- Indian markets dropped for the second straight day to their lowest close in two weeks due to growing fears of a Greek default and a steep fall in India's industrial output growth. - The BSE Sensex fell 2.17% and the Nifty declined 2.23% as all sectoral indices closed in negative territory with consumer durable, metal, IT and real estate stocks major losers. - Asian markets opened higher today after yesterday's sell-off and late recovery in the US markets, where bargain hunting in the last minutes of trade helped erase losses.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, September 13, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Sept 9 Sept 12 Change (%) • Indian markets dropped for second straight day to
Sensex 16,866.97 16,501.74 -2.17% their lowest close in two weeks yesterday in a broad
CNX Nifty 5,059.45 4,946.80 -2.23% selloff as growing fears of a Greek default hit world
BSE Mid-cap 6,435.48 6,317.28 -1.84% markets and a steep fall in domestic industrial output
BSE IT 4,950.11 4,788.48 -3.27% growth. India's industrial output growth in July
BSE Banks 11,097.84 10,756.24 -3.08% slumped to its lowest in nearly two years to 3.3% on
account of poor performance mainly by capital goods,
FII Activity (`Cr)
manufacturing and mining sectors, reflecting
Date Buy Sell Net sluggishness in the economy. European markets also
9-Sep 2460 2679 -219 declined sharply on increased fears as Greece is
8-Sep 2225 2196 29 headed for a default and worries that French banks
Total Sept 19159 17016 2143 could be downgraded over their exposure to Greece.
2011 YTD 451865 450521 1335 All sectoral indices closed on negative note with
MF Activity (`Cr) consumer durable, metal, IT and real estate stocks
were major losers. IT stocks extended recent steep
Date Buy Sell Net
losses triggered by economic worries in US and
9-Sep 553 582 -29
Europe, the two biggest markets for the Indian IT firms
8-Sep 404 466 -62
while interest rate sensitive real estate stocks edged
Total Sept 2805 3596 -791 lower on worries that higher interest rates will dent
2011 YTD 95979 90768 5483 demand for residential and commercial property.
Volume & Advances / Declines Pipavav Defence and Offshore jumped 11.6% after the
company formed an equal joint venture with state-run
NSE BSE
Mazagon Dock to build submarines and warships.
Trading Volume (`Cr) 9,894 2,264
While FMCG giant Hindustan Unilever hit record high
Advances 300 875
on recent reports the company has raised prices of its
Declines 1,186 1,929
coffee brand Bru.
Unchanged 40 103
Total 1,526 2,907 • Market breadth was weak at ~0.45x as investors sold
large cap stocks. FIIs sold equities worth `934.74Cr
Global Markets while domestic institutions bought equities of
Index Latest Values Change (%) `427.93Cr.
DJIA 11,061.12 0.6%
• Asian markets are up today after yesterday's sell off
NASDAQ 2,495.09 1.1%
and late recovery in the US markets.
Nikkei * 8,561.97 0.3%
• We expect a positive opening for the Indian markets
Hang Seng * 19,030.54 -4.2%
today tracking the cues from Asian markets. However,
* as of 8.45AM IST
slowing industry growth is a major deterrent.
Currencies / Commodities Snapshot
Economic and Corporate Developments
Latest Previous
Quote Close • Foreign institutional investors (FIIs) are now allowed to
Indian Rupee per $ 47.05 47.22 invest up to $5bn in infrastructure bonds having
Indian Rupee per € 64.35 64.35 residual maturity of one year at the time of purchase
NYMEX Crude Oil($/bbl) 88.80 99.19 and initial maturity of five years or more.
Gold ($/oz) 1,826.50 1,809.90 • The Index of Industrial Production (IIP) growth for the
Silver ($/oz) 40.93 40.16 month of July, 2011 saw a sharp decline at 3.3%
compared to 8.8% in the previous month.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group)
• Pipavav Defence and Offshore and Mazagaon Dock
Previous Current Change
Company Name signed an agreement to set up a joint venture to
Close (`) Price (`) (%)
build warships for Indian Navy.
PIPAVAVSHIP 81.75 91.00 11.31
Hindustan Unilev 333.25 345.90 3.80 • Bharat Petroleum Corporation will increase its
Jain Irrigation 169.65 175.30 3.33 naphtha exports by 12.5% to 1.8mn tonnes next
Ambuja Cements 138.95 143.40 3.20 year when its new refinery ramps up operation.
Petronet LNG 173.65 177.90 2.45 • DLF looks to sell NTC Mill land in central Mumbai for
(BSE Mid-Cap) `4,000Cr.
Previous Current Change • Maruti Suzuki is considering to replace protesting
Company Name
Close(`) Price(`) (%)
workers at Manesar plant.
PIPAVAVSHIP 81.75 91.00 11.31
A2Z Maint 199.85 211.55 5.85 US markets
Gujarat Pipavav 66.10 68.50 3.63 Bargain hunting in last minutes of trade after reports
Jain Irrigation 169.65 175.30 3.33 that China would consider investing in beleagured
GTL 70.00 72.05 2.93 Italian bonds led the US stocks erasing the losses for
entire day.
TOP LOSERS
For much of the day Dow Jones remained bearish as
(BSE A-Group) worries heightened for Europe's sovereign debt crisis
Previous Current Change after reports that Greece would default on its debt.
Company Name
Close(`) Price(`) (%)
However, in last minutes when reports came that
Yes Bank 294.00 273.65 -6.92 Italy was in talks with China’s sovereign-wealth fund
IB Real Estate 86.00 80.30 -6.63 over a sale of Italian bonds, investors started buying
HCL Tech 404.25 378.10 -6.47 the equities.
Sintex Inds 155.55 145.55 -6.43
The Dow Jones Industrial Average closed up 68.99
JUBL FOOD 914.10 857.90 -6.15
points, or 0.6%, to 11,061.12, led by a 2.9% gain in
(BSE Mid-Cap) Intel Corp. shares. 22 of 30 Dow components rose.
Previous Current Change
Company Name The S&P 500 Index ended up 8.04 points, or 0.7%, at
Close(`) Price(`) (%)
1,162.27, led by tech and financial stocks. The
AIA Engineering 329.50 303.00 -8.04
Nasdaq Composite Index ended up 27.10 points, or
Puravankara Proj 70.70 65.05 -7.99
1.1%, at 2,495.09.
IVRCL LTD 44.50 41.15 -7.53
Sujana Towers 29.75 27.60 -7.23
IB Real Estate 86.00 80.30 -6.63
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