Morning Notes

28.05.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

Member Broker: NSE, BSE, MCX & NSEL || DP: CDSL || PMS || Mutual Fund

China Industrial Companies Profits Decline 2.2% in April Chinese industrial companies profits fell in April, a government report showed, as the nations slowing economy curbed demand. Earnings declined 2.2 percent from a year earlier to 407.6 billion yuan ($64.2 billion), the National Bureau of Statistics said on its website yesterday. That compared with a 4.5 percent gain in March. The deceleration in corporate profit growth underscores concerns that the slowdown in the worlds second-biggest economy is deepening. Chinas State Council said on May 23 that downside risks to growth are increasing and the government will intensify fine-tuning policies as needed, signaling it may take more aggressive steps to support the nations expansion. Oil Climbs a Third Day amid Greece Outlook, Iran Tension Oil advanced for a third day in New York on signs voters in Greece may support a European Union bailout, easing concern that the regions debt crisis will worsen and derail the global economic recovery. Futures gained as much as 0.8 percent after Greeces New Democracy party, which supports the bailout plan agreed with international lenders, placed first in all six opinion polls published in the country May 26. Crude has slipped 13 percent this month amid concern Europes crisis will curb fuel demand. Prices climbed on May 25 after the United Nations said Iran boosted its output of enriched uranium. The nation faces an oil embargo starting July because of its nuclear program. Euro, U.S. Equity Futures Advance on Greece Optimism The euro strengthened for the first time in five days, U.S. equity-index futures advanced and oil gained after Greek opinion polls showed voters backing parties that support the European Unions bailout, easing concern the country will exit the currency bloc. The euro climbed 0.4 percent to $1.2565 as of 9:15 a.m. in Tokyo, rebounding from its lowest level since July 2010. Standard & Poors 500 Index futures added 0.6 percent. Oil rose 0.5 percent to $91.29 a barrel in New York. The New Zealand dollar appreciated against all of its 16 major counterparts and increased 0.6 percent versus the U.S. currency.

KEY INDICES
Indian Markets
Index
S&P CNX NIFTY CNX NIFTY JUNIOR CNX 100 S&P CNX DEFTY S&P CNX 500 CNX MIDCAP NIFTY MIDCAP 50 SENSEX

Close
4920.40 9519.15 4816.85 3073.05 3910.60 6914.30 1989.50 16217.82

Pt. Chg.
-1.00 +57.00 +3.55 +30.45 +5.75 +40.50 +12.80 -4.48

Change %
-0.02 0.60 0.07 1.00 0.15 0.59 0.65 -0.03

Global Markets
Change (%) -0.22 -0.07 -0.60 0.03 0.38 0.32 0.02 0.28 0.06

Index S&P 500 NASDAQ DOW JONES FTSE DAX CAC 40 NIKKEI HANG SENG STRAITS TIMES

Close 1317.82 2837.53 12454.83 5351.53 6339.94 3047.94 8582.58 18766.14 2774.53

Global data recorded/updated last as on 28, May 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 3.87 2.54 2.50 2.27 Indian Markets

NIFTY TOP LOSERS

Change (%) -2.46 -2.22 -2.21 -1.73

Company GAIL VIDESH SANCH TATA STEEL CAIRN IND

Close 337.15 213.95 408.60 324.20

Company JINDAL STEEL MARUTI UDYOG MAH & MAH BK OF BARODA

Close 456.60 1,119.00 638.30 672.30

MARKET SUMMARY
A rebound in the rupee against the greenback and firm European market cues failed to boost market sentiment as the key domestic benchmarks ended on a flat note, with a negative bias Last day. The BSE Sensex touched intraday high of 16,273.48 and intraday low of 16,118.35 The NSE Nifty touched intraday high of 4,935.8 and intraday low of 4,889.35. Meanwhile, the BSE MIDCAP closed at 5,900.51, up by 25.73 points or by 0.44 per cent, while the BSE SMLCAP ended at 6,318.33, up by 33.49 points or by 0.53 per cent. The key domestic benchmarks witnessed a gap down opening as worries over slowing growth in China rattled most Asian markets. After slipping to the days low, the benchmarks staged a smart recovery in noon trade and bounced back into the positive terrain as a rebound in the rupee and firm European cues bolstered sentiment. Fears over Greece abated after Italian Prime Minister Mario Monti said that Greece is likely to stay in the euro, while most of the regions policymakers supported joint bond sales or the issue of Eurobonds to stem borrowing costs for debt plagued governments and fight the regions debt turmoil. However, the rally ran out of steam in the last few hours of trading as the Sensex closed on a flat note. On the Sectoral front, the FMCG and Consumer Durables ended down 0.46 per cent and 0.28 per cent, respectively. Out of the 30 Sensex stocks, there were 17 advances and 13 declines. The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3546, shares advanced were 1509 while 1298 shares declined and 739 were unchanged. The top losers of the BSE Sensex pack were Jindal Steel & Power Ltd. (Rs. 456.45,-2.59%), Maruti Suzuki India Ltd. (Rs. 1117.05,-2.46%), Mahindra & Mahindra Ltd. (Rs. 638.15,-2.00%), Hindustan Unilever Ltd. (Rs. 420.95,-0.88%), Housing Development Finance Corporation Ltd. (Rs. 656.85,-0.86%), among others. The top gainers of the BSE Sensex pack were GAIL (India) Ltd. (Rs. 336.30,+3.37%), Tata Steel Ltd. (Rs. 408.25,+2.43%), DLF Ltd. (Rs. 188.45,+1.89%), State Bank of India (Rs. 2005.00,+1.74%), Larsen & Toubro Ltd. (Rs. 1186.40,+1.54%), among others. Asian markets ended mixed last day day as news that Chinas banks may fall short of their 2012 loan targets, dampened sentiment across some markets. Shanghai Composite ended down 0.74 per cent while Nikkei 225 ended up 0.20 per cent.

