Morning Notes

30.05.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

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

Euro Slides Toward 2-Year Low Amid Spain Bank Concerns The euro fell toward an almost two- year low after Spains borrowing costs climbed as the nation struggles to rescue its troubled banks, fueling concern Europes debt crisis is spreading. The 17-nation currency was poised for the biggest monthly decline since September after Bank of Spain Governor Miguel Angel Fernandez Ordonez resigned a month early amid criticism over the May 9 nationalization of Bankia group, Spains third- biggest lender. The dollar gained against most of its 16 major counterparts before data this week forecast to show consumer confidence remained weak and the jobless rate rose across the 17 nations that share the euro. Oil Trades Near Weekly Low as U.S. Supplies Seen Rising Oil traded near the lowest settlement in almost a week in New York before a government report that may show crude stockpiles climbed to the highest level since 1990 in the U.S., the worlds biggest consumer of the commodity. Futures were little changed after falling for the first time in three days. U.S. inventories rose 800,000 barrels to 383.3 million last week, according to the median estimate of eight analysts in a Bloomberg News survey before the Energy Department report tomorrow. Prices slid yesterday after Spains credit rating was cut and BNP Paribas SA reduced its 2012 forecast for West Texas Intermediate oil. Asian Stocks Drop as China Growth, Europe Crisis Fears Asian stocks fell on a report that China has no plans to introduce large-scale stimulus as it did during the global financial crisis and after Spains sovereign credit rating was cut. Sharp Corp. (6753), a maker of liquid-crystal displays that gets a fifth of sales in China, fell 2.8 percent in Tokyo. Boral Ltd. (BLD), an Australian building materials company, lost 2.5 percent as investors sold shares tied to economic growth. Renesas Electronics Corp. (6723) surged 27 percent after short-selling of its shares was restricted after 25 percent slump over two days.

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
4990.10 9631.95 4883.40 3108.30 3961.10 6996.20 2016.10 16438.58

Pt. Chg.
+4.45 -16.95 +2.35 -19.45 +0.05 -32.95 -14.15 +21.74

Change %
0.09 -0.18 0.05 -0.62 0.00 -0.47 -0.70 0.13

Global Markets
Change (%) 1.11 1.18 1.01 0.65 1.16 1.37 -0.83 -1.91 -0.60

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

Close 1332.42 2870.99 12580.69 5391.14 6396.84 3084.70 8584.96 18691.98 2784.44

Global data recorded/updated last as on 30, May 7.30 a.m. IST

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NIFTY TOP GAINERS

Indian Markets Change (%) 2.81 2.65 2.48 2.25 Indian Markets

NIFTY TOP LOSERS

Change (%) -2.23 -2.10 -1.77 -1.15

Company H C L TECH CAIRN IND WIPRO MARUTI UDYOG

Close 505.35 336.75 409.75 1,128.35

Company ACC BHARAT PETRO ITC SIEMENS

Close 1,137.95 701.10 230.90 678.75

MARKET SUMMARY
The Indian benchmark indices closed flat after the traders rolled over their positions to the next month as the F&O contracts for this month stand to expire on Thursday. The 30-share Sensex ended flat at 16,438.58, up 21.74 points or 0.13 per cent and the NSEs Nifty ended at 4,990.1, up 4.45 points. Asian shares were overall upbeat yesterday on the hopes of stimulus for more growth in China and the reports that a political party, in favour of bailout packages, has been taking the lead in Greece elections. ITC turned out to be the biggest Sensex loser, as it closed down 1.5 per cent at Rs 231. The cigarette maker was followed by Sterlite Industries, Bharti Airtel, Cipla and Sun Pharma as they were down around 1 per cent each. BSE SENSEX closed at 16438.58 up by 21.74 points or by 0.13 % and the NSE Nifty ended at 4990.1 up by 4.45 points or by 0.09 %. The BSE Sensex touched intraday high of 16544.38 and intraday low of 16410.21. The NSE Nifty touched intraday high of 5020.15 and intraday low of 4982.15. The BSE MIDCAP was at 5963.5 down by 8.27 points or by 0.14 %, while the BSE SMLCAP was at 6384.37 up by 10.91 points or by 0.17 %. The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3525, shares advanced were 1466 while 1308 shares declined and 751 were unchanged. The top gainers of the BSE Sensex pack were Wipro Ltd. (Rs. 409.70,+2.72%), Coal India Ltd. (Rs. 321.80,+2.14%), Maruti Suzuki India Ltd. (Rs. 1127.00,+2.11%), Tata Consultancy Services Ltd. (Rs. 1240.80,+1.39%), Oil And Natural Gas Corporation Ltd. (Rs. 256.35,+0.98%), among others.

