Market Outlook

India Research
November 17, 2011
Domestic Indices BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT Global Indices Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com Chg (%) (0.6) (0.8) (0.9) (1.3) (0.8) (0.7) (0.3) (0.1) 0.2 (1.3) (0.9) Chg (%) (1.6) (1.7) (0.2) (0.9) (2.0) (0.2) (2.5) (Pts) (106.8) (38.1) (55.3) (86.6) (50.5) (52.3) (33.6) (10.1) 15.8 (110.3) (52.8) (Pts) (190.6) (46.6) (8.4) (78.8) (387.5) (4.1) (62.8) (Close) 16,776 5,030 5,852 6,375 5,991 7,056 10,403 8,798 10,840 8,590 5,696 (Close) 11,906 2,640 5,509 8,463 18,961 2,807 2,467

Dealers Diary
Indian markets are expected to have weak opening, taking cues from gap down opening in all Asian markets and negative closing in global markets on Wednesday. The Indian markets continued to fall for the fifth consecutive session yesterday, as speculation remained that French government bonds may be downgraded in a stressed economic scenario and concerns prevailed regarding domestic inflation and IIP. Global markets fell in the yesterdays trading session, even when US IIP for October 2011 came in higher than expected at 0.7%, because Fitch Ratings signaled trouble for U.S. banks if the debt contagion continues to spread beyond the stressed European markets such as Greece, Ireland, Italy, Portugal and Spain. Disappointing Spanish GDP data growth of being flat qoq also generated some negative sentiment showing stagnant economic activity. Meanwhile, today investors will keenly watch out for retail sales data of UK for October 2011 and initial jobless claims from US of the previous week.

Markets Today

The trend deciding level for the day is 16,765/5,028 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,88917,002/5,0675,104 levels. However, if NIFTY trades below 16,765/5,028 levels for the first half-an-hour of trade then it may correct up to 16,65216,529/5,9924,953 levels.
Indices SENSEX NIFTY S2 16,630 4,987 S1 16,756 5,028 R1 17,091 5,134 R2 17,299 5,199

Indian ADRs Infosys Wipro ICICI Bank HDFC Bank

Chg (%) (2.2) (3.2) (2.0) (0.4)

(Pts) (1.2) (0.3) (0.6) (0.1)

(Close) $54.4 $9.8 $31.0 $29.5

News Analysis
Infosys launches InfosysEdge to drive its PPS business NTPC may receive `600cr as compensation for scrapped hydro project in Uttarakand
Refer detailed news analysis on the following page

Advances / Declines Advances Declines Unchanged

BSE 899 1,937 106

NSE 395 1,053 53

Net Inflows (November 15, 2011)

` cr FII MFs Purch 1704 353 Sales 2081 388 Net (371) (35) MTD 1498 (630) YTD 2013 4505

Volumes (` cr) BSE NSE 2,513 10,844

FII Derivatives (November 16, 2011)

` cr Index Futures Stock Futures Purch Sales Net Open Interest

2,724 3,231

3,551 3,358

(828) (126)

14,928 29,088

Gainers / Losers
Gainers Company Price (`) chg (%) Company Losers Price (`) chg (%)

Pantaloon Retl IVRCL Ltd Jubiliant Food United Spirits Power Finance

169 36 769 804 168

10.6 5.7 4.9 4.7 4.6

Sintex Inds Mundra Port Mphasis Educomp Sol Suzlon Energy

91 133 289 192 29

(9.8) (8.6) (8.3) (7.3) (6.7) Sebi Registration No: INB 010996539

Please refer to important disclosures at the end of this report

Market Outlook | India Research

Infosys launches InfosysEdge to drive its PPS business

In a definitive shift in the way it sells its offerings, IT services company Infosys is creating brands to drive its relatively new products, platforms and solutions (PPS) business. Infosys has launched InfosysEdge, a family of platforms that enable customers to buy software on a pay-as-you-go model. InfosysEdge has nine live and three upcoming platforms, with offerings that range from helping clients with e-commerce businesses to managing human resources and procurement processes. The company is also finalizing branding for new products. Infosys is now moving away from being a pure play IT services provider to a business solutions provider, as it seeks to help clients transform, innovate and optimize their businesses. Currently, besides Finacle, Infosys has five products such as Fypp and Shopping 360 with another 7-8 products in the works. The products, platforms and solutions business is the company's next big bet as traditional IT services business get commoditized rapidly. Products and platforms are intellectual property-led businesses where unlike the time and material model being followed so far, revenue is drawn from licenses or as a service. The company expects each of the three services lines to contribute one-third of Infosys' revenue in 5-7 years. We maintain our Neutral view on the stock.

NTPC may receive `600cr as compensation for scrapped hydro project in Uttarakhand
The Cabinet Committee on Economic Affairs (CCEA), in its meeting today, is likely to take up the issue of granting compensation to NTPC for `600cr expenditure incurred on the 600MW Loharinag pala hydro project in Uttarakhand. NTPC has paid advances of `764cr for implementation of the project, which got scrapped in November last year due to authorities declaring the area as an eco-sensitive zone. Management had earlier indicated that it was confident of recovering the funds and, hence, had not made any provision regarding the same. We maintain our Buy recommendation on the stock with a target price of `201.

Economic and Political News

Cabinet okays 26% FDI in the pension sector Exports from SEZs up 26% in April-September Gehlot reshuffles team, drops six ministers

Corporate News
Glenmark launches Canadian firm's anti-ageing products iGate plans to delist Patni Computer shares RIL denies Kingfisher stake-buy talks Strike at Dr. Reddy's unit continues Titan pays `13cr for 300-year-old Swiss watch brand Favre Leuba
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

November 17, 2011

Market Outlook | India Research

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November 17, 2011