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OCTOBER 1, 2010

Economy News Equity


4 Data released on Thursday showed the food price index during the week % Chg
ended September 18 increased 16.44%, higher than the 15.46% annual 29 Sep 10 1 Day 1 Mth 3 Mths
increase recorded in the previous week, on higher prices of pulses, onions
and vegetables. It was the second straight surge under a new data series Indian Indices
— with a different base year of 2004-05, new components and SENSEX Index 20,069 0.6 10.2 14.6
weightings — that was introduced in the week to September 4. (BL) NIFTY Index 6,030 0.6 10.2 14.8
BANKEX Index 14,025 0.8 13.6 31.8
4 Aided by increased tax receipts and a near three fold jump in non-tax BSET Index 5,947 0.3 8.5 13.1
revenues, the Centre's fiscal deficit in April-August 2010 fell 16.93% to BSETCG INDEX 15,995 0.1 9.1 9.8
Rs.1510bn on a year-on-year basis. This deficit level represents 39.7% of BSEOIL INDEX 10,447 (1.2) 3.7 (3.0)
the budgeted fiscal deficit of Rs.3810bn for the entire 2010-11, official CNXMcap Index 9,164 (0.5) 4.3 13.0
data released by the controller general of accounts (CGA) showed. At the BSESMCAP INDEX 10,246 0.1 5.5 12.8
same stage last year, the Centre's fiscal deficit as a percentage of the
budget estimate stood at 45.5%. (BL) World Indices
Dow Jones 10,788 (0.4) 5.0 10.8
Nasdaq 2,369 (0.3) 8.8 12.7
Corporate News FTSE 5,549 (0.4) 3.4 15.5
4 Bank depositors will earn 15 to 75bps more interest on term deposits Nikkei 9,369 (2.0) 5.9 2.8
across various maturities, while borrowers will have to pay more as a host Hangseng 22,379 - 8.4 11.1
of banks have marked up interest rates. State Bank of India has hiked Value traded (Rs cr)
interest rates on domestic term deposits by 25 to 75bps across various
29 Sep 10 % Chg - Day
maturity buckets. While SBI has decided to hold its base rate at 7.50%
‘for the present, Punjab National Bank (PNB), IDBI Bank and Cash BSE 4,128 (3.8)
Allahabad Bank have increased their base rates from 8% to 8.50%. Cash NSE 20,014 32.3
Axis Bank too upped its base rate by 25bps to 7.75%. (BL) Derivatives 211,605 25.0

4 Mahindra 2 Wheelers announced its debut in motorcycles with the launch Net inflows (Rs cr)
of the 110cc Stallio and the 300cc Mojo. The two variants of the Stallio, 28 Sep 10 % Chg MTD YTD
which will be part of the volumes-driven commuter segment, will cost Rs
41,199 and Rs 44,699 apiece (ex-showroom, Pune), while the Mojo will FII 895 (31.5) 24,440 83,528
sport a price tag of Rs 175,000. Since the time it acquired the two- Mutual Fund (568) (7.1) (5,607) (21,126)
wheeler business of the Kinetic group two years ago, M&M has launched
three scooters. The bikes will now be critical growth drivers simply FII open interest (Rs cr)
because of the numbers generated in the country. (BL) 28 Sep 10 % Chg

4 Kingfisher Airlines (KFA), owned by the liquor to airlines UB Group, FII Index Futures 16,750 (24.0)
has decided to revamp its capital structure by converting 30% of total FII Index Options 52,536 (41.6)
debt into equity to reduce the loan burden. The debt was Rs75bn at end- FII Stock Futures 37,521 (12.3)
March, a leverage of 17 times. “We have decided to convert Rs7.35bn of FII Stock Options 301 (81.3)
loan given to the company from UBHL (parent company United breweries
Advances / Declines (BSE)
Holdings Ltd) to equity. Also, the process of restructuring is going on now
29 Sep 10 A B S Total % total
with various banks (for the rest of the conversion) and is likely to be
closed in the next one month,” said Vijay Mallya, chairman, on the Advances 72 817 181 1,070 41
sidelines of the annual general meeting. The dilution of promoters’ stake Declines 130 1064 227 1,421 55
due to such capital restructuring is yet to be ascertained (BS) Unchanged 3 81 13 97 4

