- Indian markets dropped more than 2% in their biggest daily fall since late February, triggered by a spike in global risk aversion and fears of foreign selling. All sectoral indices closed in the negative. - Selling accelerated in the afternoon after sharp falls in manufacturing activity in Germany and France, adding to data showing a drop in China's manufacturing index. A reported $211 billion loss in coalfield revenues also weighed on markets. - Market breadth was weak and FIIs were net buyers of equity while domestic institutions were net sellers. Asian markets also dropped in early trading, tracking U.S. share losses on concerns about slowing global growth.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, March 23, 2012
Domestic Markets Snapshot Views on markets today
Name of Index Mar 21 Mar 22 Change (%) • Indian markets dropped more than 2% in its biggest
Sensex 17,601.71 17,196.47 -2.30% daily fall since late February, while the rupee also
slipped after a spike in global risk aversion triggered
CNX Nifty 5,364.95 5,228.45 -2.54%
fears of foreign selling at a time of waning confidence
BSE Mid-cap 6,459.33 6,312.62 -2.27%
in a struggling government. Selling accelerated in the
BSE IT 6,084.90 6,012.12 -1.20% afternoon after unexpectedly sharp falls in
BSE Banks 12,126.16 11,712.09 -3.41% manufacturing activity at Germany and France, added
FII Activity (`Cr) to data earlier that also showed a drop in the HSBC
flash manufacturing index for China. The outcry over a
Date Buy Sell Net
reported $211bn loss in revenues from the sale of
21-Mar 3,488 2,836 652 coalfields, according to a leaked report from the
20-Mar 2,121 1,926 196 Comptroller and Auditor General's (CAG) office also led
Total Mar 40,962 32,495 8467 the markets to close on negative note. All sectoral
2012 YTD 174,019 129,254 44764 indices closed on negative note with real estate,
power, bank and capital goods were major losers.
MF Activity (`Cr)
Steel, cement and power generation stocks fell after a
Date Buy Sell Net newspaper report said citing a draft CAG report that
21-Mar 484 518 -35 companies from these sectors got undue benefit from
20-Mar 497 571 -74 allocation of coal fields without auction. Power
Total Mar 7,346 8,448 -1102 equipment makers declined as Union Budget 2012-13
disappointed power equipment makers which were
2012 YTD 32,706 37,835 -5129
anticipating that the government might impose an
Volume & Advances / Declines import duty of 14%-19% on mega/UMPP projects. A
NSE BSE status quo on existing concessional import duty for
Trading Volume (Cr) 92.07 35.37 mega and UMPP power projects means that domestic
equipment makers who are augmenting their capacity
Turnover (`Cr) 14,112 2,985
continue to face strong competition in the domestic
Advances 303 879
market. Reliance Industries fell 4.15% as its largest
Declines 1,202 2,019 gas fields in its flagging KG-D6 block have reportedly
Unchanged 44 105 hit an all-time low production of about 28 million
Total 1,549 3,003 standard cubic meters per day as the firm shut six
wells due to water and sand ingress.
Global Markets
• Market breadth was weak at ~0.44x as investors sold
Index Latest Values Change (%)
large cap stocks. On provisional basis, FIIs bought
DJIA 13,046.14 -0.60%
equity of `2.46bn while domestic institutions sold
NASDAQ 3,063.32 -0.39% equity of `1.33bn in cash segment.
Nikkei * 10,027.72 -0.98%
• Asia markets dropped in early Friday trading, tracking
Hang Seng * 20,728.53 -0.83% losses for U.S. shares on concerns about slowing
* as of 8.25AM IST global growth, and with a stronger yen weighing on
Currencies / Commodities Snapshot Japanese exporters.
Latest Previous • We expect a weak opening for the Indian markets
Quote Close today, following the cues from the Asian markets.
Indian Rupee per $ 51.22 50.66
Economic and Corporate Developments
Indian Rupee per € 67.60 66.94
• In the backdrop of outcry in US against outsourcing,
NYMEX Crude Oil($/bbl) 105.63 105.35 Indian IT industry association, Nasscom said the sector
Gold ($/oz) 1,646.20 1,642.50 has paid over $15bn in taxes to US Treasury over a
Silver ($/oz) 31.55 31.33 period of five years and created over 2.8 lakh
employment opportunities.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Godrej Consumer Products plans to enter into the
Previous Current Change hair extension market, the firm is looking to
Company Name introduce its African brand Kinky targeting aged
Close(`) Price(`) (%)
Tech Mahindra 683.90 724.80 5.98 customers.
Hindustan Copp 265.50 273.50 3.01 • GMR Infrastructure has put the development of its
Coal India 330.95 338.90 2.40 `7,000Cr power project at Shahdol, Madhya Pradesh,
Castrol India 507.00 516.70 1.91 on the backburner, on account of coal shortages.
Ashok Leyland 27.90 28.30 1.43 • Power Grid Corp approved investment proposals
worth `698.12Cr.
(BSE Mid-Cap)
• Tata Motors-owned Jaguar Land Rover will invest 3.5
Previous Current Change
Company Name billion yuan (over `2,800Cr) in its joint venture with
Close(`) Price(`) (%)
Zydus Wellness 344.70 367.10 6.50 Chery Automobile in China to commence local
Parsvnath Dev 58.20 60.95 4.73
assembly in the Asian country.
S Mobility 67.05 69.75 4.03 US markets
Sunteck Realty 361.80 370.00 2.27 U.S. stocks dropped Thursday, with the S&P 500’s third-
VAARAD 29.45 30.05 2.04 straight loss pushing it back under 1,400, a decline
analysts chalked up to the market’s double-digit rise in
TOP LOSERS the first quarter.
(BSE A-Group) The S&P 500 Index shed 10.11 points, or 0.7%, to
1,392.78. The Dow Jones Industrial Average on
Previous Current Change
Company Name Thursday fell 78.48 points, or 0.6%, at 13,046.14. The
Close(`) Price(`) (%)
Nasdaq Composite Index declined 12 points, or 0.4%, at
Manappuram Fin 45.30 36.90 -18.54
3,063.32.
Muthoot Fin 162.75 146.65 -9.89
JSW ENERGY 69.00 62.65 -9.20
HDIL 101.95 93.90 -7.90
JSW Steel 778.40 719.75 -7.53
(BSE Mid-Cap)
Previous Current Change
Company Name
Close(`) Price(`) (%)
Manappuram Fin 45.30 36.90 -18.54
Muthoot Fin 162.75 146.65 -9.89
India Infoline 72.00 66.05 -8.26
HDIL 101.95 93.90 -7.90
Hindustan Oil 121.45 112.40 -7.45
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 23/Mar 26/Mar 27/Mar 28/Mar
India Forex Reserves Data
Weekly Supplement
of RBI
US New Home Sales Pending Home Sales S&P/Case-Shiller Durable Goods
(MoM) (Feb) Index Home Price Indices Orders
(YoY)
Dallas Fed Mfg Consumer Durable Goods
Survey Confidence Orders ex
Transportation
Richmond Fed EIA Crude Oil Stocks
Manufacturing Index change
Global UK's Nationwide UK's Gross Domestic Eurozone's M3
Housing Prices n.s.a Product (QoQ) and Money Supply (YoY)
(YoY) and (MoM) (YoY) anf for (3m)
Germany's Gfk UK's Total Business Germany's
Consumer Investment (YoY) Consumer Price
Confidence Survey and (QoQ) Index (YoY) and
(MoM)
Germany's IFO - UK's CBI Distributive
Business Climate Trades Survey -
and Current Realized (MoM)
Assessment
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