1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, July 29, 2011
Domestic Markets Snapshot Views on markets today
Name of Index July 28 July 29 Change (%) • Indian markets ended 1.21% lower extending their
Sensex 18,432.25 18,209.52 -1.21% downfall for yet another day and closing the July F&O
CNX Nifty 5,546.80 5,487.75 -1.06% series on a very disappointing note. The mood was
somber since beginning, as the US markets plunged
BSE Mid-cap 7,024.48 6,962.95 -0.88%
overnight and under their impression the Asian
BSE IT 5,913.87 5,818.21 -1.62%
markets made a weak start. The trend of moderation
BSE Banks 12,562.56 12,382.41 -1.43%
in India’s food inflation has continued for yet another
FII Activity (`Cr) week, country’s food inflation, measured by the
Date Buy Sell Net wholesale price index (WPI), declined to its 20 month
low level at 7.33% for the week ended July 16 from
27-Jul 2797 2688 109
7.58% in last week. Asian markets continued their
26-Jul 2485 2527 -42
downfall and all the indices in the region barring Hang
Total July 49951 42339 10293
Seng finished the day’s trade in the negative terrain
2011 YTD 376700 367766 8934 on Thursday, amid rising worries that the US will not
MF Activity (`Cr) be able to resolve a deadlock in talks on raising its
debt ceiling, which could spur a credit downgrade or
Date Buy Sell Net
even a debt default. On the BSE Sectoral front, FMCG
27-Jul 490 645 -155
up 0.95% was the only gainer. On the flip side, Metal
26-Jul 418 623 -205
down 2.47%, Realty down 1.80%, Oil & Gas down
Total July 10129 9696 1634 1.63%, IT down 1.62% and Bankex down 1.43% were
2011 YTD 78149 74863 3936 the top losers. The Sensex gainers ITC (2.61%), BHEL
Volume & Advances / Declines (1.2%), Hero Honda (1.10) were where as losers were
JP Associates (-3.46), Rel Infra (-2.95%), Hindalco (-
NSE BSE
2.92%), Sterlite (-2.92%).
Trading Volume (`Cr) 15,018 2,810
• Market breadth was however weak at ~0.52x as
Advances 373 975
investors sold large cap stocks. Both the FIIs and
Declines 1,089 1,869
domestic institutions bought equities worth `64.66Cr
Unchanged 52 135 and `409.34Cr respectively.
Total 1,514 2,979
• Asian markets declined today after US debt impasse
Global Markets kept investors risk averse. Japanese shares also saw
Index Latest Values Change (%) disappointing corporate results led to a fall. Both the
DJIA 12,240.11 -0.5% Nikkei and the Hang Seng are down today.
NASDAQ 2,766.25 0.1% • We expect a weak opening for the Indian markets
Nikkei * 9,893.71 -0.1% today as the cues from the Asian markets are
Hang Seng * 22,361.57 -0.9% negative. Food inflation data has shown some relief as
food inflation eased to 29 month low of 7.33%.
* as of 8.45AM IST
However, Finance Minister of India was not convinced
Currencies / Commodities Snapshot and said, "These weekly figures fluctuate mainly on
Latest Previous the base (effect). Therefore, they do not show any
Quote Close definitive trend... there is still inflationary pressure (in
Indian Rupee per $ 43.95 44.06 the economy)”. We expect pressure to remain on the
Indian Rupee per € 62.95 63.00 markets.
NYMEX Crude Oil($/bbl) 97.00 97.44
Gold ($/oz) 1,617.00 1,613.40 Key events today
Silver ($/oz) 39.73 39.73 • Closing of IPO of L&T Finance Holdings Ltd.
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2. K E Y N O T E
Economic and CorporateSDevelopments L R E S E A R C H
IN TITUTIONA
• Food inflation rose 7.33% in the week ended July
TOP GAINERS
16. This was lower than the 7.58 per cent annual
(BSE A-Group) rise recorded in the previous week. Fuel inflation
Previous Current Change climbed 12.12% during the period, higher than
Company Name
Close (`) Price (`) (%) the 11.89% reported in the previous week.
Sun TV Network 318.10 339.50 6.73 • The Securities and Exchange Board of India
Mphasis 437.45 460.05 5.17 (SEBI) board has okayed the all-important
Glaxo Phar 2300.60 2379.45 3.43 Takeover Code. Recommendations of the
OIL INDIA 1257.40 1300.35 3.42 Takeover Regulations Advisory Committee
Jain Irrigation 170.40 176.05 3.32 (TRAC) have, by and large, been accepted,
chairman UK Sinha told the press. Mandatory
(BSE Mid-Cap) open offer size has been raised to 26% from 20%
Previous Current Change and the trigger point for buyout will now stand at
Company Name
Close(`) Price(`) (%) 25% from 15%. With this, companies will now
Nava Bhar Vent 213.00 236.80 11.17 need to make mandatory open offer for further
Hexaware Tech 82.05 87.25 6.34 26% stake after buying 25% in takeovers.
Himadri Chem 51.35 54.50 6.13
Arvind 87.15 90.30 3.61 Buzzing Stock
Wockhardt 436.95 451.65 3.36 • PNB has approved the offer of Metlife India for a
strategic partnership in insurance business.
TOP LOSERS • Muthoot Finance planning to raise up to `1,000Cr
(BSE A-Group) through the issue of non-convertible debentures of
`1,000 face value each.
Previous Current Change
Company Name
Close(`) Price(`) (%) • Tata Power’s cargo ship owned by its Singapore-
SKS Microfinance 478.15 430.80 -9.90 based subsidiary has delivered coal for the 4,000
BGR Energy 434.10 407.85 -6.05 MW power project at Mundra, Gujarat which is
expected to come up later this year.
Vijaya Bank 67.85 63.75 -6.04
Aurobindo Phar 181.75 172.15 -5.28 • Crest Animation board approves allotment of `2.1Cr
Educomp Sol 362.40 344.35 -4.98
shares at a premium of `71.27/share
• Shriram EPC subsidiary wins `75Cr order from GAIL
(BSE Mid-Cap)
Previous Current Change US markets
Company Name
Close(`) Price(`) (%)
Clariant Chem 840.70 752.55 -10.49
US markets ended lower Thursday as lawmakers
SKS Microfinance 478.15 430.80 -9.90 remained at loggerheads over the nation’s debt, with
Bajaj Elect-$ 237.65 216.85 -8.75 a vote on House Speaker John Boehner’s debt-
BGR Energy 434.10 407.85 -6.05 reducing plan scheduled for this evening amid calls
Vijaya Bank 67.85 63.75 -6.04 for rejection by Senate Democrats. The Dow Jones
Industrial Average ended down 62.44 points, or
0.5%, to 12,240.11, its fifth straight session of
losses. AT& T Inc. led decliners. Exxon Mobil Corp.
weighed the most on the price-weighted index, with
shares falling $1.85 to $81.46 after the Texas oil
giant reported a 41% rise in second-quarter profit,
which came in with dull estimates, partly due to low
natural-gas prices.
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