1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, December 14, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Dec 12 Dec 13 Change (%) • Indian markets recovered in a late trading session and
closed on positive note yesterday after investors
Sensex 15,870.35 16,002.51 0.83%
bought equities in metal and oil & gas stocks on
CNX Nifty 4,764.60 4,800.60 0.76%
account of bounce back in the European markets and
BSE Mid-cap 5,513.91 5,482.20 -0.58% Indian rupee. Investors also recovered their losses for
BSE IT 5,787.82 5,816.13 0.49% last 3 trading sessions, ahead of the monthly inflation
BSE Banks 9,854.61 9,863.60 0.09% data tomorrow and the RBI's policy review on Friday.
Investors have high expectations that the credit policy
FII Activity (`Cr)
will at least signal an interest rate reduction, if not an
Date Buy Sell Net actual reduction. Except consumer durables and
12-Dec 1,518 1,837 -319 capital goods, all sectoral indices closed on positive
9-Dec 1,770 2,062 -292 note with metal, oil & gas, auto and power stocks were
Total Dec 14,862 13,370 1492 major gainers. Rise in commodity prices and European
markets helped metal stocks gained. Bounce back in
2011 YTD 583,306 584,759 -1453
aluminium and copper prices by 0.8% and 0.4%
MF Activity (`Cr) helped Hindalco Industries rose sharply by 4.8%. Jindal
Date Buy Sell Net Steel & Power gained 3.4%, as investors booked their
losses in the metals sector. ICICI Bank and Axis Bank
12-Dec 459 635 -176
closed on negative note after brokerage Macquarie
9-Dec 379 581 -202
said off-balance sheet activities have become a source
Total Dec 3045 3568 -523 of worry for Indian banks. Excel Crop Care rallied
2011 YTD 125,271 120,346 4925 12.2% on media reports that India's Supreme Court
Volume & Advances / Declines had allowed export of existing stock of endosulfan
formulations, now a banned pesticide in Indian farms.
NSE BSE
• Market breadth was however week at ~0.68x as
Trading Volume (`Cr) 9,284 2,067 investors sold large cap stocks. FIIs sold equities worth
Advances 540 1,105 `5.61bn while domestic institutions bought equities of
Declines 923 1,620 `4.82bn.
Unchanged 68 123 • Asian shares declined on Wednesday, with
Total 1,531 2,848 commodity-sector firms under some pressure, after
investors turned bearish on US Fed's comments and
Global Markets
its latest rate decision.
Index Latest Values Change (%) • We expect a weak opening for the Indian markets
DJIA 12,021.39 -1.3% today, following the cues from the Asian markets.
NASDAQ 2,612.26 0.0% However, the investors will show caution and therefore
Nikkei * 8,552.81 -1.2% range bound trades, ahead of monthly inflation data
Hang Seng * 18,447.17 -0.7% today and RBI's policy review meeting on Friday.
* as of 8.25AM IST
Economic and Corporate Developments
• The Reserve Bank of India (RBI) will soon allow
Currencies / Commodities Snapshot
microfinance institutions to raise funds up to $10mn
Latest Previous through external commercial borrowings (ECB).
Quote Close
• The Reserve Bank of India (RBI) said that supplies
Indian Rupee per $ 53.19 52.84
need to be increased rapidly to tame rising food
Indian Rupee per € 70.35 69.59
prices.
NYMEX Crude Oil($/bbl) 99.90 100.14
• The Cabinet deferred a decision on the draft Food
Gold ($/oz) 1,636.50 1,659.90 Security Bill that seeks to give legal entitlement to
Silver ($/oz) 30.99 31.20 subsidised foodgrains to about 64% of the country's
population.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Glenmark Pharmaceuticals sought an arbitration in
Previous Current Change the US on Napo Pharmaceuticals terminating a
Company Name collaboration agreement with it to develop and
Close (`) Price (`) (%)
GMR Infra 18.05 19.00 5.26 market an HIV-associated diarrhoea drug. Napo
Hindalco Inds 123.55 129.45 4.78 Pharma had terminated the pact on November 10.