4 Firstsource Solutions said it has bagged a five-year outsourcing Commodity % Chg


contract, worth up to $100 million from the UK-based banking major
Barclay Plc's unit Barclayscard. Firstsource has signed a five-year 29 Sep 10 1 Day 1 Mth 3 Mths
outsourcing partnership agreement and the deal size is between $80-100 Crude (NYMEX) (US$/BBL) 80.4 0.5 8.8 10.2
million, said a company official. (BS) Gold (US$/OZ) 1,308.4 (0.1) 5.1 9.1
4 ICICI Bank has said that, in the 2010/11 financial year loan growth would Silver (US$/OZ) 21.8 (0.8) 12.6 22.5
beat an earlier forecast and rise to 18% on the back of the country's
Debt / forex market
strong growth. Corporate and retail borrowings would boost lending
29 Sep 10 1 Day 1 Mth 3 Mths
from a July forecast of 15% for the year ending March 2011, and in 2011/
12, when loan growth was expected to be between 20-22%, its Chief 10 yr G-Sec yield % N/A 7.85 7.96 7.52
Executive said. (ET) Re/US$ 44.95 45.16 46.92 46.49

Sensex

20,200

18,925

17,650

16,375

15,100
Source: ET = Economic Times, BS = Business Standard, FE = Financial Express, Sep-09 Dec-09 Mar-10 Jun-10 Sep-10
BL = Business Line, ToI: Times of India, BSE = Bombay Stock Exchange
MORNING INSIGHT October 1, 2010

INITIATING COVERAGE DIAMOND POWER INFRASTRUCTURE LTD (DPIL)


Sanjeev Zarbade
sanjeev.zarbade@kotak.com
+91 22 6621 6305 PRICE : RS.253 RECOMMENDATION: BUY
TARGET PRICE : RS.318 FY11E P/E: 9.6X
DPIL is a virtually fully integrated player in the power distribution projects
business. The company has captive facilities to manufacture conductors,
cables (LT and HT), transmission towers and transformers. Shortly, the
company will also commission its EHV cables plant. The company is mainly
a play on the power T&D sector, which is expected to grow significantly in
the foreseeable future. The stock is trading at attractive valuations of 9.6x
and 7.9x FY11 and FY12 earnings respectively. We recommend a BUY with a
target price of Rs.318 based on DCF.

Key Investment Rationale


q Play on the power T&D sector. Being a major consumer of cables and conduc-
Stock details
tors, Power sector is the prime demand driver. While conductors are largely used
BSE code : 522163
in transmission lines, the demand for power cables arises at each stage in the
NSE code : DIAPOWER
Market cap (Rs mn) : 8500
chain of power sector. We see sustained growth in demand for conductors and
Free float (%) : 56 cables as investment in transmission and distribution sector is envisaged to in-
52-wk Hi/Lo (Rs) : 261/113 crease by 71% and 29% respectively in the XIIth plan over the XIth plan.
Avg. daily volume : 680000
Shares o/s (mn) : 37.24 q Integrated play in the power transmission and distribution segment pro-
(Fully diluted) vides control on project variables. With the acquisition of DPTL (Western
Transformers) in 2007, DPIL has captive control on three critical power transmis-
Summary table - Consolidated sion and distribution products namely conductors, cables, transmission towers
(Rs mn) FY10 FY11E FY12E and transformers. With the proposed commissioning of EHV cables facility in
Sales 8,477 14,025 17,476
Q4FY11, it will be virtually a fully integrated player in the power T&D segment.
Growth (%) 21.5 65.5 24.6 q Recently started trial runs on transmission tower facility and plans to
EBITDA 1,150 1,866 2,390
EBITDA margin (%) 13.6 13.3 13.7 commission EHV cables facility in Q4FY11. During Q1 FY11, DPIL has com-
Net profit 601 978 1,188 pleted the expansion of its LT and HT cables capacity. The company is currently
Net cash (debt) (2,930) (3,600) (4,190) implementing the EHV cables facility. The transmission towers will mainly cater
EPS (Rs) (cons) 28.6 26.2 31.9
Growth (%) 6.5 62.6 21.5
to the inhouse requirement of EPC projects in rural electrification. The demand
CEPS 31.9 29.6 38.7 for EHV cables is expected to grow tremendously in the coming years. A large
DPS (Rs) 0.0 0.0 0.0 part of the requirement would come from underground distribution cables that
ROE (%) 24.3 28.8 22.1
ROCE (%) 20.8 22.3 20.4
would replace overhead lines. Besides, industrial consumption from sectors like
EV/Sales (x) 1.4 0.9 0.8 steel, cement, petroleum refineries, special economic zones, industrial parks,
EV/EBITDA (x) 10.7 7.0 5.7 etc. would substantially drive demand for EHV cables.
P/E (x) 8.8 9.6 7.9
P/Cash Earnings 7.9 8.5 6.5 q Major capex to get completed in FY11. DPIL is at the fag end of a Rs 2.7 bn
P/BV (x) 1.8 1.7 1.4 capex consisting of a expansion in LT/HT cables, transmission towers and EHV
FY10-11 Q2 Q3 Q4 Q1
Net Sales 1,726 2,099 2,953 3,816
cables. Post this, the company will have adequate capacity for driving growth in
EPS (Rs) 3.1 3.8 6.1 8.5 the medium-term. The company has also strengthened its balance sheet by in-
Source: Company & Kotak Securities - fusing funds worth Rs 1.5 bn through QIP and warrants. The funds will enhance
Private Client Research the working capital of the company thus enabling it to bid for higher volume of
project work.
q Robust growth in profits. We forecast revenues to grow 66% and 25% in
FY11 and FY12 respectively. We expect raw material prices to move in a narrow
band. Consequently operating margins to be maintained over FY11 & FY12.
Profit after tax is expected to grow 63% and 22% in FY11 and FY12 respec-
tively.

