- Indian markets continued their winning streak last week, with key indices rising around 0.8%, led by gains in metal, consumer durables, oil & gas and auto stocks. However, IT, power and capital goods stocks saw some selling. - Asian markets opened lower today in line with declines in the US and Europe on Friday due to concerns around weakening global economic growth. The Indian market is expected to see a gap down opening. - Key corporate developments include Reliance Industries and BP planning to boost gas output from their D6 block, and Marico entering the Rs. 4,500 crore skincare market in India.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, September 5, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Aug 30 Sept 2 Change (%) • Indian markets continued with winning streak to log its
Sensex 16,676.75 16,821.46 0.87% highest close in more than two weeks on Friday as
investors continued with bargain hunting, shrugging
CNX Nifty 5,001.00 5,040.00 0.78%
off slower growth in new manufacturing orders. India's
BSE Mid-cap 6,273.60 6,324.61 0.81%
factory sector expanded at its slowest pace in more
BSE IT 5,061.83 4,995.67 -1.31% than two years in August as export orders shrank amid
BSE Banks 10,904.24 10,949.68 0.42% weakening global demand. Indian markets
FII Activity (`Cr) outperformed global markets which were subdued as
caution prevailed ahead of release of the key US jobs
Date Buy Sell Net data. Resumption of buying by foreign funds also
30-Aug 2964 2286 678 boosted investors’ sentiment. The upward movement
29-Aug 2218 1733 485 was mainly led by gain in metal, consumer durables,
Total Aug 49064 58630 -9566 oil & gas and auto stocks while IT, power, and capital
2011 YTD 432656 433490 -833 goods stocks witnessed some selling pressure.
Reliance Industries gained 3.07% on the news that of
MF Activity (`Cr) completion of BP's acquisition of a 30% stake in 21 oil
Date Buy Sell Net and gas production sharing contracts that the
30-Aug 752 486 266 company operates in India, including the producing KG
29-Aug 552 503 49 D6 block. While Maruti Suzuki fell 0.64% as the sales
for August fell 12.7%, following a record 25% slump in
Total Aug 13448 10986 2462
July, as high interest rates and rising vehicle costs
2011 YTD 93110 87143 6239
deterred customers in the world's second-fastest
Volume & Advances / Declines growing major auto market.
NSE BSE • Market breadth was strong at ~1.43x as investors
Trading Volume (`Cr) 12,908 2,194 bought large cap stocks. FIIs bought equities worth
Advances 894 1,660 `11.58bn while domestic institutions sold equities of
`3.46bn.
Declines 570 1,157
Unchanged 52 121 • Most of the Asian markets opened today with a sharp
decline in line with US and European markets on
Total 1,516 2,938
Friday. Both the Nikkei and the Hang Seng are trading
Global Markets around 2% losses.
Index Latest Values Change (%) • We expect a gap down opening for the Indian markets
DJIA 11,240.26 -2.2% which rose almost 1% on Friday as the Asian markets
NASDAQ 2,480.33 -2.6% indicate a discouraging trend. Global economic worries
Nikkei * 8,797.89 -1.7%
and domestic inflationary concerns may lead the fall in
the Indian markets.
Hang Seng * 19,750.80 -2.3%
Key events today
* as of 8.45AM IST
• Listing of IPO of Brooks Laboratories Ltd. (BSE code:
Currencies / Commodities Snapshot
533543, NSE: BROOKS), issue price: Rs100 per share.
Latest Previous
Quote Close
Economic and Corporate Developments
Indian Rupee per $ 45.65 45.70 • Production of urea is expected to increase by 4.2 lakh
Indian Rupee per € 64.66 65.11 tonnes to 223 lakh tonnes this fiscal.
NYMEX Crude Oil($/bbl) 85.80 86.45 • The government has directed state-run banks to make
Gold ($/oz) 1,877.70 1,873.70
public details of unclaimed deposits aggregating
`1,700Cr built up over the last several years to
Silver ($/oz) 43.02 43.01
encourage account holders to reclaim funds parked
with these banks and to ensure greater transparency.
Keynote Capitals Institutional Research (research@keynoteindia.net) (+9122-30266000)
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Coal India is considering switching to a global open-
Previous Current Change tender mode for developing its abandoned mines, a
Company Name
Close (`) Price (`) (%) development that could inordinately delay the
Manappuram 50.40 56.00 11.11 project. CIL was hoping to float these joint ventures
Shriram Trans 630.80 672.90 6.67 by the middle of 2010.
Reliance Comm 79.45 84.45 6.29
• Reliance Industries and global oil major BP hope to
JSW Steel 678.10 720.60 6.27
significantly boost natural gas output from the
Chambal Fert 106.25 112.90 6.20
country's largest gas field in the D-6 block in the
(BSE Mid-Cap) next two to three years, and make handsome gains,
Previous Current Change as gas prices are due for revision in 2014, according
Company Name
Close(`) Price(`) (%) to media reports.
Manappuram 50.40 56.00 11.11
• Hair oil and edible oil maker Marico will enter the
VIP Inds 810.60 892.80 10.14 `4,500Cr skincare market in the country by
Parsvnath Dev 50.00 54.10 8.20 extending its two-decade-old coconut hair oil brand,
COX KINGS 200.15 214.15 6.99 Parachute, to body lotion and other skincare
Chambal Fert 106.25 112.90 6.26 products.
• SKS Microfinance may approach RBI for bank licence.
TOP LOSERS
• ITC may set up 32 pop-up stores under its 'Choupal
(BSE A-Group)
Fresh' division across the country and the pilot
Previous Current Change project is currently underway in Hyderabad.
Company Name
Close(`) Price(`) (%)
IB Real Est 84.50 81.05 -4.08 US markets
IDBI Bank 110.30 105.95 -3.94 US markets shed all the gains they earned during
Educomp Sol 204.10 197.05 -3.45 the week on Friday after a dismal jobloss data and
HCL Tech 411.20 397.35 -3.37 US Federal Agency's suit over 17 banks to recover
IDFC 113.75 110.00 -3.30 $200bn.
(BSE Mid-Cap) In a sharp fall, Dow Jones Industrial Average dropped
2.2% while Nasdaq declined 2.6% and s&P 500 also
Previous Current Change
Company Name fell 2.5%.
Close(`) Price(`) (%)
D B CORP 245.50 232.65 -5.23
Electrosteel 7.44 7.06 -5.11
KGN Inds 31.85 30.30 -4.87
SREI Infra 41.85 39.90 -4.66
Bajaj Elect-$ 193.40 184.45 -4.63
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