- The Indian markets snapped a three-day losing streak and closed higher, helped by stronger-than-expected Chinese economic growth data. - Most sectoral indices closed positive except for IT, with consumer durable, oil & gas, real estate and auto stocks being major gainers. - Asian markets are mostly lower today due to ongoing US debt issues and potential credit rating downgrades. The Indian markets are expected to have a weak opening amid negative Asian cues.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Thursday, July 14, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 12 July 13 Change (%) • Indian markets snapped three day losing streak and
Sensex 18,411.62 18,596.02 1.00% closed on positive note yesterday as world markets
CNX Nifty 5,526.15 5,585.45 1.07% gained on stronger-than-expected Chinese Q2 June
BSE Mid-cap 6,898.36 6,988.30 1.30% 2011 GDP data. The latest data showing a strong 9.5%
BSE IT 5,925.11 5,922.33 -0.05% expansion of the Chinese economy in Q2 June 2011
BSE Banks 12,608.40 12,746.35 1.09% helped offset euro-zone debt worries triggered by
Moody's Investors Service downgrading Ireland to junk
FII Activity (`Cr)
status. Except IT, all sectoral indices closed positive
Date Buy Sell Net with consumer durable, oil & gas, real estate and auto
12-Jul 395 439 -44 stocks were major gainers. Sugar stocks were in
11-Jul 275 320 -45 demand after world sugar prices shot up. Shree
Total July 3961 4045 1117 Renuka Sugar, Dhampur Sugar and Balrampur Chini
2011 YTD 71981 69212 3419 rose 3.7% to 4%. Glenmark Pharma gained 3.5% after
its US generics unit received the Food and Drug
MF Activity (`Cr)
Administration's approval for ursodiol tablets used to
Date Buy Sell Net treat swelling of the bile ducts. CEAT Tyre also gained
11-Jul 275 320 -45 after it recently raised prices of tyres by 2% to 2.5%
8-Jul 537 785 -248 across categories and said margins are likely to
Total July 3566 3606 1161 improve from Q2 September 2011 due to a fall in
2011 YTD 71586 68773 3463 prices of rubber, a key raw material.
Volume & Advances / Declines • Market breadth was strong at ~1.84x as investors
bought large cap stocks. FIIs bought equities worth
NSE BSE
`3.16bn while domestic institutions sold equities of
Trading Volume (`Cr) 9,775 2,578
`3.69bn.
Advances 1,050 1,859
Declines 385 1,012 • Asian markets are mostly negative due to ongoing US
Unchanged 80 139
debt issues and possible ratings downgrade. Both the
Nikkei and the Hang Seng declined today.
Total 1,515 3,010
• We expect a weak opening for the Indian markets
Global Markets
amid negative cues from the Asian markets. Markets
Index Latest Values Change (%) may also react to the food inflation data
DJIA 12,491.61 0.4% announcement today. Some volatile trades may be
NASDAQ 2,796.92 0.5% expected from the IT sector ahead of TCS earnings.
Nikkei * 9,926.74 -0.4%
Key events today
Hang Seng * 21,859.84 -0.3%
• Announcement of food and fuel price inflation data
* as of 8.45AM IST
Currencies / Commodities Snapshot Economic and Corporate Developments
Latest Previous • After reviewing the causes of slowdown in industrial
Quote Close growth with the corporate leaders, Commerce and
Indian Rupee per $ 44.43 44.53 Industry Minister Anand Sharma said a Cabinet note
Indian Rupee per € 63.20 62.65 on the proposed policy to boost manufacturing will be
NYMEX Crude Oil($/bbl) 98.07 98.05 circulated soon.
Gold ($/oz) 1,586.30 1,585.50 • The Committee of Secretaries will meet on July 22 to
Silver ($/oz) 38.27 37.87 finalise a blue print on allowing foreign investment in
the multi-brand retail sector for political clearance.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group)
• ONGC set to start production at two offshore fields
Previous Current Change
Company Name this year to maintain output from deposits &
Close (`) Price (`) (%)
production from North Tapti gas deposits to begin
Indiabulls Re Est 113.20 120.00 6.01
after monsoon.
Sintex Inds 171.60 181.20 5.59
United Phos 150.20 157.65 4.96 • West Bengal government to acquire stake in the
IRB Infra 170.10 178.20 4.76 Coal India & NMDC’s coal to oil project in Bengal.
Bharat Forge 321.85 336.55 4.57 • PFC plans to disburse loans for Rs35,000Cr in the
(BSE Mid-Cap) current fiscal, also in talks with Nuclear Power Corp
Previous Current Change for lending Rs12,000Cr to setup two nuclear plants.
Company Name
Close(`) Price(`) (%)
• TVS Motor to shift its two-third base from Chennai to
BAJFINANCE 628.80 686.05 9.10
China due to rigid labour laws, rising interest costs &
Indiabulls Re Est 113.20 120.00 6.01
withdrawal of key export benefit scheme.
Sintex Inds 171.60 181.20 5.59
Arvind 81.30 85.65 5.35 • Bajaj Finance to launch a share sale to qualified
institutions to raise around Rs360Cr for Q2.
JM Financial 21.75 22.90 5.29
• Technocraft Industries to hive off its cotton yarn
TOP LOSERS division valued at around Rs220Cr.
(BSE A-Group) • ONGC further postponed its FPO plans to sell 5%
Previous Current Change stake and is unlikely to hit the market before mid-
Company Name
Close(`) Price(`) (%)
August.
SKS Microfinance 587.60 528.85 -10.00
Motherson Sumi 239.35 230.95 -3.51 • Allahabad Bank to raise $500mn in medium-term to
fund its Hong Kong business.
Marico 167.15 164.00 -1.88
Unitech 33.15 32.65 -1.51 US markets
United Brew 502.70 495.30 -1.47
US markets lost early shine by end of the day but
(BSE Mid-Cap) close higher Wednesday, helped by expectations the
Previous Current Change Federal Reserve could again step in to support the
Company Name
Close(`) Price(`) (%) economy. The major indexes started the day with
SKS Microfinance 587.60 528.85 -10.00 gains after China reported a slight scaling back in
Motherson Sumi 239.35 230.95 -3.51 economic growth, and rallied after Federal Reserve
GODREJ PROP 813.15 792.40 -2.55 Chairman Ben Bernanke said the central bank would
AIA Engineering 377.70 370.00 -2.04 consider additional stimulus. The Dow Jones
Marico 167.15 164.00 -1.88 Industrial Average at one point was up by triple
digits, only to shed most of that advance by the
close.
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