The document provides a daily note on the Indian and global markets from Keynote Capital Institutional Research. It includes a snapshot of movements in key Indian indices and sector indices, details on FII and MFI activity in the Indian markets, top gainers and losers, and commentary on developments in the Indian and global markets. The markets surged on reports that the government will not target participatory notes in a blanket manner under new proposed rules targeting tax avoidance. Japanese shares declined, leading declines in other Asian markets following gains the previous day on signals of more monetary policy easing in the US. Indian markets are expected to open lower tracking declines in Asian and US markets.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, March 28, 2012
Domestic Markets Snapshot Views on markets today
Name of Index Mar 26 Mar 27 Change (%) • Indian markets surged in choppy trade yesterday after
media reports said the government will not target
Sensex 17,052.78 17,257.36 1.20%
participatory notes or P-Notes in a blanket manner
CNX Nifty 5,184.25 5,243.15 1.14%
under its newly proposed rules targeting tax
BSE Mid-cap 6,249.17 6,245.06 -0.07% avoidance. TV reports citing finance ministry officials
BSE IT 6,011.44 6,072.27 1.01% said that the finance ministry will not be chasing after
BSE Banks 11,570.74 11,678.27 0.93% P-Notes, or derivative products that allow foreign
FII Activity (`Cr) investors to invest anonymously into Indian equities,
as part of its recently proposed General Anti-
Date Buy Sell Net Avoidance Rule (GAAR) which come into effect from 1
26-Mar 3,990 4,084 -94 April 2012. Participatory Notes or P-Notes are
22-Mar 4,941 4,611 330 instruments issued by registered foreign institutional
Total Mar 49,892 41,190 8703 investors to overseas investors, who wish to invest in
2012 YTD 182,949 137,949 45000 the Indian stock markets without registering
themselves with the market regulator, the Securities
MF Activity (`Cr) and Exchange Board of India (SEBI). Except power, all
Date Buy Sell Net sectoral indices closed on positive note with consumer
26-Mar 373 547 -174 durable, FMCG, real estate and metal stocks were
23-Mar 374 286 88 major gainers. IT stocks rose after the US Federal
Reserve Chairman Ben Bernanke on Monday said that
Total Mar 8,646 9,900 -1254
easy monetary policy would remain in place for some
2012 YTD 34,006 39,287 -5281
time even though the US economy has shown signs of
Volume & Advances / Declines improvement. Larsen & Toubro (L&T) advanced 1.87%
NSE BSE as the construction division of L&T has won a contract
worth `1700Cr from Tata Steel for the latter's new 6
Trading Volume (Cr) 78.79 30.24
million tonnes per annum steel plant being set up at
Turnover (`Cr) 13,132 2,906
Kalinganagar in Odisha. Sugar stocks gained on
Advances 612 1,189 reports that the government has decided to allow the
Declines 865 1,707 export of another 1 million tonnes of sugar under the
Unchanged 80 121 open general license. Shree Renuka Sugars, Bajaj
Total 1,557 3,017 Hindusthan and Balrampur Chini Mills rose between
0.75% to 2.46%.
Global Markets
• Market breadth was however weak at ~0.70x as
Index Latest Values Change (%) investors sold small and mid cap stocks. On
DJIA 13,197.73 -0.33% provisional basis, FIIs bought equity of `0.43bn while
NASDAQ 3,120.35 -0.07% domestic institutions sold equity of `2.90bn in cash
Nikkei * 10,151.32 -1.01% segment.
Hang Seng * 20,909.39 -0.65% • Japanese shares skidded Wednesday, leading a mostly
* as of 8.25AM IST down day for Asian stock markets after recording big
gains in the previous session from signals of more
Currencies / Commodities Snapshot
loose monetary policy in the U.S.
Latest Previous
Quote Close • Indian markets are expected to open lower tracking
Indian Rupee per $ 50.82 50.71 Asian and US markets.
