INTRODUCTION Stock exchanges to some extent play an important role as indicators, reflecting the performance of the country's economic

state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility; prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stockbrokers are the ones who buy and sell securities on behalf of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by Harshad Mehta has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made. As the condition of capital markets are constantly improving, it has started drawing attention of lot more people than before. On the career related aspects, professionals have opportunities to choose from for a wide range of jobs available in a number of organizations in this sector and one can expect to have good times ahead of him.

INDUSTRY PROFILE

NSE and BSE: Stock market represents the secondary market where existing securities shares and debentures are traded; Stock Exchange provides an organized mechanism for purchase and sales of securities. By the end of 2011 there were 24 stock Exchanges in our country. The investors want liquidity for their investments. Stock Exchange provides a place where securities of different companies can be purchased and sold. Stock Exchange: Stock exchange is a body of persons, where incorporates or not, formed with a view to helping regulating and controlling the business of buying and selling of securities. History of Stock Exchanges: Houses of exchanges arose in Europe during the 15th century. Trading was carried on exchanges in terms of securities which represented goods. Antwerp, Laytons, Amsterdam and London become celebrated all over Europe for their dealings in stock exchanges. During that time, the list of securities traded had considerably expanded and a vast majority of them wee international in contact with the home issues. In New York the stock exchange came into existence immediately after 13 colonies became independent to form the United States of America. In 1817 the brokers organized themselves into the New York exchange board with a definite constitution. There were many changes and reorganizations and amalgamations till 1969, during which The New York Stock Exchange was formed with a maximum membership limited to 1100. The origin of Stock Exchanges in India is traceable in the later half of the 19th century. At that time, capital market dealings were limited to loan stock transactions of the East India Company. By 1930, stock market took a turn with the emergency of some corporate stock and development of textile mills that resulted due to the America civil war which gave Indian businessmen a global chance of quick profiteering by increasing exports of cotton to America and Europe at exorbitant prices. The trade boom lead to the establishment of stock exchanges at Bombay, Ahmadabad, and Kolkata.

Definition of stock exchange: Stock Exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. It is an association of member brokers for the purpose of self- regulation and protecting the interests of its members. It can operate only if it is recognized by the government. Under the securities contract (regulation) Act, 1956 the recognition is granted under section 3 of the Act by the central government, ministry of finance. Byelaws: Besides the above act, the securities contact(regulations) rules were also made in 1975 to regulate certain matter of trading on the stock exchanges. These are also byelaws of exchanges, which are concerned with the following the subjects. Opening/closing of the stock exchange, timing of trading, regulation of blank transfer, regulation of Badla or carryover business, control of settlement, and other activities of stock exchange, fixations of margins, fixations of market prices or making prices, regulation of taravani business(jobbing), regulation of brokers trading, brokerage charges, trading goods on the exchanges, arbitration and settlement of disputes, settlement and clearing of the trading etc. Regulation of stock exchanges: The securities contract (regulation) is the basis for operations of the stock exchange in India. No exchanges can operate legally without the government permission or recognition. Stock exchanges are given monopoly in certain areas under section 19 of the above Act to ensure that control and regulation are facilitated. Regulation can be granted to a stock exchange provided certain conditions are satisfied and the necessary information is supplied to the government. Securities and exchange board of India(SEBI): SEBI was set up as an autonomous regulatory authority by the Government of India in 1988to perform the interests of investors in securities and to promote the development of, and to regulate the securities market and for matters connected therewith or incidental thereto. it is empowered by two acts namely the SEBI act, 1992 and the securities contract (regulation) Act, 1956 to the function of protecting investors rights and regulating the capital markets.

Characteristics of stock exchanges: It is a place where securities are purchased and sold. A stock exchange is an association of persons whether incorporated or not. Trading in stock exchanges are strictly regulated by the and regulations prescribed by Stock Exchange Board of India (SEBI) Both genuine investors and speculators buy and sell shares in a stock Exchange Securities of corporation , trusts, Government, Municipal corporations etc., are traded at stock exchanges. Functions of stock exchange: Ensures liquidity of capital Continuous market for securities The investors can evaluate the worth of their shares from the prices quoted at different stock exchanges for those securities. Mobilizing surplus savings Helpful in raising new capital Platform for public debt Clearing house of business information

Procedure for dealing at stock exchanges: The buying and selling at stock exchanges at stock exchanges is not allowed to outsides. They have to approach brokers who are members of the stock exchange. Selection of a broker: The first thing is too done is to select a broker through whom the purchase or sales is to be made. Placing an order: After select the broker the client places an order for purchase or sales of securities. Making the contract: The authorized clerk of the broker goes to the concerned post and expresses his intention to buy and sell securities. A deal is struck when other party address. 4

Contract note: The buying and selling brokers prepare notes after their mutual consent next day. Settlement: The spot dealings are settled in full. Settlement for ready delivery and forward contacts is done with a different procedure. Stock market intermediaries: Client Brokers: They do simple brokering between buyers and sellers and earn only brokerage for their services from the clients. Floor Brokers: They are authorized clerks and sub brokers who enter the trading floor and execute orders for the clients or for members, Jobbers and market makers: They are members who are ready to buy and sell simultaneously in selected scrips, offering bid and offer rates for the brokers and sub-brokers on the trading floor and earing profit through the margin between buying and selling rates. Makers undertake this work compulsorily for some companies and bank finance is available to them. Arbitrageurs: They are members who do inter market deals for a profit through differences in prices as between markets. Badla financiers: They are members who finance carry forward deals in specified group for a return in the form of interest, called Badla rate. They lend money or shares for the brokers who overbuy or oversell respectively at the time of settlement. Badla is a carry forward facility from one settlement to another without taking a delivery up to a maximum period of 90 days at a time, now reduced to 7-15 days. Types of speculators: There are different types of speculators who are active on stock exchanges in India. They are known as Bull Bear Stag Lame duck 5

Bull: A bull or Tejiwala is an operator who expects prices to rise in future and sells securities in the future. A bull tends to throw his victims up in the air. Bear: A bear or Mandiwala speculator expects prices to fall in future and sells at present with a view to purchase them to lower prices in future. Just as bear press its victims down to the ground. Stag: A Stag is a cautious speculator in the stock exchange. He applies for shares before being called to pay the allotment money. Lame duck: When a bear finds it difficult to fulfill his commitment, he is called struggling like a lame duck. Factors influencing prices on stock Exchanges: Financial Position of the company Demand and supply position of scripts Role of financial institutions Leading rates Trade Cycles Speculation Activities Government Control

The important Stock Exchanges in India are:1. Bombay Stock Exchange (BSE) 2. National Stock Exchange (NSE)

