Fullerton Securities Market Newsletter : 14th September 2010
1. Volume: 1 | Issue: 355| September 14, 2010
COMMENTARY INDIAN MARKET 13-Sep 09-Sep % Change
BSE Sensex 19,208 18,800 2.17
INDIA NSE Nifty 5,760 5,640 2.13
The Benchmarks Indices sustained uptrend for the 5th consecutive day and closed at fresh 31- BSE Midcap 8,112 8,051 0.77
month high, led by marvellous rally in Banking, Oil & gas, Realty and Metal, especially after strong BSE Smallcap 10,272 10,249 0.22
industrial output data. The Sensex closed above 19000 mark and the Nifty above 5750 for the first Nifty Junior 12,509 12,295 1.74
time since January 18, 2008. Global cues were supportive post Europe's Basel III norms for banks CNX Midcap 9,184 9,085 1.08
and US economic data. The BSE Sensex ended at 19208, higher by 408 points or 2.17% and the
Nifty ended at 5760, up 120 points. In a reversal of sorts, the BSE Midcap and BSE Smallcap
indices underperformed the benchmark indices to end higher by 0.77 % and 0.22% at 8112 and GLOBAL MARKETS 13-Sep 10-Sep % Change
10272 respectively. Dow Jones Ind (USA) 10,544 10,463 0.78
Nasdaq Composite(USA) 2,286 2,242 1.93
The market breadth was positive. Out of 3085 stocks traded on the BSE, there were 1510 S&P 500 (USA) 1,122 1,109 1.20
advancing stocks as against 1449 declines. FTSE 100 (UK) 5,566 5,502 1.16
DAX (Germany) 6,262 6,215 0.76
GLOBAL MARKETS
Nikkei 225 (Tokyo) 9,322 9,239 0.90
Stocks continued their rally after investors sent bank stocks higher following new global
Hang Seng (Hong Kong) 21,658 21,257 1.89
regulatory requirements and China's economy continued its robust growth. The Dow Jones
Shanghai Comp (China) 2,688 2,663 0.94
industrial average rose 81 points, its eighth rise in the past nine days & closed at 10,544.13, up by
KOSPI (South Korea) 1,819 1,803 0.90
0.8%.The Standard & Poor's 500 index rose 12, or 1.2 percent, to 1,121 and the Nasdaq composite
index rose 43.23, or 1.9 percent, to 2,285. STI (Singapore) 3,067 3,022 1.47
MSCI Emerging Market 391 383 2.07
Asian Markets have opened on a Mixed Note. The Nikkei is down by 0.5% while the Hang Seng is MSCI Frontier Market 537 535 0.39
up by 0.5%
CORPORATE/ ECONOMY NEWS BOND MARKETS 13-Sep 09-Sep Change
Nasdaq-listed Carrizo Oil & Gas has concluded the joint venture deal it had announced earlier 10yr G-Sec Yield 7.97 7.93 0.04
with a subsidiary of Reliance Industries. The JV concerns prospecting in the Marcellus Shale for 1yr G-Sec Yield 6.48 6.48 0.00
natural gas in the region of Pennsylvania in the US. Marcellus Shale is a geological formation LIBOR (6m) 0.49 0.48 0.01
found in the eastern states, considered rich in natural gas. LIBOR (1m) 0.26 0.25 0.01
Interbank Call rate 5.6 4.9 0.75
Cairn Energy believes Oil and Natural Gas Corp has no pre-emption rights in the planned sale
of Cairn India control to Vedanta Resources. ONGC had said in a filing to the Indian stock
BSE Turnover Rs Cr('000) Sensex
exchange on Aug. 30 that it had right of first refusal, or pre-emption rights, to Cairn India's 19400 7.0
assets and therefore Cairn Energy needed ONGC and Indian government approval for the deal.
19200 6.0
Optical media devices manufacturer Moser Baer India on Monday said it is launching pre- 19000 5.0
loaded Bollywood movies on pen drives to increase market share. 4.0
18800
3.0
HCL Technologies has announced an offshore deal with the government of New Zealand to 18600 2.0
develop technology infrastructure for the country’s prison system. The three year deal, involves 18400 1.0
developing IT infrastructure for the prison system and applications for maintaining inmates’
18200 0.0
profiles. The deal will have a 60% offshore component.
