Morning Notes

04.06.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

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

Euro Drops as German Opposition Boosts Debt Crisis Woes The euro fell versus the dollar, extending a five-week loss, amid signs European leaders are struggling to agree on how to resolve the regions debt crisis. The 17-nation euro remained lower versus the yen, following last weeks slide, before German Chancellor Angela Merkel meets fellow coalition leaders today after opposing joint debt sharing in the euro area. The greenback gained versus the yen on prospects officials will stem the Japanese currencys gains. It also rose as Asian stocks fell, boosting demand for the relative safety of U.S. currency. Australias dollar dropped before Reserve Bank policy makers meet tomorrow. Chinas Non-Manufacturing Industries Grow at Slower Pace Chinas non-manufacturing industries expanded at the slowest pace in more than a year, as export orders declined and weakness in real estate countered strength in retailing and leasing, an official survey indicated. The purchasing managers index fell to 55.2 in May from 56.1 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday in Beijing. Thats the lowest reading since March 2011 when the federation started seasonally adjusting the data. Oil Drops a Fifth Day on Concern U.S., China Demand Will Falter Oil dropped for a fifth day, trading at the lowest in almost eight months, as signs of economic slowdown in the U.S. and China stoked speculation that crude demand will falter. Futures fell as much as 0.8 percent after tumbling 8.4 percent last week to the lowest close since Oct. 7. Chinas non- manufacturing industries expanded at the slowest pace in more than a year in May, the National Bureau of Statistics and China Federation of Logistics and Purchasing said yesterday in Beijing. U.S. employers added the fewest workers in a year while the euro regions jobless rate reached a record high, reports showed last week. Iran will insist OPEC maintains production quotas when it meets this month, state TV reported.

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
4841.60 9440.35 4745.40 2995.90 3851.95 6785.35 1945.85 15965.16

Pt. Chg.
-82.65 -122.80 -78.05 -54.05 -61.10 -113.05 -38.70 -253.37

Change %
-1.68 -1.28 -1.62 -1.77 -1.56 -1.64 -1.95 -1.57

Global Markets
Change (%) -2.46 -2.82 -2.22 -1.14 -3.42 -2.21 -2.02 -2.51 -1.51

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

Close 1278.04 2747.48 12118.57 5260.19 6050.29 2950.47 8265.46 18091.96 2703.88

Global data recorded/updated last as on 04, June 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 2.82 1.96 0.37 0.05 Indian Markets

NIFTY TOP LOSERS

Change (%) -6.01 -5.18 -4.89 -4.88

Company GAIL ITC SUN PHARMA COAL INDIA

Close 330.25 233.85 569.05 321.75

Company ASIAN PAINTS CAIRN IND SIEMENS RANBAXY LAB.

Close 3,779.80 316.80 644.45 492.60

MARKET SUMMARY
Weak global cues, coupled with domestic growth fears dragged down domestic benchmarks Last day as the Sensex shed more than 250 points, falling below the psychological 16,000 mark. Thursdays shocking GDP data that showed that growth slumped to a nine-year low, continued to rattle investors. Fears over slowing growth were compounded after the HSBC manufacturing Purchasing Managers' Index (PMI), slipped marginally to 54.8 in May from 54.9 in April, signaling a slower pace of expansion in manufacturing activity in May 2012. The BSE SENSEX closed at 15,965.16, down by 253.37 points or by 1.56 per cent and the NSE Nifty ended at 4,841.6, down by 82.65 points or by 1.68 per cent. Meanwhile, the BSE MIDCAP closed at 5,821.63, down by 86.32 points or by 1.46 per cent, while the BSE SMLCAP ended at 6,194.44, down by 76.56 points or by 1.22 per cent. After a gap down opening amid weak Asian cues, the key domestic benchmarks extended losses as worries over a slowing Indian economy escalated. Selling pressure escalated at the domestic bourses in late trade amid weak European market cues. On the Sectoral front, Capital Goods and Power shed 2.99 per cent and 2.49 per cent, respectively. Out of the 30 Sensex stocks, there were 2 advances and 27 declines. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3533, shares advanced were 879 while 1868 shares declined and 786 were unchanged. The top losers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 224.50,-3.73%), Larsen & Toubro Ltd. (Rs. 1134.50,-3.22%), Reliance Industries Ltd. (Rs. 683.70,-3.16%), Sterlite Industries (India) Ltd. (Rs. 91.20,-3.08%), Maruti Suzuki India Ltd. (Rs. 1073.90,-2.94%), among others. Asian stock markets fell on Friday after a report showed that Chinas manufacturing activity shrank for a seventh straight month in May 2012, raising concerns that the worlds second largest economy is headed for a hard landing.