Bombay stock exchange: Bombay Stock Exchange is the first organized stock exchange set up at Bombay in 1857 and is popularly caked BSE. It is the premier or apex stock exchange in India as its distinguished not only by its size but also it has been recognized permanently while recognition of other stock exchanges is renewed in every 5 tears. It is the oldest Stock Exchange. Earlier, the BSE was organized as a voluntary, non-profit making association of brokers to regulate and protect their interest. After the Security & Contracts (Regulation) Act, 1956, BSE was the first recognized Stock Exchange on a permanent basis in 1957. Its business is no longer confined to Mumbai alone. At the end of 1955, there were 100 other cities in which it had set up business. The number of companies listed in all the Stock Exchanges is more than 8000, out of which those listed in BSE are 6851. The capital in Bombay Stock Exchange accounts For about 40% of the overall to around 9%. In BSE the total number of companies listed and total numbers of stocks issued are higher than any other stock exchanges. BSE switched over to electronic trading system in January 1955 called Bombayon- Line Trading (BOLT) system and this become fully operational in May 1955. The BSE terminals since August 1955. The daily turnover in BSE varies from Rs.400-800 cores. Brokers trading in NSE follow BSE to know the market. Sensex: The index in BSE is Sensex. It stands for Sensitivity index. It consists of 30 selected top companies of BSE based on the capitalization or on the performance weight age of the scripts. Is not only scientifically designed but also based on globally accepted weight age of the scripts. Is not only scientifically designed but also based on globally accepted construction and overview methodology. First compiled in 1986, is a basket of 30 constituent stocks responding a sample of large, liquid and representative companies. The base year of is 1978-79 and the base value 100. The index is widely reported in both domestic and international markets through print as well as electronic media. Other BSE indices: Apart from SENSEX, BSE maintains and publishes 13 other indices to cater to the varied needs of the market participants. These are: 7

BSE-100

DOLLEX-200

BSE-FMCG Index

BSE-200

BSE-TECK Index

BSE-Healthcare Index

BSE-500

BSE-PSE Index

BSE-Capital Goods Index

DOLLEX-30

BSE-IT Index

BSE-Consumer Index

Durables

BANKEX

National stock exchange: IDBI and other National financial Institutions in Mumbai were responsible for setting the National Stock Exchange in November 1992, with a paid-up equity capital of Rs.25 crores. The Government I the same year recognized it and the exchange started operations in whole sale debt market in June 1994. The volume of daily trade in NSE is around Rs.1500 to Rs.2000 crores. The market capitalization of listed companies in NSE is Rs.2.52 lakhs crores. There more than 1,000 permitted securities for trading in NSE.

Mission: 8

NSEs mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: Establishing a nation-wide trading facility for equities, debt instruments and hybrids,Ensuring equal access to investors all over country through an appropriate communication network Providing a fair, efficient and transparent securities market to investors using

electronic trading systems Enabling shorter settlement cycles and book entry settlements, and Meeting the

current international standards of securities markets.

Stock exchanges in India: Ahmedabad Baroda Chennai Coimbatore Guwahati Indore National Stock Exchange Cochin Delhi Hyderabad Over the counter exchange of India Inter Connected Stock Exchange Bangalore Bhubaneswar

COMPANY PROFILE 9

KARVY is started by mainly 5 members, by combination of those members only KARVY is started such as: KUTUMBA RAO ANANDA RAO RAMA KRISHNA VENKATESWARA RAO YUGANDHAR ABOUT KARVY STOCK BROKING LTD. Building a heritage of Confidence. Since its inception in 1982, KARVY has demonstrated a dedication coupled with dynamism that has inspired trust from various segments, corporate, government bodies and individuals. KARVY has since been performing a pivotal role as the intermediary the interface between these players. With Mutual Funds emerging as a distinct asset class, KARVY has made a strategic choice to leverage the power of latest technology to provide a cutting edge to its services. We, today, service nearly 60% of the asset management companies (AMCs) across an extensive network of service centers with assets under service in excess of Rs.222, 874.52 crores. Mutual fund services have been undergoing a sea change in the Indian market place and asset management companies are finding their niche in delivering unique products and service offerings. Our ability to mass customize and offer a diverse range of products for a diverse range of customers has helped mutual fund companies to uniquely position themselves in the market place. KARVY is a integrated financial services provider. It provides services allover the India. It has been a customer centric company since its inception. Karvy is member of three stock exchanges: NATIONAL STOCK EXCHANGE (NSE) BOMBEY STOCK EXCHANGE (BSE) HYDERABAD STOCK EXCHANGE (HSE) Today karvy has access to millions of Indian shareholders, besides companies, banks, finance and people.

MISSION AND VISION: 10

Mission Our mission is to be the preferred strategic partner to our customer, and we aim to achieve this leadership position by building an innovative, enterprising and technology driven organization while setting new standards of service delivery and business ethics. Vision Our vision is to collaborate with customers in providing end to end business solutions through specialized competencies across business verticals and internalize service quality using innovative approaches. KARVY MILESTONES: KARVY has passed a success route over the past 29 years and positioned itself as an emerging financial service. From below data we can know how karvy succeed in the financial market. In 1979 karvy started this business. In 1985 karvy started corporate registry services in Order to provide good registry services. In1990 karvy entered in the market of stock broking services. In 1993 karvy providing financial products distribution services. In 1995 karvy providing corporate finance services In order to maintain the corporate culture In 1997 karvy entered in depository services. In 2001 karvy providing personal finance advisory services in order to give market information and strategies to the customers. In 2004 karvy entered in the global market and providing global services to the karvy customers. Achievements In India Karvy Is Leading among the Top 5 Stock Brokers Karvy Is No 1 Registrar & Securities Transfers Agents Karvy Have Large Network of Branches It Is Large Distributor of Financial Products

KARVY STOCK BROKING LIMITED 11

Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE), and The Hyderabad Stock Exchange (HSE). Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards attaining diverse goals of the customer through varied services. Creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends, planning with foresight and choosing one’ s options with care. This is what we provide in our Stock Broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country.

Distribution of Financial Products 12

The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, we occupy all segments in the retail financial services industry. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues. To further tap the immense growth potential in the capital markets we enhanced the scope of our retail brand, Karvy the Fin polis, thereby providing planning and advisory services to the mass affluent. Here we understand the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The market-savvy and the ignorant investors, both find this service very satisfactory. The edge that we have over competition is our portfolio of offerings and our professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized. Our monthly magazine, Fin polis, provides up-dated market information on market trends, investment options, opinions etc. Thus empowering the investor to base every financial move on rational thought and prudent analysis and embark on the path to wealth creation.

KARVY

INVESTOR 13

SERVICES

LIMITED

Recognized as a leading merchant banker in the country, we are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew our focus in this sector. Our quality professional team and our work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporate, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. We have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Our team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Our financial advice and assistance in restructuring, divestitures, acquisitions, demergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated our relationship with the client to one based on unshakable trust and confidence.

