1.
Keynote Capitals Institutional Research - Industry Monitor September 12, 2011
Industries covered
• Banks
• Infrastructure
• IT
• Media & Entertainment
Executive Summary
RBI has notified the pending deal of Axis Bank acquiring Enam to be an all-cash deal
The `2,067Cr deal pending since last November jointly announced by Axis Bank and Enam has been
notified by RBI that the proposed has to be an all-cash deal that was initially structured as an all-stock
transaction.
Land Acquisition & Rehabilitation Bill has finally been approved
The much-debated and awaited Land Acquisition & Rehabilitation Bill has finally been approved by
the Cabinet and is ready for presentation at the monsoon session of parliament would be an event to
watch out for would be favorable for the companies like DLF, Unitech, HDIL etc which has land
holding whereas the companies which are in process of acquiring new land parcel would be impacted
once the bill is passed.
IT stocks lead losses on U.S. economy worries
BSE IT index was closed 4950.11 down 0.68% as compared to last week. Investors were
disappointed after a speech by the U.S. Federal Reserve chief lacked details on plans to spur
economic growth after a $447 billion jobs package plan by US President Mr. Barack Obama. Software
stocks led losses on the main index with Infosys and Tata Consultancy Services dropping 2.1% each,
while Wipro fell 1.4%. The United States is the biggest market for India’s $76 billion IT companies.
Key highlights of Media & Entertainment industry is Assocham report on film and animation
industry
The main highlights of the Media & Entertainment (M&E) Industry are; according to Assocham, the
Indian film industry revenue is expected to grow by 56% to Rs128bn by 2015 from `81.9bn last year
while animation industry to reach `43.75bn by 2013, UTV’s shareholders have approved to delist from
Indian bourses, government aiming at self-regulatory mechanism for TV content and Government
plans to set up panel to prevent media from blowing up issues.
Weightages in major indices
Sectors Sensex Nifty BSE 500 CNX 500
Banks 24.49% 25.00% 23.84% 22.63%
Infrastructure 10.7% 10.62% 7.90% 7.91%
Information & Technology 13.8% 11.00% 8.42% 8.40%
Media & Entertainment NA NA 0.80% 0.80%

2.
Banking Industry Monitor
Banking Industry and its contribution to Indian equities
Banking and other Finance firms together have the highest weightage in the Sensex and BSE 500
with 24.49% and 23.84% respectively. The major players in BANKEX Indices are the private banks
namely ICICI Bank (28.00%), which is the second largest bank in India with HDFC Bank (23.91%).
Other banks include SBI (15.14%), Axis Bank (8.01%) and Kotak Bank (5.05%). The sector’s
weightage in CNX Nifty is 25.00% and in CNX 500 is 22.63%.
Federal Bank launches “Fed Oriental Pravasi Insurance” scheme for new NRI customers
Federal Bank in association with Oriental Insuranc has launched an insurance scheme named “Fed
Oriental Pravasi Insurance' for its new NRI customers. The scheme will cover their hospitalization
expenses by providing cashless treatment facility at more than 3000 hospitals pan India and also
unforeseen eventualities like repatriation, accidents etc. for which the customers have to maintain a
minimum balance of `5,000. Overseas treatment in recognized hospitals for an amount up to `75,000
p.a. is also offered under the scheme.
Medical floater cover for family is available in the event of death or disability of the insured for `10
lakh. Economy class airfare for a dependent or bystander in case of accident along with that of the
patient is also available.
Axis Bank's acquisition of Enam's broking & investment banking businesses must be all-cash
deal: RBI
The `2,067Cr deal pending since last November jointly announced by Axis Bank and Enam has been
notified by RBI that the proposed deal has to be an all-cash deal that was structured as an all-stock
transaction. The original structure submitted to the RBI by Axis Bank had proposed it would issue
stock to Enam's founders while a subsidiary of the bank would take over the businesses. But the
central bank had turned down the proposal on the grounds the entity that would issue the shares was
different from the one that would own the new businesses. Following this, Axis submitted a new
proposal to salvage the deal according to which Axis would issue shares and acquire the businesses
from Enam and "momentarily" hold the assets before transferring them to a subsidiary that too was
turned down by RBI.
The Axis and Enam official declined comment and said that the bank has received an approval from
RBI to carry out an all-cash transaction. Another senior bank official said the board was meeting on
September 16 to consider a revised plan, and the revision did not envisage an all-cash deal.
South Indian Bank (SIB) launches sale of gold coins and gold bars
SIB has launched sale of gold coins and gold bars under the brand name “SIB Pure Gold” available at
selected branches in Kerala and Tamil Nadu. SIB Pure Gold consists of 999.9 pure gold coins and
gold bars minted at the leading refinery PAMP in Switzerland and is available in 4 gm, 8 gm, 20 gm
coins and 50 gm and 100 gm gold bars.
SBI may expand to Pakistan soon as central banks explore banking ties
The central banks of India and Pakistan are likely to meet in Karachi later this month to explore
banking ties. The two sides had agreed at the commerce secretaries' meeting in April this year that
closer cooperation between their banks was important to give a push to bilateral trade and the
process of opening branches in each other's country needed to be fast-tracked. The two central banks
will give inputs to their respective commerce secretaries, who will discuss the issue at their proposed
meeting in November. Although permission to bank in each other's country is likely to boost bilateral
trade, the RBI is expected to tread cautiously as the facility could also be used for terror financing.