Valuation
DPIL is currently trading at 9.6x and 7.9x FY11 and FY12 earnings respectively. On a
forward EV/EBITDA basis, the stock is trading at 7.0x. Our DCF based target works
out to Rs.318

Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 2
MORNING INSIGHT October 1, 2010

Risks
n EPC projects are largely fix priced and there are liquidated damages for time
overruns. Thus the company may have to incur higher costs due to material price
escalation and penalties on delay in project completion.
n The company does not have any operating history either in transmission towers
or EHV cables. There may be a risk involving quality and market acceptance of
the product.

We Initiate coverage with BUY n The company's EPC business is concentrated on rural power distribution projects
recommendation on DPIL with a initiated under Rajiv Gandhi Gramin Vidyutikaran Yojna ('RGGVY'). As of March
price target of Rs.318 31, 2010 DPIL is undertaking projects under RGGY in the state of Gujarat and
Assam. Under such contracts, the payments are received after completion of
work. Failure to execute the project in a timely manner, or an unanticipated in-
crease in cost of raw material may adversely affect revenues and cash flows.

Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 3
MORNING INSIGHT October 1, 2010

MARKET S TRATEGY MARKET STRATEGY


Research Team
+91 22 6621 6301 The month of September has turned out to be one of the best for global
markets. For the month, most global indices notched handsome gains as
investors put aside worries of a double-dip recession in the US. Indian
markets performed strongly driven by robust foreign fund flows. FIIs have
already invested close to Rs880bn in 9M CY10, which is roughly the same
amount that they invested in CY09. A highly improved monsoon picture also
helped. Among sectors, the banking sector stood out on revival in credit
offtake and improving asset quality.
The US Federal Reserve maintained the low interest rates and signaled its
readiness for another round of quantitative easing. Encouraging economic
growth forecast from the EU and strong industrial output in China added to
the positive sentiment for global equities. The Indian economy recorded a
robust growth of 8.8% in Q1 FY11. In the backdrop of surging industrial
production and firm inflation, the RBI responded with another round of rate
hike.
Indian investors have been amazed by the strength of the rally and fear
whether the markets are overheated (fearing a repeat of 2008). However,
one must note that current market valuations are much lower than the
heady multiples prevailing in late 2007. Hence there may be a minor
adjustment to that extent but not a serious selloff. At the current market
valuation (20x FY11 consensus earnings), we are fairly valued based on FY11
numbers but there is a moderate upside based on FY12 numbers. Investors
entering at current levels must be prepared for a longer time horizon for
making gains. As earlier, we prefer sectors with a strong domestic
consumption theme. In fact, the consumption driven sectors like Auto and
Consumer Durables have been major outperformers in the ongoing rally.
Apart from this, we recommend select stocks in Infrastructure, Capital
Goods, Financial Services and large IT as our preferred picks.

