K E Y N O T E INSTITUTIONAL RESEARCHIndia Morning NoteTuesday, August 23, 2011Domestic Markets Snapshot Views on markets today Name of Index Aug 19 Aug 22 Change (%) • Indian markets snapped the losing streak and Sensex 16,141.67 16,341.70 1.24% rebounded to end on higher note yesterday as CNX Nifty 4,845.65 4,898.80 1.10% investors grabbed shares offering value buying BSE Mid-cap 6,127.10 6,203.67 1.25% following last weeks plunge over worries about the BSE IT 4,738.11 4,710.18 -0.59% health of the global economy. Gains in European BSE Banks 10,763.34 10,748.66 -0.14% shares and higher US index futures triggered by a fallFII Activity (`Cr) in crude oil prices also aided a recovery in battered Indian share. However, worries that the sovereign debt Date Buy Sell Net crisis in euro zone peripheral countries may spread to 18-Aug 5209 6490 -1281 bigger regional economies kept investor sentiment 17-Aug 2253 2661 -408 under check. Except IT and banks, all sectoral indices Total Aug 32566 40080 -7514 closed on positive note with oil & gas, power, metal 2011 YTD 416158 414940 1219 and capital goods stocks were major gainers. SoftwareMF Activity (`Cr) stocks extended recent steep losses triggered by Date Buy Sell Net concerns that a likely economic slowdown in the US and Europe will hit technology spending by overseas 17-Aug 432 465 -33 clients, with IT major Infosys hitting 52-week low. 16-Aug 388 299 89 Ramky Infrastructure fell 17% after the company said Total Aug 8338 6733 1605 that a team from Indias main investigative agency 2011 YTD 88000 82890 5382 visited the groups premises and sought informationVolume & Advances / Declines regarding certain projects awarded to it. IT firm Four NSE BSE Soft Solutions jumped 9% after the company signed a deal with a global logistics firm. Trading Volume (`Cr) 9,617 2,014 Advances - 1,803 • Market breadth was strong at ~1.77x as investors Declines - 1,018 bought large cap stocks. FIIs sold equities worth Unchanged - 101 `7.86bn while domestic institutions bought equities of Total - 2,922 `1.43bn.Global Markets • Asian markets today started with a positive opening. The Nikkei Stock Average up 0.5% at 8,673.11. Hang Index Latest Values Change (%) Seng also opened positive, though declined thereafter DJIA 10,854.65 0.3% and currently is trading flat. NASDAQ 2,345.38 0.2% Nikkei * 8,636.78 0.1% • We expect a flat to cautious opening for the Indian Hang Seng * 19,621.11 0.7% markets as the investors may wait for important cues to get any directions.* as of 8.30AM ISTCurrencies / Commodities Snapshot Key events today Latest Previous • Opening of the IPO of SRS Ltd. (price band `58-65 per Quote Close share), closes August 26. Indian Rupee per $ 45.52 45.67 Economic and Corporate Developments Indian Rupee per € 65.48 65.90 NYMEX Crude Oil($/bbl) 84.70 84.42 • Prime Minister Manmohan Singh said India can achieve Gold ($/oz) 1,901.70 1,891.90 9.5% average economic growth in the 12th Five Year Silver ($/oz) 43.40 43.72 Plan, provided steps are taken to push agriculture growth rate to 4.2% and manufacturing to 11.5%.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
K E Y N O T E INSTITUTIONAL RESEARCH TOP GAINERS Buzzing Stock (BSE A-Group) • Wipro, Godrej and Dabur may participate in an auction process initiated by global consumer Previous Current Change Company Name healthcare giant Reckitt Benckiser for the sale of its Close (`) Price (`) (%) Mphasis 352.05 388.30 10.30 personal care products division in India. Shre Renuka Sug 52.45 57.70 10.01 • JFE reportedly bought a 14.9% stake in JSW Steel for National Alum 59.90 65.20 8.85 $1bn, just below the level that would require a mandatory public offering but planning to explore Aban Offshore 344.30 370.80 7.70 the option of raising its stake to above 15% in near BF Utilities-$ 432.90 464.75 7.36 future. (BSE Mid-Cap) • NTPC, is preparing a back-up plan to avoid slippages Previous Current Change in capacity addition targets as some of its proposed Company Name Close(`) Price(`) (%) new projects face obstacles such as gas shortage Orchid Chem 180.65 199.80 10.60 and legal tussles over tenders. Shre Renuka Sug 52.45 57.70 10.01 • Consumer product companies in India on an average Spicejet 22.10 24.30 9.95 have increased the price of one daily consumption Dewan Housing 198.45 214.85 8.26 item every day over the last two months, despite an Aban Offshore 344.30 370.80 7.70 ever-increasing possibility of a consumer slowdown. • The downturn in global markets has taken a toll on TOP LOSERS Essar Oils plans to raise $1.5bn in foreign currency (BSE A-Group) loans to finance its expansion plans and forced the company to look for options in a difficult Previous Current Change environment. Company Name Close(`) Price(`) (%) Aurobindo Phar 137.10 125.15 -8.72 • Chlorine gas leaks from BHEL plant in Bhopal; 3 hospitalised M&M 630.10 605.30 -3.94 Gail India 429.60 415.40 -3.31 • Coal India Unions have demanded a 100% jump in their salaries-a demand that would put the state-run Jindal Saw 120.10 116.25 -3.21 entity under a severe strain as its annual wage cost Union Bank 256.75 250.25 -2.53 of `20,000Cr already accounts for 42% of its (BSE Mid-Cap) expenditure. Previous Current Change US markets Company Name Close(`) Price(`) (%) US markets finished higher Monday for the first Ramky Infra 269.50 227.05 -15.75 session in three, bouncing back from a four-week Nava Bharat Ven 192.55 175.55 -8.83 retreat that has the S&P 500 Index down 13% so far Aurobindo Phar 137.10 125.15 -8.72 this month. However, the investors still looks worried 3M India 4825.35 4500.05 -6.74 about the sustainability of rally reflected through a KGN Inds 36.55 34.75 -4.92 heavy buying in the gold. The gold prices cross $1,900 an ounce. Recovery in the European markets is a major reason for the US stocks to close positive. The Dow Jones Industrial Average rose with a moderate upside of 37 points, or 0.3%, to close at 10,854.65, with 23 of its 30 components gaining ground, led by Hewlett-Packard Co., up 3.6%. The S&P 500 rose 0.3 point to finish at 1,123.82, led by the performance of telecom sector. KEYNOTE CAPITALS LTD. 4th Floor, Balmer Lawrie Building, 5, J. N. Heredia Marg, Ballard Estate, Mumbai 400 001. INDIA Tel. : 9122-2269 4322 / 24 / 25 • www.keynoteindia.netDisclaimer: 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.