6-Sep 7-Sep 8-Sep 9-Sep 13-Sep
Realty firm Omaxe Ltd said its subsidiary has won a contract of Rs 128 crore from the Defence
Ministry to develop a housing project in Jammu & Kashmir. The project valued at Rs 127.93
crore involves development and construction of the residential accommodation for the defence
NSE Turnover Rs Cr('000) Nifty
officers. 5800 16
5750 16
Dalmia Bharat Enterprises said it has received Rs 500 crore investment from private equity
5700 15
firm KKR. last May, Dalmia Cement and KKR had inked an agreement to invest Rs 750 crore for
5650
use in both sequential and merger & acquisition-based growth of the cement making firm. 15
5600
5550 14
S Kumars Nationwide Ltd has launched a share sale to institutions to raise up to $50 million.
5500 14
The textiles firm is selling shares at Rs 80 a piece.
5450 13
6-Sep 7-Sep 8-Sep 9-Sep 13-Sep
`
Disclaimer: This document is compiled by Epitome Global Services Private Limited exclusively for Fullerton Securities & Wealth Advisors Ltd (FSWA) customers. This document is not for public
distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you
obtain written consent from FSWA. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or
entity associated with it. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own investigations and seek
professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or due to any inadvertent error in
the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to making any investment
decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an
investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment
results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA
reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at
any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination of the information and services provided herein.
Website: www.fullertonsecurities.co.in
2. Volume: 1 | Issue: 355| September 14, 2010
CORPORATE NEWS SECTOR 13-Sep 09-Sep % Change
Tata Teleservices has become the fourth largest operator in terms of wireless subscribers with Bankex 13,455 12,984 3.62
nearly 77 million users and has overtaken BSNL. &is now behind only Bharti Airtel, Reliance Oil & Gas 10,436 10,175 2.57
Communications and Vodafone. Realty 3,641 3,554 2.46
Metal 16,388 16,131 1.59
Kalpataru Power Transmission (KPTL),said that it has secured three orders worth over Rs 550- PSU 10,209 10,053 1.55
crore from the Kenya Electricity Transmission Company (KETRACO) and Parbati Koldam Power 3,163 3,121 1.34
Transmission Company. KPTL has signed two contracts with KETRACO & the combined value of Healthcare 5,737 5,679 1.02
both the projects is to the tune of Rs 450-crore-plus. IT 5,721 5,664 1.01
Capital Goods 15,223 15,095 0.85
IFGL Refractories Ltd said that it has acquired two US-based firms for $13 million, free of long- Consumer Durables 5,955 5,910 0.76
term debt, to grow its customer base in the United States. Teck 3,587 3,563 0.67
Auto 9,154 9,097 0.63
Coromandel International Ltd said that it has entered into a licence agreement with Shell FMCG 3,484 3,468 0.48
Research Ltd, an affiliate of Royal Dutch Shell Plc, for manufacturing sulphur-enhanced fertilisers.
Coromandel plans to manufacture the fertilisers from Visakhapatnam and may extend it to its
Kakinada unit later.
IT firm HCL Infosystems said that it has bagged a contract worth Rs 100 crore from Himachal
Pradesh for providing data and IT applications for energy accounting/auditing and IT-based
BSE Upper Circuit Breakers
consumer service centres.
Company Name 13-Sep 09-Sep % Change
Vishal Retail said that its board has approved the sale of its retail and wholesale businesses to Infotrek Syscom 28.8 24.00 20.00
Shriram Group and the Indian unit of TPG, respectively, for a total consideration of Rs 100 crore. Brahmaputra Infraproject 138.7 115.60 20.00
The sale does not include the New Delhi-based firm's properties in Hubli, Kolkata, Dehradun and N.K.Industries 66.7 60.6 10.00
Jabalpur cities. 0 Channel Guide 13.1 11.9 10.00
Raghav Industries 51.5 49.0 5.00
Aqua Logistics will be acquiring upto 60 % stake for an undisclosed sum in Chennai-based Star
Distribution Logistics, .The acquisition will help Aqua, a third-party logistics solutions provider,
strengthen its distribution and reverse logistics capabilities as also get new clients in the FMCG,
pharma and consumer electronics space, currently serviced by Star.