R. Wadiwala

NEWS UPDATES
MACRO Indian imports of Oman's crude oil in the first quarter of 2012 dropped 88.1% compared to the same period last year, as India increased imports from Iran, a news report has said. First-quarter oil exports to India, which was not a traditional buyer of Omani oil until last year, fell from 15.1 million barrels in 2011 to 1.8 million barrels in 2012, 'Muscat Daily' reported. Data showed that while a little over 1 million barrels were exported to India in February, 794,200 barrels were exported in March and none at all in January, it said. COMPANY Steel Authority of India Ltd has announced that SAIL has signed a 50:50 joint venture agreement with Burn Standard Company Limited (BSCL) at Kolkata for setting up a Wagon Components Manufacturing Facility at the premises of BSCL at Jellingham, Purba Medinipore district, in West Bengal, with a capacity to produce 10,000 bogies and 10,000 couplers per annum. The estimated capital outlay for the project is about Rs. 2bn. Oil India is planning to buy stakes in U.S. gas driller Chesapeake Energy Corp.'s Mississippi Lime basin and ConocoPhillips' oil sand assets in Canada, according to reports. Reports stated that Oil India has earmarked Rs60-70 bn for overseas acquisition. The company had identified the U.S., Canada, Australia and parts of Africa for acquisitions and plans to seal a deal in the current fiscal year that began on April 1, reports said. The Neyveli Lignite Corporation is planning to add 1,000 MW of power to the regional grid during the current financial year, according to reports. Reports stated that the company was on the verge of commissioning unit one of Thermal Power Station-II of 250 MW plant at Neyveli, followed by the second unit in December. The first unit of 500 MW plant of Tuticorin, would be commissioned during 2012-13 and the second unit by 2013-14, reports said. Welspun Corp Ltd., the flagship Company of the $ 3.5 billion Welspun Group and the 2nd largest line pipe company in the World has won Pipes and Plates orders worth Rs. 20.70bn (242K MT of Pipes and 5K MT of Plates) from international and domestic markets. With the addition of these orders, the current order book of the company stands at Rs. 74.47bn (approx 1,029K MT for pipes, and external plate orders of 54K MT) without excluding the order being executed in the current quarter. Over and above, Welspun has internal plate orders of 85K MT valued at Rs. 3.11bn. PBA Infrastructure Ltd. has informed that it has been awarded a contract from Maharashtra Airport Development Company Ltd. The contract is for the construction of link taxiway (connectivity) from existing airport to MRO area in MIHAN SEZ at Nagpur. The contract amount is Rs. 576.16mn. Bharat Heavy Electricals Limited (BHEL) has successfully commissioned a 250 MW unit at Parichha Thermal Power Station (TPS), in Uttar Pradesh. With this, 6 million units of electricity will be added to the grid of the power deficit state, every day. The project had suffered a setback due to an unfortunate incident of the chimney collapsing, which was not in the scope of BHEL, exactly two years ago. However, to save time, the balance commissioning activities were completed by BHEL with a temporary chimney and the unit was synchronized to grid in February, 2012 itself. Shyam Srinivasan, MD and CEO, Federal Bank, exchanged MOU with N Sivasailam IAS, MD, Bangalore Metro Rail Corporation Ltd (BMRCL) enabling Federal Bank to act as BMRCLs Merchant Bank for Automatic Fare Collection (AFC) for the 13 stations in Northern REACH (of 12.4 KM and 13 stations) likely to be commissioned in December 2012. The Bank will provide the required top up facility for all the Smart Card users of Namma Metro. 3 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 4955.62 9503.56 690.09 64.07 311.51 465.40 1177.93 94.37 831.90 2096.90 410.23 91.42 91.99 2381.83 214.81 253.60 1133.73 Lower 1 4970.56 9601.29 695.70 65.09 315.04 470.18 1190.49 95.14 838.59 2113.77 413.53 92.15 92.73 2400.99 216.54 255.64 1142.85 Axis 4986.49 9700.03 701.32 66.11 318.57 475.06 1202.04 96.91 845.28 2130.64 416.83 92.89 93.47 2420.15 218.27 257.68 1151.97 Higher 1 5009.44 9807.05 708.23 67.06 321.78 480.26 1215.40 98.58 851.14 2145.40 419.72 93.53 94.12 2436.91 219.78 259.46 1159.95 Higher 2 5029.68 9899.19 715.11 68.14 324.18 485.85 1226.90 99.70 852.18 2148.03 420.23 93.65 94.23 2439.91 220.05 259.78 1161.38

BULLISH ON SHORT TERM

COAL INDIA ONGC BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 324-325-327 SL 319 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 259-260-262 SL 254

