- Indian markets continued their downward trend last week, closing at their lowest levels in nearly a month and posting their first weekly loss in four weeks due to fears of a recession in developed markets. - Most sectoral indices closed in negative territory except FMCG, with metal, capital goods, auto and consumer durable stocks major underperformers. - Asian markets are mixed today after sharp declines in Japanese markets on catch up trades following a holiday on Friday. The Indian markets are expected to see a flat opening amid directionless Asian markets.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, September 26, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Sept 22 Sept 23 Change (%) • Indian markets continued their downward trend and
Sensex 16,361.15 16,162.06 -1.22% closed highly volatile session on Friday to their lowest
CNX Nifty 4,923.65 4,867.75 -1.14% close in nearly a month and posted their first weekly
BSE Mid-cap 6,275.65 6,222.80 -0.84%
loss in four as fears of a recession in the developed
world lowered risk appetite. European shares turned
BSE IT 5,001.95 4,985.55 -0.33%
negative after an initial bounce on hopes for concerted
BSE Banks 10,907.93 10,760.73 -1.35%
action from the G20 to shore up market confidence in
FII Activity (`Cr) the financial sector gave way to further selling
Date Buy Sell Net pressure. Investors are expecting that market would
22-Sep 1353 2588 -1235
largely be guided by developments in the global
economy amid the European crisis and worries of a
21-Sep 2062 1728 334
recession. Except FMCG, all sectoral indices closed on
Total Sept 36961 35941 1020
negative note with metal, capital goods, auto and
2011 YTD 469667 469446 212
consumer durable stocks were major losers. Export-
MF Activity (`Cr) driven software services companies such as Infosys
Date Buy Sell Net and TCS initially climbed after the rupee slid to its
lowest in more than 28 months, but reversed earlier
21-Sep 655 439 216
gains after a slide in the rupee to end lower. Astral
20-Sep 349 458 -109
Poly Technik slumped 8.7%, a day after jumping about
Total Sept 6242 7061 -819
20% following an announcement it was in
2011 YTD 99416 94233 5455 "preliminary" talks with US-based Lubrizol Corp for a
Volume & Advances / Declines project. ITC Ltd. closed 0.4% higher after Bank of
America Merrill Lynch’s analysts wrote in a note they
NSE BSE
expected the company to increase prices of select
Trading Volume (`Cr) 12,043 2,644
cigarette brands by 10%.
Advances 432 986
• Market breadth was weak at ~0.55x as investors sold
Declines 1,051 1,805
large cap stocks. FIIs sold equities worth `1,279.61Cr
Unchanged 54 115
while domestic institutions bought equities of
Total 1,537 2,906
`765.38Cr.
Global Markets • Asian markets are mixed today after Japanese markets
Index Latest Values Change (%) are sharply down on catch up trades due to holiday on
DJIA 10,771.48 0.4% Friday and The Hang Seng is moderately down.
NASDAQ 2,483.23 1.1% • We expect a flat opening for the Indian markets today
Nikkei * 8,419.36 -1.6% amid directionless Asian markets.
Hang Seng * 17,621.19 -0.3% Key events today
* as of 8.45AM IST • Listing of IPO of PG Electroplast Ltd. (BSE code:
Currencies / Commodities Snapshot 533581, NSE: PGEL), issue price: `210 per share.
Latest Previous Economic and Corporate Developments
Quote Close
• The Central Electricity Regulatory Commission (CERC)
Indian Rupee per $ 49.34 49.08
is planning to come up with “tools and metrics” to
Indian Rupee per € 66.70 66.71
measure anti-competitive acts.
NYMEX Crude Oil($/bbl) 80.06 79.85
• Indraprastha Gas (IGL) is looking at raising the price
Gold ($/oz) 1,659.30 1,637.50
by up to six or seven per cent (`2 per kg) sometime
Silver ($/oz) 30.78 30.05 next week, due to higher cost on account of a
weakening rupee.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • India’s largest iron ore producer and exporter, NMDC
Previous Current Change Ltd, is closing in on acquiring a coking coal mine in
Company Name
Close (`) Price (`) (%) Russia, as the board is set to take a decision on it
Opto Circuits 221.25 230.65 4.25 within 10 to 12 days
Union Bank 234.65 243.80 3.90
• 3M India plans to focus more on the domestic
Reliance Power 78.70 81.75 3.88
market by investing on localised products and by
Container Corp 891.15 925.00 3.80
expanding the market into smaller towns. The Indian
Mphasis 322.05 333.90 3.68
arm of the US-based company is also eyeing
(BSE Mid-Cap) revenues of $1bn by 2015.
Previous Current Change • The promoters of Apollo Hospitals Enterprise Ltd
Company Name
Close(`) Price(`) (%) (AHEL) plans to infuse `250Cr to support the
HCL Infosystems 60.95 64.90 6.48
hospital’s proposed `1,500Cr expansion. Meanwhile,
Kirloskar Oil 128.10 135.90 6.09
Engines the hospital chain has got an in-principle approval to
Shree Global Trd 363.15 383.95 5.73 rope in a partner for its BPO arm Apollo Health
KGN Inds 23.50 24.65 4.89 Street.
Opto Circuits 221.25 230.65 4.25
• TajGVK Hotels is planning to set up a convention
centre in the Taj Krishna hotel premises here.
TOP LOSERS
• IVRCL Assets and Holdings Limited, a subsidiary of
(BSE A-Group)
Hyderabad-based infrastructure major IVRCL
Previous Current Change Limited, is in the process of signing a memorandum
Company Name
Close(`) Price(`) (%)
of understanding (MoU) for developing an automated
Jain Irrigation 164.80 152.25 -7.62
multi-level car parking terminal in east African
Chambal Fert 106.50 99.20 -6.85
country, Kenya, according to a top official of the
ABB 795.50 750.05 -5.71 company.
NMDC 239.95 227.20 -5.31
US markets
SKS Microfinance 300.10 285.10 -5.00
The Dow Jones industrial average on Friday suffered
(BSE Mid-Cap)
its worst week since the depths of the financial crisis
Previous Current Change in 2008, stung by severe anxiety over Europe's
Company Name
Close(`) Price(`) (%)
spiraling debt crisis and a warning from the Federal
Jain Irrigation 164.80 152.25 -7.62
Reserve about the U.S. economy. But stocks ended
Prism Cement 44.30 41.10 -7.22
higher after a disastrous four days of selling, which
Chambal Fert 106.50 99.20 -6.85 helped push down the S&P 500 index 6.6% for the
IL&FS TRANS 206.45 195.15 -5.47 week.
SKS Microfinance 300.10 285.10 -5.00
The Dow Jones industrial average gained 37.19
points, or 0.35%, to 10,771.02. The Standard &
Poor's 500 Index gained 6.83 points, or 0.60%, to
1,136.39. The Nasdaq Composite Index gained 27.56
points, or 1.12%, to 2,483.23.
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