1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Tuesday, August 23, 2011
Domestic Markets Snapshot Views on markets today
Name of Index Aug 19 Aug 22 Change (%)
• Indian markets snapped the losing streak and
Sensex 16,141.67 16,341.70 1.24%
rebounded to end on higher note yesterday as
CNX Nifty 4,845.65 4,898.80 1.10% investors grabbed shares offering value buying
BSE Mid-cap 6,127.10 6,203.67 1.25% following last week's plunge over worries about the
BSE IT 4,738.11 4,710.18 -0.59% health of the global economy. Gains in European
BSE Banks 10,763.34 10,748.66 -0.14% shares and higher US index futures triggered by a fall
FII Activity (`Cr) in crude oil prices also aided a recovery in battered
Indian share. However, worries that the sovereign debt
Date Buy Sell Net
crisis in euro zone peripheral countries may spread to
18-Aug 5209 6490 -1281
bigger regional economies kept investor sentiment
17-Aug 2253 2661 -408
under check. Except IT and banks, all sectoral indices
Total Aug 32566 40080 -7514
closed on positive note with oil & gas, power, metal
2011 YTD 416158 414940 1219 and capital goods stocks were major gainers. Software
MF Activity (`Cr) stocks extended recent steep losses triggered by
Date Buy Sell Net
concerns that a likely economic slowdown in the US
and Europe will hit technology spending by overseas
17-Aug 432 465 -33
clients, with IT major Infosys hitting 52-week low.
16-Aug 388 299 89
Ramky Infrastructure fell 17% after the company said
Total Aug 8338 6733 1605
that a team from India's main investigative agency
2011 YTD 88000 82890 5382 visited the group's premises and sought information
Volume & Advances / Declines regarding certain projects awarded to it. IT firm Four
NSE BSE Soft Solutions jumped 9% after the company signed a
deal with a global logistics firm.
Trading Volume (`Cr) 9,617 2,014
Advances - 1,803 • Market breadth was strong at ~1.77x as investors
Declines - 1,018 bought large cap stocks. FIIs sold equities worth
Unchanged - 101 `7.86bn while domestic institutions bought equities of
Total - 2,922 `1.43bn.
Global Markets • Asian markets today started with a positive opening.
The Nikkei Stock Average up 0.5% at 8,673.11. Hang
Index Latest Values Change (%)
Seng also opened positive, though declined thereafter
DJIA 10,854.65 0.3%
and currently is trading flat.
NASDAQ 2,345.38 0.2%
Nikkei * 8,636.78 0.1% • We expect a flat to cautious opening for the Indian
Hang Seng * 19,621.11 0.7%
markets as the investors may wait for important cues
to get any directions.
* as of 8.30AM IST
Currencies / Commodities Snapshot Key events today
Latest Previous • Opening of the IPO of SRS Ltd. (price band `58-65 per
Quote Close share), closes August 26.
Indian Rupee per $ 45.52 45.67
Economic and Corporate Developments
Indian Rupee per € 65.48 65.90
NYMEX Crude Oil($/bbl) 84.70 84.42 • Prime Minister Manmohan Singh said India can achieve
Gold ($/oz) 1,901.70 1,891.90 9.5% average economic growth in the 12th Five Year
Silver ($/oz) 43.40 43.72
Plan, provided steps are taken to push agriculture
growth rate to 4.2% and manufacturing to 11.5%.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stock
(BSE A-Group) • Wipro, Godrej and Dabur may participate in an
auction process initiated by global consumer
Previous Current Change
Company Name healthcare giant Reckitt Benckiser for the sale of its
Close (`) Price (`) (%)
Mphasis 352.05 388.30 10.30 personal care products division in India.
Shre Renuka Sug 52.45 57.70 10.01 • JFE reportedly bought a 14.9% stake in JSW Steel for
National Alum 59.90 65.20 8.85 $1bn, just below the level that would require a
mandatory public offering but planning to explore
Aban Offshore 344.30 370.80 7.70
the option of raising its stake to above 15% in near
BF Utilities-$ 432.90 464.75 7.36
future.
(BSE Mid-Cap) • NTPC, is preparing a back-up plan to avoid slippages
Previous Current Change in capacity addition targets as some of its proposed
Company Name
Close(`) Price(`) (%) new projects face obstacles such as gas shortage
Orchid Chem 180.65 199.80 10.60 and legal tussles over tenders.
Shre Renuka Sug 52.45 57.70 10.01 • Consumer product companies in India on an average
Spicejet 22.10 24.30 9.95 have increased the price of one daily consumption
Dewan Housing 198.45 214.85 8.26 item every day over the last two months, despite an
Aban Offshore 344.30 370.80 7.70 ever-increasing possibility of a consumer slowdown.
• The downturn in global markets has taken a toll on
TOP LOSERS Essar Oil's plans to raise $1.5bn in foreign currency
(BSE A-Group) loans to finance its expansion plans and forced the
company to look for options in a difficult
Previous Current Change environment.
Company Name
Close(`) Price(`) (%)
Aurobindo Phar 137.10 125.15 -8.72 • Chlorine gas leaks from BHEL plant in Bhopal; 3
hospitalised
M&M 630.10 605.30 -3.94
Gail India 429.60 415.40 -3.31 • Coal India Unions have demanded a 100% jump in
their salaries-a demand that would put the state-run
Jindal Saw 120.10 116.25 -3.21
entity under a severe strain as its annual wage cost
Union Bank 256.75 250.25 -2.53
of `20,000Cr already accounts for 42% of its
(BSE Mid-Cap) expenditure.
Previous Current Change US markets
Company Name
Close(`) Price(`) (%)
US markets finished higher Monday for the first
Ramky Infra 269.50 227.05 -15.75 session in three, bouncing back from a four-week
Nava Bharat Ven 192.55 175.55 -8.83 retreat that has the S&P 500 Index down 13% so far
Aurobindo Phar 137.10 125.15 -8.72 this month. However, the investors still looks worried
3M India 4825.35 4500.05 -6.74 about the sustainability of rally reflected through a
KGN Inds 36.55 34.75 -4.92 heavy buying in the gold. The gold prices cross
$1,900 an ounce. Recovery in the European markets
is a major reason for the US stocks to close positive.
The Dow Jones Industrial Average rose with a
moderate upside of 37 points, or 0.3%, to close at
10,854.65, with 23 of its 30 components gaining
ground, led by Hewlett-Packard Co., up 3.6%. The
S&P 500 rose 0.3 point to finish at 1,123.82, led by
the performance of telecom sector.
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