- Indian markets snapped their three-day winning streak, closing lower due to concerns over a potential US recession and ongoing eurozone debt crisis. - Selling pressure was seen in oil & gas, IT, pharma and power stocks, while consumer durable, auto and capital goods stocks saw some buying. - Asian markets extended losses due to concerns over Europe's debt woes and the health of the US economy, pushing down banks and energy firms. - The services sector growth in India fell to its lowest in more than two years, in line with weakening global trends.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, September 6, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Sept 2 Sept 5 Change (%) • Indian markets snapped three day winning streak and
Sensex 16,821.46 16,713.33 -0.64%
closed on negative note yesterday on renewed
concerns the United States may slip back into
CNX Nifty 5,040.00 5,017.20 -0.45%
recession and Europe faced a series of risks that could
BSE Mid-cap 6,324.61 6,356.77 0.51% reignite its debt crisis. Data showing a slowdown in
BSE IT 4,995.67 4,923.72 -1.44% India's services sector growth in August 2011, US
BSE Banks 10,949.68 10,990.33 0.37% recession worries and the ongoing euro-zone debt
crisis offset Moody's Investors Services' positive
FII Activity (`Cr) outlook on India's rupee-denominated bonds. Selling
Date Buy Sell Net pressure also gathered momentum as investors
2-Sep 4673 3495 1178 booked profits after the Indian markets surged ~6% in
last three sessions. The downward movement was
30-Aug 2964 2286 678
mainly led by selling pressure in oil & gas, IT, pharma
Total Sept 4673 3495 1178
and power stocks while consumer durable, auto, real
2011 YTD 437329 436985 345 estate and capital goods stocks witnessed some
MF Activity (`Cr) buying activities which gave some support to the
markets. Two-wheeler makers extended its gains
Date Buy Sell Net triggered by good August 2011 sales while other auto
2-Sep 378 647 -269 stocks were off day's low. India's largest two wheeler
30-Aug 752 486 266 maker by sales Hero MotoCorp jumped 5.18% after its
Total Sept 378 647 -269 sales rose 19% to 5.03 lakh units in August 2011 over
August 2010. Infosys and Wipro, which get the bulk of
2011 YTD 93488 87790 5970
their revenue from the US market, fell 2.33% and
Volume & Advances / Declines 3.77% respectively after Goldman Sachs cut its price
target on the stocks.
NSE BSE
Trading Volume (`Cr) 11,342 2,550 • Market breadth was however strong at ~1.11x as
investors bought large cap stocks. Both FIIs and
Advances 751 1,481
domestic institutions bought equities worth `1.33bn
Declines 711 1,330 and `1.47bn, respectively.
Unchanged 68 117
• Asian markets extended yesterday's losses today, as
Total 1,530 2,928 Europe’s debt woes and the health of the US economy
Global Markets pushed down banks and energy companies.
Index Latest Values Change (%) • We expect a weak opening for the Indian markets as
the cues from the Asian markets are not very
DJIA (Closed) 11,240.26 -
encouraging. However, falling crude prices and
NASDAQ (Closed) 2,480.33 - appreciating dollar may provide some relief to
Nikkei * 8,676.12 -1.2% domestic companies which can cause a support for the
Hang Seng * 19,403.87 -1.1% markets.
* as of 8.45AM IST Economic and Corporate Developments
Currencies / Commodities Snapshot • Global rating agency Moody's has pegged India's
Latest Previous growth at 7.5% - 8% for FY12, saying that higher
Quote Close interest rates as well as global economic uncertainties
Indian Rupee per $ 45.81 45.70 could affect the country's economic expansion in the
near term.
Indian Rupee per € 64.49 65.11
NYMEX Crude Oil($/bbl) 84.11 86.45
• India's services sector growth fell to its lowest in more
than two years in August, mirroring the softness in
Gold ($/oz) 1,897.80 1,873.70
manufacturing output and lock in step with the
Silver ($/oz) 43.03 43.02 weakening trend across the world.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Bharat Heavy Electricals Ltd bagged `1,395Cr
Previous Current Change contract from National Mineral Development Corp for
Company Name
Close (`) Price (`) (%) setting up a raw material handling system for
BF Utilities 439.80 515.05 17.11 integrated steel plant at Nagarnar in Chhattisgarh.
Tech Mahindra 636.70 679.90 6.78
• Navneet Publications is in advanced talks to buy
Essar Oil 87.55 92.65 5.83
about 25% stake in Hyderabad based school chain
IRB Infra 150.75 159.20 5.61
Gowtham School for close to `60Cr, according to
Aban Offshore 380.75 401.75 5.52
media.
(BSE Mid-Cap) • Reliance Communications will restructure its wireless
Previous Current Change business over the next 30 days in a move to
Company Name
Close(`) Price(`) (%) increase its competitiveness.
BF Utilities 439.80 515.05 17.11
• Neyveli Lignite Corporation (NLC) plans to invest
Alfa Laval 1708.95 1926.00 12.70
`40,200Cr to build power plants in Tamil Nadu,
Sujana Towers 24.65 27.25 10.55
Rajasthan and Uttar Pradesh. The company has
Spicejet 24.25 26.30 8.45
plans to install 7,500 Mw of power generation
Amtek Auto 128.85 138.50 7.49
capacity, including a 4,000-Mw plant in Tamil Nadu
and a 2000-Mw plant in Uttar Pradesh.
TOP LOSERS
• JSL will invest `6000-7000Cr on scaling up the
(BSE A-Group)
capacity of its steel plant at Kalinga Nagar in Orissa
Previous Current Change from 1mn tonne per annum (mtpa) to 3.2 mtpa. The
Company Name
Close(`) Price(`) (%)
steel maker hopes to achieve the expanded capacity
Bhushan Steel 356.80 340.45 -4.58
within four years.
Patni Computer 287.85 275.65 -4.24
Wipro 334.10 321.90 -3.65
US markets
Dabur India 112.05 108.10 -3.53 US markets were closed yesterday.
Hindustan Zinc 131.70 127.10 -3.49
(BSE Mid-Cap)
Previous Current Change
Company Name
Close(`) Price(`) (%)
KEC Intl 60.85 57.65 -5.26
KGN Inds 30.35 28.85 -4.94
Polaris Soft 124.40 118.25 -4.94
Bhushan Steel 356.80 340.45 -4.58
Bajaj Elect 184.45 176.10 -4.53
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