Morning EQ-Tea 31 August 2010

Indian Indices % Change

Last Close 1 Day MTD YTD Corporate News/Results Corner
Sensex 18,032 0.2 0.9 3.2
Page Page
Nifty 5,415 0.1 0.9 4.1
No. No.
CNX Midcap 8,737 (0.2) 3.8 17.6
CNX IT 5,971 (0.6) (1.9) 2.6 • Corporate News 2 • Price Shockers 3
Bankex 10,747 0.2 5.8 19.0
Auto 8,741 0.4 3.8 17.6 • Macro Economic News 2 • Event Calendar 4
Metal 15,128 1.5 (1.8) (13.1)
FMCG 3,332 (0.7) 3.2 19.4
• International News 2 • Corporate Actions 4

Global Indices % Change • Bulk Deals 3 • Board Meetings 4

Last Close 1 Day MTD YTD
Shanghai 2,653 (0.6) 0.0 (19.5) • Insider Trades 3
Nikkei 225 9,149 (2.6) (6.6) (15.5)
Straits Times 2,957 (0.5) (1.6) 1.5 Statement of the day
Hang Seng 20,737 (0.8) (2.2) (6.0)
DJIA 10,010 (1.4) (4.4) (4.0) “My economic team is hard at work in identifying additional measures
S&P 500 1,049 (1.5) (4.8) (5.9) that could make a difference in both promoting growth and hiring in the
FTSE 5,202 0.9 (1.1) (3.9) short term and increasing our economy's competitiveness in the long
Dollar Index 83 0.0 2.0 6.9 term”
Barack Obama – President of United States
Live Markets As on 0730 hours IST
Hang
Shanghai Nikkei SGX Nifty Seng
Current Quote 2,634 8,912 5,478 20,591 Institutional Activity Vis-à-vis Sensex Movement
% Change (0.7%) (2.6%) 0.2% (0.7%)

ADR (CONVERTED TO INR) Prem / (Disc) in (%)

(Rs Mn) Provisional Figures for Investments
4000 19000
ADR Close NSE Close 1 Day 1Mth
INFOSYS 2,689 2700 (0.4) 0.7 18800
2000
ICICI BANK 960 968 (0.8) (0.2) 18409.35 18600
TATA COM 329 333 (1.3) 1.9 0 18311.59 18400
HDFC BANK 2,491 2132 14.4 16.5 18179.64
-2000 18032.11 18200
STERLITE 150 153 (1.5) 75.1 18266.35
18000
Volumes Moving Average (Rs bn) -4000
1 Day 5 Day 30 Day 17998.41 17800
BSE CASH 44 51 49 -6000
17600
NSE CASH 106 138 168
-8000 17400
NSE F&O 874 175 29
23-Aug 24-Aug 25-Aug 26-Aug 27-Aug 30-Aug
Institutional Activities (Net) Spot market
1 Day MTD YTD
FII (LHS) MF (LHS) Sensex (RHS)
FII (Rs bn) 1.8 70 446
MF (Rs bn) 0.7 (39) (186) Source: NSE, BSE & SEBI

Bond Market Historical Data (%)

1 Day 1M 1 Yr
BSE Advance/Decline
10Yr Yield (G-Sec) 8.01 7.82 7.59

Currency Market % Change

2,000 1.6
Last Close 1day MTD YTD 1.4
INR/USD 46.92 (0.1) (1.1) (0.8) 1.4
1,600
INR/EURO 58.83 1.0 2.9 13.2 1.2
Number of Shares

