- Indian markets extended losses from the previous week and ended in the negative territory due to concerns about Europe's sovereign debt crisis and a political standoff in the US over raising the debt ceiling. - Key indices like the Sensex and Nifty fell by around 0.3% while midcap stocks rose slightly. Selling pressure was seen in sectors like auto, IT, pharma and oil & gas. - Asian markets also traded lower due to worries about the US and European debt problems weighing on companies with global exposure. The Indian markets are expected to have a weak opening following cues from Asia.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, July 19, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 15 July 18 Change (%) • Indian markets extended the previous week's losses
Sensex 18,561.92 18,507.04 -0.30% and ended a lackluster session in the negative note
CNX Nifty 5,581.10 5,567.05 -0.25% yesterday tracking a fall in global markets as concerns
BSE Mid-cap 7,006.75 7,022.25 0.22%
of Europe's sovereign-debt worries and amid a political
standoff in the US over raising the US government's
BSE IT 5,856.64 5,809.46 -0.81%
debt limit hurt market sentiments. The downward
BSE Banks 12,846.94 12,845.21 -0.01%
movement was mainly led by selling pressure in auto,
FII Activity (`Cr) IT, pharma and oil & gas stocks while real estate,
Date Buy Sell Net consumer durable, metal and power stocks witnessed
15-Jul 1657 1512 145
some buying activities which gave some support to
the markets. Concerns over the global economy
14-Jul 2405 2067 338
weighed on the outlook for outsourcing firms. The BSE
Total July 31558 24938 9301
IT index shed a further 0.8%, after falling more than
2011 YTD 358307 350365 7942
5% last week. While most of the auto stocks fell on
MF Activity (`Cr) concerns that higher interest rates could crimp sales
Date Buy Sell Net
of automobiles. Hexaware Technologies gained ~5%
after the company signed a contract with a US-based
15-Jul 282 361 -79
client, in a deal that could help it earn $177mn over
14-Jul 1010 467 543
five years.
Total July 5717 5396 1522
• Market breadth was however strong at ~1.17x as
2011 YTD 73737 70563 3824
investors bought small and mid cap stocks. FIIs sold
Volume & Advances / Declines equities worth `93.01Cr while domestic institutions
NSE BSE bought equities of `1.63bn.
Trading Volume (`Cr) 8,276 2,642 • Asian markets traded lower on Tuesday due to US and
Advances 766 1,546 European debt problems weighed on financials and
Declines 682 1,322 other companies with global exposure. Both the Nikkei
and the Hang Seng are down today.
Unchanged 66 144
Total 1,514 3,012 • We expect a weak opening for the Indian markets
today following the cues from the Asian markets. We
Global Markets
may see sell off from the FIIs in the cash segment due
Index Latest Values Change (%) to rising global debt worries.
DJIA 12,385.16 -0.8%
Economic and Corporate Developments
NASDAQ 2,765.11 -0.9%
• Select food items, fuel and housing grew more
Nikkei * 9,903.58 -0.7%
expensive in June, leading to an over 1.5% rise in the
Hang Seng * 21,731.09 -0.3%
Consumer Price Index (CPI) vis-a-vis the month of May
* as of 8.45AM IST to 108.8 points.
Currencies / Commodities Snapshot • Prime Minister Manmohan Singh is likely to convene a
Latest Previous meeting on July 27 with various ministries, including
Quote Close coal, power and environment, to assess their
Indian Rupee per $ 44.45 44.58 performance and sort out inter-ministerial differences
Indian Rupee per € 62.78 62.58 causing delay in execution of key projects.
NYMEX Crude Oil($/bbl) 96.23 95.93 • Iran warned India on Monday that it would stop
Gold ($/oz) 1,602.80 1,602.40 exporting oil from August 1 if a financial dispute over
Silver ($/oz) 40.18 40.55 payment was not resolved, according to media
sources.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • NTPC signs a MOU with govt. of Kerala to plan &
Previous Current Change develop around 200MW wind energy based power
Company Name
Close (`) Price (`) (%) projects in Kerala.
Tata Comm 204.60 215.10 5.13
• Compuage Infocom approves issue of 4.8lakh equity
Videocon Inds 190.15 198.50 4.39
shares at `146 per share on preferential basis to non
Godrej Inds 218.30 227.15 4.05
promoters.
Biocon 359.95 372.85 3.58
Sun TV Network 337.80 348.85 3.27 • Seamec gets $77mn order from ONGC.
(BSE Mid-Cap) • Steel Authority of India merged Maharashtra
Elektrosmelt with itself and plans to infuse around
Previous Current Change
Company Name Rs1,500Cr fresh capital in the ferro-alloys maker for
Close(`) Price(`) (%)
Himadri Chem 47.85 54.45 13.79
expanding its capacity and putting up a power plant.
Godfrey Phil 2955.85 3245.70 9.81 • NTPC will submit its final offer for a stake in
Sujana Towers 30.80 33.40 8.44 Bandanna Energy Ltd. on 29, July.
TTK Prestige 2794.65 3015.00 7.88 • GAIL plans to use its Singapore-based investment
Alstom Projects 574.15 606.55 5.64 arm making LNG sourcing cost-effective and also to
finance its projects in China and Myanmar.
TOP LOSERS • Lupin plans to sell the Indian medicines unit
(BSE A-Group) accounting for 32% of its current revenue may help
Previous Current Change finance investments in more profitable markets
Company Name
Close(`) Price(`) (%) overseas.
Shre Renuka Sug 71.25 69.80 -2.04
• Rolta has acquired the public safety and emergency
TCS 1148.05 1125.40 -1.97 response company ACLS Systems through complete
Tata Motors 1036.15 1016.05 -1.94 asset purchase.
Cipla 324.00 317.85 -1.90
US markets
OIL INDIA 1310.10 1285.70 -1.86
US markets declined overnight as investors worried
(BSE Mid-Cap)
about Europe’s debt crisis and the debate over lifting
Previous Current Change the US debt ceiling ahead of a big week for
Company Name
Close(`) Price(`) (%)
corporate results. The Dow Jones Industrial Average
KGN Inds 58.00 55.15 -4.91
fell 94.57 points, or 0.8%, to 12,385.16, with 29 of
Amtek Auto 159.70 154.05 -3.54 30 components ending lower. Uncertainty
GTL 88.95 86.15 -3.15 surrounding high government debt levels in Europe
Motilal Oswal 102.85 99.90 -2.87 and the US, and growing wariness about lawmakers’
Zydus Wellness 719.95 699.50 -2.84 ability to deal with them, has been pressuring
stocks.
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