- Indian stocks rallied last week, supported by the EU's debt deal for Greece. The Sensex gained 0.9% to close at 18,722.30. - Market breadth was strong as investors bought large cap stocks. Both foreign and domestic institutions were net buyers of equities. - Asian shares declined following the failure of U.S. leaders to agree on raising the debt ceiling, raising worries about a possible default. The Indian markets are expected to open weakly tracking Asian cues.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, July 25, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 21 July 22 Change (%)
Sensex 18,436.19 18,722.30 1.55%
• Indian stocks rallied on Friday reported positive close
CNX Nifty 5,541.60 5,633.95 1.67%
over the past week, mostly on the back of the Europe
BSE Mid-cap 6,958.91 7,046.12 1.25%
Union’s fresh debt-relief deal for Greece, while
BSE IT 5,841.85 5,932.69 1.55% investors await the Reserve Bank of India’s meeting
BSE Banks 12,638.08 12,908.66 2.14% next week for clues on when it might end its rate-
FII Activity (`Cr) tightening campaign. The Sensex gained 0.9% this
Date Buy Sell Net week to end at 18,722.30.
21-Jul 1953 2125 -172 • Market breadth was strong at ~1.44x as investors
20-Jul 1880 1911 -31 bought large cap stocks. Both the FIIs and domestic
Total July 39341 32560 9462 institutions bought equities worth `4.45bn and
2011 YTD 366090 357987 8103 `2.43bn respectively.
MF Activity (`Cr) • Asian shares declined Monday after U.S. leaders failed
Date Buy Sell Net over the weekend to agree to raise the nation’s debt
21-Jul 696 490 206 ceiling ahead of a looming deadline on Aug. 2, raising
20-Jul 634 651 -17 worries about a possible sovereign default. Both the
Total July 7822 7341 1682 Nikkei and the Hang Seng are trading negative.
2011 YTD 75842 72508 3984 • We expect a weak opening for the Indian markets
Volume & Advances / Declines tracking the Asian cues. The investors may remain
NSE BSE cautious ahead of the RBI's Monetary Policy slated on
Trading Volume (`Cr) 11,632 3,187 July 26.
Advances 930 1,715
Declines 518 1,188
Unchanged 65 124
Economic and Corporate Developments
Total 1,513 3,027
Global Markets
Index Latest Values Change (%) • The spinning industry, which had a stock of more
DJIA 12,681.16 -0.3% than 500mn kgs of cotton yarn following last year's
NASDAQ 2,858.83 0.9% restrictions on exports, has reported significant
Nikkei * 10,068.63 -0.6% easing in the cotton yarn stock position, the
Hang Seng * 22,321.84 -0.5% Confederation of Indian Textile Industry (CITI) said.
* as of 8.45AM IST • Companies allotted coal blocks but having failed to
Currencies / Commodities Snapshot do much on developing these are to be barred from
Latest Previous participating in the proposed competitive bidding
Quote Close process for future allotments.
Indian Rupee per $ 44.24 44.35
Indian Rupee per € 63.66 63.92
NYMEX Crude Oil($/bbl) 98.88 99.87
Gold ($/oz) 1,613.20 1,601.50
Silver ($/oz) 40.42 40.07
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS
Buzzing Stock
(BSE A-Group)
• Hero Honda will unfold a slew of strategic initiatives
Previous Current Change
Company Name in London, which will allow them to further
Close (`) Price (`) (%)
Gujarat State Pet 98.55 108.15 9.74 consolidate their leadership in India and also enter
Idea Cellular 79.85 85.30 6.83 emerging markets globally.
Shre Renuka Sug 69.95 73.85 5.58
• Tata Motors has opened a new plant in South Africa
Mphasis 422.05 444.30 5.27
for the assembly of commercial vehicles, in order to
Union Bank 294.10 309.20 5.13
support its growing volumes in African markets.
(BSE Mid-Cap)
• Zydus Cadila plans to acquire the brands and
Previous Current Change
Company Name manufacturing facility of Biochem Pharmaceuticals
Close(`) Price(`) (%)
Rallis India 145.15 159.75 10.06 and the deal is expected to be valued at around
Gujarat State Pet 98.55 108.15 9.74 `300-450cr.
FAG Bearings 1251.25 1344.00 7.41 • Redington (India) would invest around Rs50Cr in
3M India 4185.75 4491.80 7.31 setting up distribution centres at Kolkata, Delhi and
D B CORP 224.55 238.25 6.10 Mumbai. Besides the company is also planning to
foray into cloud computing.
TOP LOSERS
(BSE A-Group)
Previous Current Change US markets
Company Name
Close(`) Price(`) (%)
Exide Inds 154.95 149.80 -3.32 US markets closed Friday’s session mixed but with
SKS Microfinance 548.45 533.40 -2.74 more than 1% weekly gains as robust results from
Indiabul Real Est 117.55 114.90 -2.25 Advanced Micro Devices Inc. highlighted a generally
Lanco Infra 20.95 20.60 -1.67 strong streak of earnings reports. The Dow Jones
Container Corp 1138.05 1120.90 -1.51 Industrial Average ended down 43.25 points, or
0.3%, to 12,681.16. Component and equipment
(BSE Mid-Cap)
maker Caterpillar led losses for 17 of the index’s 30
Previous Current Change
Company Name components with a drop of 5.8%, to $105.15. The
Close(`) Price(`) (%)
Whirlpool 235.75 228.55 -3.05 Dow, which is a price-weighted index, is most
SKS Microfinance 548.45 533.40 -2.74 sensitive to moves in its high-priced stocks.
India Sec 43.40 42.35 -2.42 McDonald Corp. shares led Dow advancers with a
Indiabul Real Est 117.55 114.90 -2.25 2.3% gain after the hamburger seller reported
Amara Raja 246.10 241.10 -2.03 better-than-expected profit for the second quarter,
on robust sales in the United States and Europe.
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