Market performance - sector wise (September 2010) Benchmark indices - India

15.0% 21000 6200


Sensex (LHS)
12.0% Nifty (RHS)
5480
17875
9.0%
4760
6.0% 14750
4040
3.0%
11625
0.0% 3320
FMCG
NIFTY

PSU
BSE midcap
BSE small cap

Tech

Metal
Oil & Gas
Banking

Healthcare
Capital goods

Auto
Sensex

8500 2600
Jan'08

Jan'09

Jan'10

Jul
Mar

Mar

Mar
May

May

May
Sep
Nov

Sep
Nov

Sep
July

July

Source: Bloomberg Source: Bloomberg

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MORNING INSIGHT October 1, 2010

One of the best months for global equities


Developed world markets were buoyant in September on expectations of economic
recovery. Positive economic data has definitely helped sustain gains. The US Federal
Reserve maintained its ultra-low interest rate regime and said it is ready to provide
more support for the economy and expressed concerns about low inflation (read risk
of deflation). The street interpreted the move as a signal that the Fed would eventu-
ally embark on a second round of quantitative easing.
The European Union raised its forecast for economic growth in the 16-nation euro
zone, in part reflecting stronger-than-expected growth in the second quarter. The EU
estimates that gross domestic product will grow by 1.7%, up from its earlier forecast
of 1%. The EU also lifted its growth forecast for Great Britain, projecting 2010 GDP
growth of 1.7%, up from its earlier estimate of 1.2%. Chinese data released during
the month reaffirmed market hopes for a soft-landing. China's industrial production
rose 13.9% in August from a year earlier. Consumer prices jumped 3.5% the most
in 22 months, as food costs climbed and retail sales rose 18.4%.
The Asian Development Bank announced that growth across Asia and the Pacific
will be the fastest this year since 2007 as the region recovers strongly from the glo-
bal crisis, but will moderate in 2011. The 2010 growth forecast has been revised up
from 7.5% in April and a forecast of 6.4% a year ago.

Sensex firm on FII fund flows


Aided by the tail-winds provided by the global markets, the Sensex notched strong
gains. Even as there were expectations of an impending correction, foreign funds
continued to repose faith in Indian equities. To put in perspective, the FIIs have al-
ready invested close to Rs880bn in 9M CY10, which is roughly the same amount
that they invested in CY09.

Crude (US$/bl) FII & Mutual Fund investment (Rs Cr)

160 30,000
FII MF
125 20,000

90 10,000

55 -

20 (10,000)
Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10
Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

(20,000)
Oct

Oct
Jan_08

Jul

Jan_09

Jul

Jan'10

Jul
Feb
Mar

Feb
Mar

Feb
Mar
Jun

Jun

Jun
May

May

May
Nov
Dec

Sep

Nov
Dec

Sep
Aug

Aug

Aug
Apr

Apr

Apr
Sep

Source: Bloomberg

Source: Bloomberg

However, foreign funds have largely chased the large caps and consequently, the
mid and small cap indices underperformed heavily. It is believed that much of the FII
funds have come from Exchange Traded Funds (ETFs), which are mainly large-cap
and short term oriented.
Sector-wise, banking stocks stood out following strong credit growth, improvement
in NIM and upgradation in asset quality. The sector has not been affected by the
ongoing monetary tightening by the RBI. Global banking sector regulators agreed on
new capital norms which were less stringent than feared. With a view to prevent a
repeat of the credit crisis in 2008, the Basel Committee on Banking Supervision
more than doubled its capital requirements for banks, giving lenders as long as eight
years to comply in full. Banks will be required to have a tier 1 capital ratio of 6%, up
from the current 4% level. The key element of tier 1 capital is common shareholder
funds and disclosed reserves or retained earnings, according to the Basel Commit-
tee.

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MORNING INSIGHT October 1, 2010

High beta metal and mining stocks rose on strong economic data from China, which
is the world's largest consumer of copper and aluminum. IT stocks rose as strong
economic data in US and Asia helped soothe worries over the global economic re-
covery.

