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