1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, July 13, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 11 July 12 Change (%) • Indian markets dropped for the third straight session
Sensex 18,721.39 18,411.62 -1.65% and closed significantly lower yesterday taking their
cues from Asian and European markets that fell on
CNX Nifty 5,616.10 5,526.15 -1.60%
fears over a deepening euro zone debt crisis. Renewed
BSE Mid-cap 6,974.28 6,898.36 -1.09%
worries about Italy's debt crisis, larger than the
BSE IT 6,091.90 5,925.11 -2.74% combined obligation of Greece, Portugal, Spain and
BSE Banks 12,741.27 12,608.40 -1.04% Ireland, sparked a selloff in global markets. Dismal
FII Activity (`Cr) industrial production data and lower-than-expected
revenue guidance by Infosys Tech. also led the markets
Date Buy Sell Net to close lower. Mining and metal stocks extended their
11-Jul 1913 1439 474 recent loss triggered by reports that a panel of
8-Jul 3155 2478 677 ministers has approved the draft Mining Bill, which calls
Total July 23537 16632 9586 for miners to give to local communities an amount
2011 YTD 350286 342059 8227 equivalent to royalties so as to compensate people
displaced by such projects. Sugar stocks also retreated
MF Activity (`Cr) after the Food Minister ruled out additional sugar
Date Buy Sell Net exports to ensure sufficient supplies. All sectoral indices
11-Jul 275 320 -45 closed negative with IT, real estate, auto and consumer
8-Jul 537 785 -248
durables were major losers.
Total July 3566 3606 1161 • Market breadth was weak at ~0.52x as investors sold
large cap stocks. FIIs sold equities worth `9.69bn while
2011 YTD 71586 68773 3463
domestic institutions bought equities of `2.86bn.
Volume & Advances / Declines
• Asia markets rose modestly today as the China
NSE BSE reported better than expected economic growth though
Trading Volume (`Cr) 10,954 2,848 slower than previous quarter, with investors shrugging
Advances 373 946 off Europe’s worsening debt crisis as financial stocks
Declines 1,083 1,848
mostly gained. Japanese markets are modestly up while
the Hang Seng showed some strength.
Unchanged 53 137
Total 1,509 2,931 • We expect a positive opening for the Indian today as
the investors may try to recover their short positions
Global Markets created yesterday in the light of positive Asian markets.
Index Latest Values Change (%) The markets may lose the higher levels as the
DJIA 12,446.88 -0.5% European crisis is increasing. Moody's downgrade to
Ireland to Junk status and its identification of concerns
NASDAQ 2,781.91 -0.7%
involving accounting, governance and other issues at
Nikkei * 9,926.81 0.0%
several Chinese companies may become reasons for
Hang Seng * 21,867.56 0.9% the markets to lose the strength.
* as of 8.45AM IST Key events today
Currencies / Commodities Snapshot • Listing of IPO of Readymade Steel India Ltd. (BSE code:
Latest Previous 533482), issue price: Rs108 per share.
Quote Close
Economic and Corporate Developments
Indian Rupee per $ 44.53 44.71
• The factory production, as measured by the all-India
Indian Rupee per € 62.30 62.26
Index of Industrial Production (IIP), expanded by 5.6%
NYMEX Crude Oil($/bbl) 96.91 97.43
in May versus consensus expectations of 8.5%.
Gold ($/oz) 1,567.20 1,562.30
• China's Gross Domestic Product (GDP) expanded at a
Silver ($/oz) 36.13 36.15 faster-than-expected rate of 9.5% in the April-June
quarter from the year-ago period.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group)
• HCL group in advanced talks to acquire around 44%
Previous Current Change
Company Name stake in DLF Pramerica Life Insurance for around
Close (`) Price (`) (%)
`450Cr & later buy out DLF’s residual 30% stake in the
SKS Microfinance 542.50 587.60 8.31
company.
JSW ENERGY 67.35 70.55 4.75
Emami-$ 498.90 516.40 3.51 • M&M group in plans to tie up with an experienced
Glenmark 306.30 313.75 2.43 company to foray in the general insurance segment.
Pharma
Coal India 356.90 365.20 2.33 • Department of Telecommunications moves SC
(BSE Mid-Cap) claiming that Sun Direct TV should pay an annual
Previous Current Change license fee as per the license agreement since the
Company Name matter pertaining to adjusted gross revenue is
Close(`) Price(`) (%)
Anant Raj Inds-$ 76.30 84.25 10.42 pending before the Apex court.
SKS Microfinance 542.50 587.60 8.31
• BHEL plans to enter new markets such as Burkina
Wockhardt 393.95 417.85 6.07 Faso, Niger & Sierra Leone by supplying power
Spicejet 33.20 35.10 5.72 generation equipment valued at `3200Cr.
Honeywell Auto 2781.75 2889.00 3.86
• Mundra Port plans a 200 acre plastic processing park
TOP LOSERS that will attract investment of about `4000Cr.
(BSE A-Group) • Essar Oil keen on acquiring coal-bed methane gas
Previous Current Change blocks in India and two more blocks in Indonesia.
Company Name
Close(`) Price(`) (%)
• Cairn Energy sold 10 percent of its Indian unit to
Lanco Infra 24.40 23.00 -5.74 Vedanta Resources for a net cash sum of $1.36bn
HDIL 168.95 159.70 -5.47 (`5992.8Cr)
Mphasis 455.35 430.85 -5.38
• ITC’s raw material costs are likely to go up by around
Jain Irrigation 181.40 172.25 -5.04
Shree Renuka 3% in the next 2-3 months, but ruled out any major
74.40 70.70 -4.97
Sug price hike for 90% of their products.
(BSE Mid-Cap)
US markets
Previous Current Change
Company Name
Close(`) Price(`) (%) US markets closed near their lows of the session
HDIL 168.95 159.70 -5.47 Tuesday after Moody’s downgraded Ireland’s debt to
Jain Irrigation 181.40 172.25 -5.04 junk status, erasing a small rally triggered by minutes
Shree Renuka 74.40 70.70 -4.97 of the Federal Reserve’s latest meeting. The Dow
Sug Jones Industrial Average, which had traded as high as
KGN Inds 60.00 57.05 -4.92
Whirlpool 264.25 251.70 -4.75 12,570.58 during the day, fell 58.88 points, or 0.5%,
to close at a session low of 12,446.88, its lowest close
since June 30. US stocks had made a brief spurt higher
after minutes from the Federal Reserve’s latest
meeting showed a minority of members supported
providing extra stimulus to the economy.
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