- Indian markets snapped their three-day winning streak, closing slightly lower due to caution ahead of a key Greece meeting and mixed corporate earnings results. Reliance Industries rose after announcing a potential share buyback. - Asian stocks rose in early trading, boosted by gains in U.S. technology shares and a rebound in crude oil futures. The markets may remain volatile ahead of India's inflation data. - The Finance Ministry has suggested oil companies provide a larger discount to state fuel retailers this year, raising subsidies by over 60% from last year.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Thursday, January 19, 2012
Domestic Markets Snapshot Views on markets today
Name of Index Jan 17 Jan 18 Change (%) • Indian markets snapped three-day winning streak and
Sensex 16,466.05 16,451.47 -0.09% closed slightly lower yesterday in choppy trade on
caution ahead of a key meeting between Greece and
CNX Nifty 4,967.30 4,955.80 -0.23%
its creditors. Investors digested results from the
BSE Mid-cap 5,655.32 5,589.89 -1.16%
country's IT industry leader Tata Consultancy Services
BSE IT 5,635.17 5,513.43 -2.16% and a potential share buyback from heavyweight
BSE Banks 10,395.82 10,350.35 -0.44% Reliance Industries and book profits. Reliance, the
FII Activity (`Cr) country's biggest company by market capitalization,
closed up 5.1% after the cash-rich energy
Date Buy Sell Net
conglomerate said it would consider a share buyback
17-Jan 2,976 1,911 1065 on Friday. The downward movement was led by selling
16-Jan 1,991 1,543 448 pressure in metal, IT, capital goods and power stocks
Total Jan 24,990 20,555 4435 while buying activities in oil & gas, real estate,
2012 YTD 24,990 20,555 4435 consumer durables and FMCG stocks support the
markets. Airlines stocks surged for a second
MF Activity (`Cr)
consecutive day after the aviation ministry said late on
Date Buy Sell Net Tuesday it would recommend that the government
17-Jan 732 656 76 allow foreign carries to buy stakes of up to 49% in
16-Jan 293 394 -102 domestic players. Jet Airways climbed 4.9% while
Total Jan 5,273 5,812 -539 debt-laden Kingfisher Airlines ended the day up 1%
and SpiceJet closed at a rise of 2.5%. Essar Oil
2012 YTD 5,273 5,812 -539
slumped as much as 12.1% after India's Supreme
Volume & Advances / Declines Court passed a ruling late on Tuesday that means the
NSE BSE refiner will no longer be able to defer payment of a
Trading Volume (Cr) 76.29 28.28 sales tax.
Turnover (`Cr) 12,187 2,485 • Market breadth was week at ~0.64x as investors sold
Advances 433 1,086 large cap stocks. On provisional basis, FIIs bought
equities worth `8.75bn while domestic institutions sold
Declines 1,070 1,702
equities of `5.9bn.
Unchanged 46 117
• Asian stocks rose in early Thursday trading, with
Total 1,549 2,905
technology shares boosted by overnight gains in the
Global Markets U.S., and a rebound in crude-oil futures propelling
Index Latest Values Change (%) some energy names.
DJIA 12,578.95 0.8% • We expect a positive opening for the Indian markets
NASDAQ 2,769.71 1.5% today following the cues from the Asian markets.
Nikkei * 8,663.77 1.3% However, the markets may remain volatile ahead of
Hang Seng * 19,934.81 1.3%
the food and fuel inflation data.
* as of 8.25AM IST Economic and Corporate Developments
Currencies / Commodities Snapshot • The Finance Ministry has suggested upstream
Latest Previous
companies should give a discount of $56 per barrel to
Quote Close state fuel retailers this fiscal year, government
Indian Rupee per $ 50.27 50.42 sources said, a move that could raise their subsidy
payout by over 60% from a year ago.
Indian Rupee per € 64.68 64.80
NYMEX Crude Oil($/bbl) 101.53 100.59 • The Haryana government said it was in talks with
Gold ($/oz) 1,663.00 1,659.50
Mukesh Ambani-led Reliance Industries to take back
1,383 acres in Gurgaon as the company has failed to
Silver ($/oz) 30.55 30.52
develop the special economic zone over the same.
