- Indian markets ended flat on Thursday as weakness in European markets weighed on sentiments, but rebounded from early losses. - Headline inflation rose to 9.44% in June driven by fuel and food prices. The meeting of the GoM on coal sector reforms was postponed. - Asian stocks are trading flat ahead of the release of stress test results on 90 European banks, which may provide unsettling details. The Indian market is expected to have a flat opening, tracking Asian cues.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, July 15, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 13 July 14 Change (%) • Indian markets ended on the flat note yesterday as
Sensex 18,596.02 18,618.20 0.12%
weakness in European markets weighed sentiments.
Markets rebounded from an early loss after a slower-
CNX Nifty 5,585.45 5,599.80 0.26%
than-expected rise in inflation calmed nerves caused
BSE Mid-cap 6,988.30 7,014.58 0.38% by weak global markets and bomb blasts in Mumbai.
BSE IT 5,922.33 5,835.19 -1.47% However, it pared all its gains in last trading hour as
BSE Banks 12,746.35 12,879.34 1.04% euro-zone debt worries resurfaced and after Moody's
warned that the United States may lose its top credit
FII Activity (`Cr) rating. The upward movement was mainly led by gain
Date Buy Sell Net in real estate, banks, pharma and metal stocks while
13-Jul 2558 2408 150 IT, FMCG, oil & gas and power stocks led the markets
to close on flat note. Interest rate sensitive banking
12-Jul 1401 2319 -918
and real estate stocks rose after Chief Economic
Total July 27496 21359 8818
Adviser said that WPI based inflation rate may ease to
2011 YTD 354245 346786 7459 a little above 6% by March 2012. Metal shares
MF Activity (`Cr) extended previous day’s gains triggered by strong
macroeconomic data in China. PFC, REC, Power
Date Buy Sell Net Transmission and PTC India rose between 5.8-10%
13-Jul 464 523 -59 after a conference of state power ministers decided to
12-Jul 395 439 -44 reverse a mismatch between tariff and cost.
Total July 4425 4568 1058 • Market breadth was strong at ~1.31x as investors
2011 YTD 72445 69735 3360
bought large cap stocks. Both the FIIs and domestic
institutions bought equities worth `2.11bn and
Volume & Advances / Declines `5.17bn respectively.
NSE BSE • Asian stocks trading flat today showing caution ahead
Trading Volume (`Cr) 11,735 2,782 of publishing stress results of 90 banks. European
Advances 854 1,590 regulators will release potentially unsettling details on
the finances of 90 banks today to increase
Declines 587 1,219
transparency and convince markets that the financial
Unchanged 62 156 system could withstand big shocks, such as a Greek
Total 1,503 2,965 debt default.
Global Markets • We expect a flat opening for the Indian markets
tracking cues from the Asian markets. Indian markets
Index Latest Values Change (%)
may also keep a cautious momentum before the
DJIA 12,437.12 -0.4% release of stress test results. TCS results which were
NASDAQ 2,762.67 -1.2% better than expected may give some positive
Nikkei * 9,955.57 0.2% momentum for the IT stocks.
Hang Seng * 21,922.34 -0.1% Economic and Corporate Developments
* as of 8.45AM IST • Headline inflation rose to 9.44% in June on the back of
Currencies / Commodities Snapshot rising prices of fuel and manufactured products. The
index for the fuel and power segment stood at 12.85%
Latest Previous
year-on-year in June. This was up from 12.32% in the
Quote Close
previous month. Food inflation rose to 8.31% for the
Indian Rupee per $ 44.40 44.50
week ended July 2 against 7.61% in previous week on
Indian Rupee per € 62.97 63.15 the back of soaring prices of protein-based items,
NYMEX Crude Oil($/bbl) 96.32 95.69 cereals and vegetables.
Gold ($/oz) 1,584.80 1,589.30 • The meeting of the Group of Ministers (GoM) to
Silver ($/oz) 38.23 38.19 evolve a consensus on opening up coal sector for
commercial mining has been postponed.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Future Ventures has made an additional acquisition
Previous Current Change of 5.1% stake in its subsidiary company Indus
Company Name
Close (`) Price (`) (%) League clothing
Power Finance 194.40 213.20 9.67 • Shipping Corp signs shipbuilding contract with China
REC 205.10 220.20 7.36 Company
Sun TV Network 313.85 332.05 5.80 • Cranes Software in loggerheads with offshore
IRB Infra 178.20 187.40 5.16 investors holding FCCB’s with Bank of New York
Unitech 32.65 33.95 3.98 Mellon begins proceedings on behalf of the selected
investors
(BSE Mid-Cap)
• GVK ’s plan to run Bangalore International Airport
Previous Current Change
Company Name hits hurdles as its current stakeholder Siemens is
Close(`) Price(`) (%)
Spicejet 35.25 38.00 7.80 scouting for other buyers after a disagreement over
valuation with the company
PTC India 77.35 81.95 5.95
Supreme Inds 192.35 202.95 5.51 • Bharti Airtel to provide an exit option for its minority
JV partner Telecom Consultants of India currently
CHOLAFIN 165.35 174.00 5.23
holding 30% in the JV NTPC not to go ahead with its
IRB Infra 178.20 187.40 5.16
1320 mw plant Bengal project with an investment of
at least Rs8000Cr
TOP LOSERS
• Fineotex Chemicals incorporated its wholly-owned
(BSE A-Group) subsidiary in Malaysia to carry on its business in that
Previous Current Change region, currently manufacturing in Navi Mumbai.
Company Name
Close(`) Price(`) (%)
• J&K Bank signed a pact with Bengal Tools (BTL), part
SKS Microfinance 528.85 476.00 -9.99 of Shrachi group engaged in the manufacture of
Gujarat State Pet 101.55 96.10 -5.37 power tillers, reapers and power weeders, to boost
United Phos 157.65 154.00 -2.32 farm mechanisation.
TCS 1150.90 1125.25 -2.23 • Hero Group paid Rs811Cr in two instalments as
Marico 164.60 161.15 -2.10 capital gains tax for buying out erstwhile partner
Honda from their joint venture Hero Honda.
(BSE Mid-Cap)
US markets
Previous Current Change
Company Name
Close(`) Price(`) (%) US markets declined Thursday after Federal Reserve
SKS Microfinance 528.85 476.00 -9.99 Chairman Ben Bernanke said the central bank was
Gujarat State Pet 101.55 96.10 -5.37 not ready to take immediate action to further bolster
Godfrey Phil 3014.00 2900.00 -3.78
the economy. The retreat wiped out the prior
session’s gains, when some investors took
Himadri Chem 48.25 46.70 -3.21
Bernanke’s first day of testimony to Congress as a
KGN Inds 58.30 56.55 -3.00 signal the Fed was getting ready to roll out more
extraordinary stimulus, known as quantitative
easing. The Dow Jones Industrial Average DJIA closed
down 54.49 points, or 0.4%, at 12,437.12. Alcoa Inc.
and DuPont led drops in 23 out of 30 Dow
components. The S&P 500 Index declined 8.85
points, or 0.7%, at 1,308.87, with industrials leading
declines among all 10 industry subsectors.
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