K E Y N O T E INSTITUTIONAL RESEARCHIndia Morning NoteMonday, May 07, 2012Domestic Markets Snapshot Views on markets today • Indian markets posted their biggest daily fall since late Name of Index May 3 May 4 Change (%) February on Friday on news that the government is Sensex 17,151.19 16,831.08 -1.87% considering a review of the Double Taxation Avoidance CNX Nifty 5,188.40 5,086.85 -1.96% Treaty with Mauritius to raise revenues and as the BSE Mid-cap 6,234.75 6,100.80 -2.15% rupee continued to weaken. As per Junior Finance BSE IT 5,786.99 5,733.26 -0.93% Minister S.S. Palanimanickam, Indian government is BSE Banks 11,653.70 11,284.03 -3.17% considering a review of its double taxation treaty with Mauritius, spooking investors given a majority ofFII Activity (`Cr) foreign portfolio inflows are believed to be routed Date Buy Sell Net through the East African country. The potential end of 3-May 2,365 2,274 91 the treaty would open up the prospect of capital tax 2-May 2,237 1,993 244 gains for those foreign investors who have a legal Total May 4,603 4,267 335 presence in Mauritius. The worries over foreign outflows are also being reflected by a rupee that 2012 YTD 240,981 197,185 43797 continues to plumb four-month lows, given the deepMF Activity (`Cr) concerns about Indias economic and fiscal challenges. Date Buy Sell Net Except pharma, all sector indices closed on negative 3-May 351 585 -234 note with capital goods, bank, metal and real estate stocks were major losers. Auto stocks were hit hard for 2-May 353 416 -63 the week after widespread disappointment over their Total May 704 1,001 -297 April sales. Hero MotoCorp fell 4.61% while Bajaj Auto 2012 YTD 45,698 52,095 -6397 shares ended lower by 3.8%. Banks were also routedVolume & Advances / Declines after Fitch Ratings and Macquarie said this weeks RBI directives on Basel III guidelines could lead to a equity NSE BSE dilution of around $30-35bn over the next five years. Trading Volume (Cr) 66.19 29.47 Reliance Industries dropped 1.7%, following media Turnover (`Cr) 11,475 2,629 reports that petroleum ministry has struck down its Advances 259 744 plans to recover $1.2bn in costs before the energy Declines 1,230 2,070 major starts sharing profits with the government from Unchanged 57 100 its gas field off the countrys east coast. Total 1,546 2,914 • Market breadth was lower at ~0.36x as investors sold large cap stocks. On provisional basis, FIIs boughtGlobal Markets equity of `4.28bn while domestic institutions sold Index Latest Values Change (%) equity of `2.80bn in cash segment. DJIA 13,038.27 -1.27% • Asian shares tumbled Monday after poor jobs data NASDAQ 2,956.34 -2.25% raised fresh fears about the health of the U.S. Nikkei * 9,134.26 -2.62% economy, and European elections over the weekend Hang Seng * 20,554.10 -2.52% added to jitters about the euro zone’s future.* as of 8.25AM IST • We expect a weak opening for the Indian markets today, following the cues from the Asian markets, asCurrencies / Commodities Snapshot fresh fears rose on European economies. While crude Latest Previous prices retreated sharply, a chance that outflow of Quote Close money will weaken rupee thereby limiting the benefits Indian Rupee per $ 53.47 53.37 fall in crude prices. Indian Rupee per € 69.96 70.20 Economic and Corporate Developments NYMEX Crude Oil($/bbl) 96.62 98.49 • India will have a all-time high foodgrain production of Gold ($/oz) 1,638.40 1,645.20 over 252 million tonne in FY12 with a record output of Silver ($/oz) 30.21 30.38 wheat, rice and cotton, Agriculture Minister Sharad Pawar said.Keynote Capitals Institutional Research (email@example.com) (+9122-30266000) Keynote Capitals Institutional Research is also available onBloomberg 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 firstname.lastname@example.org
