- Indian markets ended flat on Friday as gains in software exporters were offset by declines in State Bank of India and Tata Motors after both disappointed with their quarterly earnings. - SBI fell 4.1% despite a second straight surge in quarterly net profit, after a bigger-than-expected rise in bad loans raised fears about its non-performing assets. - Asian stocks are weak today, following early weakness in Asian markets and worries that economic growth is falling but inflation is still high.

1.
India Morning Note
a g
Mond
day, August 13, 2012
t
Dom
mestic Mark
kets Snapsh
hot Views on markets t
today
Nam of Index
me Aug 9 Aug 10 Change (%)
) • India markets ended flat on Frid
an s day as gains in
Sensex 17,560.87 17,557.74 -0.02% softwware servic exporters such as Infosys on hopes
ce s
for a revival in demand were offse by declin
n et nes in
CNX Nifty
X 5,322.95 5,320.40 -0.05%
State Bank of India and Tata Mo
e f d otors after both
BSE Mid-cap 6,098.12 6,099.61 0.02%
disappointed with their qu uarterly earnings. Sent timent
BSE IT 5,469.36 5,542.33 1.33% also weakened as Asian shares snapped a fou ur-day
BSE Banks 11,991.62 11,889.48 -0.85% rally on Friday after Chin
y na's July tra
ade data fe far
ell
FII A
Activity (`Cr) shor of expect
rt tations, casting doubts on whethe the
s er
sputttering globbal econom will rega
my ain traction any
n
Date
e Buy Sell Net
time soon. Des
e spite the immprovement in deman fornd
09-A
Aug 2,231 1,914 317 risk assets eviddenced this week, deve elopments in the
08-A
Aug 2,759 1,620 1139 euro zone as w
o well as econ nomic indicaators from major
Tota Aug
al 14,591 10,725 3867 globbal economies will rem main near-term drivers for
2012 YTD 388,561 331,395 57167 India stocks. I
an Investors al
lso continue to wait fo the
e or
gove ernment to announce policy reforms after n newly-
MF A
Activity (`Cr)
appo ointed Finan
nce Minister on Monday promised fiscal
r
Date
e Buy Sell Net conssolidation steps and a review of tax regula
f ations
09-A
Aug 551 801 -250 that have prove unpopula with foreign investors.
ed ar
08-A
Aug 485 814 -329 • SBI 4.1%, despite a second
4 d-straight surge in qua
arterly
Tota Aug
al 3,177 3,691 -514 net profit, afte a bigger
er r-than-expec cted rise in bad
n
2012 YTD 75,146 83,474 -8328 loans raised fe ears about its non-pe erforming assets.
Even before the results we out, UBS downgrade SBI
n e ere S ed
Volu
ume & Adva
ances / Dec
clines
to "sell" from "buy", saying a weak monsoon would
NSE BSE add to its "alreeady high" non-perform ming loans, while
Trad
ding Volume (Cr) 53.08 16.71 expeecting marg gins to decline due to the rising cost of
t
Turn
nover (`Cr) 10,499 2,192 fund and the potential cuts in th lending rate.
ds e he
Advances 580 1,182 King
gfisher Airlin
nes dropped for a sixth consecutiv day
d ve
to a new record low, ending down 10.9% on %
Declines 898 1,577
expeectations th ailing carrier will re
he eport a big April-
Unchanged 88 129
June net loss lat in the da
e ter ay.
Tota
al 1,566 2,888
• Mark breadth was lower at ~0.75x as investors sold
ket
Glob Markets
bal large cap stoc
e cks. On pro
ovisional ba
asis, FIIs b
bought
Inde
ex Late Values
est Change (%)
) equity of `0.83bn while domestic institutions sold
s
DJIA
A 13,207.95 0.32% equity of `5.37b in cash segment.
bn
NAS
SDAQ 3,020.86 0.07% • Asian stocks ar weak tod
re day, after Japan's eco
J onomy
Nikk *
kei 8,892.61 0.01% grew an annua
w alized 1.4% in April-June, well below
%
Hang Seng * 20,113.44 -0.11%
forec
cast and co
ooling sharply from the previous qu
uarter
as yen headwinds weigh.
* as o 8.25AM IST
of
• We expect a w weak opening for the Indian ma
e arkets
Curr
rency Snapshot
todaay, following the early weaknes in the Asian
ss
Futu contract
ure Latest Previous markets and w worries tha the econ
at nomic grow
wth is
expire on 29/08/
/12 Quote Close
fallin but inflat
ng tion is still h
high.
Indian Rupee per $ 55.41 55.54
Indian Rupee per € 68.11 68.30
Econom and Cor
mic rporate Dev
velopments
s
Indian Rupee per P 86.75 86.71 • Fitch Ratings, which rece
h ently lowere India's credit
ed
outlo
ook to ne egative, has said tha possibili
at ity of
Indian Rupee per Y 70.70 70.59
downgrading th country's sovereign rating is more
he n
* NSE Exchange
E
than 50% in the next 12-24 months.
n e 4
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note Capitals Research
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omberg KNTE <GO>, Tho
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2.
