- Indian markets fell for a third straight session yesterday to their lowest close in more than a week as concerns over the country's finances hit sectors sensitive to growth such as banking and IT stocks. The finance minister set modest targets for reducing the fiscal deficit and provided no major reforms, dampening sentiment. - Asian stocks were mostly lower today with Chinese banks and property stocks declining sharply. The Indian market is expected to open weak but see some recovery as markets have declined sharply since the budget. - In other news, gems and jewelry exports declined 39% in February while the power ministry will seek a 19% import duty on some power equipment.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, March 20, 2012
Domestic Markets Snapshot Views on markets today
Name of Index Mar 16 Mar 19 Change (%) • Indian markets fell for a third straight session
Sensex 17,466.20 17,273.37 -1.10% yesterday to their lowest close in more than a week as
CNX Nifty 5,317.90 5,257.05 -1.14% continued concerns over the country's finances hit
sectors particularly sensitive to growth such as
BSE Mid-cap 6,361.59 6,300.56 -0.96%
banking, while earnings worries hit technology stocks.
BSE IT 6,069.03 5,968.75 -1.65%
Finance Minister Pranab Mukherjee set only modest
BSE Banks 11,969.50 11,736.61 -1.95% targets for trimming a ballooning fiscal deficit and
FII Activity (`Cr) there was lack of any big-bang reform announcement
in the Budget, dampening investor sentiment. The
Date Buy Sell Net
higher-than-expected borrowing plan announced by
16-Mar 3,490 2,572 919
the Finance Minister is being seen as preventing the
15-Mar 2,388 2,205 183 RBI from easing policy anytime soon, and is raising
Total Mar 32,975 25,542 7434 concerns about growth at a time of rising worries
2012 YTD 173,905 127,980 45926 about corporate profits. Weak European markets also
MF Activity (`Cr) led the markets to close on negative note. The
downward movement was mainly led by selling
Date Buy Sell Net pressure in IT, bank, PSUs, oil & gas and capital goods
16-Mar 567 885 -318 stocks while FMCG, consumer durable, auto and metal
15-Mar 299 650 -351 stocks witnessed some buying activities which gave
Total Mar 5,594 7,030 -1436 some support to the markets. Bank stocks fell for a
2012 YTD 30,954 36,417 -5463 third straight session, as investors see little relief for a
sector facing a potential rise in bad assets and a
Volume & Advances / Declines continued liquidity shortage despite the RBI's cut in
NSE BSE the cash reserve ratio earlier this month. Union Bank
Trading Volume (Cr) 67.13 23.70 of India fell more than 5% in intraday trade after
Turnover (`Cr) 11,002 2,401 Moody's downgraded the stock citing weaker financial
metrics. IT stocks were also among the day's biggest
Advances 434 1,000
decliners, with analysts citing worries about softer-
Declines 1,052 1,885
than-expected January-March earnings and
Unchanged 49 100 uncertainty about IT budgets in the year ahead.
Total 1,535 2,985
• Market breadth was however weak at ~0.53x as
Global Markets investors sold small and mid cap stocks. On
Index Latest Values Change (%) provisional basis, FIIs bought equity of `1.61bn while
DJIA 13,239.13 0.05% domestic institutions sold equity of `2.96bn in cash
segment.
NASDAQ 3,078.32 0.75%
Nikkei * 10,141.99 0.12% • Asian stocks mostly lower today, with Chinese banks
Hang Seng * 20,890.40 -1.07%
and property stocks lost sharply today. Japanese
markets are closed for the holiday.
* as of 8.25AM IST
• We expect a weak opening for the Indian markets
Currencies / Commodities Snapshot
today, tracking the Asian markets. However, some
Latest Previous
short recovery may be seen, as markets declined
Quote Close
sharply since budget day.
Indian Rupee per $ 50.15 50.23
Indian Rupee per € 66.37 66.48 Economic and Corporate Developments
NYMEX Crude Oil($/bbl) 107.50 108.09 • Gems, jewellery exports decline 39% to $2.7bn in
Gold ($/oz) 1,656.10 1,667.30 February 2012.
