Indian markets rose for the third straight session, up around 2%, driven by foreign fund inflows. Most sectoral indices closed in positive territory except for oil & gas. Interest rate sensitive sectors like auto, realty and banking gained on expectations of RBI rate cuts. Power stocks increased after the government ordered fuel supply contracts for new projects. TCS hit a record high on expectations of stronger business growth next fiscal. ONGC rose on reports of divestment approval. Asian shares traded mostly lower on worries over a Greek default. The document provides analysis of movements in the Indian and global stock markets, economic indicators and corporate developments.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Thursday, February 16, 2012
Domestic Markets Snapshot Views on markets today
• Indian markets rose for the third straight session
Name of Index Feb 14 Feb 15 Change (%)
yesterday, up ~2% to their highest level in more than
Sensex 17,848.57 18,202.41 1.98% six months, after China pledged to help resolve the
CNX Nifty 5,416.05 5,531.95 2.14% euro-zone debt crisis and as Greek leaders said they
BSE Mid-cap 6,347.22 6,480.68 2.10% will provide written austerity promises in exchange for
BSE IT 6,042.12 6,149.12 1.77% a European Union-led bailout. Sustained buying of
BSE Banks 12,127.07 12,558.11 3.55% Indian stocks by foreign funds underpinned sentiment.
Markets risen more than 17% this year, with foreign
FII Activity (`Cr) institutional investors buying about $4.2bn of Indian
Date Buy Sell Net equities. Except oil & gas, all sectoral indices closed
14-Feb 2,972 1,825 1147 on positive note with real estate, capital goods, power
13-Feb 2,592 1,944 648 and bank stocks major gainers. Interest rate sensitive
auto, realty and banking shares gained as a further
Total Feb 36,572 25,535 11037
decline in inflation in January 2012 reinforced
2012 YTD 89,511 67,393 22118
expectations that the central bank will start cutting
MF Activity (`Cr) interest rates in the coming months to revive slowing
Date Buy Sell Net economic growth. Power utilities stocks soared after
the government ordered state-run miner, Coal India to
14-Feb 536 484 52
sign 20-year guaranteed fuel supply contracts with
13-Feb 313 574 -261
power producers for projects that would be ready for
Total Feb 6,107 7,220 -1113 generation by March 2015. TCS scaled record high as
2012 YTD 16,528 19,496 -2968 the company's chief executive N. Chandrasekaran said
Volume & Advances / Declines that the company expects business momentum to
strengthen next fiscal year as clients have started
NSE BSE
loosening their purse strings despite economic
Trading Volume (Cr) 131.39 43.16 uncertainties. ONGC rose after Oil Minister S. Jaipal
Turnover (`Cr) 18,737 4,139 Reddy told the media that a panel of ministers has
Advances 1,064 1,896 approved divestment in ONGC through an auction.
Declines 427 1,081 Max India rose 4.4% after the Economic Times
Unchanged 66 102
newspaper reported New York Life Insurance Co was in
talks to sell its stake in life insurance joint venture
Total 1,557 3,079
with Max India.
Global Markets • Market breadth was strong at ~1.75x as investors
Index Latest Values Change (%) bought large cap stocks. On provisional basis, FIIs
DJIA 12,780.95 -0.76% bought equity of `18.38bn while domestic institutions
sold equity of `3.13bn.
NASDAQ 2,915.83 -0.55%
• Asian shares traded mostly lower Thursday, as
Nikkei * 9,235.89 -0.26%
investors worried over Greek default, although
Hang Seng * 21,217.66 -0.69%
Japanese shares got some support from a relatively
* as of 8.25AM IST weak yen.
Currencies / Commodities Snapshot • We expect a weak opening for the Indian markets,
Latest Previous following the Asian cues and some profit booking from
Quote Close the investors.
Indian Rupee per $ 49.29 49.41 Economic and Corporate Developments
Indian Rupee per € 64.16 64.36 • Oil companies cut jet fuel prices by a marginal `350
NYMEX Crude Oil($/bbl) 101.63 101.80 per kilolitre, the second reduction in this month.
