- Indian markets slumped over 4% in their biggest one-day decline in over two years, as global markets fell on concerns over the weak US economy and slowing growth in China. - All major sector indices in India closed in negative territory, led by real estate, metals, oil & gas, and banking stocks. - Asian markets also fell in early trading due to the weak close of US markets and rising worries about a global economic slowdown.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Friday, September 23, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Sept 21 Sept 22 Change (%)
• Indian markets slumped more than 4% in its biggest
Sensex 17,065.15 16,361.15 -4.13%
one-day slide in more than two years as investors fled
CNX Nifty 5,133.25 4,923.65 -4.08%
risky assets across global markets on a grim US
BSE Mid-cap 6,476.46 6,275.65 -3.10%
economic outlook and slowing manufacturing growth
BSE IT 5,202.77 5,001.95 -3.86% in China. A sputtering US economy, headwinds from a
BSE Banks 11,360.44 10,907.93 -3.98% European debt crisis and further slowdown in China's
FII Activity (`Cr) manufacturing sector led negative sentiments
Date Buy Sell Net amongst investors to sell from risky assets. A sharp
21-Sep 2062 1728 334 fall in the rupee, which falls to near 2-year low, is
20-Sep 2131 1753 378 expected to increase inflation pressures. However,
Total Sept 35608 33353 2255 investors overlooked ease of India's food inflation to
2011 YTD 468314 466858 1447
8.84% for week ended Sept. 10 against 9.47% a week
ago. All sectoral indices closed on negative note with
MF Activity (`Cr)
real estate, metal, oil & gas and banks stocks were
Date Buy Sell Net major losers. Metal stocks slumped on weak economic
21-Sep 655 439 216 data in China as China is the world's largest consumer
20-Sep 349 458 -109 of aluminium and copper. While real estate stocks
Total Sept 6242 7061 -819 slumped on worries that higher interest rates could
2011 YTD 99416 94233 5455 dent demand for residential and commercial
Volume & Advances / Declines properties. Astral Poly Technik rose as much as 20%
after the company said it was in preliminary talks with
NSE BSE
U.S. based Lubrizol Corp to set up a chlorinated poly
Trading Volume (`Cr) 10,423 2,819
vinyl chloride making plant. While Videocon Industries
Advances 131 606
closed down 1% after initially rallying 3% following a
Declines 1,373 2,235
oil and gas discovery in Brazil announced by the
Unchanged 26 81
energy unit of the consumer electronics maker.
Total 1,530 2,922
• Market breadth was weak at ~0.27x as investors sold
Global Markets
large cap stocks. FIIs sold equities worth `1305.55Cr
Index Latest Values Change (%)
while domestic institutions bought equities of
DJIA 10,733.83 -3.5%
`743.47Cr.
NASDAQ 2,455.67 -3.3%
Nikkei * 8,560.26 -2.1% • Asian markets fall after weak close of the US markets
Hang Seng * 17,643.52 -1.5% and rising concerns over global economic downturn.
* as of 8.45AM IST • We expect a weak opening for the Indian markets
Currencies / Commodities Snapshot today as Asian markets are not encouraging.
Latest Previous Economic and Corporate Developments
Quote Close
Indian Rupee per $ 49.61 49.76 • Food inflation fell 0.63 percentage points to a seven-
Indian Rupee per € 66.54 66.53 week low of 8.84% for the week ended September 10,
NYMEX Crude Oil($/bbl) 81.15 80.51 after hovering at a little over nine per cent for a long
Gold ($/oz) 1,746.90 1,739.40 time on the back of declining rates of price rises in
Silver ($/oz) 36.12 36.53 onions and potatoes, and partly due to a high base
effect.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • A month after cigarette major ITC increased the
Previous Current Change price of its premium brand, Classic, the company has
Company Name
Close (`) Price (`) (%) done the same to its mid-sized brands Wills Navy
Shree Cement 1819.05 1848.25 1.61 Cut. The move follows an increase in value-added
HPCL 370.45 373.55 0.84 tax (VAT) on cigarettes in Andhra Pradesh from
Indian Oil Corp 308.05 310.30 0.70 14.5% to 20%.
National Alum 64.40 64.60 0.31
• The Central Empowered Committee (CEC) has
Apollo Hosp 518.85 520.35 0.29
recommended an investigation by the Central
(BSE Mid-Cap) Bureau of Investigation (CBI) into alleged illegal
Previous Current Change activities in Bellary district of Karnatka where
Company Name
Close(`) Price(`) (%) Associated Mining Company (AMC) and NMDC hold
KGN Inds 22.40 23.50 4.91 mining leases.
Shree Cement 1819.05 1848.25 1.61 • State Bank of India doubled its Medium Term Note
Mindtree 349.75 355.25 1.57 (MTN) programme to $10bn to fund overseas
Aventis Pharma 2255.10 2275.00 0.88 business.
HT Media 143.75 144.80 0.73
• Suzlon Energy is likely to complete the buyout of the
remaining 4.8% stake in Germany's REpower
TOP LOSERS
Systems for 63mn euros to make it a 100% owned
(BSE A-Group) subsidiary in the next four months.
Previous Current Change • IVRCL bagged orders worth `2,228.94Cr, including a
Company Name
Close(`) Price(`) (%)
road project that entails widening a stretch of 311
Educomp Sol 245.10 221.70 -9.55
km Nechipu to Hoj in Arunachal Pradesh worth
Jaiprakash Asso 73.95 67.05 -9.33
`1486Cr on DBFOT basis, annuity basis.
Lanco Infra 18.00 16.35 -9.17
US markets
Sterling Intl 225.65 205.00 -9.15
Shree Renuka 63.50 57.90 -8.82 US stocks did not get any respite and the major
indices took hardest single-day hit in five weeks,
(BSE Mid-Cap)
amid global sell-off of equities and commodities on
Previous Current Change rising concerns over the global economic slowdown.
Company Name
Close(`) Price(`) (%)
S Kumar Nation 51.40 46.45 -9.63 The Dow Jones Industrial Average finished with a
Educomp Sol 245.10 221.70 -9.55
drop of 391.01 points, or 3.5%, at 10,733.83, it
declined as much as 528 points during the session.
Delta Corp 112.65 102.65 -8.88
Shree Renuka 63.50 57.90 -8.82 The S&P 500 Index declined 37.20 points, or 3.2%, at
Sug 1,129.56, with natural-resource and energy stocks
JUBILANT 214.00 195.60 -8.60
slammed the hardest. It was also the S&P 500's
worst percent loss since Aug. 18. The Nasdaq
Composite Index shed 82.52 points, or 3.3%, at
2,455.67, the worst retreat since Aug. 18.
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