- The Indian markets snapped two days of gains, ending lower on Friday as investors remained on the sidelines in the absence of positive global cues. Key indices like the Sensex and Nifty fell by around 0.3%. - Metals and FMCG stocks declined, while IT and power stocks saw some buying. Asian markets opened higher on Monday following the positive close of US markets on Friday. - The markets are awaiting quarterly earnings results and the upcoming RBI policy meeting later this month for direction, while continued concerns in global markets may limit further upside.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, July 18, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 14 July 15 Change (%) • Indian markets snapped gains in the preceding two
Sensex 18,618.20 18,561.92 -0.30% trading sessions and ended a choppy session in the
CNX Nifty 5,599.80 5,581.10 -0.33% negative note on Friday as investors chose to remain
BSE Mid-cap 7,014.58 7,006.75 -0.11%
on sidelines in absence of positive cues from global
markets. The markets is waiting for quarterly earnings
BSE IT 5,835.19 5,856.64 0.37%
results, RBI policy in last week of July, clarity on
BSE Banks 12,879.34 12,846.94 -0.25%
European debt crisis, etc for getting direction on either
FII Activity (`Cr) side. The downward movement was mainly led by
Date Buy Sell Net selling pressure in metal, auto, real estate and FMCG
14-Jul 2405 2067 338
stocks while IT, power and capital goods stocks
witnessed some buying activities which gave some
13-Jul 2558 2408 150
support to the markets. Metal stocks declined as metal
Total July 29901 23426 9156
prices fell on the London Metal Exchange. FMCG
2011 YTD 356650 348853 7797
stocks fell on profit taking. Dabur India, Hindustan
MF Activity (`Cr) Unilever, ITC, United Spirits and Marico shed by
Date Buy Sell Net
between 0.09-2.7%. TCS gained after its CEO and MD
said that TCS continues to see steady demand flow for
14-Jul 1010 467 543
its services. Granules India rose 3.6% after the
13-Jul 464 523 -59
company said it would create a strategic joint venture
Total July 5435 5035 1601 with Ajinomoto Omnichem in India.
2011 YTD 73455 70202 3903
• Market breadth was marginally weak at ~0.94x as
Volume & Advances / Declines investors sold large cap stocks. FIIs bought equities
NSE BSE worth `73.03Cr while domestic institutions sold
equities of `39.14Cr.
Trading Volume (`Cr) 8,816 2,098
Advances 622 1,384 • Asian markets are mostly up today after the positive
Declines 816 1,472 close of the US markets on Friday. The markets
ignored the results of stress test of European banks
Unchanged 69 135
and showed a moderate upside. Japanese markets are
Total 1,507 2,991
closed for holiday while the Hang Seng is up by half a
Global Markets percentage.
Index Latest Values Change (%) • We expect a positive start for the Indian markets
DJIA 12,479.73 0.3% today following the cues from the Asian markets.
NASDAQ 2,789.80 1.0% However, continuous concerns in the global markets
Nikkei * 9,974.47 0.4% may not allow markets to stay on higher sides. The
Hang Seng * 21,993.82 0.5% weakness is indicated from the FII buying the cash
segment still the markets are not closing positive.
* as of 8.45AM IST
Currencies / Commodities Snapshot Economic and Corporate Developments
Latest Previous • PSU Oil companies up ATF prices by `78/kl effective
Quote Close Saturday.
Indian Rupee per $ 44.38 44.52 • India produced a record 241mn tonnes of foodgrain in
Indian Rupee per € 62.45 63.01 the agricultural year 2010-11 according to the Fourth
NYMEX Crude Oil($/bbl) 97.19 97.24 Advanced Estimates on crop production for the year,
Gold ($/oz) 1,593.40 1,590.10 compared to an earlier estimate of 236mn tonnes, on
Silver ($/oz) 39.63 39.27 the back of good wheat, maize and pulses output.
Oilseeds output, too was record.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Venky's to expand with estimated cost of `107Cr to
Previous Current Change increase poultry capacity to be funded by loans.
Company Name
Close (`) Price (`) (%)
• Modi Rubber has completed selling its entire
SKS Microfinance 476.00 523.60 10.00
shareholding in Modi tyres to Continental group for
MOIL 350.95 364.90 3.97
`117Cr.
JUBL FOOD 864.40 897.50 3.83
Jet Air India 489.40 506.15 3.42 • GMR achieves financial closure for its 800MW project
Torrent Power 243.10 251.40 3.41 in Singapore called Island Power.
(BSE Mid-Cap) • Orient Green Power places `650Cr order with Suzlon
Energy for over 100 MW of Wind Power Project.
Previous Current Change
Company Name • DoT opposes Tata Communications move to hike
Close(`) Price(`) (%)
SKS Microfinance 476.00 523.60 10.00 public holding and wants the company to first focus
Amara Raja 237.10 250.35 5.59 on dispute of company hiving off surplus land.
A2Z Maint & Eng 256.80 268.75 4.65 • Piramal Life 3-year old partnership with DBT into
Shree Global Trd 316.00 330.35 4.54 drug discovery enters into 2nd phase with around
MOIL 350.95 364.90 3.97 14000 bio active cultures discovered from bio
diverse habitat across the country.
TOP LOSERS • Bajaj Auto offering freebies on two-wheeler almost
(BSE A-Group) after a gap of four years with cash benefits and
Previous Current Change lower interest rates to get some traction on sales.
Company Name
Close(`) Price(`) (%)
• BPL is gearing up for a major revamp of its product
Oracle Fin 2292.05 2204.30 -3.83
portfolio to treble its turnover to `1,000Cr in the next
Zee Entert 127.65 123.55 -3.21 three years.
Shre Renuka Sug 73.45 71.25 -3.00
• RBI has directed Axis bank to revise the accounting
Bajaj Holdings 772.40 750.30 -2.86
scheme and the deal structure with Enam Securities’
Gujarat State Pet 96.10 93.50 -2.71
due to the tax baffle of the bank.
(BSE Mid-Cap)
US markets
Previous Current Change
Company Name Google's better than expected quarterly results led
Close(`) Price(`) (%)
Anant Raj Inds 89.30 83.90 -6.05
the Nasdaq higher on Friday but rising uncertainty
about the government's ability to reach a debt-
Shre Renuka Sug 73.45 71.25 -3.00
reduction deal may keep investors risk averse. The
Bajaj Holdings 772.40 750.30 -2.86
Dow Jones industrial average rose 42.61 points, or
JM Financial 23.05 22.40 -2.82
0.34%, to end at 12,479.73. The Standard & Poor's
Glodyne Tech 319.80 310.95 -2.77
500 Index gained 7.27 points, or 0.56%, to finish at
1,316.14. The Nasdaq Composite Index advanced
27.13 points, or 0.98%, to close at 2,789.80.
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