- The Indian markets dropped sharply yesterday, closing lower as investors worried about slowing economic growth after reports suggested a sharp decline in industrial production for October. - All sectoral indices closed in negative territory led by capital goods, real estate, metals and power stocks. FIIs were net buyers of stocks worth 0.26 billion rupees. - Asian markets opened lower tracking declines in the US and concerns from the ECB about supporting troubled European economies. The Indian markets are expected to open lower but declines may be limited due to falling inflation in India and China.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, December 9, 2011
Domestic Markets Snapshot Views on markets today
• Indian markets dropped sharply and closed on
Name of Index Dec 7 Dec 8 Change (%) negative note yesterday bucking the overall trend of
Sensex 16,877.06 16488.24 -2.30% global equities, as investors worried about the
CNX Nifty 5,062.60 4,943.65 -2.35% slowdown in the Indian economy after news reports
BSE Mid-cap 5,771.80 5,669.70 -1.77% suggest that industrial production data for October
2011 will be shrank sharply to 7%. Investors kept
BSE IT 5,808.75 5,782.01 -0.46%
selling shares in spite of softening food prices and
BSE Banks 10,552.51 10,266.84 -2.71% sharp gains in the European markets. Food inflation
FII Activity (`Cr) sharply eased to 6.60% for the week ended November
26 as against 8.0% in the previous week. Brokerage
Date Buy Sell Net CLSA also lowered its 12-month target for the
7-Dec 2,842 2,763 79 benchmark Sensex to 17,000 from 18,200, citing
5-Dec 1,513 1,301 212 earnings cuts for the current fiscal year ending March
Total Dec 9,364 7,456 1908 and the next year. All sectoral indices closed on
negative note with capital goods, real estate, metal
2011 YTD 577,809 578,846 -1037
and power stocks were major losers. Capital goods
MF Activity (`Cr) index fall ~4.4% after Barclays Capital said the sector
was undergoing a cyclical deceleration in orders and
Date Buy Sell Net
earnings. Auto stocks were major losers after an
5-Dec 271 186 85
industry body said they may just break even this year
2-Dec 548 386 163 and warned it would cut its sales outlook on the back
Total Dec 1370 1365 5 of rising finance costs and increasing prices. Crompton
2011 YTD 123,595 118,144 5452 Greaves fell 3.6% after Morgan Stanley started
coverage on the stock with an "underweight" rating
Volume & Advances / Declines and said it expects the firm's earnings to be under
NSE BSE pressure for the next 12-18 months.
Trading Volume (`Cr) 10,010 1,995 • Market breadth was week at ~0.44x as investors sold
large cap stocks. FIIs bought equities worth `0.26bn
Advances 333 842
while domestic institutions sold equities of `1.97bn.
Declines 1,151 1,910
• Asian markets are down tracking the US markets, after
Unchanged 53 116 European Central Bank hinted that it is not willing to
Total 1,537 2,868 purchase European bonds to ease liquidity.
• We expect Indian markets to open lower today
Global Markets
following the Asian markets. However, the slide may
Index Latest Values Change (%) be limited, as a sharp decline in India as well as
DJIA 11,997.70 -1.6% China's inflation. The investors are waiting for
NASDAQ 2,596.38 -2.0% production and price data early next week.
Nikkei * 8,541.69 -1.4%
Economic and Corporate Developments
• Food inflation fell sharply to 6.60% for the week ended
Hang Seng * 18,753.61 -1.9%
November 26, reflecting a decline in prices of essential
* as of 8.25AM IST items like vegetables, onions, potatoes and wheat.
Currencies / Commodities Snapshot Fuel Inflation remained at 15.53%.
• Ratings agency Crisil lowered its growth forecast for
Latest Previous
Quote Close the Indian economy in 2011-12 to 7%, from the earlier
Indian Rupee per $ 51.70 51.76
estimate of 7.6%, due to global slowdown and weak
domestic investment climate.