KARVY Realty & Services (India) Limited Take a Realty Byte !!! Promoted by the KARVY Group of companies, Indias largest integrated financial services company. KARVY Realty & Services India Limited carries forward its legacy of trust and excellence in investor and customer services delivered with a passion for 14

services and the highest level of quality that align with global standards. KARVY Realty & Services (India) Limited welcomes you to take a reality check on realty options that you can be rest assured of and of course profit from. Board of Directors:

Mr. William Stuart Crosby Regional Managing Director Asia Pacific In his role as Managing Director - Asia Pacific, Stuart is responsible for Computershare's operations in Australia, New Zealand, India and Hong Kong. Prior to his appointment to this position in 2002, Stuart spent two years heading up Computershare's strategic business development in continental Europe and Asia. Before joining Computershare in 1999, Stuart was ASX's national head of listings (96 99). Stuart has also worked in Hong Kong where he ran the Hong Kong Securities and Futures Commission's intermediary licensing division and was a director of enforcement.

15

Mr. C Parthasarathy Chairman - Karvy Group Mr. C Parthasarathy, a leader in the financial services industry in India is responsible for building Karvy as one of India's truly integrated Financial Services Provider; he is a fellow member of the Institute of Company Secretaries of India, a Fellow Member of the Institute of Chartered Accountants of India and a graduate in law. As Chairman and Managing Director, he oversees the group's operations and renders vision and business direction. His passion and vision for achieving leadership in the business made KARVY a leading financial intermediary ranking them as number one in the registrar, Share Transfer and IPO Distribution businesses. He also holds directorship in Karvy Stock Broking Limited, Karvy Investor Services Limited, Karvy Computershare Private Limited, Karvy Commodities Broking Private Limited, EPR Pharmaceuticals Private Limited and Ocean Sparkles Limited.

Mr.Y.Yugandhar Managing Director - Karvy Group Mr. Y Yugandhar, Managing Director, founder member of Karvy Consultants Limited, has varied experience in the field of financial services spanning over 20 years. He is a Fellow Member of the Institute of Chartered Accountants of India and was involved in the statutory and branch audit of banks for 26 years. Mr. Yugandhar holds directorships in Karvy Stock Broking Limited, Karvy Investor Services Limited, Karvy Computershare Private Limited, Karvy Commodities Broking Private Limited, Bizpro Technologies India Limited, Pokarna Limited, Ravindranath G E Medical Associates Private Limited, Everest Power Private Limited and Green Infrastructure Private Limited.

16

Mr. M S Ramakrishna Director - Karvy Group Mr. M S Ramakrishna, Director, founder member of Karvy Consultants Limited is orchestrator of technology initiatives such as the call center in the service of the customer. Mr. Ramakrishna is a member of the Hyderabad Stock Exchange and is the director of Karvy Stock Broking Limited, Karvy Investor Services Limited, Karvy Computershare Private Limited, Karvy Commodities Broking Private Limited, Nitya Labs Limited and SAB Nife Power Systems Limited. He has helped Karvy diversify into the field of medical transcription leveraging on the company's core competency of transaction processing. He has more than 20 years of experience in the financial services arena. MEDALS OF KARVY

MAIN ACTIVITIES OF KARVY STOCK BROKING LTD: The main activities of KARVY STOCK BROKING LTD are as follows: - STOCK BROKING - COMMODITY TRADING - PAN/ TAN SERVICES - MUTUAL FUNDS 17

- INVESTMENTS - DEMAT SERVICES AND - INSURANCE. Competitors of Karvy Karvy Provide A Vast Range Of Financial Services And Also Facing The Problem Of Highly Competition In The Market State Bank of India ICICI Bank HDFC Bank IDBI Bank India Bulls Share khan Kodak Securities Anagram Stock Broking Ltd TECHNOLOGY Karvy Is Most Advanced In Technology And Is Registered At; - National Securities Depository Ltd (NSDL) - Central Securities Depository Ltd (CSDL) - Live DPMS (Depository Participant Modules)

SWOT Analysis

18

Brand name Strengths Dedicated employees Large networks Good services Weakness Annual charges are high

Opportunities

Maintaining Good Relationship With MNCs

Threats

High Flucations In The Market

Customers of Karvy * Students * It Employees * Business People * Government Employees * Individuals The cost of opening and holding a Demat account. There are four major charges usually levied on a Demat account. Account opening fee Annual maintenance fee Custodian fee Transaction fee All the charges vary from depository participant to depository participant.

Literature review Stock market trading 19

The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fully-automated screen based trading system(SBTS) where a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. SBTSe1ectronica11y matches orders on a strict price/time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. It enables market participants, irrespective of their geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the market. It provides full anonymity by accepting orders, big to everybody. It also provides a perfect audit trail, which helps to resolve disputes by logging in the trade execution process in entirety. This sucked liquidity from other exchanges and in the very first year of its operation, NSE became the lading stock exchanges and in the country, impacting the fortunes of other exchanges and forcing them to adopt SBTS also. Today India can boast that almost 100% trading take place through electronic order matching. Technology was used to carry the trading platform from the trading hall of stock exchanges to the premises of brokers.NSE carried the trading platform further to the PCs at the residence of investors through the Internet and to handled devices through WAP for convenience of mobile investors. The dynamic impact of financial deregulation on the functioning of capital Markets is an aspect that has been considerably less researched. Most studies have Focused on the time - varying volatility of financial markets, which is estimated using ARCH/GARCH models. In contrast there is no analysis of the behavior of stock prices over financial cycles. This lack of analysis is particularly notable in the context of the extensive evidence to establish the link between the momentum based feedback trading by the FIIs, boom-bust stock market cycles and the consequent instability and financial crises21. In this section we examine the possible time varying pattern of stock market. cycles in India during 1979-2003. Our focus is on the behavior of bear and bull markets. We construct an anatomy of financial cycles and look at the duration of upturns and downturns in financial markets and the magnitude of the cycles with 20

particular attention to the possibility that the characteristics of the cycles may have changed over time owing to the process of financial liberalization. Development of stock Exchanges in India:India can boast of being one of the oldest stock markets in Asia. Nearly 200 Years ago, trading in securities used to take place. The first stock exchange, however, came to be established in 1875 in Bombay when the stock brokers, aghast at their plight following the severe depression in securities industry, decided to form an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of members of such an association. The process of established of stock exchanges gradually spread to other cities of the country like Ahmedabad, Calcutta, Madras etc. As a result, in the initial years of regulation of the stock exchanges in the country there were eight recognized stock exchanges in the country. In 1996, there were 23 stock exchanges in India. With the cult of equity spreading fast to the four corners of the country, prospects 40 stock exchanges humming with activity all over the country by the end of the century. The argument by a section that establishment of more establishment of more stock is not conductive for the development of efficient systems of functioning of the securities industry, the fact that the communication facilities in the country are now satisfactory and also that a direct and close regulating authority easily accessible to the investors inspires confidence in the investment in stock market instruments.

CHAPTER 3 -OBJECTIVES Title: Volatility in Indian Stock Market Objectives : 21

To study volatility in Indian stock market while taking SENSEX of Bombay stock exchange as a source of secondary data which broadly represent Indian stock market along with NIFTY of National stock exchange. To study the factors which are making Indian stock market volatile.