INR/GBP 72.53 0.0 0.4 3.7 1.0

1,200 0.8 0.8
Commodities Update % Change 0.7 0.8
Unit Close 1 Day MTD YTD 800
0.4 0.6
Crude Oil(NYME) $/Bbl 74 (0.8) (6.1) (6.6) 0.4
Gold (OTC) $/Oz 1,237 0.0 4.8 12.8 0.4
400
Copper (LME) $/MT 7,447 2.1 2.4 1.4 0.2
Aluminum (LME) $/MT 2,045 1.6 (5.5) (6.9) 0 0.0
Sugar (LIFFE) $/MT 577 0.0 (1.4) (0.8) 23-Aug 24-Aug 25-Aug 26-Aug 27-Aug 30-Aug
Zinc (LME) $/MT 2,095 2.2 3.5 (18.2)
Advance (LHS) Decline (LHS) Adv/Decl Ratio (RHS)
Baltic Dry Index 2,712 0.3 (1.1) (3.9)
Source: Bloomberg, NSE, BSE & SEBI Source: BSE

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Corporate News/Results Corner
Reliance Industries invests in Luxury Oberoi Hotels
Reliance Industries Ltd. acquired 14% stake in India’s luxury Oberoi hotel chain. Reliance Industries, operator of the world’s
biggest refinery complex, agreed to pay Rs 10.2bn for a stake in EIH Ltd., which runs the Oberoi and Trident hotels.

Core Projects to buy U.S. Education Software Provider

Core Projects & Technologies plans to acquire a U.S. company and use its technology to boost sales in the South Asian nation,
for $40mn. Core Projects also plans to spend Rs 10bn to build schools in India, he said. It is bidding for projects in India to
build schools as state and federal governments increase spending on education.

NTPC inks Rs 132bn deal with Bangladesh

NTPC signed an MoU with Bangladesh Power Development Board to establish two thermal power projects in the neighbouring
country at an estimated investment of Rs 132bn, even as it has offered upto 49% stake in its gas-fired project in Kerala to
Qatar Petroleum in return for assured fuel supply.

ONGC claims consent must for Cairn deal

ONGC announced that it has asked Cairn Energy to provide full details and copies of all agreements related to the proposed
transaction with Vedanta. The government, too, has insisted that ONGC has the right to decide about approval for Vedanta’s
plan to buy an up to 60% stake in Cairn India for as much as Rs 450bn.

Sugar Imports by China May Advance 42%, survey Shows

Raw-sugar imports by China, the third-largest producer, may surge by as much as 42 percent in 2010 after domestic output
dropped for a second straight year and demand increased.

Six new telcos to be fined for missing rollout deadline

The telecom department is finalising the quantum of penalty for delayed rollout of services by new players in the telecom
market. The latest entrants include Videocon, Sistema, Uninor, Loop, S Tel and Etisalat DB. Aircel Cellular that got licences for
some circles before 2008 may also be penalised for delays.

Gabriel India to pump in Rs 3000mn on capacity, R&D over four years

Gabriel India plans to invest Rs2500-3000mn over the next 3-4 years on expanding capacity and research and development
(R&D), besides logistics and quality systems.

Videocon in talks to sell 26% in telecom arm

Videocon is in negotiating with foreign companies for sale of a 26% stake in its subsidiary, Videocon Telecommunications,
total deal valuation could be of Rs 150 bn.

Commercial Paper issuances double in July

The raising of funds through commercial papers (CPs) has surged within a month of the country’s banks shifting to base rates.
In July, companies raised Rs 258.89bn through CPs, a short-term money market instrument. This was almost double the Rs
133.21bn garnered in June, according to the latest Reserve Bank of India (RBI) data.
Macro Economic and Other News International News
Direct Tax Code tabled in parliament, would be US Personal Income expands lower than estimate
implemented from April 2012 US personal income growth for the month of July came in
The Direct Taxes Code (DTC) Bill that was introduced in at 0.2% vs consensus estimates of 0.3%. This brought
Parliament today proposes some relief to individuals and about renewed fears of a slow down as the pace in
companies but a closer read suggests that women personal income growth slowed down in July.
taxpayers, developers of special economic zones and units
in these areas, as well as those investing in unit-linked UK Gfk Consumer Confidence Survey fairs better
insurance plans would face disadvantage through this. The than estimates
new legislation to replace the Income-Tax Act, 1961, is The UK GfK Consumer Confidence survey for the month of
slated to come into force only from April 2012. Like the August came in at -18 vs consensus estimates of -24. The
Goods and Services Tax, this is again a case of missed recently reported GDP for UK for Q2 also surprised the
deadlines. markets on the higher side by clocking in a growth of
1.2% vs estimates of 1.1%.
Committee set up to review the policies wants single
class for foreign investment
A committee set up to review the policies for foreign
investments in India has recommended a major overhaul
of the regulatory framework. It proposes a structure
where foreign entities could start investing in the domestic
market without setting foot on Indian soil. The panel also
proposes doing away with different categories like foreign
institutional investors (FIIs), foreign venture capital
investors (FVCIs) and non-resident Indians (NRIs).

