Morning Report I June 6, 2011

Ashika Stock Broking Ltd.

Forex Rates Latest Chg Commodities Latest % Chg Equity Latest % Chg

Rs./US$ 44.85 -0.09 Crude(US$/BBL) 100.1 -0.10 Nifty 5517 -0.61

US$/Euro 1.46 0.00 Brent (US$/BBL) 115.5 -0.38 Sensex 18376 -0.64

Rs./Euro 64.89 0.31 Gold (US$/oz) 1546.3 0.25 DowJones 12151 -0.80

Yen/US$ 80.27 -0.07 Silver (US$/oz) 36.7 1.39 Nasdaq 2733 -1.48

Bond Markets Closing Chg Copper (US$/MT) 9016.0 -0.24 Hangseng 22950 -1.33

10-yr bond 8.28 1BP Alum (US$/MT) 2609.5 -0.85 Shanghai 2728 0.00

Interbank call 7.25 0BP Lead (US$/MT) 2426.0 -2.37 Nikkei 9403 -0.95

Strait Times 3132 -0.43

Market Sensor .
Kospi 2113 -0.03

Taiwan 9046 0.61

Friday market opened gap up and trade in green in the first half but once reliance AGM FTSE 5855 0.12
started market fell sharply and closed down 34 points at 5517. ADAG group stocks were
CAC 3891 0.02
performed well during last trading day. We expect that the markets to remain under
pressure as government may hike the diesel and kerosene prices this week which will DAX 7109 0.49
exacerbate inflation and may prompt the Reserve Bank of India to raise rates again in
the upcoming policy on the 9th of June. NSE Sect. Indices Latest % Chg
US market did not do well on Friday night; the economic numbers were poor. Nifty will
CNX IT 6562 -0.17
take cues from US market and probably, slip a little bit in the morning. Chinese, Hang
Seng, South Korea and Taiwan stock markets are shut today. All eyes are on Ben BANK NIFTY 10782 -0.53
Bernanke speech today. The dollar is crumbling, the dollar index is at 73.70 or
thereabouts, hence, there are many moving parts out there on how much the economy S&P CNX 500 4458 -0.55
their might fall off and what kind of policy action it might precipitate. “It might have
CNX INFRA 3011 0.31
negative and positive implications for emerging markets like ours.
FIIs were net buyer of Rs 445 crore in the cash market and Rs 485 crore (net) in the F&O CNX REALTY 282 -0.70
market on last trading session where as DIIs sold stocks worth Rs 356 crore (net) in the
cash market. Coming to trade today, we expect market to open negative and trade CNX ENERGY 8710 -1.06
volatile. CNX FMCG 9899 -0.62

CNX PHARMA 4759 -0.99

Global News .

ADR($) Latest % Chg

Japanese Prime Minister Naoto Kan will step down by August if not earlier due to ICICI Bank 46.34 -0.69
growing calls from the opposition and within his own ruling party to resign as quickly
as possible, Kyodo news agency reported on Saturday.(BS) Infosys 62.64 0.71
A new scramble for Africa is under way, global food prices rise and exporters reduce Dr.Reddy 35.97 -1.07
shipments of commodities, countries that rely on imported grain are panicking.(BS)
Opec should increase its oil production when it meets next week in order to meet Sterlite Inds. 15.02 -0.60
higher demand expected in the second half, a delegate who attended a meeting of
Wipro 13.69 -0.15
the group's advisory board told Reuters on Friday.(BS)
Portugal on Sunday voted decisively to end six years of leftist rule, electing the Tata Comm. 9.91 -1.39
country's main conservative party and boosting prospects for austerity measures tied
to a $114 billion aid package from the EU and IMF. (WSJ) Tata Motors 22.81 -1.38

ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH 1

Morning Report I June 6, 2011

Economic News Volume Shockers Last Day 2 Wk Avg. Vol. Ch.