K E Y N O T E INSTITUTIONAL RESEARCHTOP GAINERS Buzzing Stocks(BSE A-Group) • Godrej Properties planned 15 launches in 2012-13, Previous Current Change including new phases in existing projects, said Company Name Close(`) Price(`) (%) Pirojsha Godrej, managing director. It launched five Ruchi Soya 88.20 91.45 3.68 projects in FY12. Essar Oil 51.60 53.45 3.59 • Kavveri Telecom is closing in on a private equity deal Cipla 317.40 325.20 2.46 to raise $20mn (around `100Cr) in its subsidiary WELCORP 123.00 125.95 2.40 Kavveri Telecom Infrastructure Limited. Lupin 539.45 550.40 2.03 • Jindal Steel & Power Limited’s (JSPL) projected two(BSE Mid-Cap) steel plants will be “bigger” than other private sector steel players in Jharkhand. Previous Current Change Company Name Close(`) Price(`) (%) • Coal India (CIL) will soon invite fresh bids for Shree Global Trd 90.35 94.85 4.98 exploration of its two coal mines in Mozambique Ruchi Soya 88.20 91.45 3.68 having reserves of over one billion tonnes, according Infotech Enter 162.40 168.00 3.45 to sources. Sobha Dev 315.05 325.00 3.16 • Bank of India cuts its home loan rates by up to WELCORP 123.00 125.95 2.40 0.75% as well as a 0.25% drop in the base rate to 10.50%.TOP LOSERS US markets(BSE A-Group) U.S. stocks fell sharply on Friday, sending the S&P 500 Previous Current Change and Nasdaq Composite to their worst week of the year, Company Name Close(`) Price(`) (%) after April job gains came in below forecasts and IRB Infra 149.65 128.75 -13.97 investors fretted about weekend elections in Europe. Pantaloon Retl 184.85 161.00 -12.90 The Dow Jones Industrial Average closed down 168.32 MRF 11213.10 10327.95 -7.89 points, or 1.3%, to 13,038.27. The S&P 500 Index lost Astrazeneca Ph 2046.90 1910.00 -6.69 22.47 points, or 1.6%, to 1,369.10. The Nasdaq Financial Tech 657.35 615.50 -6.37 Composite declined 67.96 points, or 2.3%, to 2,956.34.(BSE Mid-Cap) Previous Current Change Company Name Close(`) Price(`) (%) IRB Infra 149.65 128.75 -13.97 Pantaloon Retl 184.85 161.00 -12.90 S Mobility 66.50 60.60 -8.87 MRF 11213.10 10327.95 -7.89 Astrazeneca Ph 2046.90 1910.00 -6.69Keynote Capitals Institutional Research (email@example.com) (+9122-30266000)
K E Y N O T E INSTIT UT IONAL R ES EAR C H India and Global Economic Calendar Countries / Monday Tuesday Wednesday Friday Regions 7/May 8/May 9/May 11/May India Forex Reserves Data Weekly Supplement of RBI Cumulative Industrial Output, Industrial Output & Manufacturing Output US Consumer Credit NFIB Small Business wholesale Producer Price Index Change Optimism Index inventories (YoY) ICSC-Goldman Store Reuters/ Michigan Sales Consumer Sentiment Index Global UKs RICS Housing Germany trade China Producer Price Price Balance balance data Index (YoY) & Consumer Price Index (YoY) Germanys Industrial China Industrial Production s.a. Production (YoY) & (MoM) Retail Slaes (YoY) UK Producer Price Index - Input (YoY & MoM) n.s.a UK Producer Price Index - Output (YoY & MoM) n.s.a KEYNOTE CAPITALS LTD. The Ruby, 9th Floor, Senapati Bapat Marg, Dadar (W), Mumbai – 400 028 Tel. : +9122-30266000 • www.keynotecapitals.comDisclaimer: This report is purely for information purpose and is based on public information. News content is attributable tovarious 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 tomake an offer, to buy or sell the securities mentioned herein. We or any of our directors, officers or employees shall not in anyway be responsible for any loss arising from the use of this report. Investors are advised to apply their own judgment beforeacting on the contents of this report. The report has not been edited due to time constraints.