GDP growth of 8.8% during Q1 FY11


The Indian economy grew at 8.8% during Q1FY11, yet another quarter of strong
growth after 8.6% growth witnessed during Q4FY10. This strong growth has come
on the back of continued growth in manufacturing segments (12.4%) along with the
robust performance of 'Trade, Hotels, Transport, Communication' segments
(12.2%). Non-farm segments have done well with Industry and Services growing at
10.3% and 9.7%, respectively during Q1FY11. Agriculture segment has also showed
some improvement by posting 2.8% growth in Q1FY11 as against 0.7% and -1.8%
growth delivered during Q4FY10 and Q3FY10, respectively.
GDP data has been little disappointing on the capital formation front. Gross Fixed
Capital Formation (GFCF) grew only 3.7% (YoY) during Q1FY11 as against 17.7%
and 8.8% growth achieved during Q4FY10 and Q3FY10, respectively. However,
bunching up of project execution during Q4FY10 might explain this anomaly. We
expect this GDP growth to moderate in next few quarters due to adverse base effect
in the manufacturing segments. Moderating IIP, slowing exports, along with absence
of any large stimulus from the government would provide some headwinds to our
growth. However, lower inflation by the end of FY11 and better monsoon are likely
to underpin the growth momentum.

Inflation moderates a bit aided by transition to new series


Inflation for the month of August stood at 8.5%, according to the new Wholesale
Price Index (WPI) series released by the government. The corresponding reading as
per the old series with a base year of 1993-94, WPI inflation stood at 9.5% for the
month, thus the transition to the new series has contributed to 100 bps reduction in
WPI.
Prices of primary articles -- food, non-food articles and minerals shot up by 15.7% on
an annual basis. In terms of broad components, food prices inflation continued at
elevated levels at 14.6%. Reflecting the impact of hike in petrol prices, fuel prices
rose 12.6% yoy. Manufactured products prices were up 4.8% yoy.
The RBI has forecast average inflation of 6.0% by the end of FY11, counting on a
normal monsoon, which would ease pressure on food prices. We believe inflation is
a real concern for India given its direct linkage to interest rates, impoverishment of
weaker sections and formation of asset bubbles.

Rupee /US$ Inflation (%)


16.0
53

50 12.0

47 8.0

44 4.0
41
-
38
Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10
Jan-05

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

(4.0)
Jul-08

Jul-09

Jul-10
Mar-08

Mar-09

Mar-10
Jan-08

May-08

Jan-09

May-09

Jan-10

May-10
Nov-08

Nov-09
Sep-08

Sep-09

Source: Bloomberg
Source: Bloomberg

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MORNING INSIGHT October 1, 2010

RBI continues with its monetary tightening - hikes rates further


RBI, in its first mid-quarter monetary policy review in recent times, announced an
increase in reverse repo rate by 50 bps to 5% and repo rate by 25 bps to 6%. With
this, since the beginning of rate normalization cycle, the reverse repo and repo rates
have been raised by 175 bps and 125 bps respectively from the lows of 3.25% and
4.75%. With this action, RBI is near completion of its rate normalization exercise, we
believe. However, current sticky inflation and buoyant growth do leave scope for
further tightening needs. RBI may take some breather by pausing in its next policy
review, though we continue to expect further 50 bps rate increase in the fiscal.
RBI in its release stated that the tightening that has been carried out over this period
has taken the monetary situation close to normal. The weighted average interest
rates during 2005-2008 (pre crisis) period was 6% and 7.5% (150 bps being the LAF
corridor) with average inflation at ~5%. With current expectation of over 6% infla-
tion (read negative interest rates) and economic growth converging towards its trend
growth rate, we believe that the "old normal" may not be equal to "new normal"
and would warrant further rate increases. RBI also hinted towards this by stating that
"The Reserve Bank will continue to monitor these conditions, particularly the price
situation, and take further action as warranted."

Domestic macros - IIP growth strong but base effect catching up…
July IIP (Index of Industrial Production) rose 13.8% yoy well ahead of market predic-
tions. Mining, Manufacturing and Electricity sectors for the month of July 2010 grew
IIP growth (%)
at rates of 9.7%, 15.0% and 3.7% respectively as compared to July 2009. As per
20.0 use-based classification, Basic goods, Capital Goods and Intermediate goods posted
16.0 growth of 5.1%, 63% and 9.1% yoy respectively. The Consumer durables and Con-
sumer non-durables have recorded growth of 22.1% and 0.5% respectively.
12.0
8.0 While the IIP data has been encouraging, there has been skepticism over the cred-
ibility of the sharp rise in Capital Goods index (42% month-on-month). This is espe-
4.0
cially in the backdrop of a muted growth in core sector in July (accounting for 27%
- weight in IIP) at 4% yoy. One should wait for further evidence of pick-up in non-food
(4.0) credit and core sector growth to conclude that the acceleration in Industrial output is
Jul-06
Feb-06

Mar-08
May-07

Jan-09
Jun-09
Dec-06

Nov-09
Oct-07
Sep-05

Aug-08
Apr-05

Apr-10

credible.