Source: Economic Times, Business Line, Business Standard, Times of India, DNA Money, Mint, Financial Express, Bloomberg

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Bulk Deal

Company Acquirer Qty Price Seller Qty Price

Camlin Ltd. Ravi Shankaran 310000.0 50.5 N.A.

Consolid Constr N.A. EIF- Coinvest Iii 1336900 80.5
Consolidated Finvest And
Ester Inds Bharat Jayantilal Patel 176022 48.2 Holdings Limited 209000 48.2
IT People Taib Bank E C 1002000 32.5 India Max Investment Fund 1000000 32.5
Jupiter Biosc Sarswati Vincom Ltd 250000 108.2 N.A.
Lords Chloro Sopan Securities Private 350000 23.5 Alok Dhir 350000 23.5
Paramount Pharma
Piramal Health Private Limited 10000000 491.0 PHL Holdings Private Limited 10000000 491.0
Rich Capital Scope Vyapar Private 112000 75.3 Shurbhi 100000 75.2
Roselabs Inds Abhijai Investment 173005 34.2 N.A.
TRINETHRA IN N.A. A C P Industries Limited 370000 44.1
Tutis Tech Khimraj H Jain Huf 100000 37.0 N.A.

N.A. = Not Available

Source: BSE & NSE

Insiders Trades

Company Acquirer/Seller Bought/Sold Qty

Ambika Cotton Mills Ltd Ascent India Fund c/o UTI Venture Funds Mgt Co Pvt S 56,300

Emami Infrastructure Ltd Priti Sureka S 223,900

Radha Madhav Corporation Ltd Anil J Agrawal, Chairman B 97,107

Ramsarup Industries Ltd IDBI Bank Ltd B 3,507,848

Smartlink Network Systems Ltd K R Naik, Executive Chairman B 60,405

Source: BSE NSE & Capitaline
Note: The above insiders Trades might include ESOPs conversion.

Price Shockers

Gainers Losers
Change Change Change Change
Company Close Price Price Company Close Price Price
Price (Rs) (Rs) (%) Price (Rs) (Rs) (%)
EIH 151 16 11.5 Hindustan Const 58 (2) (3.3)
Power Grid Corp 109 4 4.2 Chennai Petro 244 (7) (2.6)
Tata Steel 528 18 3.5 Jet Air India 759 (20) (2.6)
Power Finance 352 11 3.2 HCL Tech 393 (10) (2.4)
Indian Hotels 105 3 2.9 Siemens 700 (16) (2.2)
Biocon 343 9 2.7 Suzlon Energy 47 (1) (2.2)
ABB 780 20 2.6 Colgate Palmolive 797 (17) (2.1)
Sintex Inds 363 9 2.5 Lupin 365 (7) (2.0)
JSW Steel 1,137 25 2.2 Yes Bank 317 (6) (1.9)
Exide Inds 150 3 2.2 Rolta India 163 (3) (1.8)
Bharti Airtel 323 7 2.1 Nagarjuna Constr 152 (3) (1.8)
ONGC 1,344 27 2.0 Zee Entert 293 (5) (1.8)
Hindalco Inds 167 3 2.0 Lanco Infra 69 (1) (1.7)
REC 332 6 1.8 IVRCL Infra 155 (2) (1.6)
Torrent Power 339 6 1.8 Syndicate Bank 109 (2) (1.5)
Source: Capitaline

