Indian markets rose for the fifth straight session on hopes the Reserve Bank of India will cut interest rates at its mid-quarter policy review on June 18th to prop up the slowing economy. Key stock indexes gained between 0.22-0.75% and foreign institutional investors were net buyers of Indian equities. Analysts expect further gains for Indian markets if worries over Spain ease and on expectations of rising global and domestic liquidity.

1.
India Morning Note
a g
Mond
day, June 11, 2012
Dom
mestic Mark
kets Snapsh
hot Views on markets t
today
Nam of Index
me Jun 7 Jun 8 Change (%)
) • India markets rose for the fifth straight tr
an s rading
Sensex 16,649.05 16,718.87 0.42% sess
sion on Fridday and att tained their highest closing
r
level in 4-1/2 wweeks on h hopes the Reserve Ba ank of
CNX Nifty
X 5,049.65 5,068.35 0.37%
India (RBI) will cut inte
a erest rates at mid-qu uarter
BSE Mid-cap 5,975.23 5,988.21 0.22%
monnetary policy review on 18 June 2012 to pro up op
BSE IT 5,659.37 5,617.05 -0.75% slow
wing econom my. Comme ents from Ashima Goy
A yal, a
BSE Banks 11,455.49 11,513.80 0.51% memmber of the RBI's tec
e chnical advvisory comm
mittee
FII A
Activity (`Cr) that RBI has some room to provide a mon
m netary
stimulus to the economy raised ho
e y, opes the central
Date
e Buy Sell Net
bank will cut po
k olicy rates to prop up slowing economy.
o
07-Jun 2,740 2,000 741
• The gains on Frriday came despite rising worries about
06-Jun 3,329 3,160 169
the global economy given the lack of clarity about
n
Tota Jun
al 10,629 11,061 -432 ential U.S. monetary s
pote stimulus, worries Chin will
w na
2012 YTD 293,663 252,156 41506 post weak dat on Satu
t ta urday, and concerns about
MF A
Activity (`Cr) Span
nish banking woes.
g
Date
e Buy Sell Net • FMCG stocks extended recent gains triggere by ed
07-Jun 285 280 5
val of mons
arriv soon in Kerala early this week. Good
mon nsoon may b
boost farm i
incomes and rural cons
sumer
06-Jun 831 361 470
spennding.
Tota Jun
al 2,508 1,685 823
• L&T rose 2.53% as the company ann
% nounced tha L&T
at
2012 YTD 56,372 62,016 -5644
Ship
pbuilding, a subsidiary of the comp pany has ba
agged
Volu
ume & Adva
ances / Dec
clines orde
ers valued at `483
d 3Cr for four specialized
f
NSE BSE commercial ves ssels in Q1 June 2012.
Trad
ding Volume (Cr) 61.98 18.59 • Mark breadth was flat at ~1.01x as investors bought
ket
Turn
nover (`Cr) 9,741 1,971 large cap stoc
e cks. On pro
ovisional ba
asis, FIIs b
bought
Advances 690 1,371 equity of `2.02bn while domestic institutions sold
s
equity of `0.81b in cash segment.
bn
Declines 750 1,357
Unchanged 97 118 • Asian stock markets rose s sharply today, after ne
ews of
a pla to shore up Spanish banks, reduced the g
an e h global
Tota
al 1,537 2,846
worrries on Euro
opean crisis.
.
Glob Markets
bal
• We expect a gap up openin for the In
e ng ndian marke
ets, as
Inde
ex Late Values
est Change (%)
) the easing worries over Spain and expectatio ons of
DJIA
A 12,554.20 0.75% rising liquidity across glob econom
bal mies and in India
NAS
SDAQ 2,858.42 0.97% would spur the markets.
Nikk *
kei 8,616.79 1.86% Econom and Cor
mic rporate Dev
velopments
s
Hang Seng * 18,872.93 2.00% • Inter
rest rates in India are not too high to affect
o
* as o 8.25AM IST
of growwth, Reserve Bank of India Deputy Governor K.C.
Curr
rencies / Co
ommodities Snapshot
s Chakkrabarty sai on Friday
id y.
Latest Previous • Planning Comm mission Deputy Chairman Montek Singh
Quote Close uwalia today pegged t
Ahlu y the growth forecast fo the
or
Indian Rupee per $ 55.42 54.95 curre
ent fiscal a 6.5-7% saying economic recov
at very is
Indian Rupee per € 69.31 69.04 expeected only in the secon quarter.
nd
NYM
MEX Crude Oil($/bbl) 85.93 84.10 • Chie Economic Adviser Ka
ef aushik Basu has warned that
d
Gold ($/oz)
d 1,598.00 1,590.10 if the Eurozone breaks up finally, it will hit India in the
e
Silve ($/oz)
er 28.69 28.47 face as the couuntry is unlikely to have the streng to
gth
over rcome that c
crisis.
Keyn
note Capitals Research
h (reseaarch@keyno otecapitals.net) (+91222-3026600 00)
Keyynote Capita Research is also available on
als h
Bloo
omberg KNTE <GO>, Tho
E omson One A Analytics, Re
euters Knowwledge, Capit IQ, TheMa
tal arkets.com and securitie
a es.com
Keynote Capitals Institu
utional Resea
arch - winner of “India’s Best IPO Analyst Award 2009” by MCX-Zee Business
To unsubsc cribe from th mailing lis please reply to unsub
his st, bscribe@keyynotecapitals
s.net

