1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, July 27, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 25 July 26 Change (%) • Indian markets ended 1.87% lower yesterday due to
Sensex 18,871.29 18,518.22 -1.87% the unexpected rise in the policy rates by 50bps,
CNX Nifty 5,680.30 5,574.85 -1.86% taking the repo & reverse repo rates to 8% and 7%
BSE Mid-cap 7,080.31 7,008.61 -1.01%
respectively. The central bank of India’s anti inflation
stance coupled with its hawkish language mainly
BSE IT 5,934.40 5,928.51 -0.10%
shunned the investors from the Indian equity markets.
BSE Banks 13,014.02 12,694.05 -2.46%
All the Asian equity indices finished the day’s trade in
FII Activity (`Cr) the positive terrain as investors hopeful that a
Date Buy Sell Net compromise would resolve the US debt deadlock even
25-Jul 2605 2365 240
as President Barack Obama illustrated his country as
being dangerously close to default. All the sectors
22-Jul 2723 2199 524
ended negative with Realty down 3.55%, capital goods
Total July 44669 37124 10226
down 3.49%, banking down 2.46%, auto down 2.14%
2011 YTD 371418 362551 8867
and power down 1.88%. The sole gainer on the Sensex
MF Activity (`Cr) was TCS up 0.39%. On the flip side, RCOM down
Date Buy Sell Net
5.53%, DLF down 4.26%, M&M down 4.2%, BHEL down
4.46% and L&T down 3.84% were the top loser on the
25-Jul 607 601 6
index.
22-Jul 792 486 306
• Market breadth was very weak at ~0.53x as investors
Total July 9221 8428 1994
sold large-cap and mid-cap stocks. FIIs sold equities
2011 YTD 77241 73595 4296
worth `177.75Cr while domestic institutions bought
Volume & Advances / Declines equities of `31.49Cr.
NSE BSE • Asian markets retreated on Wednesday, as the US
Trading Volume (`Cr) 12,296 2,899 remained without a deal to prevent default before an
Advances 376 1,000 Aug. 2 deadline and amid some unexpected economic
Declines 1,084 1,887 data from the region. The Nikkei is trading weak while
the Hang Seng is flat.
Unchanged 62 117
Total 1,522 3,004 • We expect a weak opening on account of negative
cues from the Asian markets and reaction to the RBI's
Global Markets
50bps increase in the interest rates. The rate rise was
Index Latest Values Change (%) more than the expectations of 25bps.
DJIA 12,501.30 -0.7%
NASDAQ 2,839.96 -0.1% Key events today
Nikkei * 10,041.01 -0.6% • IPO of L&T Finance opens today
Hang Seng * 22,567.11 0.0%
Economic and Corporate Developments
* as of 8.45AM IST
• The RBI raised repo rate by 50 bps to 8%.
Currencies / Commodities Snapshot
• Minister of steel Beni Prasad Verma said that the
Latest Previous
country’s production capacity is expected to increase
Quote Close
to more than 150mn tonnes by 2020 from 60mn
Indian Rupee per $ 44.04 44.19
tonnes at present. He also said India will become the
Indian Rupee per € 63.87 63.99
second largest steel producer in the world by 2013
NYMEX Crude Oil($/bbl) 99.23 99.59
with an installed annual production capacity of 120mn
Gold ($/oz) 1,622.40 1,616.80 tonnes.
Silver ($/oz) 40.84 40.91
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stock
(BSE A-Group) • NTPC is set to start work at its proposed 1,320 MW
Previous Current Change thermal project in Bangladesh in the next six
Company Name months.
Close (`) Price (`) (%)
Glen Pharma 328.95 337.60 2.63 • Glenmark Pharmaceuticals has received `65Cr from
Aurobindo Phar 181.15 185.60 2.46 Salix Pharmaceuticals Inc, USA, as an advance
Mana Gen 57.80 58.60 1.38 payment to upgrade its plant for production of
Coal India 369.15 374.00 1.31 Crofelemer, used for treating diarrhoea.
Apollo Hosp 508.15 514.20 1.19 • Allahabad Bank will provide loans to farmers and
(BSE Mid-Cap) rural artisans to buy solar off-grids made by Environ
Previous Current Change Energy Corporation India Pvt Ltd. by entering into an
Company Name agreement with the company.
Close(`) Price(`) (%)
India Sec 40.20 47.40 17.91 • Orient Paper Industries board meet today for
Ballarpur Inds 33.90 36.35 7.23 restructuring
UTV Software 901.80 950.45 5.39
• SKS Microfinance board approves QIP of Rs900Cr by
Ruchi Soya 98.05 102.05 4.08
issue of equity shares to QIB's
Wockhardt 417.60 434.05 3.94
• State-run iron ore miner NMDC's production had
TOP LOSERS risen by about 7% to 6.1mn tonne during the April-
June quarter riding on the back of improved logistics
(BSE A-Group)
and better weather conditions. The country's largest
Previous Current Change carmaker Maruti Suzuki India (MSI) would invest
Company Name
Close(`) Price(`) (%)
about `3,000Cr in 2012-13 financial year on various
Lanco Infra 20.20 18.95 -6.19
areas, including expanding capacity and new model
IDFC 143.30 134.85 -5.90 launches.
Reliance Comm 107.50 101.55 -5.53
GVK Power 19.50 18.55 -4.87 US markets
Indiabul Real Est 115.80 110.25 -4.79
US markets closed near session lows Tuesday as no
(BSE Mid-Cap) clear stand came over hiking the debt ceiling. In its
Previous Current Change third straight losing session, the Dow industrials fell
Company Name
Close(`) Price(`) (%) 91.50 points, or 0.7%, to 12,501.30, with 24 of its 30
Kwality Dairy 161.35 150.55 -6.69 components declining. Losses were led by 3M Co.,
KGN Inds 56.85 54.05 -4.93 which fell 5.4%. The industrial giant said its quarterly
GVK Power 19.50 18.55 -4.87 results were dented by the disaster in Japan and
Indiabu Real Est 115.80 110.25 -4.79 declining demand for LCD televisions. The S&P 500
SREI Infra 49.20 46.95 -4.57 Index fell 5.49 points, or 0.4%, to 1,331.94, with
industrials the hardest hit and technology up the
most among its 10 industry groups.
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