TOP GAINERS Buzzin Stocks
ng
(BSE A-Group)
E • GMR Infra bo
R oard appro oves raising `2500Cr byr
Previous Currennt Change conssidering selling parts in road asset. The comp
n pany
Com
mpany Name
e
Close(`
`) Price(`
`) (%) is al set for C
lso Canada coal mining ven nture exit.
Jain Irrigation 79.65
5 83.65 5.02
• Coal India (CIL) board m
may appro
ove model FSA
Tech Mahindra
h 761.70
0 799.50 4.96 toda
ay.
Indr
raprastha Gas
s 240.20
0 251.85 4.85
• DLF sells 17.5 a
acre NTC land to Lodha developer for
a rs
Shre Cement
ee 3087.00
0 3199.00 3.63
`275
50Cr.
WEL
LCORP 99.55
5 103.00 3.47
• L&T plans to g
T get investor for infra projects as an
rs
(BSE Mid-Cap)
E alternate to a p
partner.
Previous Currennt Change • RIL Sells 25% stake in Yem
men oil block for $90mn
k n.
Com
mpany Name
e
Close(`
`) Price(`
`) (%)
Amt
tek Auto 86.05 95.95 11.50 • NMD to acqui 26% sta
DC ire ake in Brazilian iron or co
re
Amt
tek India 83.15 90.25 8.54 Amp
plus for arou
und $10-15m.
Jain Irrigation 79.65 83.65 5.02 • JSPL plans to begin pro
L oduction fro
om two of its
f
Indr
raprastha Gas
s 240.20 251.85 4.85 overseas coal m
mines in Ind
donesia and Mozambiqu
ue.
Ecle Serv
erx 748.05 784.00 4.81 • Sint
tex get no od to raise upto $2
e 225mn thro
ough
FCCCB's/GDRs/A
ADRs & `600 via NCD.
0Cr
TOP LOSERS
• IFC to pick up 5 in Jain Irrigation for `250Cr.
5%
(BSE A-Group)
E
• Deccan Chronicle promote pledge 28.71 % s
ers stake
Previous Currennt Change to IC
CICI Bank.
Com
mpany Name
e
Close(`
`) Price(`
`) (%)
JPINFRATEC 53.90
0 50.00
0 -7.24
• Ashoka Buildco may sell 35 % sta
on ake in its road
projects subsidiary for `800Cr.
SBI 1971.95
5 1887.95
5 -4.26
Pow Finance
wer 191.00
0 182.90
0 -4.24 • RBI rejects to restructure textile co
e ompanies b
bank
Ranbaxy Lab 501.80
0 483.30
0 -3.69 loan
n.
GMR Infra
R 22.30
0 21.55
5 -3.36 • Goeenka Diamo
ond board meets today to cons
sider
stoc split.
ck
(BSE Mid-Cap)
E
• Plethico Pharm board m
ma meets toda for issue of
ay e
Previous Currennt Change
Com
mpany Name
e convvertible war
rrants on pr
ref. basis.
Close(`
`) Price(`
`) (%)
Shre Global Trd
ee d 61.35 56.15 -8.48 • Rain Commodit
n ties board m
meets to app
prove buy b
back.
JPINFRATEC 53.90 50.00 -7.24 US markets
INDI
IAB POWER 12.70 11.98 -5.67
US stocks rallied t session h
to highs by the close of a low-
e
Glod
dyne Tech 138.15 131.25 -4.99
volume trading se
e ession Friday after earl weakness but
y, ly s
BEM
ML 301.00 287.55 -4.47
reboun
nded on ex xpectations for more global cen ntral-
bank stimulus.
Keyn
note Capitals Research
h (resea
arch@keyno
otecapitals.net) (+912
22-3026600
00)

3.
India and Globa Economic Calendar
a al c
Countries / Mon
nday Tuesday Wed
dnesday Friday
Reg
gions 13-
-Aug 14
4-Aug 15-Aug 17-Aug
1
Ind
dia WPI Inflat
tion for July Forex Reserves Data
R
2012
Bank Lo
oan Growth
US Producer Price Index
x Consumer Price Leading Indicator
g
(MoM) an (YoY)
nd Index (MoM)
Retail Sales (MoM) Industria Production
al Reuters Michigan
s/
and (YoY) (MOM) Consummer
Sentime Index
ent
Business Inventories
s
Glo
obal UK's RICS Housing UK's Conssumer Price
e UK bank minutes
k
Price Balance Index (MooM) and and ume
employment
(YoY) rate
Germany's Eurozone Gross
e's
Wholesale Price
e Domestic Product
c
Index (MoM) and s.a. (QoQ and (YoY)
Q)
(YoY)
Germany ZEW
y's
Survey - Economic
Sentimennt
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m
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