Gold ($/oz) 1,722.40 1,726.70 • India's services exports fell marginally by 0.8% to
$11.18bn in December, over the previous month,
Silver ($/oz) 33.36 33.41
according to the Reserve Bank data.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Marico has acquired the personal care portfolio of
Previous Current Change Paras from British consumer goods maker Reckitt
Company Name
Close(`) Price(`) (%) Benckiser. While Marico did not disclose the deal
Voltas 94.55 118.25 25.07 size, analysts estimate the portfolio, which includes
ADANI POWER 69.55 78.65 13.08 brands such as Livon, Set Wet and Zatak, to be
Reliance Power 108.70 122.55 12.74 valued at `600-700Cr.
Havells India 507.40 554.65 9.31 • Tata Motors launched Tata Sumo Gold, its
Indiabulls Fin 200.80 219.25 9.19 redesigned sports utility vehicle (SUV), here on on
(BSE Mid-Cap) Wednesday. The new vehicle is available in four
variants along with a warranty of three years or
Previous Current Change 100,000 km, whichever is earlier.
Company Name
Close(`) Price(`) (%)
Voltas 94.55 118.25 25.07 • Just two months after the Eenadu and Network18
Sunteck Realty 349.50 417.35 19.41 deal, the Subhash Chandra-promoted Zee Network
INDIAB POWER 13.87 16.55 19.32 has emerged as front-runner in buying out the
India Cements 94.95 108.35 14.11 majority 51% stake in English news channel NewsX.
Sterlite Tech 37.20 41.85 12.50 • Grupo Mexico won $82.8mn in a lawsuit against
Indian copper producer Sterlite Industries, a unit of
TOP LOSERS Vedanta Resources, over a failed deal to buy its
Arizona-based Asarco out of bankruptcy, or less than
(BSE A-Group)
four per cent of what it seeked.
Previous Current Change
Company Name • Wyeth Pharmaceuticals Inc, a Pfizer group company,
Close(`) Price(`) (%)
Educomp Sol 248.10 236.95 -4.49 has claimed $960mn (`4,700Cr) in damages from
India Sec 56.80 54.85 -3.43 Sun Pharma for allegedly infringing the patent on its
TTK Prestige 3076.30 3004.80 -2.32
anti-ulcer brand, Protonix.
Aurobindo Phar 117.75 115.70 -1.74 • PSL bagged orders worth `742Cr so far in this
Cadila Health 728.25 717.00 -1.54 quarter from infrastructure firms in India and abroad.
(BSE Mid-Cap) US markets
US stocks dropped on Wednesday for the third session
Previous Current Change
Company Name in four, with market direction largely dictated by the
Close(`) Price(`) (%)
VAARAD 40.90 38.90 -4.89 swings in shares of Apple, the largest company in the
Shree Global Trd 192.85 183.75 -4.72 world.
Educomp Sol 248.10 236.95 -4.49 The Dow Jones industrial average dropped 97.33 points,
Alok Inds 23.25 22.25 -4.30 or 0.76%, to 12,780.95. The Standard & Poor's 500
India Sec 56.80 54.85 -3.43 Index lost 7.27 points, or 0.54%, to 1,343.23. The
Nasdaq Composite Index fell 16.00 points, or 0.55%, to
2,915.83.
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 / Thursday Friday Monday Tuesday
Regions 16/Feb 17/Feb 20/Feb 21/Feb
India Forex Reserves Data
Weekly Supplement
of RBI
US Jobless Claims Consumer Price Index Chicago Fed national 4-Week Bill
(YoY & MoM) activity index Announcement
Producer price Index Consumer Price Index 3-Month Bill Auction
Ex Food & Energy
(YoY & MoM)
Leading Indicators
(MoM)
Global ECB monthly report UK Nationwide Japan's All Industry
Housing Prices (YoY & Activity Index (MoM)
MoM)
UK Retail Sales (YoY UK's Public Sector Net
& MoM) Borrowing
UK Retail Sales ex- Eurozone Consumer
Fuel (YoY & MoM) Confidence
Euro Zone Purchasing
Manager Index
Services (Feb)
Euro Zone
Construction Output
(YoY & MoM)
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