To furnish institutional material relevant for understanding the environment in which stock market fluctuation are occurring.

Scope : This study can be used by investors, traders and other professionals as a supplement to their own research.

Hypothesis : This is the exploratory research which tries to shows the factors which are making stock market volatile. Any fluctuation in foreign market has more effect on Indian stock market than that of domestic market. In the given volatile economic conditions, the market is efficient to any news and information.

Sources of data :

22

Data used in this study is of secondary in nature. Sensex and Nifty is taken as a source of information which widely describes Indian stock market. Here monthly prices of both indexes are taken for the study purpose. Need of study: To about the momentum of the stock markets and how much there are price sensitive. The indices are how much variable and how far there are immune was known and reasons for the fluctuation are also analyzed .

Limitations of study: The present study was limited to the index values which was the basket of industries which was not may say about the particular industry which some sectors may go well in the period fall in the value of index.

STOCK MARKET ANALYSIS

23

In this stock market analysis, I have taken data of Sensex and Nifty for the period of 6 months from July 2011 to December 2011 After taking into consideration data of stock market, I compared Nifty with Sensex through graphical presentation and also did analysis of fluctuations in stock market week wise.

Date 03-Jul-2011 04-Jul-2011 05-Jul-2011 06-Jul-2011 07-Jul-2011 10-Jul-2011 11-Jul-2011 12-Jul-2011 13-Jul-2011 14-Jul-2011 17-Jul-2011 18-Jul-2011 19-Jul-2011 20-Jul-2011 21-Jul-2011 24-Jul-2011 25-Jul-2011 26-Jul-2011 27-Jul-2011 28-Jul-2011 31-Jul-2011

Open 3128.75 3151.05 3136.95 3197.50 3157.95 3077.10 3145.30 3124.95 3196.30 3166.25 3123.65 3007.15 2995.85 2943.65 3025.10 2944.90 2989.50 3040.45 3109.85 3158.00 3131.35

High 3160.35 3177.40 3201.20 3197.50 3193.10 3147.70 3146.00 3201.35 3208.85 3166.25 3125.10 3038.25 3045.35 3041.25 3029.10 2996.65 3046.95 3121.40 3167.10 3168.50 3179.70

Low 3114.85 3130.30 3121.80 3138.40 3056.30 3064.10 3100.40 3078.25 3148.95 3089.55 2999.35 2967.95 2919.95 2943.65 2930.15 2878.25 2987.15 3022.70 3109.85 3109.45 3110.60

Close 3150.95 3138.65 3197.10 3156.40 3075.85 3142.00 3116.15 3195.90 3169.30 3123.35 3007.55 2993.65 2932.75 3023.05 2945.00 2985.85 3040.50 3110.15 3156.15 3130.80 3143.20

24

Date 03-Jul-2011 SENSEX JULY 05-Jul-2011 06-Jul-2011 07-Jul-2011 04-Jul-2011

Open 9 5 7 4 5

High 1 5 7 7 5 10,252.7 5 8 8 1 3 6 8 1 8 2 8 7 3

Low 9 3 8 1 7 9,875.35

Close 8 3 9 7 1 10,215.3 7 1 4 10,007.3 4 8 2 2 0 9 5 0 3 7

10,759.1 10,853.9 10,710.2 10,743.8 10,787.6 10,787.6 10,603.8 10,680.2 10,671.7 10,762.6 10,589.6 10,741.5 10,465.3 10,648.7 10,362.6 10,617.2 10,351.7 10,443.0 10,323.7 10,415.6

10-Jul-2011 9,881.03 11-Jul-2011 12-Jul-2011 13-Jul-2011 14-Jul-2011 17-Jul-2011 18-Jul-2011 19-Jul-2011 20-Jul-2011 21-Jul-2011 24-Jul-2011 25-Jul-2011 26-Jul-2011 27-Jul-2011 28-Jul-2011

10,336.3 10,336.3 10,035.2 10,085.9 8 7 9 2 6 8 1 4 2 5 5 9 3 5 4 8 9,972.73 10,247.8 10,409.5 10,225.1 10,352.9 10,320.5 10,406.2

10,336.6 10,406.4 10,149.8 10,226.7 5 7 6 9 5 1 3 2 0 10,647.2 10,647.2 10,262.5 10,293.2 10,782.9 10,782.9 10,563.7 10,678.2 10,922.6 10,922.6 10,797.4 10,858.5 10,604.6 10,939.6 10,549.8 10,930.0 10,699.6 10,699.6 10,566.7 10,614.3 10,484.2 10,704.7 10,461.7 10,684.3 10,813.7 10,887.6 10,440.0 10,509.5 10,836.4 10,839.5 10,703.0 10,767.9 10,641.3 10,940.4 10,611.3 10,919.6 5 25 5 4 10,755.4 10,800.1 10,644.7 10,662.2 1 2 2

ANALYSIS OF STOCK MARKET FLUCTUATIONS AND GLOBAL MARKET 1st week ended on 7th July 2011 The market started July in negative fashion after having gained for three consecutive weeks. The 30-share benchmark index lost 100 points amid volatile trade. Higher crude oil prices weighed on the market sentiment and rumours that Prime Minister Manmohan Singh may resign following a decision of not proceeding with disinvestment in state-run firms, leading to a sell off on Friday. The prime ministers office denied the rumour. For the week ended Friday (7 July), the Sensex fell 100 points to settle at 10,509.53 and the NSE Nifty lost 52.35 points, to close at 3,075.85. The market started the week upbeat with the Sensex gaining 86 points on Monday. On Tuesday, the Sensex witnessed some profit booking to lose 33 points, while on Wednesday it jumped 257 points. On Thursday, it shed 152 points due to rising crude oil prices and weakness in Asian markets. The Sensex fell sharply by 258 points on Friday. FIIs resumed buying this week and invested to the tune of Rs 1,025.5 crore for the first three days of the week. In June they invested Rs 479.50 crore.