FII and DII Investments

FIIs Date *29 May May-2012 2012 Till Date Purchase 1539.21 38653.60 267463.80 Purchase 727.89 7223.20 50214.99 Sale 1448.71 39273.60 224592.00 Sale 927.29 6857.10 55902.99
Inv (crs)

+90.50 -619.70 +42771.80

Inv (crs)

DIIs

Date *29 May May-2012 2012 Till Date * Provisional Data

-199.40 +366.30 -5687.60

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Following the MUTUAL FUNDS

AIG India Equity Reg G

Latest NAV: 11.48 (28/05/12) 52-Week High: 12.83 (25/07/11) 52-Week Low: 10.75 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
HDFC Bank Hero Motocorp Jindal Steel & Power Infosys Bosch

Top 5 Sectors
% Net Assets
6.90 6.52 5.49 5.05 4.91

Top 5 Sectors
Automobile Metals Technology Energy Financial

% Net Assets
14.85 12.04 10.80 10.07 9.04

Top 3 Holding Company Details HDFC Bank

LTP: 507.95 PB Ratio: 3.99 PE Ratio: 23.11 Year to Date Return: 18.94 Other Funds That Own HDFC Bank
Fund name
Reliance Banking ETF Goldman Sachs Banking BeES Religare Banking ICICI Prudential Banking and Financial Services Ret

% Net Asset
26.05 26.02 23.24 22.77

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

Hero Motocorp
LTP: 1849.35 PB Ratio: 8.61 PE Ratio: 15.53 Year to Date Return: -2.93

Other Funds That Own Hero Motocorp

Fund name
Religare AGILE Religare AGILE Tax AIG India Equity Reg UTI Transportation and Logistics

% Net Asset
9.38 8.86 6.52 5.35

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

Jindal Steel
LTP: 454.15 PB Ratio: 3.86 PE Ratio: 20.11 Year to Date Return: 0.23

Other Funds That Own Jindal Steel

Fund name
AIG Infrastructure and Economic AIG Infrastructure and Economic AIG India Equity Reg UTI Energy

% Net Asset
5.56 5.56 5.49 4.69

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

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DERIVATIVES NOTES
Nifty June 2012 futures were at 4980.20, at a discount of 9.90 points compared to the spot closing of 4990.10. Nifty May 2012 futures were at 4976.05, at a discount of 14.05 points compared to spot closing of 4990.10. Turnover on NSE`s futures & options (F&O) segment surged to Rs 147429.87 crore from Rs 136423.91 crore on Monday, 28 May 2012. State Bank of India (SBI) May 2012 futures were at 2118.20, near spot closing of 2117. Tata Motors May 2012 futures were at 274.30, near spot closing of 273.90. ICICI Bank May 2012 futures were at 818, at a discount compared to spot closing of 839.50. In the cash market, the S&P CNX Nifty rose 4.45 points or 0.09% to settle at 4,990.10, its highest closing level since 8 May 2012. Put Call Ratio Symbol ABGSHIP LT WELCORP TATAMOTORS NIFTY BAJAJ-AUTO NIFTY ALBK FTSE100 SBIN VOLTAS SIEMENS ASIANPAINT Expiry Date 31-May-12 26-Jul-12 31-May-12 26-Jul-12 30-Jun-16 28-Jun-12 31-Dec-15 28-Jun-12 15-Jun-12 26-Jul-12 28-Jun-12 28-Jun-12 31-May-12 Put 47000 5500 106000 12000 1700 5750 2050 8000 11150 7250 20000 1750 16750 Call 1000 250 16000 2000 350 1375 500 2000 3300 2750 8000 750 7375 Ratio 47.00 22.00 6.63 6.00 4.86 4.18 4.10 4.00 3.38 2.64 2.50 2.33 2.27

Institutional Investment Trends

(in Crores) MAY 29, 2012
% Change OI
3.83

BUY
3228.68

SELL
3012.27

Net Buy/Sell
216.41

OIEoD
14346.35

INDEX FUTURES

STOCK FUTURES

6670.46

6343.77

326.69

23982.29

2.60

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DIVIDEND AND OTHER INFORMATION

Rajapalayam Mills Limited has informed the Exchange that in the meeting of Board of Directors held on 28th May 2012, the Board recommended for payment of dividend of Re. 1/- per share (of Rs.10/- each) for the financial year ended 31st March 2012. Kolte - Patil Developers Limited has informed the Exchange that the Board of Directors of the Company at their meeting held on May 29, 2012 has recommended a final dividend of 16% which is Rs. 1.60 per equity share subject to the approval of shareholders in the ensuing Annual General Meeting. Ipca Laboratories Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 29, 2012 has recommended a final dividend of Rs. 1.20/- per share (60%) for the financial year ended March 31, 2012.

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