.
(Times)
RIIL 609290 135010 4.51

India's manufacturing sector growth during quarter ended March 31 this year MRPL 786471 214911 3.66
stood at 5.1%, which is one-third of China's factory output of 15% and also BRFL 213928 44377 4.82
lower than the world average of 6.5%, according to a UN body report.(BS)
MIRC 354849 134756 2.63
Wheat procurement in the country has broken a record, with 26.43 million
tonnes of wheat purchased so far on the back of record production of the rabi DCM 154553 59287 2.61
crop, registering an increase of 18%.(BS)
After a steep rise in petrol prices last month, price of compressed natural gas Precious Metal (INR) Closing Chg
(CNG) in Delhi and surrounding areas has gone up.(BS)
Gold (Rs/10gm) 22255 40
Domestic News .
Silver (Rs/1kg) 54450 1300

Rs.Cr Institutional Activity (Last 5 trading Sessions)

Skill shortage remains one of the major constraints to growth in the Indian 500 388
Economy, says a recent World Bank working paper.(BS) 400
222 253 234
300 188 179
Lanco Infratech and GMR Group, two major private power producers, have 200 124
100 33
sought clarity from the government on natural gas supplies to the new plants
0
from Reliance Industries’ D-6 block in Krishna-Godavari basin.(BS) -100
-50
In the wake of Indian automobile industry facing the heat from higher interest -200
-300
rates and rising inputs costs, Mahindra & Mahindra (M&M) has asked its -400
-500 -371
suppliers to focus on cost reduction while also stressing on the need for on-

24-May-11

25-May-11

26-May-11

27-May-11

30-May-11

24-May-11

25-May-11

26-May-11

27-May-11

30-May-11
time delivery.(BS)
In a Rs 89-crore deal, Hindustan Sanitaryware and Industries Ltd (HSIL), the
ceramics major, has entered into a share purchase agreement with Garden
Polymers Pvt Ltd and its promoters, acquiring 60 per cent stake in the FII DII
company.(BS)
Negotiations between workers of Maruti Suzuki’s plant in Manesar in Haryana 5 4.5 Nifty Top Movers & Shakers (%)
who struck work yesterday and the management are expected to begin again 4
2.5 2.5
tomorrow.(BS) 3 2.2 2.0
Eleven years after buying Crossword Bookstores, the K Raheja Group — the 2
promoter of Shoppers Stop — is reviewing the future of the book retailing 1
0
chain.(BS)
-1
IT services firm Mahindra Satyam has sought additional time for setting up an -2
IT/ITES SEZ at Hitec City in Madhapur here.(BS) -3 -2.3 -2.3 -2.2
-2.4
The Directorate of Factories, Andhra Pradesh, has filed a second case against -4 -3.1
pharma major Dr Reddy's Laboratories over alleged safety-related lapses at its
LT

HDFC

HINDALCO
SAIL
RCOM

POWERGRID

AXISBANK
SESAGOA
RELCAPITAL

TATAMOTORS
USFDA-certified manufacturing facility at Bollaram, in Medak district, a senior
government(BS)
Amid uncertainty over the ongoing investigation into the 2G scam, Sistema
Shyam TeleServices Ltd (SSTL), which offers services under the MTS brand, has
Rs.Cr Market Turnover - last 5 Trading Sessions Rs.Cr
deferred its plans to go public and list the company on the bourses.(BS) 18000 120000
The Rs 800-crore Elder Pharmaceuticals Limited plans to launch almost three 16000
100000
dozen new products in the coming 30 months, a top company official said.(BS) 14000
State-owned Coal India Ltd has said it is in favour of an amendment to the New 12000 80000
Coal Distribution Policy (NCDP) of 2007 which is scheduled to come up for 10000
60000
8000
review this week.(BS)
6000 40000
Sebi may soon frame a policy for the stock exchanges to go through a stress 4000
test to prepare them for handling 'flash crash'-like situations, where a sharp 2000
20000

plunge in some stocks leads to across-the-board panic sale.(BS) 0 0

Rating agency Fitch has affirmed a low default risk on Uttam Galva Steels -- one
1-Jun-11

2-Jun-11

3-Jun-11
30-May-11

31-May-11

of the leading producers of galvanised and cold rolled products -- and given it a
stable outlook on the back of its improved revenue last fiscal.(BS)
NSE Cash BSE Cash NSE F&O(RHS)

ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH 2

Morning Report I June 6, 2011

Domestic News(Conti..) .