26

Mutual funds offloaded to the tune of Rs 233.6 crore for the first three days of the week. In June they sold worth Rs 1,976.94 crore. The BSE Metal index fell 1.90%, to settle at 8,293.92. The BSE Auto index slipped 2.31% to settle at 4,643.49. The BSE Oil & Gas index was down 2.23% to close at 5,175.18. Neyveli Lignite Corporation (NLC) lost 7.78%, to settle at Rs 58.05. Bowing to pressure from its allies, the government on Thursday decided to put all divestments on hold. The DMK, a key south Indian ally of the Congress-led government, has been unhappy with the governments decision to disinvest 10% stake in the Neyveli Lignite Corporation. National Aluminium Company (Nalco) shed 6.25% this week to end at Rs 213. Nalco was another firm in which the government had recently decided to divest its 10% stake. Tata Steel shed 1.98%, to close at Rs 522.75 on profit-taking after a recent surge. Chairman Ratan Tata said on Wednesday that Tata Group will raise its stake in Tata Steel from 26.79% to 33.6% by way of preferential issue. ACC rose 1.22%, this week to settle at Rs 793.50 after it announced on Monday, its June shipments rose 4.6%, to 1.541 million tonnes from 1.473 million tonnes a year ago. Its June production totalled 1.526 million tonnes, up from 1.445 million a year ago. FMCG stocks rose following the advance of the monsoon. FMCG giant Hindustan Lever surged 3.86% to finish at Rs 237.95. Cigarette major ITC fell nearly 4% to settle at Rs 175.30. As per reports, India's monsoon rains in the crucial sowing month of July are likely to be 90 - 100% of the long-term average. Rural demand holds key for FMCG companies, which derive about 40% of their revenue from rural areas. Reliance Communications lost 0.46% to close at Rs 247.80. Mobile phone operators have agreed to share seven transmission towers in Delhi and two in Mumbai to bring down cost of setting up new towers by 50%. Car major Maruti Udyog fell 2.11% to Rs 780.75. Suzuki Motor Corporation will build a new compact car in India for Nissan Motor Co., to be sold in Europe. It may be 27

recalled that Suzuki had entered into an agreement with Nissan for manufacturing compact cars at the Maruti Udyog plant in Manesar. Engineering & construction major L&T lost 3.35%, to Rs 2,168.05. The company said on Monday it had secured an order worth Rs 329 crore for high technology equipment. Jet Airways slipped 6.05% to settle at Rs 553.55. The aviation company raised fuel surcharge to Rs 500 from Rs 300, on premier and economy class tickets on all domestic routes. GE Shipping lost 1.46% to close at Rs 229.20. The shipping company has signed a contract to sell a 1985-built crude carrier for an undisclosed sum. The private sector, shipping firm said it had bought the single-hulled carrier in 2003 and planned to deliver it to the buyers in the second quarter of 2011/07. 2nd week ended on 14th July 2011 The market edged higher on alternate bouts of buying and selling. Asian markets dictated the trend on the domestic bourses for most part of the week. On Wednesday, a strong Q1 showing by IT bellwether Infosys Technologies helped the market shrug off the impact of bomb blasts in Mumbai's local trains on Tuesday evening. For the week ended Friday (14 July), the BSE Sensex jumped 169 points (1.6%), to settle at 10,678.22. The S&P CNX Nifty rose 47.5 points (1.5%), to settle at 3,123.35. Trading for the week began on a firm note. The Sensex jumped 175 points on Monday (10 July) on the back of a recovery in Asian markets, fall in crude oil price from a record high and a short-covering in the derivatives segment after Friday (7 July)s sharp 258-point fall. Short-covering was witnessed in derivatives after a denial by the Prime Ministers Office (PMO), after trading hours on 7 July, about rumours of Manmohan Singh's resignation. The rumour had caused a sharp 258-point fall in the Sensex on 7 July. A section of the market had gone short in Nifty futures following the rumour, in a bid to hedge their portfolio. On Tuesday 11 July, the Sensex shed 70 points.

28

Software major Infosys Technologies rescued the market on Wednesday (12 July), a day after a series of deadly bomb blasts rocked the financial capital, Mumbai, on Tuesday evening. On the back of strong Q1 results from the IT bellwether and its upward revision of FY 2007 (year ending 31 March 2007) earnings and revenue guidance, the 30-share BSE Sensex jumped 316 points on 12 July. The benchmark BSE Sensex shed 72 points on Thursday (13 July) as high oil prices, which moved towards a record high of above $ 75 a barrel, and weak global markets, weighed on market sentiment. On Friday, the Sensex fell sharply by 180 points, to settle at 10,678.22. The market sentiment was weighed down by weak global markets and crude oil prices touching a record high of above $78 a barrel. Infosys surged 6.36% to settle at Rs 1,650.75 following its upward revision in earnings and revenue guidance for FY 2007. The BSE IT sector index rose 6.88% for the week, to settle at 3,934.59. Infosys has forecast a between 38.3 - 39.6% growth in its FY 2007 (year ending 31 March 2007) consolidated EPS to between Rs 124.51 - Rs 125.74. The company had predicted 40.2% - 40.7% consolidated growth in FY 2007 revenue to between Rs 13,350 crore - Rs 13,400 crore. The software major posted a 50.3% growth in consolidated Q1 June 2011 net profit to Rs 800 crore from Rs 532 crore in Q1 June 2005. Sales rose 45.5%, to Rs 3,015 crore from Rs 2,071 crore. Hero Honda dropped 4.14%, to close at Rs 718.15 on disappointing Q1 results. Hero Hondas net profit rose 16.2% in Q1 June 2011 to Rs 237.74 crore from Rs 204.45 crore in Q1 June 2005. The net profit fell below market expectations. Its sales rose 19.5% to Rs 2,364.37 crore (Rs 1,977.06 crore). Cement shares edged higher on expectations of strong Q1 results. Cement companies are expected to report strong Q1 results on the back of firm cement prices and strong volume growth. Gujarat Ambuja shot up 6.79% this week to settle at Rs 106.95. ACC appreciated 5% to finish at Rs 834 for the week. India Cements gained a whopping 12.5% for the week to settle at Rs 185.15.

29

Metal shares advanced tracking firm metal prices on LME and on the back of hike in domestic prices. On Thursday, Hindustan Zinc hiked zinc prices by Rs 8,800 per tonne. The shares of Hindustan Zinc rose 5.77% to close at Rs 610.95. Hindalco rose 3.64% to settle at Rs 174.90. Sterlite Industries gained 4.88% this week to end at Rs 426.70. Reliance Industries (RIL) gained 3.23% for the week to close at Rs 1,065.15. There are reports that the Mukesh Ambani-controlled Reliance Industries (RIL) is charting a new flight path for its mega retail foray. The company has set its sights on establishing a captive cargo airline venture to meet the logistic needs - particularly for transporting farm and dairy products - for its pan-India retail venture. 3rd week ended on 21st July 2011 Heavy FII sales, weak global markets and concerns that the Reserve Bank of India (RBI) may increase interest rates next week led to a sharp fall on the bourses this week. For the week ended Friday (21 July), the 30-share BSE Sensex lost a steep 592.31 points to close at 10,085.91. The S&P CNX Nifty lost 178.35 points, to close at 2,945. The week started on a bleak note with the Sensex losing a hefty 385 points on Monday (17 July) on account of soaring crude oil prices. On Tuesday, the Sensex lost another 66 points as violence continued between Israel and Hizbollah, that weighed down global markets. On Wednesday it plunged 219.44 points. On Thursday, the Sensex leaped 346 points, tracking firm global markets and a positive comment from Fed chairman Ben Bernanke indicating a possible halt in US interest rate. The Sensex, however, fell again 267 points on Friday on worries that the RBI may increase interest rates next week. FIIs pressed sales in equities worth Rs 466.1 crore for the first four days of the week. Till Thursday, they have bought shares worth Rs 106.50 crore in July. Mutual funds sold equities worth Rs 101.97 crore for the first four days of the week. The metal index was the worst hit in the bearish market; the index slipping 8.4% to settle at 7,592.79. Hindalco fell sharply by 9.98% for the week to close at Rs 157.45. Nalco slipped 3.36% to close at Rs 212.65. 30