R. Wadiwala

NEWS UPDATES
MACRO The rupee trades at 55.41/42 per dollar, recovering sharply from the day's low of 56.09 as exporter dollar sales and a recovery in the euro towards session high hurts; pair had closed Thursday at 55.65/66. Traders cite dollar flows from exporters who had still not converted half of their foreign currency earnings into rupees as mandated by RBI. Some selling from foreign banks on likely custodian flows also seen, say dealers. COMPANY The installed generation capacity of NTPC has crossed 38,000 MW, after the commissioning of the fifth 500-MW unit of Rihand thermal power project in Uttar Pradesh, according to reports. Reports stated that the total capacity of Rihand plant is 2,500 (5x500) MW. NTPC also added a 500-MW unit at Mauda, Maharashtra in April 2012, says report. UBM Canon, the leading B2B media and communications group focused on the advanced manufacturing sector, announced that it has signed an agreement with HCL Technologies (HCL). As part of the partnership, HCL Technologies will provide its latest Production and Content Management Service Platform called POMS (Production Operations as a Service) to enable establishment of a more dynamic and robust channel required for creating, producing and delivering content across UBM Canon`s product portfolio. The railway business unit of Larson & Toubro Ltd, with an order book of Rs 1,700 crore, is looking at various upcoming projects for growth, according to a senior official from the company. "With the growth in the railway sector, we are expecting this to grow considerably in 2012-13," said K V Rangaswami, advisor to chairman, L&T Ltd. In a deal that could be valued at Rs. 15bn, Canada's Intact Insurance and German insurer HDI-Gerling International Holdings have turned out to be the front runners to purchase 26% stake in the non-life insurance business of Reliance Capital, reports said. UBS India has been appointed advisors to Reliance General, it said. Canada's Intact Insurance is part of Toronto-based Intact Financial Corp, while HDI-Gerling is a subsidiary of Germany's third-largest insurer, Talanx. Bharti Airtel, India's top mobile phone operator, added 2.01 million mobile users in April, taking its total subscribers in the country to 183.3 million, data from an industry body showed on Friday. Vodafone'sIndian unit, which is the country's No. 3 mobile operator by subscribers, signed up 0.82 million mobile users in April to have a total of 151.3 million, the Cellular Operators Association of India said on its website. TTK Prestige - India`s largest and most trusted kitchen appliances brand joined hands with German specialty glass producer and technology company Schott AG for a strategic partnership at a press conference that was held in Bengaluru. TTK Prestige & Schott jointly launched a range of world class high quality cooking appliances in the brand name `Prestige Premia`. Chennai-based, BSE-listed real estate developer, Lancor Holdings Limited, is planning to invest around Rs 300 crore in the next two years to develop around 800 residential units in Chennai. The company, which has so far developed around 3 million sft with focus on residential space, is planning to launch five projects in and around the city to add 2.5 million sft in the near future, RV Shekhar, managing director of Lancor Holdings, told Business Standard.

R. Wadiwala

TECHNICAL ANALYSIS MOST ACTIVE STOCKS PIVOTAL GUIDANCE

Company NIFTY BANK NIFTY RELIANCE RCOM RELCAPITAL REL INFRA LT STER ICICIBANK SBIN TATASTEEL RPOWER TATAPOWER INFOSYSTCH BHEL ONGC ACC Lower 2 4891.45 9262.50 682.52 63.31 313.55 456.97 1166.49 93.22 806.87 1986.36 404.86 92.12 88.16 2361.44 206.21 255.59 1133.23 Lower 1 4909.80 9378.14 687.05 64.84 316.10 460.65 1175.96 94.99 811.39 2002.42 408.12 92.86 88.87 2380.44 207.87 257.64 1142.35 Axis 4921.14 9476.77 691.58 66.36 320.24 464.34 1189.42 96.70 817.90 2013.48 411.37 93.60 89.58 2399.43 209.53 259.70 1151.46 Higher 1 4951.57 9539.95 697.42 67.82 323.87 468.56 1200.70 98.43 822.60 2032.53 414.22 94.25 90.20 2416.05 210.98 261.50 1159.44 Higher 2 4961.72 9631.77 703.29 68.91 326.27 472.13 1209.18 99.55 829.62 2045.04 414.73 94.36 90.31 2419.02 211.24 261.82 1160.87