3.
Infrastructure Industry Monitor
Infrastructure Industry and its contribution to Indian equities
Infra includes infra development and Power & power distribution. The total weightage of the sector is
7.9% in BSE500 index and CNX500, where L&T alone contributes maximum at 4.06%.
Reliance Power’s Sasan UMPP implementation on schedule
The company has informed that the implementation of Sasan Ultra Mega Power Project (UMPP) is on
schedule. The coal production from the mines associated with the Sasan UMPP will be in time to
meet the requirement of the project. Further, the land referred in the report is predominantly non-coal
bearing area and is required for stocking over-burden removed from the coal mine area. Also, the
issue mentioned in the report is being addressed by the company under the leadership of Ministry of
Coal, Government of India, and the company is confident that it would not impact the project timelines
including production of coal. Recently, the company was planning to set up 500 MW solar power
projects in Rajasthan entailing an investment of `8,000Cr over the next three years. The planned
investment was the largest investment in solar projects in India and one of the largest in the world.
NCC secures new orders aggregating `629Cr
The company has secured 3 orders worth `629Cr, one is from Water Resources Division Raigarh,
Chhattisgarh for the construction of Saradih Barrage with vertical lift gates to be completed over a
period of 24 months and other order which is valued at `159Cr is secured from the Maharashtra State
Electricity Distribution. (MSEDCL), Mumbai for turnkey contracts for single phasing scheme to be
completed over a period of 12 months and last order worth `71Cr from Bharat Cocking Coal,
Dhanbad is for removal of OB, extraction and transportation of coal to be completed over a period of
20 months.
Ramky Infrastructure bags orders worth `1,006 Cr
The company has bagged orders worth `1006Cr across buildings, industrial, water and waste water,
road and power sectors from various states in India which includes `207Cr order from Puravankara
Projects for construction of civil works for a residential project in Chennai, Tamil Nadu and `109Cr
order from Reliance Infrastructure for construction and general civil work for a coal handling plant, and
workshop, roads, drains and boundary for the Sasan ultra mega power project in Madhya Pradesh.
While the Puravankara project is to be completed in 21 months, the Reliance Infra project has tenure
of 20 months. The contract also includes infrastructure work order for water supply projects in
Rajasthan worth about `219Cr and a residential project in Maharashtra valued at `74Cr. The
company has also received orders from Haryana, Gujarat, Madhya Pradesh, Maharashtra, Karnataka
and Orissa.

