The document provides an overview of the Indian stock market performance on August 9th, 2011 and commentary on factors influencing the markets. It notes that indices such as the Sensex and Nifty declined over 1% due to concerns over the US credit downgrade and global economic uncertainty. Foreign institutional investors were net sellers of Indian equities for the day. Analysts expected further declines in Indian markets in line with losses in Asian markets. Key corporate developments and the performance of top gaining and losing stocks are also summarized.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, August 9, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Aug 5 Aug 8 Change (%) • The Sensex lost 1.82% at the start of the fresh week
Sensex 17,305.87 16,990.18 -1.82% as investors opted out of risky after Standard & Poor's
CNX Nifty 5,211.25 5,118.50 -1.78% historic downgrade of US government debt that
BSE Mid-cap 6,588.85 6,488.60 -1.52% triggered fresh concerns about the outlook for global
BSE IT 5,459.02 5,222.41 -4.33% growth. Ratings agency Standard and Poor's not only
BSE Banks 11,833.22 11,711.81 -1.03% downgraded the US sovereign debt rating by one
notch to AA+ from AAA after the US markets closed on
FII Activity (`Cr)
Friday but also kept the US rating outlook at negative,
Date Buy Sell Net suggesting a further downgrade could be possible
5-Aug 2189 3798 -1609 within the next 12 to 18 months. Indian finance
4-Aug 2404 2550 -146 minister said that the country’s economic fundamental
Total Aug 10214 12696 -2482 were strong and could handle such uncertainties
2011 YTD 393807 387555 6252 which could led to softening of international fuel prices
helping to rein the risen inflation. Meanwhile, Foreign
MF Activity (`Cr) Direct Investment (FDI) inflow for the month of June
Date Buy Sell Net registered an impressive growth. It surged by the
5-Aug 1212 855 357 310% to 5.65 billion in June 2011 from $1.38 billion in
4-Aug 532 404 128 June 2010. All the Asian counterparts witnessed
Total Aug 3135 2869 266
bloodbath and snapped the day’s trade with a huge
cut after last week’s historic downgrade of the United
2011 YTD 82797 79026 4043
States’ credit rating. All the sectors were in negative
Volume & Advances / Declines zone lead by realty down 4.46%, IT down 4.33%, Metal
NSE BSE down 3.50% and Teck down 3.60% were the major
Trading Volume (`Cr) 14,273 3,364 losers.
Advances 261 661 • Market breadth was very weak at ~0.30x due to the
Declines 1,235 2,199 concerns over global economic uncertainty. FIIs sold
Unchanged 20 82 equities worth `1385.78Cr while domestic institutions
bought equities of `1320.38Cr.
Total 1,516 2,942
• Asian markets extend their yesterday's drop, after a
Global Markets
massive sell-off in the US markets overnight. The Hang
Index Latest Values Change (%) Seng is over 6% and the Nikkei is over 4% down.
DJIA 10,809.85 -5.5%
• We expect a gap down opening for the Indian markets
NASDAQ 2,357.69 -6.9%
today in line with the Asian markets. We advise
Nikkei * 8,694.31 -4.4% traders and investors to maintain caution and avoid
Hang Seng * 19,264.40 -6.0% trading.
* as of 8.45AM IST
Currencies / Commodities Snapshot Economic and Corporate Developments
Latest Previous • A working group of Department of
Quote Close Telecommunications (DoT) for the 12th Five-Year Plan
Indian Rupee per $ 44.90 44.74 (2012-17) today said it estimated an investment of
Indian Rupee per € 63.87 63.42 `6,50,000Cr during the next plan.
NYMEX Crude Oil($/bbl) 76.46 81.31 • China said its politically sensitive inflation rate rose
Gold ($/oz) 1,744.50 1,711.60 6.5% in July to its highest level in more than three
Silver ($/oz) 39.01 39.03 years, as the government struggles to rein in soaring
food costs.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS
(BSE A-Group) Buzzing Stock
Previous Current Change • Coal India is looking at one acquisition each in
Company Name
Close (`) Price (`) (%) Indonesia, Australia and the United States and the
Chambal Fert 92.45 97.65 5.62 size of each deal will be below `1000Cr.
HEROHONDA M 1784.00 1855.95 4.03 • JSW Steel plans to operate its plants in south India at
GVK Power 17.25 17.70 2.61 about 80% capacity after the country's top court
ONGC 276.10 282.60 2.35 partially lifted an iron ore mining ban imposed in a
Biocon 341.45 349.20 2.27 key region of Karnataka state.
(BSE Mid-Cap) • Glenmark Pharma has filed for arbitration claim
Previous Current Change against US based Napo pharma to prevent them
Company Name
Close(`) Price(`) (%) from distributing a drug in Glenmark’s territories
Allcargo Glob 145.60 156.00 7.14
• Tata Chemicals has deferred plans to raise $375mn
Wockhardt 422.80 448.20 6.01
to fund expansion plans following global
India Sec 43.00 45.55 5.93 uncertainties
Chambal Fert 92.45 97.65 5.62
• Lupin is recalling one batch of Losartan Potassium
Wyeth 973.85 1014.95 4.22
Tablets, used in treating high blood pressure, from
the US market for exceeding permissible impurity
TOP LOSERS
level, the US health regulator said.
(BSE A-Group)
• PVR would merge the production division of its
Previous Current Change
Company Name wholly-owned subsidiary, PVR Pictures, with itself.
Close(`) Price(`) (%)
Reliance Cap 494.80 457.80 -7.48
US markets
DLF 210.25 195.85 -6.85
Hindalco Inds 162.85 151.70 -6.85 US stocks plunged overnight, extending last week’s
Suzlon Energy 48.60 45.30 -6.79 decline, with Standard & Poor’s downgrade of US
HDIL 124.10 115.90 -6.61
credit taking a toll on already troubled investor
sentiment. The Dow Jones Industrial Average fell
(BSE Mid-Cap) 634.76 points, or 5.6%, to 10,809.85, its first close
Previous Current Change under 11,000 since October. The Standard & Poor’s
Company Name
Close(`) Price(`) (%) 500 Index declined 79.92 points, or 6.7%, to
SREI Infra 43.15 38.45 -10.89 1,119.46, with financial stocks hardest hit among its
Jai Corp 84.80 78.25 -7.72 10 industry groups.
Electro Steels 7.57 7.02 -7.27
Guj NRE Coke 35.10 32.55 -7.26
HDIL 124.10 115.90 -6.61
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