R. Wadiwala

NEWS UPDATES
MACRO India's exports rose 3.23% year-on-year to $24.5 billion in April, while imports grew 3.83% on year to $37.9 billion, government data showed on Friday. The figures are in line with the provisional numbers given by the then Trade Secretary Rahul Khullar on May 10. April's trade deficit was $13.5 billion, while oil imports rose 6.96% on year to $13.9 billion, data showed. A high trade deficit could worsen India's current account balance and further weaken the rupee. COMPANY CRISIL has announced that it has entered into an agreement to buy 100% of the equity shares of UK headquartered Coalition Development along with its subsidiaries. Coalition provides high-end analytics, mainly to leading global investments banks. The acquisition will add to the earnings per share of CRISIL from the first year. The transaction is subject to regulatory approvals. Coalition will be part of CRISIL`s Global Research and Analytics (GR&A) business. Tata Motors total sales (including exports) of Tata commercial and passenger vehicles in May 2012 were 64,347 vehicles, higher by 4%, over May 2011. The companys domestic sales of Tata commercial and passenger vehicles for May 2012 were 60,128 nos., higher by 6%, over 56,571 nos., sold in May last year. Cumulative sales (including exports) for the company for the fiscal are 124,433 nos., lower by 2%, over 126,353 nos., sold last year. Non-performing loans for SBI are expected to increase going forward as the bank will not have the benefit of large recoveries and upgrades it witnessed in the March 2012 quarter. SBI management, while speaking at the Citi India Investor conference said that it is looking at asset quality improving in FY13. On slippages the management is confident of containing it at the March 2012 quarter level. Its restructuring pipeline is around Rs 3500-4000 crore which will be undertaken over the next two quarters. Europe is expected continue to be impacting the performance of Tata Steel in the first quarter of the current fiscal. However, the company expects to benefit in FY13 from restructuring at various locations. Tata Steel management speaking at the Citi India Investors meet said that demand continues to be sluggish in Europe. Its FY12 performance was impacted by raw material volatility, margin squeeze, inventory write-downs and production problems at Port Talbot and the Netherlands. Port Talbot is expected to improve in the second half of the current fiscal. Nitesh Estates announced Friday it has launched luxury villa offering, Nitesh Napa Valley, off Bellary Road, Bangalore. This is the first of the five launches planned by Nitesh Estates for the fiscal. The five launches are estimated to be at 1Rs 5 billion totally. The Rs 4.25 billion project will house 133 exclusively designed villas all enveloped in lush green landscape and water bodies with footprints ranging from a large 5342 sq ft to a 2712 sq. ft. State-run Oil and Natural Gas Corporation (ONGC), through the Perspective Plan 2030, has set ambitious longterm targets. In 18 years, ONGC would seek to double its exploration and production growth, triple its revenues and earnings before interest, taxes, depreciation, and amortisation, and quadruple its market capital. It also plans a six-fold rise in international exploration and production (E&P). Godrej & Boyce Manufacturing Company Limited, a Godrej Group arm, is setting up a greenfield plant for chemical process equipment manufacturing at Dahej Special Economic Zone (SEZ) in Gujarat with an investment of around Rs 500 crore for the first phase of development. The company has acquired 50 acres of land within the SEZ area and has applied for additional 50 acres.

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 4800.07 9068.54 671.23 60.38 292.91 422.13 1111.24 89.07 778.89 2020.82 398.10 89.70 90.42 2379.34 206.16 246.64 1124.78 Lower 1 4821.95 9143.10 676.71 61.88 295.30 425.58 1120.34 90.10 785.16 2037.08 401.30 90.43 91.15 2398.48 207.82 248.62 1133.83 Axis 4842.83 9268.66 681.19 62.58 298.68 429.03 1131.44 91.04 791.42 2053.34 404.50 91.15 91.88 2417.62 209.48 250.60 1142.88 Higher 1 4865.85 9382.90 687.99 63.82 303.77 434.05 1147.41 93.08 796.91 2067.56 407.31 91.78 92.52 2434.37 210.93 252.34 1150.79 Higher 2 4880.92 9494.55 692.84 64.90 306.15 439.59 1158.83 94.19 797.89 2070.10 407.81 91.89 92.63 2437.36 211.19 252.65 1152.21

BULLISH ON SHORT TERM

ITC UNITECH BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 238-240-242 SL 230 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 23-24-25 SL 20

FII and DII Investments

FIIs Date *01 June June-2012 2012 Till Date Purchase 1791.48 6325.40 277578.90 Purchase 865.54 865.54 50677.40 Sale 2011.86 6960.10 235069.20 Sale 660.04 660.04 56883.50
Inv (crs)