Good monsoon activity - agriculture sector gets a boost


Source: Bloomberg
As per the IMD, the cumulative seasonal rainfall for the month upto 22 September
has been 4% above the Long Period Average (LPA). Out of 36 meteorological sub-
divisions, the rainfall has been excess over 13, normal over 18 and deficient /scanty
over 5 sub-divisions. Area wise, 85% of the country received normal to heavy rain-
fall.
For the country as a whole, one can expect a good Kharif crop on the back of 10%
area expansion this year. Water levels in 81 large reservoirs remain good and the
initial deficiency has been made good.
Sowing trends which had shown that over 95% of the arable land has been brought
under crop cover had already built expectations of robust foodgrain output in the
current season. The acreage of all major crops had registered an increase in acreage
with pulses topping the list. Rice production in this kharif season is expected to be
80.41 mt, compared to 75.91 mt in the previous season. Cereals are expected to
see a rise of 9.14% in output to 108.64 mt this year compared to 99.54 mt last time
We see normal monsoon providing a leg up to consumption driven sectors. This
should translate into higher demand for consumer goods - both durables and non-
durables, autos, cement for rural housing and agro-based firms. Textile and sugar
industries could be beneficiaries on account of higher agri-production (in terms of
commodity price correction translating into lower cost of inputs).

Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 7
MORNING INSIGHT October 1, 2010

Recommendation
Quite clearly, the Indian markets have been driven by foreign fund buying even as
the domestic funds have been selling consistently. Data available with us indicates
that in relation to other Asian emerging market peers, India has received dispropor-
tionate share of foreign portfolio funds during the past two months. How long the
foreign funds would continue to buy Indian equities remains a key question for the
markets as well as the economy. However, given that the US economy still remains
vulnerable to slowdown and deflation, the Fed is likely to maintain low interest rates
in the near-term. This means that global liquidity should remain strong, thus creating
favourable conditions for fund flows into emerging markets like India.
Indian investors have been amazed by the strength of the rally and fear whether the
markets are overheated (fearing a repeat of 2008). However, one must note that
current market valuations are much lower than the heady multiples prevailing in late
2007. Hence there may be a minor adjustment to that extent but not a serious
selloff.
At the current market valuation (20x FY11 consensus earnings), we are fairly valued
based on FY11 numbers but there is a moderate upside based on FY12 numbers.
Investors entering at current levels must be prepared for a longer time horizon for
making gains. As earlier, we prefer sectors with a strong domestic consumption
theme. In fact, the consumption driven sectors like Auto and Consumer Durables
have been major outperformers in the ongoing rally. Apart from this, we recom-
mend select stocks in Infrastructure, Capital Goods, Financial Services and large IT
as our preferred picks. The risk to our moderately bullish call comes from any disrup-
tive event in global economy.

Preferred picks
Sector Stocks

Banking ICICI Bank, BoB, Union Bank, Andhra Bank, Axis Bank, J&K
Construction Unity Infraprojects, IVRCL, Jaiprakash Associates,
Sunil Hi Tech
Engineering Blue Star, L&T, Greaves Cotton, Kalpataru Power,
Diamond Power Infrastructure Ltd
Information Technology Infosys, NIIT Tech, TCS
Logistics Mundra Port, Gateway Distriparks, Allcargo, GATI
Media Jagran Prakashan
Metals Sesa Goa
NBFCs India Infoline, IDFC
Other Midcaps JBF, Time Techno, Everest Kanto

Source: Kotak Securities - Private Client Research

Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 8
MORNING INSIGHT October 1, 2010

Bulk deals Trade details of bulk deals


Date Scrip name Name of client Buy/ Quantity Avg.
Sell of shares price
(Rs)