Wipro Ltd, India's No.3 software services exporter, said that customers remain cautious about BSE Lower Circuit Breakers
technology spending, with budgets flat to slightly higher as they look for transformational Company Name 13-Sep 09-Sep % Change
projects. Vintron Infomatics 7.1 7.9 (10.00)
SRM Energy 33.4 35.1 (5.00)
Multiplex operator PVR Ltd said that it was evaluating proposals to acquire a cinema chain in Suave Hotels 40.0 42.1 (5.00)
the country. Bell Ceramics 25.6 26.9 (5.00)
Scooters India 44.9 47.3 (5.00)
Steel Strips Wheels Ltd (SSWL) has been awarded a contract by a leading supplier based in
Germany. First order is expected to be for 3 different products totaling to appx 4,000 wheels and
a foreign exchange earning of nearly Euros 40,000.
Natco filed an abbreviated new drug application (ANDA) with the US FDA seeking nod to market
lenalidomide (a cancer drug) capsules in 5, 10, 15 and 25 mg. Natco may consider a settlement
over the patent issue with the American drugmaker provided the terms are in their (Natco)
favour.
COMMODITY / CURRENCY NEWS COMMODITY 13-Sep 10-Sep % Change
Crude Oil (USD/bbl) 77.2 76.5 0.97
Gold (Rs/10gm) 18,862.0 19,075.0 (1.12)
Light Sweet Crude Oil closed up on Monday 0.96 % at $77.2 per barrel. Gold closed down by
Silver (Rs/kg) 31,580.0 32,155.0 (1.79)
1.12 % at Rs 18862 and Silver closed down by 1.79% at 31580.
The Indian Rupee closed higher against dollar by 0.15% at 46.40 as the Indian equity benchmarks CURRENCY 13-Sep 09-Sep % Change
ended on positive note. INR / USD 46.40 46.47 (0.15)
USD / Euro 1.29 1.29 (0.11)
Yen / USD 83.74 84.14 (0.48)
Disclaimer: This document is compiled by Epitome Global Services Private Limited exclusively for Fullerton Securities & Wealth Advisors Ltd (FSWA) customers. This document is not for public distribution and has been
furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way unless you obtain written consent from FSWA. While reasonable care
to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other person or entity associated with it. The document is prepared only for your information and is not sufficient
for making an investment decision. You should rely on your own investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from
the use of this document or due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice prior to
making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not guaranteed. Also past performance of an investment
or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes no liability or responsibility for investment results or losses arising out of investment
decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this
service or discontinue, temporarily or permanently, the information and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification,
or termination of the information and services provided herein.
3. Volume: 1 | Issue: 355| September 14, 2010
ECONOMY / POLICY NEWS FUTURES PREMIUM/DISC Cash Futures P/D%
The government plans to review the New Investment Policy of 2008 in order to NHPC 31.1 31.4 0.97
overhaul the production of the urea sector by attracting more investments and reviving First Source Solutions 26.7 26.9 0.94
the sick fertiliser units. The draft policy, being prepared by the Department of Fertilisers, Nagarjuna Fertilizers 32.2 32.45 0.93
will soon be up for an inter-ministerial discussion. Ispat Industries 22.0 22.15 0.91
TTTML 23.2 23.35 0.86
The Department of Economic Affairs, or DEA, the Finance ministry’s policymaking Orbit Corporation 128.4 129.5 0.86
wing, has called for exempting airlines from a regulation barring Indian companies Ambuja Cement 139.4 136.0 (2.44)
from using foreign debt, commonly referred to as external commercial borrowings, or SCI 167.3 163.7 (2.15)
ECB, to repay loans from local banks. GMDC 136.7 134.4 (1.72)
Ruchi Soya 138.1 135.9 (1.56)
After it has become clear that GST cannot be introduced right at the start of the next Opto Circuits 308.2 304.1 (1.35)
fiscal, the Finance Ministry indicated that the proposed indirect taxes regime may ACC 990.5 977.6 (1.30)
still be rolled out sometime during 2011-12.
