1. Market Outlook
India Research
April 16, 2010
Dealer’s Diary Domestic Indices Chg (%) (Pts) (Close)
The benchmark indices extended their losses for a straight third session, giving BSE Sensex -1.0% (182.7) 17,639
up gains intra-day after opening on a positive note. The weakness was evident Nifty -1.0% (49.4) 5,274
from the fact that markets made an intra-day high at opening, but closed near MID CAP -0.2% (14.5) 7,042
the day’s lows. Volatility was lower compared to that witnessed in the past few SMALL CAP -0.6% (52.3) 9,034
sessions. After opening on a strong note, the markets gradually gave up gains BSE HC 0.7% 35.8 5,331
to trade flat by mid-session. Weakness in European markets accentuated the BSE PSU -0.6% (56.3) 8,957
bearish sentiments and the indices slipped further in the final session. The
BANKEX -1.4% (151.9) 10,559
Sensex and Nifty closed with losses of 1.0% each, while the BSE Mid-cap and
AUTO -0.3% (19.5) 7,627
Small-cap indices fell by just 0.2% and 0.6%, respectively. Among the front-
METAL -0.3% (50.0) 18,196
liners, JP Associates, HUL, DLF, Infosys and Sun Pharma were up by 0-1%, while
OIL & GAS -1.8% (189.6) 10,146
Reliance Industries, ICICI Bank, ITC, L&T and SBI were down by 2-3%. In the
Mid-cap segment, Blue Dart, Parsvnath Developers, Sobha Developers, Bayer BSE IT 0.4% 22.0 5,526
Crop and Apollo Hospital were up by 6-20%, while Max India, Bajaj Finserv,
LIC Housing Finance, Rolta India and Whirlpool were down by 4-9%. Global Indices Chg (%) (Pts) (Close)
Dow Jones 0.2% 21.5 11,145
Markets Today NASDAQ 0.4% 10.8 2,517
FTSE 0.5% 28.8 5,825
The trend deciding level for the day is 17745 / 5304 levels. NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further Nikkei 0.6% 68.9 11,274
rally up to 17870 – 18101 / 5343 – 5412 levels. However, if NIFTY trades Hang Seng 0.2% 36.4 22,158
below 17745 / 5304 levels for the first half-an-hour of trade then it may correct Straits Times -0.1% (2.8) 3,017
up to 17514 – 17388 / 5235 – 5196 levels. Shanghai Com -0.0% (1.2) 3,165
Indices S2 S1 R1 R2 Indian ADRs Chg (%) (Pts) (Close)
SENSEX 17,388 17,514 17,870 18,101 Infosys -0.2% (0.1) $62.7
NIFTY 5,196 5,235 5,343 5,412 Wipro -0.0% (0.0) $24.3
Satyam -2.0% (0.1) $5.4
News Analysis ICICI Bank -2.3% (1.0) $41.8
HDFC Bank 0.6% 0.9 $146.4
JFE close to buying stake in JSW Steel
AREVA T&D India wins contracts worth Rs63cr Advances / Declines BSE NSE
Refer detailed news analysis on the following page. Advances 1,195 478
Declines 1,729 833
Net Inflows (Apr 13, 2010) Unchanged 81 43
Rs cr Purch Sales Net MTD YTD
FII 3,278 2,670 608 4,721 24,531 Volumes (Rs cr)
MFs 488 745 (258) (902) (6,720) BSE 4,839
FII Derivatives (Apr 15, 2010) NSE 15,396
Open
Rs cr Purch Sales Net
Interest
Index Futures 1,147 2,009 (862) 13,852
Stock Futures 1,459 1,491 (32) 29,886
Gainers / Losers
Gainers Losers
Company Price (Rs) Chg (%) Company Price (Rs) Chg (%)
Apollo Hosp 768 5.8 Max India 194 -9.4
JP Hydro Power 74 4.3 Bajaj Finserv 326 -7.9
Unitech 80 3.4 Aditya Birla Nuvo 888 -4.7
Dr Reddys Lab 1,231 3.4 LIC Housing Fin. 851 -4.5
Titan Ind. 1,967 3.3 Essar Oil 143 -4.3
1
Please refer to important disclosures at the end of this report Sebi Registration No: INB 010996539
2. Market Outlook | India Research
JFE close to buying stake in JSW Steel
As per recent media reports, JFE is in advanced talks to buy a small stake in JSW Steel and
will invest about Rs5,000cr to buy a 14.1% stake. Mr Jindal and his family will also invest
about Rs2,500cr to retain their current holding of 42%. JSW has been exploring options of
raising equity to improve its balance sheet and to raise money for its expansion plans. The
dilution would imply a ~45-50% premium over the current market price. We maintain our
Accumulate rating on the stock.
AREVA T&D India wins contracts worth Rs63cr
AREVA T&D India has been awarded three contracts with a combined worth of Rs63cr for
an Air-insulated Substation (AIS). Two of the orders are from the Chhattisgarh state utility,
one for the manufacture and installation of a 132 kV AIS at the Patan plant, and the other
for a 220 kV AIS at the Vishrampur plant. The orders are scheduled for completion by Q4
of 2010 and Q2 of 2011, respectively. The third order is from the West Bengal state utility,
for the supply and installation of a 132/33 kV AIS at the Nazipur plant, as well as two bay
extension projects for the 132 kV AIS at Amtola, Kolkata. We maintain our Neutral view on
the stock.
April 16, 2010 2
3. Market Outlook | India Research
Economic and Political News
Inflation at 9.9% on broad price rise
Oil firms raise ATF prices by 3.2%
Steel demand to grow by 8-10% in 2010-11: Ministry of Steel
Corporate News
GMR Infra begins QIP to raise up to US $250mn
L&T plans JV with Japan's MHI to make industrial tyres
Goldyne Tech close to buying US-based DecisionOne for Rs500cr
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
Events for the day
Crisil Dividend, Results
Indusind Bank Dividend, Results
Development Credit Bank Results
April 16, 2010 3
4. Market Outlook | India Research
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