BULLISH ON SHORT TERM

TATASTEEL CUMMINSIND BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 415-417-419 SL 400 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 435-437-439 SL 423

FII and DII Investments

FIIs Date *25 May May-2012 2012 Till Date Purchase 1001.53 263596.00 263406.20 Purchase 927.63 6475.00 48738.90 Sale 1625.29 34982.60 220301.00 Sale 492.98 6345.00 54463.40
Inv (crs)

-623.76 -386.50 +43005.00

Inv (crs)

DIIs

Date *25 May May-2012 2012 Till Date * Provisional Data

+434.65 +130.10 -5724.40

R. Wadiwala

Following the MUTUAL FUNDS BSL Dividend Yield Plus G

Latest NAV: 79.19 (24/05/12) 52-Week High: 87.43 (25/07/11) 52-Week Low: 72.12 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
ITC Tata Motors DVR ONGC Hero Motocorp Bajaj Auto

Top 5 Sectors
% Net Assets
4.14 3.63 3.04 2.88 2.61

Top 5 Sectors
Financial Energy FMCG Automobile Technology

% Net Assets
18.50 15.25 12.62 10.23 7.36

Top 3 Holding Company Details ITC

LTP: 233.50 PB Ratio: 8.79 PE Ratio: 31.32 Year to Date Return: 16.00 Other Funds That Own ITC
Fund name
SBI Magnum FMCG ICICI Prudential FMCG Birla Sun Life Enhanced Arbitrage Ret LIC Nomura MF Equity

% Net Asset
36.78 36.46 10.14 9.78

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

Tata Motors DVR

LTP: 147.65 PB Ratio: -PE Ratio: -Year to Date Return: 70.40

Other Funds That Own Tata Motors DVR

Fund name
Birla Sun Life Enhanced Arbitrage Ret Birla Sun Life Enhanced Arbitrage Ret HDFC Infrastructure Tata Pure Equity

% Net Asset
7.47 6.54 6.34 6.24

Date
Apr 30, 2012 Mar 31, 2012 Apr 30, 2012 Apr 30, 2012

ONGC
LTP: 256.95 PB Ratio: 1.89 PE Ratio: 9.87 Year to Date Return: 0.00

Other Funds That Own ONGC

Fund name
Religare PSU Equity SBI PSU Baroda Pioneer PSU Equity Sundaram PSU Opportunities

% Net Asset
10.50 9.93 9.78 8.29

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

R. Wadiwala

DERIVATIVES NOTES
Nifty May 2012 futures were at 4,927.90, at a premium of 7.50 points compared to spot closing of 4920.40. Turnover on NSE`s futures & options (F&O) segment declined to Rs 122173.77 crore from Rs 166423.31 crore on Thursday, 24 May 2012.
% Change OI
0.48

Institutional Investment Trends

(in Crores) MAY 25, 2012

BUY
1255.93

SELL
1653.60

Net Buy/Sell
-397.67

OIEoD
12712.16

INDEX FUTURES

State Bank of India (SBI) May 2012 futures were at 2012, near spot closing of 2012.80. Axis Bank May 2012 futures were at 1002, near spot closing of 1000. ICICI Bank May 2012 futures were at 803.10, at a discount compared to spot closing of 816.70. In the cash market, the S&P CNX Nifty lost 1 points or 0.02% to settle at 4,920.40, its lowest closing level since 23 May 2012.

STOCK FUTURES

2917.81

2709.25

208.56

22922.18

1.21

Put Call Ratio Symbol NIFTY BAJAJ-AUTO FTSE100 HCLTECH SIEMENS SBIN SUNPHARMA SIEMENS TATACOMM MINIFTY NIFTY ASIANPAINT NIFTY Expiry Date 27-Jun-13 28-Jun-12 15-Jun-12 28-Jun-12 28-Jun-12 26-Jul-12 28-Jun-12 31-May-12 31-May-12 28-Jun-12 28-Jun-12 31-May-12 27-Sep-12 Put 244400 3250 10100 15000 1500 6875 18500 18500 2000 5380 28174100 14000 706550 Call 23550 375 1250 5000 500 3125 8500 8750 1000 2900 15461350 8125 440400 Ratio 10.38 8.67 8.08 3.00 3.00 2.20 2.18 2.11 2.00 1.86 1.82 1.72 1.60

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DIVIDEND AND OTHER INFORMATION

Bharat Petroleum Corporation Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 25, 2012 have recommended Dividend @ Rs.11/- per equity share of face value Rs.10/each for the year 2011-12. Reliance Infrastructure Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 25, 2012 has recommend a Dividend of Rs.7.30 per share on fully paid up equity shares of Rs.10 each. The dividend, if approved by the shareholders will be paid on the equity share capital of Rs.262.99 crore. Gujarat Fluorochemicals Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 25, 2012 has recommended a final dividend @ Rs 1.50 (150%) per equity share subject to the approval of the shareholders at the forthcoming Annual General Meeting of the Company.

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