100%
Nifty 50 - Top Delivery as a (%) of Volume

90%
80% 71.9%
67.7% 67.1% 66.2% 65.2%
Taking a serious note of violation of carpet area norms by realty developers in 70%
60%
Mumbai, the Maharashtra government plans to introduce a string of stringent 50%
checks and balances for the benefit of flat buyers.(BS) 40%
Sugar and turbine maker Triveni Engineering has experimented with energy 30%
20%
exploration in the nineties, with rural retail in the last decade. It later sold its 10%
drilling rigs to an Indian company and its retail venture got shut last year.(BS) 0%
The Environment Ministry will decide on the ‘No-Go’ areas in Western Ghats

HDFC
CAIRN

DRREDDY

BHARTIARTL
POWERGRID
region after receiving the Madhav Gadgil report, Environment Minister Jairam
Ramesh said here on Saturday.(BS)
After remaining above the 8% mark for almost 18 months, inflation would
Mon, 30/05 Tue, 31/05 Wed, 01/06 Thu, 02/06 Fri, 03/06
moderate to 7.93% by the end of July, Institute of Economic Growth (IEG) has
said in its forecast.(BS)
Y/Y(%)
Global banking and research giant Citigroup has said that while it expects India's 20%
IIP
economy to grow by 8.1% in 2011-12, a failure of monsoon could bring down
the growth rate to as low as 7.6%.(BS) 16.64%
15.09%
Aiming to promote organic farming, the government has partially relaxed 15%

restrictions on exports of sugar, pulses and edible oils, produced without using 12.19% 12.06%
chemical fertiliser and pesticides.(BS) 10%
While everyone else is revising the Indian economy’s growth estimate for the
7.17% 7.35% 7.30%
current financial year, RBI sticks to its projections since it has already factored
5% 4.90% 3.95%
the moderation in economic expansion in its annual monetary(BS) 3.62%
CCI may clear M&A involving failed companies such as Satyam or joint ventures
2.53%
that augment research and development capabilities even within a day, its 0% 0.20%
outgoing chairman Dhanendra Kumar(BS) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Hotels peg guest experience rating way above green norms.(BS) Mining Manufacturing
Electricity General
The Union shipping ministry intends to defend in the high court at Mumbai next
week the refusal to allow the Adani Group’s Mundra Port and Special Economic
Zone Ltd to bid for four major port projects.(BS) 12.0%
WPI Inflation - All Commodities
PE investment in real estate on rise.(BS)
8.66%
3i Group Plc-backed Indiareit Fund Advisors Pvt plans to start a commercial 10.0%

rental yield fund and a domestic debt fund in the next few months as borrowing 8.0%
costs rise for developers and the office market picks up.(BS)
6.0%
Rashtriya Ispat Nigam to raise Rs 22,500-cr debt.(BS)
Negotiations with yoga guru Ramdev who is fasting to protest corruption broke 4.0%
down and both the guru and the Government of India toughened their 2.0%
stand, charging the other with breaking promises..(BS)
State Bank of India (SBI) is set to commence operations in Saudi Arabia in the 0.0%
July'09

July'10
May'09

May'10
Jan'09
Mar'09

Jan'10
Mar'10

Jan'11
Mar'11
Sept'09

Sept'10
Nov'09

Nov'10
next four to six weeks, a senior bank official has said. -2.0%

8.3 10 years G-Secy yield% (month wise)

Cash Reserve Ratio (CRR%) 8.1
9.00 Repo & Rev.Repo(%)
9 8.1
8.50
8.00 8.5
7.50 7.9
8
7.00 7.5
6.50 7.7
6.00 7
5.50 6.5 7.5
5.00 6
6
4.50 7.3
4.00 5.5
3.50 5 7.1
3.00
2.50 Current Repo is "7.25" and Rev. Repo is "6.25" 4.5
2.00 4 6.9
AUG'09

AUG'10
APR'10

APR'11
DEC'09

DEC'10
JUN'09

OCT'09

FEB'10

JUN'10

OCT'10

FEB'11
8/11/2008
8/4/2000
29-07-2000
24-02-2001
19-05-2001
29-12-2001
16-11-2002
18-09-2004
23-12-2006
17-02-2007
14-04-2007
4/8/2007
26-04-2008
24-05-2008
19-07-2008

