1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, September 19, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Sept 15 Sept 16 Change (%) • Indian markets continued with winning streak for third
straight day and ended volatile session in the positive
Sensex 16,876.54 16,933.83 0.34%
terrain on Friday as risk appetite returned globally on
CNX Nifty 5,075.70 5,084.25 0.17%
hopes policymakers will come up with more actions to
BSE Mid-cap 6,367.04 6,390.12 0.36% combat the European debt crisis, helping investors
BSE IT 5,145.76 5,101.70 -0.86% shrug off a rate increase by the domestic central bank.
BSE Banks 11,062.05 11,127.53 0.59% The outlook for domestic markets, however, remained
cautious as the RBI stuck to its hawkish stance. The
FII Activity (`Cr)
RBI lifted its policy lending rate by 25 basis points at
Date Buy Sell Net its mid-quarter review, in line with expectations.
15-Sep 1981 1814 167 Except IT and FMCG, all sectoral indices closed on
14-Sep 2117 2126 -9 positive note with power, real estate, auto and
Total Sept 26188 25036 1152 consumer durable stocks were major gainers. Interest
2011 YTD 458894 458541 344
rate sensitive stocks such as banking and real estate
slipped into the negative immediately after the
MF Activity (`Cr) announcement of rate hike by the RBI. However, both
Date Buy Sell Net the indices recouped losses to end positive. Oil and
15-Sep 499 392 107 gas stocks, particularly oil PSUs remained under focus
as state-run oil retailers announced a hike of `3.14 per
14-Sep 435 582 -147
litre in petrol prices, the 10th time since the
Total Sept 4431 5428 -997
government decided to free this essential fuel from
2011 YTD 97605 92600 5277 price controls in June last year. ONGC gained 5.4%
Volume & Advances / Declines after the government of India deferred a follow-on
share sale expected to raise as much as $2.5bn. MARG
NSE BSE
Ltd. ended up ~5% after a unit of the company raised
Trading Volume (`Cr) 14,283 2,787 `2bn from private-equity firm Ascent Capital.
Advances 648 1,337
• Market breadth was however weak at ~0.92x as
Declines 813 1,460 investors bought large cap stocks. Both FIIs and
Unchanged 66 134 domestic institutions bought equities worth `395.16Cr
Total 1,527 2,931 and `39.33Cr, respectively.
Global Markets • Asian markets fell today as concerns about a Greek
default increased. The Hang Seng lost more than 2%
Index Latest Values Change (%)
while Japanese markets are closed today.
DJIA 11,509.09 0.7%
• We expect a weak opening for the Indian markets as
NASDAQ 2,622.31 0.6%
Asian stocks fall today. Investors are already worried
Nikkei (Closed) 8,864.16 - about the inflation scene in India. Further, Friday's rate
Hang Seng * 18,983.17 -2.4% rise by the RBI was not at all welcomed by the
* as of 8.45AM IST investors.
Currencies / Commodities Snapshot Economic and Corporate Developments
Latest Previous • India's steel demand is likely to jump by over 70% to
Quote Close 113mn tonnes (MT) by the end of the next Five-Year
Indian Rupee per $ 47.52 47.18 Plan, with the infrastructure sector projected to
Indian Rupee per € 65.16 65.16 witness investments worth $1tn.
NYMEX Crude Oil($/bbl) 86.73 87.96 • The steel ministry will soon write to the finance
Gold ($/oz) 1,817.00 1,812.10 ministry demanding to hike export duty on iron ore to
30% from the current 20%, a move to ensure that
Silver ($/oz) 40.71 40.78
there is no shortage of the raw material for the
domestic steel makers in the long-run.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Emami would be investing about `2,000Cr in the
Previous Current Change next two years on the healthcare segment. Advance
Company Name
Close (`) Price (`) (%) Medicare and Research Institute (AMRI) Hospitals
Financial Tech 780.35 861.15 10.35 Ltd, controlled by Emami, is setting up seven
Rajesh Exports 113.95 123.55 8.42 hospitals across north and east India, with an
Tata Motors 151.10 161.70 7.02 investment of `1,750Cr. Another `300Cr would be
Indiabulls Fin 151.20 161.80 7.01 spent on adding beds at existing hospitals.
Manappuram Fin 53.40 57.05 6.84
• NTPC has earmarked an investment of `41,000Cr for
(BSE Mid-Cap) setting up four thermal projects in the coal-rich
Previous Current Change states of Madhya Pradesh and Chhattisgarh in the
Company Name
Close(`) Price(`) (%) next five years.
Financial Tech 780.35 861.15 10.35
• SAIL will invest `10,264Cr to develop its mines to
Shree Global Trd 325.45 357.95 9.99 cater to its increased iron ore requirement. Post-
Nava Bharat 184.70 201.70 9.20 expansion, capacity of existing mines at Kiriburu,
Rajesh Exports 113.95 123.55 8.42 Meghahatuburu and Bolani would increase from 4.2,
Indiabulls Fin 151.20 161.80 7.01 4.3 and 4.1mn tonnes to 5.5, 6.5 and 10mn tonnes
respectively. The project would be completed by
TOP LOSERS 2012-13, that is when SAIL would achieve 23 million
(BSE A-Group) tonnes capacity.
Previous Current Change • PFC is awaiting government approval to raise
Company Name
Close(`) Price(`) (%) `5,000Cr through an issue of tax-free bonds to meet
Motherson Sumi 197.90 187.40 -5.31 funding requirements of the power sector.
Piramal Health 367.05 348.15 -5.15
• Bharat Petro Resources (BPRL), a wholly-owned
Ambuja Cements 150.15 143.65 -4.33 subsidiary of the state-run oil marketer Bharat
United Spirits 881.60 845.05 -4.15 Petroleum (BPCL), expects to drill 16 wells by the
HCL Tech 403.00 388.10 -3.70 end of this fiscal and is hopeful of further discoveries
(BSE Mid-Cap) in its blocks in the country as well as overseas.
Previous Current Change US markets
Company Name
Close(`) Price(`) (%)
US markets closed higher overnight for a fifth day,
Essar Ports 71.80 67.35 -6.20
with two indexes producing their longest win streak
HCL Infosystems 64.65 60.80 -5.96
in over two months, as the confidence among the
India Cements 73.35 69.25 -5.59 investors for resolution of Europe worries increased.
Hexaware Tech 76.50 72.25 -5.56
The Standard & Poor's 500 Index climbed 6.9 points,
Jai Corp 96.30 91.15 -5.35
or 0.6%, to 1,216.01 led by telecoms and utilities.
The Dow Jones Industrial Average closed up 75.91
points, or 0.7%, at 11,509.09 after rising as much as
99 points and sliding 26 points. The Nasdaq
Composite Index advanced 15.24 points, or 0.6%, to
2,622.31.
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