Indian Rupee per € 67.60 67.54 Economic and Corporate Developments
NYMEX Crude Oil($/bbl) 106.77 107.33 • The government will borrow `3.79 lakh crore from the
Gold ($/oz) 1,680.20 1,684.90 market in the first half of the next fiscal, which will be
over 65% of the total amount that it wants to raise
Silver ($/oz) 32.53 32.60
from borrowings during 2012-13.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Subhash Chandra-led Essel Group bought a 10.2%
Previous Current Change stake in Hyderabad-based IVRCL to further its
Company Name
Close(`) Price(`) (%) interests in infrastructure. Based on IVRCL’s current
Shree Cement 2922.35 3065.00 4.88 market capitalisation of `1,612Cr, the deal worked
GMR Infra 29.50 30.90 4.75 out to be `164Cr.
Sintex Inds 81.10 84.80 4.56 • Jindal Steel & Power Ltd plans to raise $150mn
Glaxosmithk Con 2559.25 2670.00 4.33 (`764Cr) through overseas borrowing in the next two
DLF 189.15 197.30 4.31 weeks. "The company is looking at overseas
(BSE Mid-Cap) borrowing.
• Competition Commission of India (CCI) has approved
Previous Current Change
Company Name the proposal of Reliance Infrastructure to merge five
Close(`) Price(`) (%)
FDC 77.60 83.65 7.80 of its wholly-owned subsidiaries with itself. It has
Bombay Dyeing 523.15 563.25 7.67 also approved the demerger of the container
India Cements 107.85 115.55 7.14 business of Reliance Infrastructure Engineers Pvt
Honeywell Auto 2698.15 2886.60 6.98 (RIEPL) from the company. The five subsidiaries are
Shree Cement 2922.35 3065.00 4.88
— Reliance Energy Ltd (REL), Reliance Energy
Generation Ltd (REGL), Reliance Goa and Samalkot
TOP LOSERS Power Ltd (RGSPL), Reliance Infraventures Ltd (RIVL)
and Reliance Property Developers Ltd (RPDPL),
(BSE A-Group)
• Reliance Industries Limited has cleared the request
Previous Current Change of the state government for supply of additional
Company Name
Close(`) Price(`) (%)
quantum of natural gas through a swapping deal to
Muthoot Fin 139.20 128.00 -8.05
partly utilise the idle capacity of the private gas
Manappuram Fin 32.35 29.95 -7.42
power stations for meeting the needs of industry.
Wockhardt 597.40 558.35 -6.54
• Tata Steel has paid the entire amount demanded by
Gitanjali Gems 369.10 350.70 -4.99
the state government for distributing compensation
Indiabulls Fin 222.20 212.10 -4.55
among the villagers who gave away their land for
(BSE Mid-Cap) company’s mega steel project in Bastar.
Previous Current Change • Gammon Infrastructure Projects has bagged a
Company Name
Close(`) Price(`) (%) `778.15Cr project from National Highways Authority
MVL 10.35 9.45 -8.70 of India (NHAI) for upgrading a section of NH-23 in
Muthoot Fin 139.20 128.00 -8.05 Orissa.
Manappuram Fin 32.35 29.95 -7.42
US markets
Wockhardt 597.40 558.35 -6.54
U.S. stocks slid Tuesday as investors offered muted
Himadri Chem 39.70 37.65 -5.16
reaction to the day’s economic data and took a break
after the past months’ rally.
The Dow Jones Industrial Average fell 43.90 points, or
0.3%, to 13,197.73. The S&P 500 ended down 3.99
points, or 0.3%, to 1,412.52. The Nasdaq Composite
lost 2.22 points, or 0.1%, to 3,120.35.
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 / Wednesday Thursday Friday Monday
Regions 28/Mar 29/Mar 30/Mar 2/Apr
India Forex Reserves Data
Trade Deficit - RBI;
External Debt
US Durable Goods US GDP Data Personal Construction
Orders Consumption spending
Expenditure - Price
Index (Feb) (YoY &
MoM)
Durable Goods Core Personal
Orders ex Consumption
Transportation Expenditure - Price
Index (Feb) (YoY &
MoM)
EIA Crude Oil Stocks Personal Income
change (Feb, MoM); Chicago
Purchasing
Managers' Index
(Mar)
Global Eurozone's M3 Germany Eurozone Consumer UK & Germany
Money Supply (YoY) Unemployment data Price Index (YoY) Purchasing Manager
anf for (3m) Index Manufacturing
Germany's UK GFK consumer Construction Orders
Consumer Price spending (YoY); Housing
Index (YoY) and Starts (YoY)
(MoM)
Japan
manufacturing, CPI
& Unemployment
data
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