The BSE Auto index fell 7.4% for the week to settle at 4,188.87. Bajaj Auto dropped 7% for the week to close at Rs 2,459.65. The auto major reported 27.9% growth in Q1 June 2011 net profit to Rs 266.01 crore from Rs 207.95 crore. The net profit lagged market expectations. Sales rose 34.7% to Rs 2,202.66 crore (Rs 1634.15 crore). Tata Motors was down 9.02% to close at Rs 673.10. Housing finance major HDFC lost 6.27%, to Rs 1,072. HDFC reported 20% growth in Q1 June 2011 net profit to Rs 296.82 crore (Rs 247.28 crore). The net profit growth was within market expectations. The net interest income (NII) rose 21.4%, to Rs 444.31 crore and exceeded market expectations. ACC lost 5.46% for the week to close at Rs 788.45, despite reporting 86% surge in net profit for Q2 June 2011. ACC reported robust Q2 June 2011 results on the back of firm cement prices. ACCs profit-after-tax (before extra-ordinary items) jumped 85.9% to Rs 259.19 crore from Rs 139.36 crore. Sales rose 29.5% to Rs 1,462.08 crore (Rs 1128.25 crore), beating expectations. Wipro lost a sharp 8.64% for the week, to close at Rs 447.60 even as the company reported a 44% growth in net profit for Q1 June 2011. Wipro reported a surge in Q1 net profit. Wipros consolidated net profit as per US GAAP has risen 44% to Rs 614 crore. Total revenue jumped 37% to Rs 3,131 crore. TCS declined 5.77% for the week to close at Rs 1,767.25. TCS had reported strong Q1 results and had forecast chunky outsourcing deals in the near future. India's largest software exporter registered a 35% growth in consolidated Q1 June 2011 net profit as per Indian GAAP to Rs 883 crore. Total income jumped 46.2%, to Rs 4,227 crore. Index heavyweight RIL was down 9.16% to close at Rs 967.55. The company reported 10.2% growth in Q1 June 2011 net profit to Rs 2,547 crore (Rs 2310 crore). Net sales has risen 37.8% to Rs 24,522 crore (Rs 17784 crore). RIL said its gross refining margin for the April-June 2011 quarter was $12.4 a barrel. Reliance Energy (REL) fell 1.52% to close at Rs 439.30. Reliance Energy (REL) reported a 12.7% growth in Q1 June 2011 net profit to Rs 176.61 crore (Rs 156.70 31

crore). The rise in net profit was primarily due to a surge in other income to Rs 171.12 crore from Rs 134.76 crore. Net sales rose 26.9% to Rs 1,154.85 crore (Rs 949.68 crore). Ranbaxy was down 5.58% to end at Rs 353.50. The Indian drug maker reported betterthan-expected results for the quarter ended June 2011. It reported net profit of Rs 99.83 crore for the second quarter ended 30 June compared to Rs 76.49 crore for the quarter ended 30 June 2005. Total income increased from Rs 1,005.20 crore in Q2 FY 05-06 to Rs 1,083.78 crore for Q2 FY 06-07. 4th week ended on 28th July 2011 The BSE Sensex recovered from the lower level, gaining 594 points for the week on the back of strong Q1 results from major companies. The BSE 30-shares sensitive Sensex's winning streak began on Monday and lasted till Thursday, even taking the RBI's 25 basis points hike in short-term interest rates in its stride on Tuesday. For the week ended Friday (28 July), the BSE Sensex gained 594 points, to settle at 10,680.23. The S&P CNX Nifty gained 185.8 points to close at 3,130.80. A rally in banking and IT stocks led the Sensex to gain 129.46 points on Monday. On Tuesday, the Sensex made no fuss about the 25 basis points hike in short-term interest rates and advanced 200 points, taking cue from firm Asian markets. On Wednesday, the benchmark index added another 202 points as ONGC, M&M and Bharti Airtel unveiled results, which were above market expectations. The Sensex moved up 124 points on Thursday in volatile trade on the back of firm Asian markets and approval of the Indo-US nuclear cooperation by the US House of Representatives on Wednesday. On Friday, the benchmark index relaxed after four days of sharp rally, to lose 61 points. FIIs invested in equities to the tune of Rs 499.3 crore for the first three days of the week. Mutual funds resumed buying in equities, purchasing stocks worth Rs 599.92 crore for the first three days of the week. RBI, on Tuesday, raised short-term interest rates, the repo and reverse repo, by 25 basis points each to 6% and 7% respectively. The market had already factored in a 25 basis 32

point hike in short-term interest rates. As per reports, most banks are expected to raise their interest rates on one-year loans to companies by a quarter point from about 9-10% now, and on personal loans from 11-15%. RBI left the bank rate and cash reserve ratio (CRR) unchanged at 6% and 5% respectively. The BSE Bankex rallied 465.85 points for the week to settle at 4,652.32. ICICI Bank gained 11.96% for the week, to close at Rs 542.75. HDFC Bank surged 12.16% for the week to settle at Rs 795.55. The BSE Metal index gained 210.73 points for the week to close at 7,803.42. Hindalco Industries was up 3.18% for the week, ending at Rs 162.45. The company posted 85% growth in net profit to Rs 601.50 in Q1 June 2011 (Rs 324.90 crore) Net sales jumped 93.5% to Rs 4,273.70 crore (Rs 2,207.80 crore). SAIL rose 6.32% for the week, to settle at Rs 71.45. The steel major reported 23% growth in Q1 June 2011 net profit to Rs 1,386.41 crore (Rs 1126.48 crore). Total income (net of excise) surged to Rs 7,567.70 crore (Rs 5772.75 crore). Nalco lost 6.98% for the week to close at Rs 197.80. Cipla gained 5.52% for the week to close at Rs 232.30. The generics major reported a 52.9% growth in Q1 June 2011 net profit to Rs 170.43 crore (Rs 111.40 crore), which was as per market expectations. Net sales jumped 30% to Rs 863.58 crore (Rs 662.81 crore). Net sales, too, was in line with forecasts. Formulation exports jumped 48% to Rs 318.65 crore. ONGC surged 12.52% for the week to close at Rs 1,181.10. The oil major reported 24% growth in Q1 June 2011 net profit to Rs 4,118.99 crore (Rs 3,318.88 crore). Total income (net of excise) has gone up to Rs 15,022.72 crore from Rs 11,168.31 crore. Surprisingly, the companys board also approved an issue of bonus shares in the ratio of one for every two held. Tata Motors rose 8.10% for the week to close at Rs 727.65. The company agreed to enter into a joint venture with Italy's Fiat to build cars, engines and transmission systems. Tata Motors reported 40% growth in Q1 June 2011 net profit to Rs 381.85 crore compared to Rs 272.67 crore for the quarter ended 30 June 2005. The net profit was within market expectations. Net sales rose 49% to Rs 5,783.41 crore (Rs 3,878.09 crore), also in line with market expectations. 33