Silver ($/oz) 32.66 32.96 • Power Ministry to seek 19% duty on imported power
gear for large projects.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Unitech and its telecom partner, Norway's Telenor
Previous Current Change on Monday exchanged proposals inside the closed
Company Name
Close(`) Price(`) (%) chambers of the Company Law Board (CLB)
JPINFRATEC 48.65 50.35 3.49 chairman on probable sale or purchase of shares in
ING Vysya Bank 336.45 346.95 3.12 their joint venture company Uninor.
Opto Circuits 271.20 277.55 2.34 • Wipro Infrastructure Engineering division, the
India Sec 56.80 58.10 2.29 engineering division of Wipro Limited, is planning to
Indraprastha Gas 361.85 369.45 2.10 set up a hydraulic cylinder manufacturing facility in
(BSE Mid-Cap) Karnataka. The new facility is expected to come up
in Nelamangala taluk near Bangalore, said highly
Previous Current Change placed sources in the state government.
Company Name
Close(`) Price(`) (%)
Shoppers Stop 367.05 402.40 9.63 • Oil and Natural Gas Corp (ONGC) will invest about
Standard Charter 94.20 100.15 6.32 `2,600Cr in the third phase of development of C-
VST Inds 1375.60 1460.00 6.14 series natural gas fields off the west coast.
TV18 Broadcast 26.20 27.80 6.11 • Gujarat State Petroleum Corporation (GSPC) plans to
HATHWAY CAB 161.10 167.20 3.79 commission liquefied natural gas terminal with a
capacity of 5 million tonne per annum at Mundra by
TOP LOSERS 2015-16.
(BSE A-Group) • National Aluminium Company Limited (Nalco) has
signed a Memorandum of Understanding (MoU) with
Previous Current Change
Company Name the Union ministry of mines on the aluminium
Close(`) Price(`) (%)
Shree Renuka 36.50 33.65 -7.81 major's physical and financial targets for 2012-13.
HDIL 99.25 91.60 -7.71 US markets
Canara Bank 490.75 461.05 -6.05 US posted modest gains, as Apple Inc.’s dividend plans
Reliance Infra 632.65 594.50 -6.03 boosted the Nasdaq and home builders’ data bolstered
IRB Infra 197.75 186.95 -5.46 hopes of that sector’s recovery.
(BSE Mid-Cap) The Dow Jones Industrial Average rose 6.51 points, or
0.1%. The Nasdaq Composite gained 23.06 points, or
Previous Current Change
Company Name 0.8%, to 3,078.32. The S&P 500 rose 5.58 points, or
Close(`) Price(`) (%)
Shree Renuka 36.50 33.65 -7.81 0.4%, to 1,409.75.
HDIL 99.25 91.60 -7.71
BF Utilities 406.95 377.15 -7.32
Kalpataru Power 112.90 105.15 -6.86
SREI Infra 30.20 28.40 -5.96
Keynote Capitals Institutional Research (research@keynotecapitals.net) (+9122-30266000)

3. K E Y N O T E
INSTIT UT IONAL R ES EAR C H
India and Global Economic Calendar
Countries / Tuesday Wednesday Thursday Friday
Regions 20/Mar 21/Mar 22/Mar 23/Mar
India Forex Reserves Data
Weekly Supplement
of RBI
US Housing Starts (MoM) Existing Home sales Continuing Jobless
Data Claims
Building Permits MBA mortgage Initial Jobless Claims
(MoM) application
Fed's Bernanke
Speech
Global UK's Consumer Price UK Bank of England Germany's
Index (MoM) and Minutes Purchasing Manager
(YoY) Index Manufacturing
and Services
Germany's Producer UK public sector net Eurozone's
Price Index (MoM) borrowings Purchasing Manager
and (YoY) Index Manufacturing
and Services
Japan Merchandise UK's Retail Sales
trade balance (YoY) and (MoM)
Eurozone's Industrial
New Orders s.a.
(MoM) and (YoY)
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