30-Sep Acil Cot Inds Jethabhai Madhubhai Chaudhary S 65,000 30.0


30-Sep Action Fin BP Fintrade Private Limited S 102,546 39.7
30-Sep Aishwarya Tele Rajanikanth Gopidi B 119,970 33.3
30-Sep Alchemist Rlty Clsa (Mauritius) Limited S 1,712,000 15.9
30-Sep Amtek India Swiss Finance Corporation (Mauritius) S 1,621,026 64.2
30-Sep Apl Apollo Tub Jaipur Engineering & Electricals Ltd B 200,000 166.9
30-Sep Apl Apollo Tub PR Vyapaar Private Limited S 200,000 166.8
30-Sep Arvind Intl Mansi Share & Stock Advisors Pvt Ltd B 32,525 31.4
30-Sep Avon Corp Delight Financial Advisor Pvt Ltd B 716,263 5.7
30-Sep Bhoruka Alum Groove Finance and Investment S 44,500 38.2
30-Sep Bhuwalka Steel Satish Desraj Kumar B 26,770 56.6
30-Sep Bhuwalka Steel Surya Prakash Heda S 75,795 57.3
30-Sep Camson Bio Live Star Marketing Pvt Ltd B 100,000 182.0
30-Sep Chartered Cap Dimple Amar Parikh B 19,584 35.4
30-Sep Coral Lab Premshanker A Mehta B 17,930 132.9
30-Sep Coral Lab Atman Harshad Sanghavi S 25,000 132.6
30-Sep Dazzel Conf Bimla Bansal B 50,000 29.3
30-Sep Devine Impex Abans Securities Limited B 30,000 73.7
30-Sep Hittco Tools Asarafbhai Majidbhai Pancha S 25,074 40.8
30-Sep Jaihind Syn Farhan Shaikh B 28,000 50.8
30-Sep JVL Agro Inds Satyasai Investments S 69,845 450.0
30-Sep Kanchan Intl Bp Fintrade Private Limited B 20,000 75.4
30-Sep Kanchan Intl Mohanraj Gangaram Mehata S 18,500 75.4
30-Sep Mahalaxmi Rub Moongipa Finvest Ltd. S 500,000 27.8
30-Sep Mahalaxmi Sea Rahul Doshi B 28,164 29.2
30-Sep Mahalaxmi Sea Tirath Pradyuman Parikh B 38,096 29.5
30-Sep Manappuram Kedar Shivanand Mankekar B 3,000,000 148.0
30-Sep Manappuram Om Kedar Investments S 3,000,000 148.0
30-Sep Micro Tech Withal Commercial Private Limited B 80,000 214.4
30-Sep Micro Tech AK Mining Limited S 77,785 214.2
30-Sep Omkar Overseas Minoli Naimishbhai Pari S 31,801 19.1
30-Sep Orbit Exports Vijaylaxmi Jayprakash Bohra B 50,800 46.4
30-Sep Oregon Comm Laxman Harkishan Narang B 12,000 199.6
30-Sep Oregon Comm Amul Gagabhai Desai B 12,493 196.7
30-Sep Oregon Comm Mahesh Somabhai Desai B 7,500 199.5
30-Sep Oregon Comm Vaishali Jimish Soni B 7,500 199.5
30-Sep Oregon Comm Amitkumar Rameshchandra Rana B 9,842 194.5
30-Sep Oregon Comm Dhirenkumar Dharamdas Agarwal S 18,640 197.2
30-Sep Oregon Comm Amitkumar Rameshchandra Rana S 8,534 197.6
30-Sep Oregon Comm Amul Gagabhai Desai S 12,493 199.6
30-Sep Parichay Invest Krupa Sanjay Soni B 22,600 72.4
30-Sep Parichay Invest Sanjay Jethalal Soni B 17,950 72.4
30-Sep Parichay Invest Amul Gagabhai Desai B 17,950 72.4
30-Sep Parichay Invest Kinnari Ramchandra Patel B 25,150 72.4
30-Sep Parichay Invest B P Padia HUF S 44,500 72.4
30-Sep Parichay Invest Pramananddas Padia Bharatbhai S 44,500 72.4
30-Sep Parichay Invest Tejal Bharatkumar Padia S 44,500 72.4
30-Sep Pasari Spin Shabbir Ahmed Hasan S 75,000 13.3
30-Sep Pm Telelinnks Bhavini Vijaykumar Shah B 68,682 25.2
30-Sep Pm Telelinnks Surana Gulab Chand Pukhraj S 150,000 25.2

Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 9
MORNING INSIGHT October 1, 2010

Trade details of bulk deals


Date Scrip name Name of client Buy/ Quantity Avg.
Sell of shares price
(Rs)