Indian Rupee per € 68.93 69.07
• The European Central Bank cut interest rates by a
NYMEX Crude Oil($/bbl) 98.08 98.34 quarter of a point to counter the twin threats of
Gold ($/oz) 1,711.90 1,709.80 recession and deflation in the Eurozone, and is
Silver ($/oz) 31.79 31.48 expected to unveil fresh measures to help banks hurt
by the bloc's debt crisis.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • The Kerala State Industrial Development Corporation
Previous Current Change (KSIDC) and GAIL Gas Limited (GGL) have set up a
Company Name joint venture —Kerala GAIL Gas Limited — to
Close (`) Price (`) (%)
United Brew 434.25 474.80 9.34 implement supplementary gas infrastructure in the
UTV Software 950.90 979.85 3.04 state.
Wipro 403.75 413.25 2.35 • Britannia Industries, India’s largest biscuits and
United Phos 132.85 135.95 2.33 Bakery Company, is understood to have finally
Piramal Health 368.40 376.95 2.32 decided to unlock value at its sprawling
headquarters property in Bangalore.
(BSE Mid-Cap)
• The corporate headquarters, christened Britannia
Previous Current Change
Company Name Gardens, sprawls over nearly seven acres on the Old
Close(`) Price(`) (%)
SKS Microfinance 112.95 118.55 4.96 Airport Road, leading on to Whitefield, one of the
VAARAD 33.85 35.50 4.87 major technology hubs towards the east of
Bangalore.
Bombay Rayon 225.20 234.10 3.95
SREI Infra 27.40 28.30 3.28 • Nearly 15 months after first announcing the deal,
UTV Software 950.90 979.85 3.04 Vedanta Resources on Thursday announced the
completion of its acquisition of a controlling stake in
TOP LOSERS Cairn India. Vedanta has acquired 58.5% in Cairn
India for a total consideration of $8.67bn, the third-
(BSE A-Group)
largest acquisition ever by an Indian enterprise
Previous Current Change globally.
Company Name
Close(`) Price(`) (%)
• Dish TV, the country’s largest direct-to-home
GMR Infra 21.15 19.55 -7.57
television company, is reaching out to private equity
CESC 260.85 242.00 -7.23
and institutional investors for a fresh round of fund
Manap Gen Fin 58.35 54.20 -7.11
raising, which could turn out to be the highest in the
IB Real Est 56.55 52.60 -6.98
sector.
JSW ENERGY 46.75 43.75 -6.42
• The service tax commissioner's office here has
(BSE Mid-Cap) frozen bank accounts of both the airlines, Air India
Previous Current Change and Kingfisher Airlines for not depositing tax of
Company Name `220Cr they had collected from passengers and
Close(`) Price(`) (%)
VIP Inds 114.95 103.75 -9.74 clients.
NCC 42.05 38.70 -7.97 • Fortis Healthcare plans to invest up to `30Cr to set
CESC 260.85 242.00 -7.23 up 50 standalone dialysis centres across the country
GVK Power 11.54 10.71 -7.19 in the next two years for treatment of patients
Manap Gen Fin 58.35 54.20 -7.11 suffering from kidney failure.
US markets
US stocks declined sharply overnight, as the investors
worried that Germany opposed some measures in the
draft proposals for Eurozone debt resolution.
The Dow Jones Industrial Average fell 198.67 points, or
1.6%, to 11,997.70. The Standard & Poor’s 500 lost
26.66 points, or 2.1%, to 1,234.35. The Nasdaq
Composite declined 52.83 points, or 2%, to 2,596.38.
Keynote Capitals Institutional Research (research@keynoteindia.net) (+9122-30266000)

3. K E Y N O T E
INSTIT UT IONAL R ES EAR C H
India and Global Economic Calendar
Countries / Friday Monday Wednesday Thursday
Regions Dec. 9 Dec. 12 Dec. 14 Dec. 15
India Forex Reserves Data IIP Data Monthly Inflation Weekly Inflation Data
Weekly Supplement
of RBI
US International Trade Producer price index
Reuters/Michigan
Consumer Sentiment Current Account
Index
Net long term
treasury International
capital
Industrial production
Philadelphia Fed
Manufacturing Survey
Germany Trade Japan Industrial
Hungary- Industrial
Global Balance & Consumer Production data and
output
Price Manufacturing Index
UK Unemployment
UK Producer Price Switzerland-
Rate and Average
Input and Output Industrial production
Earning growth rate
Germany- Purchasing
UK Trade Balance &
Managers Index
Goods Trade Balance
Manufacturing
Canada International
Merchandise Trade &
Labour Productivity
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