1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, December 19, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Dec 15 Dec 16 Change (%) • Indian markets fell 2.2% to their lowest close in more
Sensex 15,836.47 15,491.35 -2.18% than two years on Friday as RBI Governor could not
CNX Nifty 4,746.35 4,651.60 -2.00% cheer the investors by reducing interest rates and
BSE Mid-cap 5,369.61 5,277.27 -1.72% finance ministry also made it clear that it will not
BSE IT 5,770.17 5,712.42 -1.00% abolish securities transaction tax in the next union
BSE Banks 9,728.21 9,420.85 -3.16% budget. The news that 10 transactions over last three
year were funded the terror attacks and market
FII Activity (`Cr) intermediaries like stocks brokers and asset
Date Buy Sell Net management companies (AMCs) were involved in
15-Dec 3,001 3,227 -226 those transactions also hurt the investor sentiments.
14-Dec 2,303 2,358 -56 The RBI on Thursday reduced trading limits for banks
Total Dec 21,764 21,043 721 in the foreign exchange market, making it difficult for
market players to keep speculative positions open for
2011 YTD 590,208 592,432 -2224
a long time. The curbs in the foreign exchange market
MF Activity (`Cr) helped the Indian rupee rebound more than 2%. All
Date Buy Sell Net sectoral indices closed on negative note with capital
15-Dec 369 480 -111 goods, real estate, banks and power stocks were
14-Dec 510 307 203
major losers. Software exporters, which get a large
part of their revenue from the United States and
Total Dec 4496 4849 -353
Europe, fell after the rupee bounce. Telecom and IT
2011 YTD 126,722 121,627 5095
services firm Spanco Ltd rose 8.1% after its business
Volume & Advances / Declines process outsourcing arm has been granted a 5-year
NSE BSE
tax holiday by the Nigerean government for
outsourcing activities.
Trading Volume (`Cr) 11,058 2,188
Advances 314 847 • Market breadth was week at ~0.45x as investors sold
Declines 1,166 1,884 large cap stocks. FIIs sold equities worth `2.21bn while
Unchanged 70 143 domestic institutions bought equities of `3.35bn.
Total 1,550 2,874 • Asia markets declined in early Monday trade, with
Global Markets technology and retail firms weak, as European debt
concerns rose after Fitch Ratings warned about the
Index Latest Values Change (%) health of the economy.
DJIA 11,866.39 0.0%
• We expect a weak opening for the Indian markets
NASDAQ 2,555.33 0.6%
today following the cues from the Asian markets as
Nikkei * 8,331.00 -0.8%
investors are concerned over the health of the
Hang Seng * 17,961.36 -1.8%
domestic and global economy.
* as of 8.25AM IST
Economic and Corporate Developments
Currencies / Commodities Snapshot
Latest Previous
• Centre for Monitoring Indian Economy (CMIE) has said
Quote Close the current account deficit may climb to 4.9% of the
Indian Rupee per $ 52.75 52.54 GDP, at $47 billion, in the December quarter.
Indian Rupee per € 68.66 68.52 • The size of the tea industry may touch `33,000Cr by
NYMEX Crude Oil($/bbl) 93.16 93.53 2015, driven by the growing popularity of different
Gold ($/oz) 1,593.60 1,595.60 varieties like herbal and ice tea and awareness about
Silver ($/oz) 29.33 29.62 their health benefits, an Assocham study has said.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Hindustan Tin Works, a leading manufacturer, is
Previous Current Change looking at the non-food sector to drive its revenue in
Company Name times to come. HTW believes non-food packaging
Close (`) Price (`) (%)
Apollo Hosp 477.15 532.05 11.51 will drive a lot of growth for the company. Food can
Bajaj Finserv 404.50 420.00 3.83 packaging presently contributes to 90% of its total
M&M Fin 640.00 657.00 2.66 sales.
Divis Lab 741.55 761.00 2.62 • The International Energy Agency has said India's
Godrej Cons 386.00 393.50 1.94 increasing mismatch between the domestic
production and the demand for coal is due to many
(BSE Mid-Cap)
factors, including the "weak performance" of Coal
Previous Current Change India.
Company Name
Close(`) Price(`) (%)
Apollo Hosp 477.15 532.05 11.51 • The Sahara group will give a loan of more than
HMT 28.40 30.50 7.39 `250Cr to cash-strapped Kingfisher Airlines, to help
the carrier continue operations, a national daily
Bombay Rayon 247.25 260.20 5.24
reported on Saturday, citing sources.
Bajaj Finserv 404.50 420.00 3.83
Carborundum 144.75 149.80 3.49 • Bharat Petroleum Corporation Ltd (BPCL) will shortly
seal a deal with the UK’s LP Chemical for setting up a
TOP LOSERS petrochemical plant at Kochi refinery, marks foray
into sector.
(BSE A-Group)
• Indian Oil Corporation, the country’s biggest oil
Previous Current Change
Company Name refining and marketing company, has raised
Close(`) Price(`) (%)
`1,400Cr from the domestic bond markets after a
Essar Oil 56.70 47.75 -15.78
gap of nearly two-and-a-half years. The proceeds
Lanco Infra 9.99 8.83 -11.61
shall be utilised in capex of ongoing domestic
Unitech 21.20 19.35 -8.73
projects.
Educomp Sol 197.50 180.50 -8.61
• Shriram EPC (SEPC) today said it had bagged a
Sintex Inds 68.90 63.00 -8.56
`260Cr contract for installation of a byproduct
(BSE Mid-Cap) complex at state-owned mining major NMDC's 3-mn
Previous Current Change tonne per annum steel plant at Nagarnar in
Company Name Chattisgarh.
Close(`) Price(`) (%)
Lanco Infra 9.99 8.83 -11.61 US markets
Arvind 76.65 67.90 -11.42
U.S. stocks on Friday finished with weekly losses after a
BGR Energy 224.20 201.65 -10.06
rating agency's warning on Europe pulled down
KSK Energy 43.25 38.95 -9.94 investor sentiments. Fitch Ratings affirmed France’s top
S Mobility 83.95 76.05 -9.41 Triple-A credit rating, but warned of a potential down
grade for six other euro-using nations, placing Belgium,
Spain, Slovenia, Italy, Ireland and Cyprus under review,
calling a broad solution to Europe’s debt crisis
“technically and politically beyond reach.”
The Dow Jones Industrial Average declined 2.42 points,
or less than 0.1%, to 11,866.39. The S&P 500 rose 3.89
points, or 0.3% Friday, to 1,219.65. The Nasdaq
Composite added 14.32 points, or 0.6%, to 2,555.33.
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 / Monday Tuesday Wednesday Thursday
Regions Dec. 19 Dec. 20 Dec. 21 Dec. 22
Weekly Inflation
India
Data
Gross domestic
Existing Home sales
US Home Builder Index Housing Starts purchases price
Data
index
Gross domestic
Building Permits
product annualized
Initial jobless claims
Reuters/Michigan
consumer sentiment
index
Germany Gfk
UK - House Price Japan Interest Rate
Global Consumer UK GDP data
Index decision
Confidence Survey
Germany IFO -
Business Climate
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