4.
IT Industry Monitor
IT Industry and its contribution to Indian equities
IT sector has weightage of 8.42% in BSE 500 and CNX 500 with major stocks are Infosys, TCS and
Wipro. The sector is also represented through BSE IT and CNX IT indices. IT sector companies also
constitute major portion of Sensex and Nifty with weightages of 13.8% and 11%.
Global economic environment is volatile: Infosys
Infosys Technologies Executive Co-Chairman Mr. S Gopalakrishnan said Infosys has not seen clients
reducing their budget plan on information technology due to the slowdown in the US and Europe this
year. He also mentioned that there is volatility in decision making, but the company is continuing with
their hiring plans.
Finacle from the Infosys ltd is implemented by ECM
European credit management ltd has strengthened its existing relationship with the Infosys by
implementing Finacle Treasury as their trading platform for credit derivatives and Total return swaps
products. This development displaces the incumbent technology solution, and has led to the
consolidation of multiple trading platforms onto Finacle Treasury.
Wipro won the 2011 Microsoft Country Partner of the Year Award.
Wipro was selected from among a global field of top Microsoft partners for demonstrating excellence
in innovation and implementation of customer solutions based on Microsoft technology. Mr. Ashok
Tripathy, VP and Business Head, Wipro said "We take immense pride in being awarded the Microsoft
Country Partner of the Year for India for two consecutive years. This award is a reflection of Wipro's
deep capabilities on Microsoft Technology and our success in delivering innovative and high-value
solutions to our customers.
Educomp received `60.72Cr Order
Education solutions provider Educomp has received `60.72Cr order from the Chhattisgarh
government for implementation of ICT solutions across 582 government high schools and higher
secondary institutes. The progamme is expected to benefit 3.25 lakh learners from Class IX to XII
every year. With the new project, the total number of schools in Edureach's (Educomp's ICT division)
portfolio is 11154.
Slowdown in the decision-making process: Tech Mahindra ltd
Tech Mahindra is seeing some slowdown in the decision-making process and order placements from
global customers due to the continued recession facing its clients in the US and European markets.
Some customers are beginning to think on changing their behaviour patterns and slowing down the
decision making process.
.

5.
Media & Entertainment Industry Monitor
Industry and its contribution to Indian equities
Major listed Media & Entertainment companies included in BSE 500 and CNX 500 indices are Zee
Entertainment Enterprises, Dish TV India, Sun TV Network, Jagran Prakashan and UTV Software
Communications, while the sector's weight age is 0.80% in both the indices.
Assocham: Film industry revenue may touch `128bn by 2015
According to Assocham, the Indian film industry revenue is expected to grow by 56% to `128bn by
2015 from `81.9bn last year due to increasing digitalisation of the sector. Digitalisation of film
distribution and value-added services like movies on demand are set to open up new revenue
streams and business models. The box office collections nearly contribute about 80% to the total film
revenues. Backed with 12,000 theatre screens, 400 production houses and a huge viewership, India
has world's largest film industry in terms of number of films produced and ticket size.
Animation industry to reach `43.75bn by 2013
According to another study conducted by Assocham with Deloitte, the Indian animation industry is
expected to touch `43.75bn by 2013 from `23.25bn in 2010. The rising number of TV channels,
greater accessibility to internet, proliferation of mobile devices that leads to popularity of video and
gaming content are set to offer a huge potential for animation and character licensing.
UTV’s shareholders have approved to delist from Indian bourses
The shareholders of UTV Software Communications have approved the proposal to delist the
company's shares from both the exchanges, Bombay Stock Exchange and the National Stock
Exchange. In July this year, Walt Disney had offered to buy out stakes held by public shareholders
and promoters of UTV in a deal valued around `20bn. Post delisting, Walt Disney will also acquire
80.53 lakh equity shares representing 19.82% of the current paid up equity share capital from UTV's
other promoters.
UTV's board of directors has already approved the delisting offer and acquiring shares from public at
a price not exceeding `1,000 per equity share.
Government aiming at self-regulatory mechanism for TV content
The government is planning to initiate the process of amending Cable and Television Networks Act of
1995 to define the modalities for self-regulatory mechanism for television content. The government is
consulting with all associations of broadcasters and producers on the issue for a consensus.
Government plans to set up panel to prevent media from blowing up issues
The government is planning to set-up a committee to look into the issue of exaggerations in media
reports and playing up of certain events and suggest ways of dealing with the menace without curbing
press freedom. In the Government view, there have been some instances in the recent past, where
media reports have created hype over certain events, resulting in undue pressure on the government
and people being misled by the report about the real picture.

6.
KEYNOTE CAPITALS LTD.
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