- Indian markets snapped a two-day rising trend and closed lower, tracking declines in Asian and European markets as hopes faded for more economic stimulus in the US. - The Sensex fell 1.29% while the Nifty declined 1.21%, with auto, metal, bank and capital goods stocks among the biggest losers. - Market breadth was weak and foreign institutional investors sold equities worth Rs. 8.83 billion while domestic institutions purchased equities of Rs. 5.61 billion.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Thursday, August 25, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Aug 23 Aug 24 Change (%) • Indian markets snapped two day raising trend and
Sensex 16,498.47 16,284.98 -1.29% closed on negative note yesterday, tracking weak
CNX Nifty 4,948.90 4,888.90 -1.21% Asian and European peers as cooling hopes over the
BSE Mid-cap 6,262.43 6,228.70 -0.54% prospect of further economic stimulus in the United
BSE IT 4,895.56 4,836.58 -1.20% States took the steam out of a recent rebound. Asian
BSE Banks 10,835.44 10,657.92 -1.64% markets mainly fell after Moody's downgraded Japan's
sovereign debt rating. Moody's Investors Service's
FII Activity (`Cr)
downgraded Japan's sovereign debt rating by one
Date Buy Sell Net notch to AA3 from AA2 with a stable outlook, which
22-Aug 1471 2237 -766 provoked investors to book profits. Investor also opted
18-Aug 5209 6490 -1281 profit booking ahead of F&O expiry of August contract.
Total Aug 34037 42317 -8280 All sectoral indices closed on negative note with auto,
2011 YTD 417629 417177 453 metal, banks and capital goods stocks were major
MF Activity (`Cr) losers. Auto and IT stocks saw heavy selling on worries
Date Buy Sell Net of more interest rate increases by RBI despite glum
global economic outlook. Maruti Suzuki closed down
22-Aug 611 475 136
3.77% at `1,114.5 while those of Tata Motors and two-
19-Aug 829 721 108
wheeler maker Bajaj Auto lost 3.69% and 1.86%,
Total Aug 10218 8435 1783
respectively. TCS lost 1.94% while smaller rival Infosys
2011 YTD 89880 84592 5560
shed 1.14% on nagging worries about the U.S.
Volume & Advances / Declines economy, which accounts for more than half of their
NSE BSE revenues.
Trading Volume (`Cr) 9,631 2,204
• Market breadth was weak at ~0.86x as investors sold
Advances 616 1,313
large cap stocks. FIIs sold equities worth `8.83bn while
Declines 844 1,528 domestic institutions bought equities of `5.61dbn.
Unchanged 55 112
• Asian markets are strong today after positive close of
Total 1,515 2,953
the US markets and short recovery.
Global Markets
• We expect a firm opening for the Indian markets
Index Latest Values Change (%)
following the global cues.
DJIA 11,320.71 1.3%
NASDAQ 2,467.69 0.9% Key events today
Nikkei * 8,763.16 1.4% • Announcement of food and fuel price inflation data
Hang Seng * 19,759.63 1.5%
Economic and Corporate Developments
* as of 8.30AM IST
• The National Highways Authority of India (NHAI) hopes
Currencies / Commodities Snapshot
to exceed its annual target of 7,300km road projects
Latest Previous
by 13% to 9,000km for the current financial year —
Quote Close
Indian Rupee per $ 45.85 45.99 almost double of what it had awarded last year.
Indian Rupee per € 66.06 66.51 • The Comptroller and Auditor General has found civil
NYMEX Crude Oil($/bbl) 85.06 85.16 construction companies misusing various tax
Gold ($/oz) 1,764.60 1,757.30 exemptions, and has suggested the preparation of a
Silver ($/oz) 39.79 39.69 “complete and accurate” database of the entities in
the sector to plug revenue leakages.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • ICICI Bank launched a fixed interest rate product last
Previous Current Change week, although the rates are "fixed" only for an
Company Name
Close (`) Price (`) (%) initial period of one and two years. Under the one-
Mundra Port 138.05 146.55 6.16 year fixed rate home loan of up to Rs25lakh at a rate
PIPAVAVSHIP 63.25 65.55 3.64 of 10.50%. This rate will be 11% for a loan amount
Lupin 437.80 449.50 2.67 between Rs25lakh and Rs75lakh, while loans of over
Rs75lakh will attract an interest of 11.5%.
Nestle India 4265.15 4361.00 2.25
BGR Energy 322.50 329.40 2.14 • Tata Power expects the government to review the
tariff structure for Ultra-Mega Power Projects (UMPP)
(BSE Mid-Cap) as coal prices increased by Coal India.
Previous Current Change • L&T Construction secured new orders worth
Company Name
Close(`) Price(`) (%) Rs1,340Cr in building and factories segment during
India Sec 55.30 59.55 7.69 Q2 FY12 for the construction of commercial and
Anant Raj Inds 61.45 65.00 5.78 residential buildings, including add-on orders from
Aventis Pharma 2038.40 2155.00 5.72 ongoing projects.
Infotech Enter 114.05 119.50 4.78 • SAIL plans to appoint more than 1,000 dealers in
India Infoline 71.30 74.65 4.70 rural India by March, 2012.
• TCS is setting up a greenfield business process
TOP LOSERS outsourcing centre in Ahmedabad that can house
(BSE A-Group) 2,000 people.
Previous Current Change • Coal India face closure of 22 owned mines over
Company Name
Close(`) Price(`) (%) environmental concerns in Jharkhand, potentially
Pantaloon Retl 292.10 273.65 -6.32 suffering an output loss of up to 40,000 tonnes a
HDIL 108.15 101.50 -6.15 day.
MANAP FIN 50.00 47.20 -5.60 • Tata Chemicals UK-based subsidiary has signed an
SKS Microfinance 253.90 241.35 -4.94 agreement to acquire 30.6% stake in Canadian
Power Finance 149.40 142.40 -4.69 potash miner EPM Mining Ventures.
• L&T Construction has secured new orders worth Rs.
(BSE Mid-Cap)
1,340Cr in building and factories segment during the
Previous Current Change second quarter of this fiscal.
Company Name
Close(`) Price(`) (%)
US markets
Deccan Chron 63.85 56.15 -12.06
Sujana Towers 23.40 21.90 -6.41 Improved durable-goods orders bolstered investors
Pantaloon Retl 292.10 273.65 -6.32
sentiment led jump of US markets on Wednesday for
a third consecutive day. Rise in the equities had
HDIL 108.15 101.50 -6.15
significance in terms of gold’s sharpest fall on US
MANAP FIN 50.00 47.20 -5.60 bourses since 2008. In a dramatic development after
the closing bell, Apple Inc’s Steve Jobs resigned as
chief executive of the company.
The Dow Jones Industrial Average on Wednesday
advanced 143.95 points, or 1.3%, to 11,320.71. The
Standard & Poor’s 500 Index gained 15.25 points, or
1.3%, to 1,177.60, with financials stocks was the top
gainers. The Nasdaq Composite Index rose 21.63
points, or 0.9%, to 2,467.69.
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