Tractor & utility vehicles maker Mahindra & Mahindra surged 12.12% for the week to close at Rs 575.40. The company reported 40.5% growth in net profit for Q1 June 2011 to Rs 204.17 crore (Rs 145.26 crore). Sales rose 23.4% to Rs 2,236.24 crore (Rs 1,811.86 crore). SBI advanced 11.26% for the week to close at Rs 796.70. SBI reported a 34.6% fall in Q1 June 2011 net profit to Rs 798.57 crore. Net interest income declined 8.6% to Rs 3,884.09 crore (Rs 4,253.24 crore). Dr Reddys Lab shot up 12.87% for the week to close at Rs 1,402.30. The pharma major posted a net profit of Rs 131.81 crore for the quarter ended 30 June 2011 as compared a net profit of Rs 63.34 crore for the quarter ended 30 June 2005. Total income (net of excise) surged to Rs 772.18 crore from Rs 536.32 crore. Reliance Industries (RIL) was up 1.30% for the week to close at Rs 980.15. The government on Wednesday rejected the $ 2.34 per mmbtu price, which Reliance Industries (RIL) had proposed for selling gas from its KG basin block to Anil Ambanis Reliance Natural Resources. It cited lack of price discovery and no-adherence to the arms length sales criterion, required under the production-sharing contract, as reasons for rejection. Car major Maruti Udyog (MUL) rose 8.05% for the week to close at Rs 768.40. The auto major clocked 63% growth in Q1 June 2011 net profit to Rs 369.57 crore (Rs 226.46 crore). Net sales grew 18.9% to Rs 3,125.47 crore (Rs 2,627.13 crore).

34

NIFTY AUGUST

Date 01-Aug-2011 02-Aug-2011 03-Aug-2011 04-Aug-2011 07-Aug-2011 08-Aug-2011 09-Aug-2011 10-Aug-2011 11-Aug-2011 14-Aug-2011 16-Aug-2011 17-Aug-2011 18-Aug-2011 21-Aug-2011 22-Aug-2011 23-Aug-2011 24-Aug-2011 25-Aug-2011 28-Aug-2011 29-Aug-2011 30-Aug-2011 31-Aug-2011

Open

High

Low

Close

3128.20 3154.70 3113.60 3147.80 3129.45 3187.85 3127.90 3182.10 3182.55 3234.25 3175.15 3190.00 3189.70 3228.15 3161.80 3176.75 3176.70 3178.50 3142.55 3151.10 3151.55 3216.75 3151.55 3212.40 3211.55 3267.20 3187.85 3254.60 3254.60 3274.75 3229.45 3260.10 3260.05 3286.50 3236.95 3274.35 3274.95 3317.80 3269.15 3313.10 3314.75 3377.10 3314.75 3356.05 3359.70 3385.15 3328.60 3353.90 3354.50 3366.25 3332.20 3356.75 3356.80 3374.90 3332.90 3366.00 3369.60 3398.35 3351.50 3364.60 3363.60 3369.65 3325.10 3335.80 3336.65 3379.55 3304.85 3370.40 3368.55 3402.70 3368.55 3385.95 3386.00 3405.30 3377.75 3401.10 3405.05 3434.95 3396.10 3425.70 3425.80 3440.20 3407.75 3430.35 3404.50 3452.30 3403.65 3413.90

SENSEX AUGUST

Date 01-Aug-2011 02-Aug-2011 03-Aug-2011 04-Aug-2011

Open 11,754.07 11,735.05 11,651.96 11,583.73 35

High 11,794.43 11,756.08 11,739.77 11,633.35

Date

Open

11,675.08 11,699.05 11,643.38 11,723.92 11,651.96 11,706.85 11,552.44 11,619.52

07-Aug-2011 08-Aug-2011 09-Aug-2011 10-Aug-2011 11-Aug-2011 14-Aug-2011 16-Aug-2011 17-Aug-2011 18-Aug-2011 21-Aug-2011 22-Aug-2011 23-Aug-2011 24-Aug-2011 25-Aug-2011 28-Aug-2011 29-Aug-2011 30-Aug-2011 31-Aug-2011

11,589.35 11,367.74 11,579.92 11,547.42 11,488.03 11,507.14 11,498.47 11,384.05 11,221.86 11,181.34 11,175.00 10,990.73 10,839.53 10,863.28 10,951.81 10,955.27 10,747.13 10,737.50

11,635.25 11,566.89 11,579.92 11,619.86 11,531.60 11,508.17 11,551.59 11,507.92 11,330.30 11,241.11 11,213.03 11,187.65 11,028.02 10,869.66 11,039.34 11,081.90 10,891.38 10,777.47

11,542.10 11,572.20 11,297.23 11,531.95 11,374.86 11,406.65 11,460.93 11,502.62 11,375.90 11,511.68 11,409.11 11,465.72 11,379.44 11,477.48 11,384.05 11,448.31 11,221.86 11,312.99 11,069.25 11,192.46 11,051.75 11,149.17 10,943.83 11,145.18 10,839.53 11,014.97 10,780.01 10,812.64 10,810.04 10,866.51 10,875.87 10,923.16 10,730.13 10,876.19 10,646.65 10,751.66

ANALYSIS OF STOCK MARKET FLUCTUATIONS AND GLOBAL MARKET 1st week ended on 4th August 2011 The markets firmed up last week with the Sensex climbing 186.28 points. The BSE Sensex continued the previous weeks trend, moving northwards for four consecutive sessions from Monday to Thursday while succumbing to profit-booking on Friday. For the week ended Friday (4 August), the BSE Sensex gained 186 points, to settle at 10,866.51. The S&P CNX Nifty gained 45.95 points, to close at 3,176.75. Firm Asian markets and FII buying aided the rally. Asian markets now seem more comfortable that US rates are at or nearing a peak. The US Federal Reserve would be meeting on 8 August again to decide on US interest rates. Sensex rose 63.65 points on Monday tracking firm global markets. On Tuesday, the index managed to finish in the positive terrain, up 8 points on the back of news in latter 36

