- Indian markets fell around 2% yesterday due to uncertainty over short-term capital gain taxes, hitting their lowest close in nearly two months. - Banking and real estate stocks were among the hardest hit. Asian shares gained on comments from the Federal Reserve chairman signaling continued accommodative monetary policy in the US. - The document provides market snapshots, FII and MF activity data, top gainers and losers on Indian exchanges, and the economic calendar for India, US and global markets.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, March 27, 2012
Domestic Markets Snapshot Views on markets today
Name of Index Mar 23 Mar 26 Change (%)
• Indian markets fell ~2% yesterday to their lowest
close in nearly two months, as uncertainty over short-
Sensex 17,361.74 17,052.78 -1.78%
term capital gain taxes for some derivative products
CNX Nifty 5,278.20 5,184.25 -1.78% sold to foreign investors sparked fears over
BSE Mid-cap 6,350.92 6,249.17 -1.60% widespread selling. Certain provisions in the 2012/13
BSE IT 6,095.08 6,011.44 -1.37% general budget announced earlier this month raised
BSE Banks 11,860.42 11,570.74 -2.44% the prospect the government could tax so-called
participatory notes, or P-Notes, under a provision of
FII Activity (`Cr) the General Anti-Avoidance Rule (GAAR) intended to
Date Buy Sell Net crack down on tax evasion. P-Notes are derivative
22-Mar 4,941 4,611 330 products that allow foreign investors to invest into
Indian equities via countries such as Mauritius that
21-Mar 3,488 2,836 652
have tax treaties with India. Banking stocks like ICICI
Total Mar 45,903 37,106 8797 Bank and Axis Bank were among the hardest hit, as
2012 YTD 178,960 133,865 45095 higher crude prices have reduced hopes of a possible
MF Activity (`Cr) rate cut next month, while investors also await
government's borrowing plan for April-September due
Date Buy Sell Net this week. All sectoral indices closed on negative note
23-Mar 374 286 88 with real estate, power, bank and metal stocks were
22-Mar 554 619 -66 major losers. Maruti Suzuki lost ~1% as its chairman
Total Mar 8,273 9,353 -1080 R.C. Bhargava the company plans to cut car
production by half by 2015 at its factory at Gurgaon
2012 YTD 33,633 38,740 -5107
due to various logistical and environmental issues. EIH
Volume & Advances / Declines Associated Hotels gained 6.28% after the company
NSE BSE said its board of directors will meet on 28 March 2012
to consider rights issue of equity shares.
Trading Volume (Cr) 69.17 31.19
• Market breadth was weak at ~0.47x as investors sold
Turnover (`Cr) 10,690 3,801
large cap stocks. On provisional basis, both FIIs and
Advances 345 919 domestic institutions sold equities worth `1.35bn and
Declines 1,156 1,955 `2.01bn, respectively.
Unchanged 51 113 • Asian shares gained sharply, welcoming comments
Total 1,552 2,987 from Federal Reserve Chairman Ben Bernanke that
signalled U.S. monetary policy will remain
Global Markets
accommodative.
Index Latest Values Change (%)
• We expect a positive opening for the Indian markets,
DJIA 13,241.63 1.23% tracking the cues from the Asian markets and short
NASDAQ 3,122.57 1.78% recovery after recent losses. However, F&O expiry
Nikkei * 10,193.43 1.75% may bring volatility.
Hang Seng * 20,937.60 1.30% Economic and Corporate Developments
* as of 8.25AM IST • The country's coal production is projected to increase
Currencies / Commodities Snapshot by over 43% to 795mn tonnes (mt) by 2016-17, from
an estimated 554 mt in the current fiscal, Parliament
Latest Previous was informed on Monday. The projection is based on
Quote Close
obtaining necessary clearances and availability of
Indian Rupee per $ 51.13 51.02
requisite land for coal mining.
Indian Rupee per € 68.25 68.15
• The government has allowed another 1mn tonnes of
NYMEX Crude Oil($/bbl) 106.89 107.03 unrestricted white sugar exports, a government
Gold ($/oz) 1,686.20 1,685.60 source said on Monday, bringing the total approved so
Silver ($/oz) 32.75 32.73 far to 3 million tonne, in line with what the industry
and markets expected.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • ICICI Bank asked ailing Kingfisher Airlines for more
Previous Current Change security on its `600Cr loan, after the airline’s stock
Company Name
Close(`) Price(`) (%) hit an all-time low on Monday.