2.
TOP GAINERS Buzzin Stocks
ng
(BSE A-Group)
E • Ashok Leyland announced it had sup
d pplied 100 o its
of
Previous Currennt Change con’ brand buses to Ghana against an o
‘Falc order
Com
mpany Name
e
Close(`
`) Price(`
`) (%) wort $7.6mn (
th (`42Cr).
Sun TV Network 236.10
0 257.65 9.13
• Termming the w week-long st trike by woorkers for w
wage
HDIL
L 68.75
5 72.80 5.89
hike as 'illegal', the Arvind Ltd's management on
e m
India
abulls Fin 222.90
0 233.35 4.69 Sunday threate ened strict legal action if the wor
n rkers
Relia
ance Infra 482.50
0 501.90 4.02 fail to turn up fo work on Monday.
t or
JSW ENERGY 45.40
0 47.10 3.74
• The government will dec cide if incumbent tele ecom
(BSE Mid-Cap)
E operators like A
Airtel, Vodaffone and Ta Teleserv
ata vices
have to pay a market- -discovered price for the
Previous Currennt Change
Com
mpany Name
e specctrum they currently hold. "Sp
y pectrum pri icing
Close(`
`) Price(`
`) (%)
Jet A India
Air 339.85 363.80 7.05 polic is about what is the need to pa or not to pay
cy e ay
Tata Coffee
a 847.15 901.30 6.39 (by the existin operators as far as the spect
ng s) trum
HDIL
L 68.75 72.80 5.89 they already h
y hold is conncerned," a source in the
Berg Paints
ger 141.65 148.90 5.12 Deppartment of Telecommu unications (D
DoT) said.
Rallis India 134.20 140.65 4.81 • Bharat Heavy Electricals Ltd (BHEL) may not join
hands with steel maker Rashtriya Ispat Nigam
a
TOP LOSERS Limited (RINL) and MECO Ltd for the propo
ON r osed
`2,0
000Cr joint v
venture tha plans to set up a fac
at s ctory
(BSE A-Group)
E
at Vizag for ma
V anufacturing steel for co sectors.
g ore
Previous Currennt Change
Com
mpany Name
e • ONGGC is inte erested in acquiring West Be engal
Close(`
`) Price(`
`) (%)
Auro
obindo Phar 110.00
0 106.45
5 -3.23 government's s stake in ail
ling Haldia Petrochemicals
God
drej Cons 575.95
5 558.70
0 -3.00 Ltd (HPL), a top company o
p official said.
.
Glen
nmark Pharm
m 375.15
5 366.95
5 -2.19 • Mahhindra Satya approve the mer
am ed rger of the firm
Unit
ted Spirits 639.20
0 626.75
5 -1.95 with its parent company Te
h ech Mahindra.
Dab India
bur 105.70
0 103.70
0 -1.89 • The Reserve B Bank of Ind has app
dia proved Relia
ance
Capital's `1,4550Cr stake sale in it mutual fund
ts
(BSE Mid-Cap)
E
busi
iness unit to Japan's Nippon Life.
o
Previous Currennt Change
Com
mpany Name
e US markets
Close(`
`) Price(`
`) (%)
BEM
ML 407.95 385.40 -5.53 US markets on Fr riday reportted their be week ye for
est et
India Cements
a 76.25 72.70 -4.66 the year as invesstors took a hopeful view that Europe
Shre Global Trd
ee d 83.80 79.95 -4.59 would move to coombat its ec conomic cris including an
sis,
S Mo
obility 47.95 45.80 -4.48 pated recapitalization of Spanish ba
anticip f anks.
Auro
obindo Phar 110.00 106.45 -3.23 The Do Jones Ind
ow dustrial rose 93.24 points, or 0.8% to
e %,
12,554
4.20. The S& 500 Inde climbed 10.66 point or
&P ex ts,
0.8%, to 1,325.65. The Nas sdaq Composite advan nced
27.40 points, or 1% to 2,858.42.
p %,
Keyn
note Capitals Research
h (resea
arch@keyno
otecapitals.net) (+912
22-3026600
00)

3.
India and Globa Economic Calendar
a al c
Countries / Mon
nday Tuesday Wed
dnesday Thursday
Reg
gions 11-Jun 12
2-Jun 13-Jun
1 14-Jun
Ind
dia Index of I
Industrial WPI based Inflation
Productio (IIP) for
on for the month of
April 2012 May 2012
US Monthly b
budget Retail Sa
ales Capacit utilization
ty n
statemen
nt
Business Inventorie
s es
Glo
obal Germany Wholesale UK indust
trial Germany CPI Data
y
Price Index productio
on
Japan Corporate UK Trade balance
e
goods pric index
ce
UK Housin price
ng
balance
KEYN
NOTE CAPITTALS LTD.
The Rub 9th Floo Senapati Bapat Marg, Dadar (W), Mumba – 400 028
by, or, ai 8
Tel. : +9
9122-30266
6000 • www
w.keynotec
capitals.com
m
Disclaiimer: This re
eport is purely for informa ation purpose and is bassed on public information News cont
c n. tent is attribu
utable to
various media, unle specified otherwise. A market related statistic data perta
ess All cal ains to the im
mmediately preceding trad ding day,
unless stated other
s rwise. Neithe the informa
er ation nor any opinion expressed in this report constitutes an off
y s fer, or an invitation to
make an offer, to bbuy or sell the securities m
mentioned he erein. We or any of our directors, offic
cers or emplo
oyees shall not in any
way be responsible for any loss arising from the use of this report. Investors are advised to apply their own judgmen before
e e s m e o nt
acting on the conteents of this re
eport. The rep
port has not been edited due to time c
d constraints.