- Indian markets rose on Monday as investors welcomed news that European leaders pledged to strengthen banks and resolve the sovereign debt crisis. - Telecom and real estate stocks performed well while pharma was the only sector to decline. - Asian markets rose on Tuesday following gains in Europe and the US. The Indian market is expected to open positively but may see some caution ahead of domestic economic data releases.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, October 11, 2011
Domestic Markets Snapshot Views on markets today
• Indian markets continued its previous day gain and
Name of Index Oct 7 Oct 10 Change (%)
closed on positive note yesterday as investors cheered
Sensex 16,232.54 16,557.23 2.00% the news that German Chancellor Angela Merkel and
CNX Nifty 4,888.05 4,979.60 1.87% French President Nicolas Sarkozy will reach to an
BSE Mid-cap 5,959.28 6,040.31 1.36% agreement to strengthen European banks. Risk
BSE IT 5,241.28 5,390.67 2.85% sentiment improved globally after euro zone leaders
pledged to unveil a plan to solve the region's
BSE Banks 10,347.84 10,495.37 1.43%
sovereign debt crisis by the end of the month.
FII Activity (`Cr) Telecom stocks recouped early losses and closed
positive Telecom ministry has announced India's new
Date Buy Sell Net
telecoms policy, which will allow carriers to share and
7-Oct 3564 3073 491
trade spectrum, in a move that could help ease
5-Oct 2027 2996 -969 pressure on big carriers that have been rapidly adding
Total Oct 9311 11537 -2226 users to increasingly crowded airwaves. Except
2011 YTD 492969 497140 -4180 pharma all sectoral indices closed on positive note
with real estate, IT, consumer durable and oil & gas
MF Activity (`Cr) stocks were major gainers. Tata Coffee gained as
Date Buy Sell Net much as 10.6% after a report said Starbucks Corp is
5-Oct 528 424 104 finalizing an equity joint venture with the firm for
opening coffee shops in Asia's third-largest economy.
4-Oct 559 654 -95
Non-ferrous metals firm Hindalco ended 0.9% higher
Total Oct 1474 1698 -224 after J.P. Morgan upgraded it to ‘overweight’ from
2011 YTD 102668 97666 5274 ‘neutral,’ citing stock under performance versus peers
Volume & Advances / Declines in 2011 while JSW Energy ended 1.6% down after
CLSA downgraded the firm to ‘sell’ from
NSE BSE ‘underperform.’ CLSA has also cut its target price to
Trading Volume (`Cr) 10,616 2,214 `40 from `72.
Advances 968 1,686 • Market breadth was strong at ~1.56x as investors
Declines 496 1,084 bought large cap stocks. FIIs bought equities worth
Unchanged 61 136
`2.11bn while domestic institutions sold equities of
`0.37bn.
Total 1,525 2,906
• Asian markets rose today after the rally in the
Global Markets European and US markets. Both the Hang Seng and
Index Latest Values Change (%) the Nikkei are trading with hefty gains.
DJIA 11,433.18 3.0% • We expect a positive opening for the Indian markets
as Asian markets are strong. However, markets may
NASDAQ 2,566.05 3.5%
show some caution ahead of important domestic
Nikkei * 8,776.16 2.0% economic data releases viz., IIP, monthly inflation.
Hang Seng * 18,290.74 3.3% Further, IT stocks would see a momentum ahead of
* as of 8.45AM IST tomorrow's results of Infosys.
Currencies / Commodities Snapshot Economic and Corporate Developments
• The government today cleared 11 proposals, entailing
Latest Previous total foreign direct investment (FDI) of `182.78Cr,
Quote Close
including that from 9X Media to increase foreign
Indian Rupee per $ 48.89 48.82 equity participation to up to 100%.
Indian Rupee per € 66.80 66.18 • In September, car sales slipped 1.8% to 165,925 cars,
NYMEX Crude Oil($/bbl) 85.35 85.41 according to data released by Society of Indian
Gold ($/oz) 1,672.80 1,669.60 Automobile Manufacturers' (SIAM). Auto companies
have dramatically lowered their growth forecast to 2-
Silver ($/oz) 32.38 31.94
4% this year from 10-12% earlier as sales dropped for
the third straight month.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • More than 300,000 workers of Coal India, the world's
Previous Current Change largest miner, went on a one-day strike on Monday
Company Name
Close (`) Price (`) (%) demanding higher bonus. This caused the company
Amtek Auto 116.60 131.40 12.69 a production loss of 1mn tonne or `120Cr, in value
Sun TV Network 261.45 288.15 10.21 terms.
Educomp Sol 254.80 277.70 8.99
• Reliance Industries (RIL) is holding talks with a host
Tata Motors 158.80 170.55 7.40
of media and entertainment firms, including Walt
TTK Prestige 2620.35 2814.25 7.40
Disney's Indian venture UTV Software, to acquire
(BSE Mid-Cap) content for its upcoming telecom venture.
Previous Current Change • US-based coffee retail giant Starbucks today said it
Company Name
Close(`) Price(`) (%) expects to soon announce a roadmap for its entry
Amtek Auto 116.60 131.40 12.69
into India, as talks with Tata Coffee for a potential
Educomp Sol 254.80 277.70 8.99 alliance are moving forward.
Rajesh Exports 119.85 130.40 8.80
• UTV Software Communications will increase its
VST Inds 1252.10 1360.00 8.62
shareholding in Indiagames by acquiring additional
Religare Enter 413.00 446.80 8.18
30.02% stake in the company for `94.56Cr.
TOP LOSERS US markets
(BSE A-Group) US markets advanced 3% Monday, their best one-day
performance in over six weeks, as France and Germany
Previous Current Change
Company Name pledged to do everything necessary to support Europe’s
Close(`) Price(`) (%)
Maruti Suzuki 1113.10 1073.20 -3.58 banks, while investors also looked to the start of third-
Voltas 104.70 101.75 -2.82 quarter earnings season.
Engineers India 248.80 243.10 -2.29 The Dow Jones Industrial Average gained 330.06 points,
India Sec 57.70 56.45 -2.17 or 2.97%, to 11,433.18, its biggest one-day point and
Neyveli Lignite 76.80 75.30 -1.95 percentage gain since Aug. 11 and just a hair under its
session high of 11,433.33. The Standard & Poor’s 500
(BSE Mid-Cap)
Index added 39.43 points, or 3.4%, to 1,194.89, its best
Previous Current Change one-day rise since Aug. 23. The Nasdaq Composite
Company Name
Close(`) Price(`) (%)
Index gained 86.7 points, or 3.5%, to 2,566.05.
Shri Ganesh Spi 9.59 9.12 -4.90
Anant Raj Inds 54.20 51.55 -4.89
Network18 65.25 62.65 -3.98
Voltas 104.70 101.75 -2.82
ALLCARGO 142.45 139.00 -2.42
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