Keynote Capitals Institutional Research (research@keynotecapitals.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 Capital Asset Management (R-Cap), is
Previous Current Change expected to announce the sale of 26% stake to
Company Name
Close(`) Price(`) (%) Japan’s Nippon Life Insurance Company.
Adani Enter 371.70 398.70 7.26
• Tata Consultancy Services (TCS), India’s largest
Jet Air India 234.90 246.55 4.96
information technology (IT) services provider, said it
RIL 740.35 776.90 4.94 had so far made campus offers to 43,600
Torrent Pharma 552.45 577.00 4.44 engineering freshers for 2012-13, higher than the
Unitech 25.80 26.75 3.68 37,800 offers made this year.
(BSE Mid-Cap) • The income tax department has slapped a Rs1,067Cr
demand notice on Bharti Airtel for alleged non-
Previous Current Change
Company Name payment of Tax Deducted at Source (TDS) dues in
Close(`) Price(`) (%)
Bombay Dyeing 398.80 433.80 8.78 the past four financial years in connection with its
HATHWAY CAB 126.35 136.25 7.84 operations abroad.
Delta Corp 67.75 72.40 6.86 • Following the Supreme Court’s rejection of Essar
Jet Air India 234.90 246.55 4.96 Oil’s 125% sales tax deferment benefit claim on its
Honeywell Auto 1906.70 2000.00 4.89 investment in the Vadinar (Gujarat) refinery project,
the company said it expected to file a review
TOP LOSERS petition. “It needs to be clarified that the scheme
was not for sales tax exemption but was only for a
(BSE A-Group)
deferment of payment of sales tax,” the company
Previous Current Change said on Wednesday, while indicating a recourse to
Company Name
Close(`) Price(`) (%)
review. It had earlier got a favourable high court
Essar Oil 58.10 51.40 -11.53
order.
Voltas 92.15 82.05 -10.96
JSW Ispat 13.47 12.63 -6.24
• NMDC recorded an output of 25.15 million tonne last
fiscal, about 12% of the country's total production,
Jain Irrigation 100.65 94.95 -5.66
and is in the process of augmenting it, the
Alstom Projects 392.45 370.80 -5.52
government said.
(BSE Mid-Cap) • Mahindra Satyam said a US court has dismissed a
Previous Current Change lawsuit filed against the company by Upaid following
Company Name
Close(`) Price(`) (%) the settlement between the two.
Voltas 92.15 82.05 -10.96
• Titan Industries Limited, the watch and jewellery
United Bank 62.60 57.30 -8.47
major is looking at a capital expenditure of over
Essar Ports 63.55 58.35 -8.18
Rs200Cr in the fiscal 2012-13 to expand its retail
National Fert 81.75 75.95 -7.09
network. For the current year, the company has
Sterlite Tech 38.00 35.35 -6.97 spent around Rs150Cr, about 35% less than the
budget earmarked for the year.
US markets
U.S. stocks rose Wednesday, sending the S&P 500
Index to a close above 1,300 for the first time since July
28, on improved sentiment in housing and as Goldman
Sachs Group Inc.’s earnings beat expectations.
The Dow Jones Industrial Average rose 96.88 points, or
0.8%, to 12,578.95. The S&P 500 added 14.37 points,
or 1.1%, to 1,308.04. The Nasdaq Composite Index
climbed 41.63 points, or 1.5%, to 2,769.71.
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 19/Jan 20/Jan 23/Jan 24/Jan
India Weekly Inflation Data Forex Reserves Data RBI Monetary Policy
Review
Weekly Supplement
of RBI
US Continuing Jobless Existing Home Sales FOMC Meeting Begins
Claims (MoM)
Consumer Price Index Existing Home Sales US President Barack
Change Obama Speaks
Richmond Fed
Manufacturing Index
Global Eurozone ECB UK Retail Sales (YoY European Monetary Japan's BoJ Interest
Monthly Report & MoM) Union - Consumer Rate Decision
Confidence
Eurozone Current UK Retail Sales ex- China HSBC Flash Germany Purchasing
Account s.a Fuel (YoY & MoM) China Manufacturing Manager Index
Purchasing Managers Manufacturing and
Index Services
Japan All Industry UK's Public Sector Net
Activity Index (MoM) Borrowing
Japan Coincident
Index
Japan Leading
Economic Index
China HSBC
Manufacturing PMI
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.keynotecapitals.com
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.