1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, February 3, 2012
Domestic Markets Snapshot Views on markets today
Name of Index Feb 1 Feb 2 Change (%) • Indian markets continued its winning streak and rose
Sensex 17,300.58 17,431.85 0.76% yesterday to their highest close in nearly three months
after an eventful day as the Supreme Court of India
CNX Nifty 5,235.70 5,269.90 0.65%
cancelled 122 licenses issues after 2008 and strong
BSE Mid-cap 5,937.19 5,969.76 0.55%
manufacturing data in India and other major
BSE IT 5,771.29 5,859.77 1.53% economies despite European markets showed dull
BSE Banks 11,427.87 11,480.38 0.46% opening on sharp decline in Deutsche Bank's profits.
The Supreme Court decided to cancel all the licences
FII Activity (`Cr)
given to the telecom firms involved during the 2G
Date Buy Sell Net spectrum allocation after January 2008. Total of 122
1-Feb 5,227 3,135 2093 licences were issued after that period. Also, the
31-Jan 3,460 2,815 645 Supreme Court has dismissed petition to probe Home
MInister P Chidambaram's role in the 2G case. The
Total Feb 5,227 3,135 2093
matter has been referred to the trial court which will
2012 YTD 58,176 44,994 13182
rule on the case on Saturday. Supreme Court also
MF Activity (`Cr) directed the TRAI to come up with fresh guidelines on
the grant of new licenses within 2 months and
Date Buy Sell Net
Government to take decision one month after
1-Feb 950 766 185
submission of the recommendation. The upward
31-Jan 761 664 97 movement was mainly led by gain in IT, metal, capital
Total Feb 950 766 185 goods, and real estate stocks while pharma, consumer
2012 YTD 11,359 12,977 -1617 durable and FMCG stocks witnessed some selling
pressure. Largest operator Bharti Airtel jumped 6.8%,
Volume & Advances / Declines its biggest percentage gain in almost 19 months, on
NSE BSE expectations it would be a beneficiary of the ruling,
Trading Volume (Cr) 113.66 33.46 while Reliance Communications and Unitech, the
Turnover (`Cr) 18,566 3,679
Indian partner of Norway's Telenor, fell 3.7% and
6.9%, respectively. Export-driven software companies
Advances 825 1,573
rose on hopes that strong manufacturing growth in the
Declines 670 1,295 key U.S. market may encourage higher technology
Unchanged 69 126 spending.
Total 1,564 2,994 • Market breadth was strong at ~1.21x as investors
Global Markets bought large cap stocks. On provisional basis, FIIs
bought equities worth `19.41bn while domestic
Index Latest Values Change (%) institutions sold equities of `6.53bn.
DJIA 12,705.41 -0.09% • Asian markets are lower today, as investors sold
NASDAQ 2,859.68 0.40% equities on weak earnings reports and dull US
Nikkei * 8,854.26 -0.25% markets.
Hang Seng * 20,690.22 -0.24% • We expect a weak opening for the Indian markets,
* as of 8.25AM IST following the cues from the Asian markets and the
negative sentiment created after the cancellation of
Currencies / Commodities Snapshot
122 licences by Supreme Court.
Latest Previous
Economic and Corporate Developments
Quote Close
Indian Rupee per $ 49.09 49.13 • The Supreme Court on Thursday ordered the
cancellation of all the 122 unified access service
Indian Rupee per € 64.39 64.54
licences issued in January 2008 by former telecom
NYMEX Crude Oil($/bbl) 96.52 96.36 minister A Raja. It also directed the Telecom
Gold ($/oz) 1,758.70 1,756.80 Regulatory Authority of India (TRAI) to make fresh
Silver ($/oz) 34.23 34.18 recommendations for the telecom spectrum auction
route in future, within four months.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Workers at Reliance Industries went on strike at the
Previous Current Change company's textile division at Naroda in Ahmedabad
Company Name
Close(`) Price(`) (%) demanding a 60% rise in wages. The company
Sintex Inds 85.35 92.05 7.85 maintained operations at its plant “are continuing
Engineers India 237.70 254.70 7.15 peacefully.”
Bharti Airtel 361.10 385.95 6.88 • The alleged violation in the contract of a gas block in
Andhra Bank 101.95 108.60 6.52 the Bay of Bengal awarded to Mukesh Ambani-led
Educomp Sol 220.35 234.35 6.35 Reliance Industries will be examined by a key
(BSE Mid-Cap) Parliamentary Committee tomorrow when its
representatives appear before the panel.
Previous Current Change
Company Name • Apollo Hospitals is planning to set up a hospital in
Close(`) Price(`) (%)
Shoppers Stop 298.35 347.70 16.54 Kerala with an investment of around `150Cr, said
Aban Offshore 476.20 544.10 14.26 chairman Pratap C Reddy.
Prestige Estates 76.70 85.50 11.47 • Titan Industries revised downward its watch sales
Hexaware Tech 87.85 97.15 10.59 target by half a million units for the fiscal following
Jai Corp 79.85 86.95 8.89 weak economic sentiment and a slowdown in the
sector.
TOP LOSERS • Persistent Systems, a player in outsourced software
(BSE A-Group) product development (OPD) services, said that
through its US subsidiary, has acquired the location
Previous Current Change
Company Name business from Openwave Systems Inc. but the terms
Close(`) Price(`) (%)
Unitech 27.00 25.10 -7.04 of the transaction were kept undisclosed.
Ashok Leyland 28.55 26.85 -5.95 • Drug maker Aanjaneya Lifecare acquired Hyderabad-
Sun TV Network 320.10 302.10 -5.62 based Apex Drugs and Intermediates (ADIL) for
IDFC 137.90 131.40 -4.71 `250Cr.
ING Vysya Bank 337.40 324.50 -3.82 • Reliance Industries has secured a $400mn
equivalent loan from Italian export-credit agency
(BSE Mid-Cap)
SACE SpA, for expansion of its petrochemical
Previous Current Change capacity.
Company Name
Close(`) Price(`) (%)
Unitech 27.00 25.10 -7.04 US markets
Ashok Leyland 28.55 26.85 -5.95 U.S. stocks reflected caution ahead of the employment
Novartis India 683.45 650.35 -4.84 report as the next indicator of the economic recovery.
Shree Global Trd 185.80 177.95 -4.22 The Dow Jones Industrial Average closed down 11
Delta Corp 77.20 74.05 -4.08 points, or 0.1%, at 12,705. The S&P 500 Index rose 1.45
points, or 0.1%, to 1,325.54. The Nasdaq Composite
climbed 11.41 points, or 0.4%, to 2,859.68.
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 / Friday Monday Tuesday Wednesday
Regions 3/Feb 6/Feb 7/Feb 8/Feb
India Forex Reserves Data M3 money supply
Weekly Supplement
of RBI
US Average Hourly IBD/TIPP Economic
Earnings (YoY & Optimism (MoM)
MoM)
Average Weekly ICSC-Goldman Store
Hours (Jan) Sales
Unemployment Rate
(Jan)
ISM Non-
Manufacturing (Jan)
& Factory Orders
(MoM)
Nonfarm Payrolls
Global UK Halifax House Germany Industrial Current Account Eco watchers survey
Prices (3M/ MoM/ Production data n.s.a. data and outlook
YoY)
UK Purchasing Leading Economic Germany Trade
Manager Index Index balance Data
Services (Jan)
Euro Zone Coincident Index
Purchasing Manager
Index Services (Jan)
Euro Zone Retail
Sales (YoY & MoM)
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