1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, July 6, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 4 July 5 Change (%) • Indian markets ended a sluggish session in the
Sensex 18,814.48 18,744.56 -0.37%
negative note yesterday as investors remained on
sidelines after the rally last week. Investors also
CNX Nifty 5,650.50 5,632.10 -0.33%
booked profit after a revival of foreign interest
BSE Mid-cap 6,965.34 6,958.91 -0.09% triggered the recent sharp rally, Lack of cues from
BSE IT 6,160.79 6,183.36 0.37% global markets also dampened investor’s sentiment.
BSE Banks 12,993.55 13,036.43 0.33% The markets are likely to take a breather for next few
sessions as investors would take cues from quarterly
FII Activity (`Cr) results and macro economic factors for direction. The
Date Buy Sell Net downward movement was mainly led by selling
4-Jul 2839 1654 1185 pressure in oil & gas, FMCG, real estate and power
stocks while auto, IT, banks and consumer durables
1-Jul 8003 5326 2677
stocks witnessed some buying activities which gave
Total July 10842 6980 6543
some support to the markets. Real estate stocks fell
2011 YTD 337591 332407 5184 on worries that higher interest rates could dent
MF Activity (`Cr) demand for residential and commercial properties.
Reliance Industries extended losses in late session on
Date Buy Sell Net reports that government clearance for the $7.2bn
4-Jul 595 483 112 British Petroleum (BP) deal to acquire 30% stake in 23
1-Jul 572 600 -28 oil and gas blocks of Reliance may get delayed. BHEL
Total July 1167 1082 1286 also lost nearly 5% on worries that its follow-on public
offer (FPO) will be priced at a discount to the ruling
2011 YTD 69187 66249 3588
market price.
Volume & Advances / Declines • Market breadth was strong at ~1.14x as investors
NSE BSE bought small and mid cap stocks. FIIs bought equities
Trading Volume (`Cr) 10,752 2,846 worth `8.25bn while domestic institutions sold equities
of `8.98bn.
Advances 717 1,497
Declines 732 1,317 • Asian markets are weak today as the stocks witnessed
profit booking and broad based selling. The Nikkei is
Unchanged 61 145
moderately up today while the Hang Seng is down on
Total 1,510 2,959 account of selling in the Chinese banks and blue-chip
Global Markets shares.
Index Latest Values Change (%) • We expect a flat opening for the Indian markets today
following the directionless Asian markets. Investors
DJIA 12,569.87 -0.1%
indicated a profit taking over last 2 days. Negative
NASDAQ 2,852.77 0.3% developments with Reliance Industries have created a
Nikkei * 9,988.83 0.2% strong hindrance for the markets to go up.
Hang Seng * 22,654.99 -0.4% Economic and Corporate Developments
* as of 8.45AM IST • Banks with investments in excess of 10% of their net
Currencies / Commodities Snapshot worth in liquid and short-term debt schemes will get
Latest Previous six months to bring exposure in line with the ceiling.
Quote Close The Reserve Bank of India (RBI) has capped exposure
Indian Rupee per $ 44.34 44.44 to these schemes at 10% of net worth.
Indian Rupee per € 64.08 64.30 • The government is planning to cap sale of subsidised
NYMEX Crude Oil($/bbl) 97.15 96.89
cooking gas (liquefied petroleum gas) cylinders to
each household in a phased manner, while putting in a
Gold ($/oz) 1,513.80 1,512.70
mechanism for direct transfer of subsidy to the
Silver ($/oz) 35.31 35.48 intended beneficiaries.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group)
• Fertilisers manufacturer Coromandel International
Previous Current Change
Company Name signed an agreement with Qatar Fertiliser Company
Close (`) Price (`) (%)
(QAFCO) for supply of urea.
BF Utilities 704.65 769.25 9.17
MOIL 339.20 356.75 5.17 • Telecom tribunal TDSAT restrained Department of
Tata Comm 209.85 219.05 4.38 Telecommunications from enforcing `250Cr penalty
Castrol India 552.95 576.80 4.31 on it for alleged violation of rules with regard to five
Ashok Leyland 49.65 51.55 3.83 over-lapping licences of Spice Communications.
(BSE Mid-Cap) • Saregama India purchased 10% stake in Timbre
Previous Current Change Media Pvt Ltd, a company set up by ex-Worldspace
Company Name Satellite Radio employees, to bring back its genre-
Close(`) Price(`) (%)
CHOLAFIN 160.05 175.95 9.93 based programming through direct-to-home TV
BF Utilities 704.65 769.25 9.17 channels as well as mobile phone radio.
Greaves Cotton 88.00 94.50 7.39 • Varun Industries has discovered 10 blocks of world
Blue Dart 1502.85 1610.50 7.16 class ilmenite and rare earth deposit in Madagascar
Tube Invest 142.55 148.85 4.42 with reserves of about 266.8mn tonnes.
TOP LOSERS • Maruti Suzuki plans to shift t its production of Maruti
Swift from Manesar due to labour conflict to its
(BSE A-Group)
Gurgaon facility.
Previous Current Change
Company Name • HPCL will import more crude volumes in August if
Close(`) Price(`) (%)
Uco Bank 97.85 93.00 -4.96 Saudi Arabia has extra to offer because during the
BHEL 2045.70 1953.80 -4.49 rains its consumption goes up at the Mumbai
Nestle India 4435.20 4283.70 -3.42 refinery as it gives a higher volume of fuel oil.
Zee Entert 131.80 127.65 -3.15 US markets
Cairn India 323.85 314.30 -2.95
After range-bound trades, seeking directions, US
(BSE Mid-Cap) stocks retreated with 2 out of 3 major indices closed
Previous Current Change negative. The Dow Jones Industrial Average closed
Company Name
Close(`) Price(`) (%) down 12.90 points, or 0.1%, at 12,596.87, with 20 of
TTK Prestige 2926.30 2778.00 -5.07 its 30 components losing ground. The Standard &
Uco Bank 97.85 93.00 -4.96 Poor’s 500 Index lost 1.79 points, or 0.1%, to close
KGN Inds 67.65 64.30 -4.95 at 1,337.88, with the energy sector doing the best
Hindusthan Nat 207.50 199.05 -4.07 among its 10 industry groups and financials faring
Wabco TVS India 1100.95 1066.45 -3.13 most poorly. The Nasdaq Composite Index gained
9.74 points, or 0.4%, to close at 2,825.77.
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