Jindal Steel 503.50 524.95 4.26 The move is a fresh hurdle to Glenmark's ambitious
Grasim Inds 2316.10 2412.45 4.16 plans to exclusively market the drug, Crofelemer, in
Godrej Inds 196.50 204.25 3.94 140 countries.
• Tata Power tied up the entire debt requirement
(BSE Mid-Cap)
through consortium of domestic lenders for its 25
Previous Current Change Mw solar power project in Gujarat. The consortium
Company Name
Close(`) Price(`) (%)
includes lenders such as State Bank of India and
Areva T&D 189.95 199.80 5.19
Export Import Bank of India.
VAARAD 38.55 40.40 4.80
• Arvind Ltd entered into a joint venture agreement
Godrej Inds 196.50 204.25 3.94
with a German firm, PD Fibre Glass Group to
Shipping Corp 55.10 57.15 3.72
manufacture glass fabrics for the industries in wind
Mcleod Russel 204.45 211.45 3.42
power, shipbuilding and automobile sector. The
company aims to generate revenues worth `250Cr
TOP LOSERS
over a period of next three years from the new
(BSE A-Group) venture.
Previous Current Change • BEML plans to set up an assembling unit for mining
Company Name
Close(`) Price(`) (%) equipment in Indonesia. The Bangalore-based public
Pantaloon Retl 169.90 157.60 -7.24 sector undertaking is also looking at hiving off its rail
Apollo Hosp 617.25 573.50 -7.09 business into a new subsidiary, according to
Amtek Auto-$ 108.80 102.20 -6.07 chairman and managing director V R S Natarajan.
Jain Irrigation 111.70 105.25 -5.77
• According to five independent sources, Network18
Sintex Inds 85.65 81.05 -5.37 Group is likely to merge Eenadu TV's (ETV) bouquet
(BSE Mid-Cap) of 11 regional channels and one Telugu news
channel with itself through a share swap. Once
Previous Current Change
Company Name concluded, this is likely to be one of the biggest
Close(`) Price(`) (%)
consolidation exercises in Indian media space.
COX KINGS 176.00 162.80 -7.50
Pantaloon Retl 169.90 157.60 -7.24 • Larsen & Toubro's (L&T) construction division has
Apollo Hosp 617.25 573.50 -7.09 bagged new contracts worth `2,164Cr in the
Amtek Auto-$ 108.80 102.20 -6.07 infrastructure segment from GMR Infrastructure.
Rallis India 138.20 130.00 -5.93 US markets
U.S. stocks tumbled Tuesday for a second session after
the Federal Reserve left rates unchanged and declined
to signal another round of quantitative easing.
The Dow Jones Industrial Average fell 66.45 points, or
0.6%, to 11,954.94, with 21 of its 30 components
falling. The S&P 500 Index fell 10.74 points, or 0.9%, to
1,225.73, with consumer discretionary the greatest
laggard and utilities the sole sector rising among its 10
major industry groups. The Nasdaq Composite fell
32.99 points, or 1.3%, to 2,579.27.
Keynote Capitals Institutional Research (research@keynoteindia.net) (+9122-30266000)

3. K E Y N O T E
INSTIT UT IONAL R ES EAR C H
India and Global Economic Calendar
Countries / Wednesday Thursday Friday
Regions Dec. 14 Dec. 15 Dec. 16
India Monthly Inflation Weekly Inflation Data Forex Reserves Data
Weekly Supplement of
RBI
Consumer Price Index Ex
US Producer price index
Food & Energy
Current Account Consumer Price Index
Net long term treasury
International capital
Initial jobless claims
"Industrial production
Japan Industrial Canada Foreign
Philadelphia Fed
Global Production data and Investments in Canadian
Manufacturing Survey
Manufacturing Index securities
UK Unemployment Rate
Hungary- Industrial UK Nationwide
and Average Earning
output Consumer Confidence
growth rate
Switzerland- Industrial Australia RBA Foreign
production Exchange Transaction
Germany- Purchasing
Euro Zone Trade
Managers Index
Balances
Manufacturing
China HSBC
Manufacturing
Purchasing Managers
Index
Eurozone purchasing
managers index
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