1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Thursday, December 15, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Dec 13 Dec 14 Change (%)
• Indian markets ended volatile session in negative note
yesterday after investors disappointed with inflation
Sensex 16,002.51 15,881.14 -0.76%
numbers and worries spurred about tight liquidity
CNX Nifty 4,800.60 4,763.25 -0.78% situation will remain for some time in future while
BSE Mid-cap 5,482.20 5,430.05 -0.95% European markets, mostly negative, were unable to
BSE IT 5,816.13 5,803.11 -0.22% provide support. Monthly WPI based inflation came
BSE Banks 9,863.60 9,824.49 -0.40% down from 9.7% to 9.1%, this is a 12th consecutive
month to show more than 9% rise in the monthly
FII Activity (`Cr) inflation. Rupee hit a new low against the dollar, after
Date Buy Sell Net selling pressure came on falling global commodities,
euro and equities. The rupee touched a new low of
13-Dec 1,598 2,088 -490
53.76 against the dollar. Foreign funds have been net
12-Dec 1,518 1,837 -319 sellers of more than $208.6mn of Indian shares this
Total Dec 16,460 15,457 1003 year, compared with record buying of more than
2011 YTD 584,904 586,846 -1942 $29bn in 2010. Except FMCG, all sectoral indices
closed on negative note with real estate, metal, power
MF Activity (`Cr) and consumer durable stocks were major losers.
Date Buy Sell Net Capital goods maker Areva T&D fell 24% after its plan
13-Dec 572 495 78 to separate transmission and distribution business
took effect.
12-Dec 459 635 -176
• Market breadth was however week at ~0.66x as
Total Dec 3618 4062 -445
investors sold large cap stocks. FIIs sold equities worth
2011 YTD 125,843 120,841 5003
`1.40bn while domestic institutions bought equities of
Volume & Advances / Declines `4.49bn.
NSE BSE • Asia stocks declined on Thursday, following the cues
from the US markets overnight with manufacturers
Trading Volume (`Cr) 9,775 1,930
and commodity-linked firms weak, preliminary reading
Advances 464 1,080 of HSBC's China purchasing managers' index released
Declines 1,016 1,626 Thursday showed the level of activity at the
Unchanged 60 160 mainland's factories continued to contract in
Total 1,540 2,866 December, though the rate of decline was less than in
November. HSBC's so-called flash PMI for China fell to
Global Markets 49 in December, remaining below the thresold of 50
Index Latest Values Change (%) that separates expansion from contraction.
DJIA 11,823.48 -1.1% • We expect a weak opening for the Indian markets
today, as Asian markets gave weak cues and the
NASDAQ 2,539.31 -1.5%
monthly inflation for November announced yesterday
Nikkei * 8,406.99 -1.3%
was weaker than the estimates. Further consistent fall
Hang Seng * 17,944.48 -2.2% in the rupee is maintaining pressure over the imported
* as of 8.25AM IST commodity prices led to a fall in the oil & gas and
capital goods companies.
Currencies / Commodities Snapshot
Economic and Corporate Developments
Latest Previous
Quote Close • The wholesale price index, the main inflation gauge,
Indian Rupee per $ 53.72 54.24 rose 9.11% in November from a year earlier, slowing
from a 9.73% rise in October.
Indian Rupee per € 69.76 69.55
• With changing lifestyle and increasing consumer
NYMEX Crude Oil($/bbl) 95.23 94.95
demand, the Indian fast moving consumer goods
Gold ($/oz) 1,571.80 1,584.30 market is expected to cross $80bn by 2026 in towns
Silver ($/oz) 29.13 28.89 with population of up to 10 lakh, according to a study
by market research firm Nielsen.
Keynote Capitals Institutional Research (research@keynoteindia.net) (+9122-30266000)
Keynote Capitals Institutional Research is also available on
Bloomberg 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 unsubscribe@keynotecapitals.net

2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Reliance Industries has alleged that the petroleum
Previous Current Change
ministry is violating coal bed methane contract by
Company Name restricting price discovery which could lead to
Close (`) Price (`) (%)
Sun TV Network 262.65 275.80 5.01 revenue loss for the central and state exchequers.