30-Sep PM Telelinnks Ravi Pukhraj Surana S 75,000 25.2


30-Sep PM Telelinnks Dipin Surana S 75,000 25.3
30-Sep PM Telelinnks Priyanka Surana S 100,000 25.3
30-Sep Polypro Fibrils Deval Jitendra Shah B 33,700 21.5
30-Sep Polypro Fibrils Milan Jitendra Shah S 33,700 21.5
30-Sep Polypro Fibrils Status Equity And Finance Pvt S 45,325 21.1
30-Sep Premier Expl Vanaja Sundar Iyer B 50,000 124.9
30-Sep Quintegra Sol Tecknopoint Mercantile Co Pvt Ltd B 195,313 10.5
30-Sep Raj Packaging Hscm Realtors Private Limited B 20,000 169.2
30-Sep Raj Packaging Nirmala P Gala B 25,000 169.3
30-Sep Raj Packaging Kenisha Enterprises Private Limited B 25,000 169.3
30-Sep Raj Packaging Arcadia Share & Stock Brokers Pvt. Ltd S 21,500 169.3
30-Sep Raj Packaging Mihir Bharatkumar Shah S 41,000 169.2
30-Sep Raj Packaging Jatin Sampatkumar Dokwal S 40,000 169.3
30-Sep Raj Packaging Ketan P Rambhiya S 30,000 169.3
30-Sep Rama Phosp Ramesh Pannalal Mehta B 34,988 71.4
30-Sep Sacheta Metals Pumarth Infrastructure Private Ltd S 100,000 78.5
30-Sep Sacheta Metals Satishkumar Keshavlal Shah S 150,000 78.5
30-Sep Sarda Energy Orange Mauritius Invetments Ltd B 520,000 270.7
30-Sep Sarda Energy Ipro Funds Limited S 520,000 270.7
30-Sep Scooters India Sachin Ramesh Mhatre B 10,000 42.6
30-Sep Sky Inds Vijay Jamnadas Vora B 100,000 117.0
30-Sep Sky Inds Ashok Misrilal Boob S 100,000 117.0
30-Sep Sujana Towers Eureka Credit Finance Private Ltd S 650,000 93.2
30-Sep Suryachakra P Sainath Herbal Care Marketing P Ltd B 723,995 20.9
30-Sep Systematix Corp Lotus Global Investments Limited B 100,000 93.2
30-Sep Taneja Aero Anmol Finpro Private Limited B 187,252 47.1
30-Sep Well Pack Pap Narendr Kumar B 556,190 66.6

Source: BSE

Kotak Securities - Private Client Research Please see the disclaimer on the last page For Private Circulation 10
MORNING INSIGHT October 1, 2010

Gainers & Losers Nifty Gainers & Losers


Price (Rs) chg (%) Index points Volume (mn)

Gainers
HDFC 733 3.7 11.6 6.8
ITC 178 2.7 8.5 16.3
HDFC Bank 2,489 1.9 5.6 1.9
Losers
Reliance Ind 987 (1.2) (6.8) 6.6
ONGC 1,404 (1.2) (2.0) 1.7
Ambuja Cements 141 (4.5) (1.8) 2.4

Source: Bloomberg

Research Team
Dipen Shah Apurva Doshi Sarika Lohra Jayesh Kumar Shrikant Chouhan
IT, Media Logistics, Textiles, Mid Cap NBFCs Economy Technical analyst
dipen.shah@kotak.com doshi.apurva@kotak.com sarika.lohra@kotak.com kumar.jayesh@kotak.com shrikant.chouhan@kotak.com
+91 22 6621 6301 +91 22 6621 6308 +91 22 6621 6301 +91 22 6652 9172 +91 22 6621 6360

Sanjeev Zarbade Saurabh Agrawal Arun Agarwal Ritwik Rai K. Kathirvelu


Capital Goods, Engineering Metals, Mining Automobiles FMCG, Media Production
sanjeev.zarbade@kotak.com agrawal.saurabh@kotak.com arun.agarwal@kotak.com ritwik.rai@kotak.com k.kathirvelu@kotak.com
+91 22 6621 6305 +91 22 6621 6309 +91 22 6621 6143 +91 22 6621 6310 +91 22 6621 6311
Teena Virmani Saday Sinha Ruchir Khare Sumit Pokharna
Construction, Cement, Mid Cap Banking, Economy Capital Goods, Engineering Oil and Gas
teena.virmani@kotak.com saday.sinha@kotak.com ruchir.khare@kotak.com sumit.pokharna@kotak.com
+91 22 6621 6302 +91 22 6621 6312 +91 22 6621 6448 +91 22 6621 6313

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