Max India 171.70 178.40 3.90
• Switzerland-based cement maker Holcim, one of the
Jaiprakash Asso 79.55 81.60 2.58
top players in the global cement industry, expects
Mphasis 419.70 429.20 2.26 the Indian construction market to more than double
Dish TV India 57.90 59.20 2.25 by 2020. Holcim, which entered India in the middle
Thermax 475.00 483.30 1.75 of the last decade, has its presence in the country
(BSE Mid-Cap) through two established brands — ACC and Ambuja
Cements. Collectively, these companies have the
Previous Current Change largest market share in India.
Company Name
Close(`) Price(`) (%)
Hotel Leela 32.05 34.15 6.55 • Gammon Infrastructure Projects has bagged a
Ballarpur Inds 22.70 23.85 5.07 contract from the National Highways Authority of
VAARAD 31.55 33.10 4.91 India (NHAI) for four-laning a national highway in
Gujarat Pipavav 55.65 58.10 4.40 Haryana at an estimated cost of `934.93Cr.
Max India 171.70 178.40 3.90 • Persistent Systems, an outsourced software product
development (OPD) services company and Precision
TOP LOSERS Automation & Robotics India Ltd (PARI) and
Maharashtra University of Health Sciences (MUHS),
(BSE A-Group)
Nashik are working in this area to reduce the cost of
Previous Current Change development of robots, advance technology and
Company Name
Close(`) Price(`) (%)
ultimately resulting in reducing cost of the surgery.
Manappuram Fin 36.35 32.35 -11.00
Opto Circuits 274.90 254.75 -7.33 • Larsen and Toubro (L&T) has started the delivery of
Shree Renuk Sug 32.85 30.45 -7.31
$40mn (approximately `200Cr) worth of equipment
used in nuclear reactors to the US, according to MV
HDIL 95.50 88.80 -7.02
Kotwal, member of the board and president (heavy
IRB Infra 193.70 180.30 -6.92
engineering), L&T.
(BSE Mid-Cap) US markets
Previous Current Change U.S. stocks erased a week’s worth of losses Monday,
Company Name
Close(`) Price(`) (%)
surging after Federal Reserve Chairman Ben Bernanke
Manappuram Fin 36.35 32.35 -11.00
signaled the central bank is committed to a policy
MVL 11.50 10.30 -10.43
that’s helped stocks rally for three years.
D B REALTY 94.00 86.25 -8.24
Opto Circuits 274.90 254.75 -7.33
The Dow Jones Industrial Average rose 160.90 points, or
1.2%, to 13,241.63, gathering momentum throughout
Shree Renuk Sug 32.85 30.45 -7.31
the day to more than recoup its 152-point loss, or 1.2%,
last week — its worst week of the year. The S&P 500
Index gained 19.40 points, or 1.4%, to 1,416.51. The
Nasdaq Composite Index added 54.65 points, or 1.8%,
to 3,122.57.
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 27/Mar 28/Mar 29/Mar 30/Mar
India Forex Reserves Data
Trade Deficit - RBI;
External Debt
US S&P/Case-Shiller Durable Goods US GDP Data Personal
Home Price Indices Orders Consumption
(YoY) Expenditure - Price
Index (Feb) (YoY &
MoM)
Consumer Durable Goods Core Personal
Confidence Orders ex Consumption
Transportation Expenditure - Price
Index (Feb) (YoY &
MoM)
Richmond Fed EIA Crude Oil Stocks Personal Income
Manufacturing Index change (Feb, MoM); Chicago
Purchasing
Managers' Index
(Mar)
Global UK's Gross Domestic Eurozone's M3 Germany Eurozone Consumer
Product (QoQ) and Money Supply (YoY) Unemployment data Price Index (YoY)
(YoY) anf for (3m)
UK's Total Business Germany's UK GFK consumer Construction Orders
Investment (YoY) Consumer Price spending (YoY); Housing
and (QoQ) Index (YoY) and Starts (YoY)
(MoM)
UK's CBI Distributive Japan
Trades Survey - manufacturing, CPI
Realized (MoM) & Unemployment
data
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