Glenmark Ph 294.15 304.45 3.50 • C&C Constructions is looking to raise about `400-
Pidilite Inds 140.45 145.00 3.24 500Cr through sale of 30% stake in one of its
Dish TV India 60.60 62.45 3.05 subsidiaries, C&C Projects, to private equity
Redington India 75.55 77.65 2.78 investors.
• France's Saint-Gobain, a global leader in
(BSE Mid-Cap)
construction, building materials and glass, will
Previous Current Change acquire Electrotherm India's pipe business and 100%
Company Name
Close(`) Price(`) (%) stake in a subsidiary of the company for `950Cr.
COX KINGS 162.80 171.10 5.10
• DLF is close to signing a deal with private equity
VAARAD 40.40 42.40 4.95
major Blackstone, as the country’s largest real
IPCA Lab 260.85 270.10 3.55 estate developer by market capitalisation is planning
Glenmark Ph 294.15 304.45 3.50 to offload its entire stake in the special economic
Pidilite Inds 140.45 145.00 3.24 zone (SEZ) in Pune.
• Rajesh Exports expects to raise gold imports 17%
TOP LOSERS next year to power its renewed thrust in the
(BSE A-Group) competitive and fragmented local jewellery market
as a cushion against a volatile export market, its
Previous Current Change
Company Name chairman said on Wednesday.
Close(`) Price(`) (%)
Pantaloon Retl 157.60 142.05 -9.87 • Indian Oil Corp (IOC) is in talks with L&T-Tata Steel-
Sintex Inds 81.05 74.70 -7.83 owned Dhamra Port Co Ltd for setting up a 5mn tons
Jain Irrigation 105.25 97.85 -7.03 a year LNG terminal in Orissa, the firm's director
incharge of new businesses has said.
Chambal Fert 84.70 79.10 -6.61
FORTIS 105.80 100.00 -5.48 • The Telecom Regulatory Authority of India (Trai) is in
the process of taking legal action against Bharti
(BSE Mid-Cap) Airtel for violating the mobile number portability
Previous Current Change (MNP) guidelines.
Company Name
Close(`) Price(`) (%) US markets
Balrampur Chini 39.95 35.50 -11.14
U.S. stocks on Wednesday closed lower for a third
Pantaloon Retl 157.60 142.05 -9.87
straight day as investors worried about the toll of
Sintex Inds 81.05 74.70 -7.83
Europe’s debt struggles on the global economy, with
Jain Irrigation 105.25 97.85 -7.03 investors also unloading gold and the euro. Another
Orchid Chem 160.05 148.90 -6.97 news that affected the sentiment was Federal Reserve
Chairman Ben S. Bernanke statement the Fed plans no
additional aid to European banks amid the region’s
sovereign debt crisis, according to two lawmakers who
attended the meeting.
The Dow Jones Industrial Average fell 131.46 points, or
1.1%, to 11,823.48. The S&P 500 Index declined 13.91
points, or 1.1%, at 1,211.82. The Nasdaq Composite
Index shed 39.96 points, or 1.6%, at 2,539.31.
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: 9.11% 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
Production data and Philadelphia Fed
Global Investments in Canadian
Manufacturing Index: up Manufacturing Survey
securities
by 2.2% (MoM)
UK Jobless Rate: 8.3%
Hungary- Industrial UK Nationwide
UK Average Earnings
output Consumer Confidence
growth rate: 4.1%
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
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.net
Disclaimer: This report is purely for information purpose and is based on public information. News content is attributable to
various 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 to
make an offer, to buy or sell the securities mentioned herein. We or any of our directors, officers or employees shall not in any
way be responsible for any loss arising from the use of this report. Investors are advised to apply their own judgment before
acting on the contents of this report. The report has not been edited due to time constraints.