INSTITUTIONAL ACTIVITY (Rs Cr) 06-Sep 03-Sep YTD
FII Cash Net 1,040 486 57,989
FII Stock Futures 648 323 729
FII Index Futures 820 89 (5,175)
Mutual Fund 354 65 (14,378)
VALUATIONS P/E P/B DIV YLD
BSE 22.8 3.6 1.1
NSE 24.3 3.8 1.1
BSE500 Mcap/GDP Ratio 0.63
MOVERS & SHAKERS
4.91
TOP 5 FRONTLINE GAINERS TOP 5 MIDCAP GAINERS TOP 5 SMALLCAP GAINERS
Name Rs % Name Rs % Name Rs %
SBI 3,147.3 5.52 Sigrun Holdings 11.3 9.92 PNB Gilts 31.2 18.41
HDFC 664.2 5.32 Berger Paints 99.5 7.57 PI Industries 532.5 10.97
Hindalco Industries 190.3 4.53 BASF India 647.6 6.08 Piramal Life 181.3 9.98
Reliance Infra 1,055.0 4.47 UTV Software 559.1 5.63 Kanani Industries 365.3 9.14
ICICI Bank 1,097.3 4.43 Mahindra & Mah Fin 665.8 5.53 Bliss GVS 44.0 8.52
TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS
Name Rs % Name Rs % Name Rs %
Wipro 402.7 1.27 Shree Global Trd 209.5 -10.87 TTK Healthcare 410.6 -6.35
Reliance Communictaions 162.9 0.43 Ruchi Soya 136.3 -3.47 Ppadip Overseas 81.9 -5.87
Hero Honda 1727.7 0.28 Gujarat State Petro 111.9 -3.20 Parekh Alum 470.6 -5.84
Bharti Airtel 349.0 0.17 IVR Prime 119.2 -2.85 Lloyds Metal 59.2 -5.05
Allcargo Global 156.5 -2.80 Modern India 108.0 -4.89
BULK DEALS
SCRIPT NAME CLIENT NAME TYPE QTY % PRICE
NSE
Ispat Industries Limited Jaypee Capital Services BUY 0.86% 21.85
PNB Gilts Limited Sharad Shah. BUY 0.97% 31.1
Intrasoft Tech. Ltd SSL Consolidated BUY 1.23% 99.3
Kale Consultants Limited Marwadi Shares And Finance Limited SELL 0.67% 161.6
Tube Investments Ltd TII Share Holding Trust SELL 0.79% 140.0
BSE
Birla Shloka Indravarun Trade Impex BUY 1.23% 31.94
Crew Bos Sahar Vyapar BUY 0.64% 150.5
Lakshmi Overseas IDFC Small And Mid Cap Equity Sme Fund BUY 1.58% 93.8
IFL Promoters DCM International Limited SELL 0.78% 14.81
VIP Industries Smart Equity Brokers Private Limited SELL 0.67% 533.69
Disclaimer: This document is compiled by Epitome Global Services Private Limited exclusively for Fullerton Securities & Wealth Advisors Ltd (FSWA) customers. This document is not for
public distribution and has been furnished to you solely for your information and you are notified that you should not further copy, modify, use or distribute the information in any way
unless you obtain written consent from FSWA. While reasonable care to compile the document but the accuracy and completeness cannot be guaranteed either by FSWA or any other
person or entity associated with it. The document is prepared only for your information and is not sufficient for making an investment decision. You should rely on your own
investigations and seek professional advice for investment decision. Neither FSWA nor any person connected with it, accepts any liability either arising from the use of this document or
due to any inadvertent error in the information contained in this document. Financial investments carry risks including principal risk and therefore you should seek professional advice
prior to making any investment decision. The risk of any losses occurring by use of this report or document will be entirely yours. The investments covered in this report are not
guaranteed. Also past performance of an investment or fund is not an indication of future performance. FSWA, its affiliates, or associates, or any regulatory or other body or entity assumes
no liability or responsibility for investment results or losses arising out of investment decisions made by you. This document is not to be considered as an offer to sell or a solicitation to buy
any security or financial product. FSWA reserves the right to modify or alter the terms and conditions of the use of this service or discontinue, temporarily or permanently, the information
and services provided (or any part thereof) at any time, with or without prior notice and FSWA shall not be liable to you for any suspension, modification, or termination of the information