1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, December 21, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Dec 19 Dec 20 Change (%) • Indian markets continued their downward trend and
Sensex 15,379.34 15,175.08 -1.33% fell for a fifth session in a row yesterday to their lowest
CNX Nifty 4,613.10 4,544.20 -1.49% close in 28 months as risk aversion deepened in the
BSE Mid-cap 5,172.10 5,076.04 -1.86% absence of policy initiatives to revive slowing domestic
BSE IT 5,657.79 5,610.16 -0.84% growth. Swelling fiscal deficit, widening current
BSE Banks 9,130.56 8,975.01 -1.70% account gap, high interest rates, slowing economy and
policy inaction were driving investors away. Foreign
FII Activity (`Cr) funds have pulled out a net $300 million from Indian
Date Buy Sell Net shares this year till last Friday, after ploughing in a
19-Dec 2,245 2,642 -396 record of more than $29 billion in 2010.However,
16-Dec 2,270 2,420 -150 investors ignored positive European markets as
Total Dec 26,279 26,104 175 sustained buying witnessed after European countries
channeled €150bn to the International Monetary Fund
2011 YTD 594,723 597,493 -2770
as the European Central Bank widened its support for
MF Activity (`Cr) sagging bond markets and Sweden cuts the interest
Date Buy Sell Net rate after 2009. Except FMCG, all sectoral indices
19-Dec 547 611 -64 closed on negative note with capital goods, real
16-Dec 450 364 86
estate, metal and power stocks were major losers.
Engineering and construction conglomerate Larsen
Total Dec 5493 5824 -331
and Toubro, which has been facing a slowdown in new
2011 YTD 127,719 122,603 5116
orders as companies put off investment in large
Volume & Advances / Declines projects, was among the big losers. Media firm
NSE BSE
Network 18 bucked the trend and rose 6.9% after a
newspaper report Mukesh Ambani is seeking to buy a
Trading Volume (`Cr) 9,590 1,908
stake in the company. ONGC gained 2.4% after the
Advances 382 862
news that the government proposes to cut petrol
Declines 1,112 1,877
excise duty and plans to impose an additional tax on
Unchanged 48 116 diesel-powered cars.
Total 1,542 2,855
• Market breadth was week at ~0.46x as investors sold
Global Markets large cap stocks. FIIs sold equities worth `5.26bn while
Index Latest Values Change (%) domestic institutions bought equities of `1.86bn.
DJIA 12,103.58 2.9% • Asia markets rallied in early trade Wednesday, led by
NASDAQ 2,603.73 3.2% exporters and technology firms, as renewed optimism
Nikkei * 8,453.26 1.4% about the health of the global economy boosted risk
Hang Seng * 18,386.52 1.7% appetite.
* as of 8.25AM IST • We expect a positive opening for the Indian markets
Currencies / Commodities Snapshot today, following the global cues. However, the upside
Latest Previous may be limited as domestic economic concern looms
Quote Close large on the country.
Indian Rupee per $ 52.81 52.80
Economic and Corporate Developments
Indian Rupee per € 69.27 69.06
NYMEX Crude Oil($/bbl) 98.02 97.24
• The Reserve Bank of India (RBI) has imposed penalties
on 19 commercial banks, including State Bank of India
Gold ($/oz) 1,620.20 1,615.60
(SBI), HDFC Bank, ICICI Bank and Citibank, for violating
Silver ($/oz) 29.65 29.49
norms on derivatives.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • The Delhi-based Abhey Oswal Group, with interests
Previous Current Change in petrochemicals, fertilisers and entertainment, has
Company Name bought a 14.2% stake in NDTV for `24.24Cr.
Close (`) Price (`) (%)
Petronet LNG 160.10 163.10 1.87 • Union minister of state for finance S. S.
SAIL 76.35 77.65 1.70 Palanimanickam told Parliament that the Vijay
ITC 197.35 200.55 1.62 Mallya-run airline hasn’t deposited with the
ONGC 247.30 251.05 1.52 government most of the income tax it deducted from
Gujarat Gas 342.50 347.40 1.43 staff pay for the past two financial years.
(BSE Mid-Cap) • Ashok Leyland would increase stake in British bus
maker Optare Plc from the current 26% to 75.1%.
Previous Current Change
Company Name
Close(`) Price(`) (%) • Chhattisgarh government said that state-run
Network18 36.15 40.55 12.17 National Mineral Development Corporation (NMDC)
TV18 Broadcast 29.00 31.65 9.14 should export the steel-making raw material only
Orchid Chem 124.40 131.55 5.75 after meeting state’s requirement.
FDC 81.35 84.50 3.87 • Srei Infrastructure Finance Ltd has decided to raise
Strides Arco 379.40 389.00 2.53 up to `500Cr through a public issue of infrastructure
bonds.
TOP LOSERS
• IDFC today mopped up `538.08Cr from the first
(BSE A-Group) tranche of its tax-saving long term infrastructure
Previous Current Change bonds from around 2.7 lakh retail investors.
Company Name
Close(`) Price(`) (%) • Tata Motors will increase output of light commercial
Ashok Leyland 23.00 21.70 -5.65 trucks from its Pantnagar plant in north India by up
Uco Bank 56.00 53.20 -5.00 to 90,000 vehicles per year from early 2012. The
United Spirits 628.45 597.00 -5.00 production rise will take the plant's annual output to
Jaiprakash Asso 57.85 55.40 -4.24 around 450,000 vehicles.
Allahabad Bank 131.40 126.15 -4.00 US markets
(BSE Mid-Cap) US stocks surged ~3% yesterday, as sentiment about
the global economy got a boost from a jump in the
Previous Current Change
Company Name nation’s housing starts, improving German business
Close(`) Price(`) (%)
S Mobility 78.80 70.25 -10.85 data and a better Spanish bond auction.
Ashok Leyland 23.00 21.70 -5.65 The Dow Jones Industrial Average rallied 337.17 points,
Uco Bank 56.00 53.20 -5.00 or 2.9%, to 12,103.43. The S&P 500 jumped 35.95
Sujana Towers 6.21 5.90 -4.99 points, or 3%, to 1,241.30. The Nasdaq Composite
Tata Teleservice 13.43 12.77 -4.91 advanced 80.59 points, or 3.2%, to 2,603.73.
Keynote Capitals Institutional Research (research@keynotecapitals.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. 21 Dec. 22 Dec. 23
India Weekly Inflation Data Forex Reserves Data
Weekly Supplement of RBI
US Existing Home sales Data Gross domestic purchases Core Personal
price index Consumption Expenditure
- Prices Index
Gross domestic product Durable Goods Order ex
annualized Transportation
Initial jobless claims Personal Consumption
Expenditure
Reuters/Michigan Personal Income
consumer sentiment index
New Home Loans
Global Japan Interest Rate UK GDP data UK Index of Service
decision
UK BBA Mortgage
Approvals
Canada GDP
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