13-02-2010
24-04-2010
11/10/2008
12/6/2008

5/1/2009
28/05/2001
28/03/2002
12/11/2002
19/03/2003
27/10/2004
24/01/2006
31/10/2006

20/10/2008

19/03/2010
27/07/2010
25/01/2011

ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH 3

Morning Report I June 6, 2011

Bulk Deal - NSE

Date Security Name Client Name Buy/Sell Traded Qty. Price
3-Jun-11 Aanjaneya Lifecare Ltd CROSSEAS CAP. SERV. PVT LTD BUY 360503 345.83
3-Jun-11 eClerx Services Limited FIDELITY ADVISOR SERIES BUY 263411 778.02
3-Jun-11 eClerx Services Limited VARIABLE INSUR. PROD. FUND BUY 559939 778.02
3-Jun-11 Sabero Organics Gujarat BNP PARIBAS ARBITRAGE BUY 200000 125
3-Jun-11 Sun TV Network Limited IFCI LTD. SELL 3429500 285.49

Bulk Deal - BSE

Date Security Name Client Name Buy/Sell Traded Qty. Price
3-Jun-11 AANJANEYA CROSSEAS CAP. SERV. PVT LTD BUY 360335 346.64
3-Jun-11 ACROPET TEC INDRAVARUN TRADE IMPEX BUY 1074864 23.03
3-Jun-11 Asahi Infra INDRAVARUN TRADE IMPEX BUY 1568674 9.82
3-Jun-11 Fineotex Chem SNEHA SANDEEP AGARWAL BUY 60000 264.96
3-Jun-11 Paramount Print ASHLESH GUNVANTBHAI SHAH BUY 605000 23.93

Advances & Declines

Scrip Group Advances as a % of Total Declines as a % of Total Unchanged as a % of Total Total
A 28.92 71.08 0 204
B 44.37 50.61 5.01 2114
T 50.49 43.95 5.56 612
Z 0 50 50 2
Total 44.54 50.65 4.81 2932

Corporate Actions
Scrip Code Scrip Name Ex-Date Purpose Rs.
500069 BNK Cap Markets 6-Jun-11 Dividend 1 4
500069 BNK Cap Markets 6-Jun-11 BONUS 1:4 -
522292 CHANDNI TE 6-Jun-11 Stock Split from Rs. 10/- to Re. 1/- -
500403 Sundram Fast 6-Jun-11 2nd Interim Dividend 0.7
513597 Surana Inds 6-Jun-11 Dividend 1.8
500420 Torrent Pharma 6-Jun-11 Dividend 6
500420 Torrent Pharma 6-Jun-11 Special Dividend 2
526560 English Indian-$ 7-Jun-11 Final Dividend 0.5
531391 Ratnabali Cap 7-Jun-11 Dividend 4
532215 Axis Bank 8-Jun-11 Dividend 14
517326 CMC 8-Jun-11 Dividend 20
517326 CMC 8-Jun-11 BONUS 1:1 -
500168 Goodyear India 8-Jun-11 Dividend 7
500355 Rallis India 8-Jun-11 Final Dividend 11
532221 Sonata Soft 8-Jun-11 Final Dividend 1
532540 TCS 8-Jun-11 Final Dividend 8
500820 Asian Paints 9-Jun-11 Final Dividend 23.5
520119 Automotive Stamp 9-Jun-11 Right 5:9 -
531178 BCC Finance 9-Jun-11 Dividend 2
532240 India Nippon 9-Jun-11 3rd Interim Dividend 1

ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH

Morning Report I June 6, 2011

Global Economic Calendar

Date Time Curr. Event Actual Forecast Previous
6-Jun 4:00 EUR Spanish Industrial Production (YoY) 0.00 -0.01
4:30 EUR Sentix Investor Confidence 8.60 10.90
5:00 EUR PPI (MoM) 0.01 0.01
Tentative COP Colombian CPI (YoY) 2.90% 2.80%
7:30 CLP Chilean Economic Activity (YoY) 0.07 0.15
8:30 CAD Building Permits (MoM) -7.00% 17.20%
10:00 CAD Ivey PMI 60.00 57.70
10:00 UAH Ukrainian CPI (MoM) 1.00% 1.30%
Tentative RUB Russian CPI (MoM) 0.50% 0.40%
19:01 GBP BRC Retail Sales Monitor (YoY) 0.02 0.05
19:30 AUD AIG Construction Index 37.90
7-Jun 0:30 AUD Interest Rate Decision 4.75% 4.75%
1:00 JPY Leading Index 96.50 100.10
3:15 CHF CPI (MoM) -0.10% 0.10%
4:00 TWD Taiwanese CPI (YoY) 0.02 0.01
5:00 EUR Retail Sales (MoM) 0.30% -0.90%
6:00 EUR German Factory Orders (MoM) 2.00% -4.00%
7:30 CLP Chilean Trade Balance 2.00B 1.58B
8:00 BRL Brazilian CPI (YoY) 6.80% 6.50%
10:00 USD IBD/TIPP Economic Optimism 42.00 42.80
15:00 USD Consumer Credit 5.2B 6.0B
19:50 JPY Current Account 0.28T 0.75T
19:50 JPY M2 Money Stock (YoY) 2.70% 2.70%
19:50 JPY Bank Lending (YoY) -0.90%
20:30 AUD Westpac Consumer Sentiment -1.30%
Tentative KRW South Korean GDP (QoQ) 1.40% 1.40%
21:30 AUD Home Loans (MoM) 2.30% -1.50%
8-Jun 1:00 JPY Economy Watchers Current Index 33 28.3
1:45 CHF Unemployment Rate 3.00% 3.10%
2:00 EUR German Trade Balance 14.0B 15.2B
2:45 EUR French Government Budget Balance -33.6B
2:45 EUR French Trade Balance -5.6B -5.7B

Indian Economic Calendar

Date Time Curr. Event Actual Forecast Previous
May. 3 INR RBI Monetary Policy 50BP 25BP 25BP
- INR WPI Food Inflation (3nd Week of May) 8.06% 8.55%
May. 12 - INR Index of Industrial Production (IIP) 7.30% 4.00% 3.60%
May.14 - INR Wholesale Price Index (Monthly) 8.66% 8.46% 9.04 %
May.20 - INR CPI (Agricultural Labourers) 9.11% - 9.14%
May.20 - INR CPI (Rural Labourers) 9.11% - 8.96%
May.31 - INR CPI (Industrial Worker) 8.82%

ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH

Morning Report I June 6, 2011

Forthcoming Result Calendar

6-Jun-11
Company Company Company Company Company
Biopac India-$ Duke Offshore Geojit Bnp Hit Kit Global Soma Papers

7-Jun-11
Company Company Company Company Company
Gopal Iron

8-Jun-11
Company Company Company Company Company
Bright Bros-$

9-Jun-11
Company Company Company Company Company
Shree Ganesh Forg

ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH 6

Morning Report I June 6, 2011

Ashika Research Team

Name Designation Sectors Email -id Telephone

Paras Bothra Research Head paras@ashikagroup.com 033-22839952-129

Namita Poddar Sr. Research Analyst Banking & Financing , Logistics namita@ashikagroup.com 033-22839952-230

Sandip Pal Sr. Research Analyst Capital Goods, Infrastructure & Economy sandip.p@ashikagroup.com 033-22839952-153

Avi Surana Equity Research Analyst Power & Retail avi.s@ashikagroup.com 033-22839952-115

Ratish Nair Equity Research Analyst Auto & Auto Ancillary, Cement ratish.n@ashikagroup.com 033-22839952-115

Megha P Jain Equity Research Analyst Hospitality , Metals & Mining megha.p@ashikagroup.com 033-22839952-230

Charmi Doshi Derivative Analyst charmimalani@ashikagroup.com 033-22839952-231

Prasun Chatterjee Technical Analyst prasunc@ashikagroup.com 033-22839952-231

Ashika Stock Broking Ltd. Kolkata Office (Head Office)

Institutional Sales (Mumbai) Tel: 033–4010 2500

Tel: 022 – 2282 6333 / 6611 1700 Fax: 033–2289 1555

Fax: 022 – 6611 1710 Email: research@ashikagroup.com

Email: ashikagroup@bloomberg.net

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ASHIKA STOCK BROKING LTD. l INSTITUTIONAL RESEARCH 7