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Event Calendar

• Aug 30: US Personal Spending for July

• Aug 30: US PCE Deflator for July
• Aug 31: India GDP for 2Q (Expectation 8.8% Prior 8.6%)
• Aug 31: Japan Vehicle Production for July
• Aug 31: Japan Housing Starts for July (Expectation 2.0% Prior 0.6%)
• Aug 31: UK GfK Consumer confidence Survey (Actual -18 Prior -22)
• Aug 31: US Consumer Confidence for Aug (Expectation 50.7 Prior 50.4)
Source: Bloomberg

Corporate Actions

Ex Date Company Purpose Ex Date Company Purpose

Harita Seating Systems Annual General Meeting And
31-Aug Annual General Meeting 31-Aug Nesco Limited
Limited Dividend Rs.1.50 Per Share
Harrisons Malayalam Radico Khaitan Annual General Meeting And
31-Aug Scheme Of Arrangement 31-Aug
Limited Limited Dividend Re.0.60 Per Share
Annual General Meeting
31-Aug GHCL Limited And Dividend Rs.2/- Per
Share
Source: NSE

Board Meetings

Date Company Results Dividend Date Company Results Dividend

31-Aug Arvind Remedies Limited 3 31-Aug Ucal Fuel Systems Limited 3 3

Maharashtra Seamless Precision Wires India
31-Aug 3 3 31-Aug 3
Limited Limited
31-Aug Gkb Ophthalmics Limited 3 3 31-Aug Aftek Limited 3 3

31-Aug Hotel Rugby Limited 3 3

Source: NSE

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Advisory Group
Karun Mutha
SVP & Head - Equity & Derivatives Advisory
Tel +91-22-67897833
Email: karun.mutha@hsbcinv.com

Fundamental Team Designation/Sectors covered

Supriya Madye AVP Analyst–Auto Cement Infra 022 39673815 supriya.madye@hsbcinv.com
Deepan Sankaranarayanan Analyst–Media Logistics 022 39673818 deepan.sankaranarayanan@hsbcinv.com
Jignesh Shial Analyst–Banking Real Estate 022 39673820 jignesh.shial@hsbcinv.com
Hitesh Punjabi Analyst–IT Pharma 022 39673823 hitesh.punjabi@hsbcinv.com
Prerna Jhunjhunwala Analyst–Retail FMCG Capital Goods 022 39673822 prerana.jhunjhunwala@hsbcinv.com
Chetan Thacker Associate Analyst–Metal Mining Agri 022 39673821 chetan.thacker@hsbcinv.com
Priyanka Rai Assistant Manager (Production) 022 39673852 priyanka.rai@hsbcinv.com

Quantitative Team
Tina Khetan Derivative Analyst 022 67897828 tina.khetan@hsbcinv.com
Akshay Bhagwat Derivative Analyst 022 67897830 akshay.bhagwat@hsbcinv.com
Nikunj Shah Derivative Analyst 022 67897827 nikunj.shah@hsbcinv.com

Technical Team
Mukesh Singh Vice President- Technical Analyst 022 67897816 mukesh.singh@hsbcinv.com
Rahul Randeria Technical Analyst 022 67897817 rahul.randeria@hsbcinv.com
A.SenthilRaj Technical Analyst 022 39673998 a.senthilraj@hsbcinv.com

Advisory Support
Tony Nawani Manager 022 67897825 tony.nawani@hsbcinv.com
Ashutosh Desai Assistant Manager 022 67897826 ashutosh.desai@hsbcinv.com
Vinod Hassija Assistant Manager 022 67897827 vinod.hassija@hsbcinv.com

Page 5
Disclaimer:
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