-220.38 -634.70 +42409.70

Inv (crs)

DIIs

Date *01 June June-2012 2012 Till Date * Provisional Data

+205.50 +205.50 -6205.70

R. Wadiwala

Following the MUTUAL FUNDS

Principal Emerging Bluechip G

Latest NAV: 26.31 (31/05/12) 52-Week High: 28.94 (19/07/11) 52-Week Low: 21.48 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
Glaxo Consumer Eicher Motors Apollo Tyres Lupin Shree Cement

Top 5 Sectors
% Net Assets
4.15 3.74 3.34 3.04 2.84

Top 5 Sectors
Financial FMCG Healthcare Construction Services

% Net Assets
17.40 14.09 11.31 9.74 9.11

Top 3 Holding Company Details Glaxo Consumer

LTP: 2791.80 PB Ratio: 9.20 PE Ratio: 31.18 Year to Date Return: 9.87 Other Funds That Own Glaxo Consumer
Fund name
Tata Life Sciences & Tech Birla Sun Life Pure Value Tata Dividend Yield SBI Magnum FMCG

% Net Asset
11.35 5.21 4.71 4.36

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

Eicher Motors
LTP: 2293.50 PB Ratio: 10.58 PE Ratio: 39.84 Year to Date Return: 55.40

Other Funds That Own Eicher Motors

Fund name
JM Tax Gain UTI Transportation and Logistics Reliance Tax Saver UTI Mid Cap

% Net Asset
8.97 8.48 7.83 6.80

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

Apollo Tyres
LTP: 86.50 PB Ratio: 2.13 PE Ratio: 24.04 Year to Date Return: 46.86

Other Funds That Own Apollo Tyres

Fund name
Birla Sun Life Enhanced HSBC Midcap Equity HSBC Progressive Themes IDFC Sterling Equity

% Net Asset
14.93 5.93 4.72 4.23

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

R. Wadiwala

DERIVATIVES NOTES
Nifty June 2012 futures were at 4,817.85, at a discount of 23.75 points compared to the spot closing of 4841.60. Turnover on NSE`s futures & options (F&O) segment declined to Rs 79781.44 crore from Rs 95703.89 crore on Thursday, 31 May 2012.
% Change OI
5.76

Institutional Investment Trends

(in Crores) JUNE 01, 2012

BUY
1127.78

SELL
1623.75

Net Buy/Sell
-495.97

OIEoD
7143.85

INDEX FUTURES

State Bank of India (SBI) June 2012 futures were at 2017.25, at a discount compared to spot closing of 2025. Tata Motors June 2012 futures were at 225, near spot closing of 223.05. Indraprastha Gas June 2012 futures were at 255.45, near spot closing of 254.35. In the cash market, the S&P CNX Nifty lost 82.65 points or 1.68% to settle at 4,841.60, its lowest closing level since 23 May 2012.

STOCK FUTURES

1338.41

1215.11

123.30

19755.17

-0.68

Put Call Ratio Symbol LT ABGSHIP NIFTY NIFTY INFY CAIRN HINDUNILVR CENTRALBK INDIACEM MINIFTY NIFTY NIFTY NIFTY Expiry Date 26-Jul-12 28-Jun-12 30-Jun-16 31-Dec-15 26-Jul-12 26-Jul-12 26-Jul-12 28-Jun-12 28-Jun-12 26-Jul-12 27-Sep-12 26-Jul-12 28-Jun-12 Put 7000 45000 1700 2050 78125 2000 2000 4000 8000 300 782400 6572200 44377950 Call 500 6000 350 500 22375 1000 1000 2000 4000 180 488050 4145050 30395000 Ratio 14.00 7.50 4.86 4.10 3.49 2.00 2.00 2.00 2.00 1.67 1.60 1.59 1.46

R. Wadiwala

DIVIDEND AND OTHER INFORMATION

Excel Crop Care Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 30, 2012 have recommended to the members a dividend of Rs. 2.00 per equity share on 1,10,05,630 equity shares of Rs. 5/- each which will be paid on or after July 30, 2012 subject to the approval of the Members. Phillips Carbon Black Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 29, 2012, have recommended a dividend of 40% i.e. Rs.4 per share for the year ended March 31, 2012, subject to the approval of the Members of the Company. Kothari Products Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 29, 2012 has recommended a Dividend of Rs.15/- per equity share of Rs.10/- each i.e. 150% for the financial year 2011-12, subject to approval of the shareholders.

DISCLAIMER
This material is for your private information, and we are not soliciting any action based upon it. Transactions involving stocks and derivatives give rise to substantial risk and are not suitable for all investors. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only.

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R. Wadiwala