part of trading that international ratings agency, Fitch, had upgraded India to investment grade. On Wednesday, it surged 124.53 points triggered by sustained buying by FIIs. The index ended 47 points on Thursday, crossing the 11,000 mark in intra-day trade but ended below that psychological level. The Sensex lost 57 points on Friday after remaining above the 11,000 mark for the first half of the trading session. FIIs invested to the tune of Rs 653.7 crore in the equity segment for the first four days of the week. Mutual Funds offloaded Rs 86.92 crore in equities. There are expectations that FII inflows will pick up following the upgrade in Indias rating by Fitch. The BSE IT Index gained 3.1% for the week to settle at 4,018.66. Infosys gained 3.18% for the week to close at Rs 1,680.95. TCS was up 2.37% for the week to close at Rs 950 and Wipro advanced 5.19% to close at Rs 507.35. IT companies reported strong Q1 June 2011 results. Infosys Technologies and Satyam Computer have revised upwards earnings as well as revenue guidance for FY 2007 (year ending 31 March 2007). Patni Computer shot up 25% for the week to Rs 345.65. The company reported improved Q2 June 2011 results and also issued encouraging guidance for Q3 September 2011. Patni reported a net loss of $ 3.21 million for Q2 June 2011 compared with a net income of $ 14.44 million in Q2 June 2005. The company said, prior years tax review by IRS and review by Department of Labor of Patnis US operations has decreased net income by $ 19.9 million. Net income adjusted for additional provisions was at $ 16.7 million in Q2 June 2011. Revenues increased by 10.2% on a sequential basis to $ 143.03 million $ 129.85 million. The BSE Auto index rose 3.28% for the week, to close at 4,564.57. Tata Motors rose 4.40% for the week, to finish at Rs 759.50. Tata Motors vehicle sales rose 44.5% in July to 45,056 units from 31,173 units a year earlier. Sales of commercial vehicles (CV) rose 54% to 21,534 units from 13,957 units, while sales of cars and utility vehicles rose 40% to 18,238 units. Exports rose 25% to 5,284 units from 4,220 units. Bajaj Auto gained 5.58% for the week to close at Rs 2,613.50. The company reported strong sales for the month gone by. The auto majors vehicle sales in July rose 34%, to 1,99,821 units from 1,49,406 units a year earlier. It said sales of motorcycles rose 49% to 1,71,115 units from 1,15,216 and sales of all two-wheelers grew 37% to 1,73,158 37

units against 1,26,821 units a year earlier. Sales of three-wheelers climbed 18% to 26,663 units from 22,585 a year earlier. The company said exports jumped to 42,476 units from 14,698 units a year earlier. Car major Maruti Udyog (MUL) advanced 2% for the week, to finish at Rs 783.80. The auto major said on Tuesday that it had raised prices of some cars by Rs 500 - 5,000 (0.17%-1.47%) on account of higher raw material and freight costs. Earlier during the day, MUL reported 10% growth in domestic car sales, to 44,653 units in the domestic market, up 10% from 40,553 units a year earlier. The carmaker exported 1,755 units in July, down 58% from 4,203 units last year. Reliance Industries (RIL) lost 1.30% for the week to settle at Rs 967.40. As per reports, RIL has raised petrochemical prices between 3 - 9% for August 2011. Cement shares rose on the back of strong despatches from cement majors. GACL rose marginally 0.91% for the week to close at Rs 105.90. The cement major said on Tuesday its July shipments rose 8% from a year earlier to 1.02 million tonnes from 0.95 million tonnes. ACC gained 1.62% for the week to close at Rs 862.35. ACC said on Tuesday its July shipments rose 11%, to 1.42 million tonnes from 1.28 million tonnes a year ago. Housing finance major HDFC rose 5.2% for the week, to close at Rs 1,245.25. On Tuesday, the housing finance major raised home loan rates across the board by 50 basis points. Ranbaxy Laboratories surged 6.64% for the week to end at Rs 396.80. A US federal appeals court invalidated a secondary Pfizer patent, paving the way for an earlier launch of a generic form of Lipitor, the US pharma major's blockbuster cholesterol drug. Bhel shot up 9.26% for the week to close at Rs 2,149.75. The company board meets on 8 August 2011 to consider an issue of bonus shares and a stock-split. The company reported 85% surge in net profit to Rs 236.7 crore for Q1 June 2011 compared with Rs 127.9 crore in Q1 June 2005. Net sales rose 37% to Rs 2,656.3 crore (Rs 1,936.5 crore). 2nd week ended on 11th August 2011

38

The benchmark index, the BSE Sensex, crossed the 11,000 mark and advanced 326 points on the back of firm Asian markets and on the US Federal Reserves decision to hold interest rates steady at 5.25%. Concerns of a rise in domestic interest rates have eased after the US Federal Reserve kept US rates unchanged for the first time in nearly two years. It is reckoned that the Fed decision to maintain US interest rates may discourage the Reserve Bank of India (RBI) from hiking interest rates further in the near term. For the week ended Friday (11 August), the BSE Sensex gained 326 points, to close at 11,192.46 on Friday. The S&P CNX Nifty gained 97.6 points, to close at 3,274.35. Soaring global crude oil price and concerns that the US Federal Reserve may increase interest rates, led to a fall of the market on Monday, as the Sensex lost 53.87 points. On Tuesday, the Sensex shot up 202 points, tracking firm Asian markets. The Sensex gained for the second consecutive day on Wednesday, adding 130 points on US Federal Reserves decision to hold interest rates steady. On Thursday, the Sensex managed to close in the positive, gaining only 4 points. The Sensex added 43.29 points on Friday on the back of a sharp fall in crude oil prices and firm Asian and US markets. India's industrial production in June rose 9.6% from a year earlier, higher than market expectations due to robust manufacturing output, data showed on Friday. FIIs invested in equities to the tune of Rs 665 crore for the first three days of the week. Mutual funds also purchased equities worth Rs 171 crore during the same period. BSEs banking sector index, the BSE Bankex, rallied 275.38 points, to 5,048.42 as concerns about rising domestic interest rates eased. State Bank of India jumped 6.23% to close at Rs 858.25. A Japanese investment firm and SBI Holdings agreed to form a $100 million venture capital fund with India's largest lender. ICICI Bank rose 6.80% to close at Rs 584.50. HDFC Bank rose 1.14% to close at Rs 809.75. Auto shares advanced on expectations of strong sales in the current festival season. Tata Motors rose 4.54% to close at Rs 794.15. Maruti gained 1.33% to close at Rs 794.25. Bajaj Auto rose 1.46% to finish at Rs 2,651.65. 39

The BSE IT Index rose 120.61 points, to close at 4,139.27. Infosys gained 3.65%, to finish at Rs 1,742.25. India's second largest exporter has 11.3% weightage in the benchmark index. TCS rose 1.92% to close at Rs 968.25. The BSE Mid-Cap Index rose 258 points, to close at 4,617.42. The BSE Small-Cap index shot up 379.74 points, to close at 5,596.61. Ind Swift laboratories gained 17% to close at Rs 79.55, Uttam Galva rose 12.67% to close at Rs 33.35 and Wanbury was up 12.59% to close at Rs 82.70. The BSE Metal Index rallied 319.71 points, to finish at 8,163.63. Hindalco rose 3.72% to close at Rs 165.80 and Nalco was up 1.58% to close at Rs 195.55. ONGC rose 1.04% to close at Rs 1,193.90. Index heavyweight Reliance Industries rose 4.52%, to close at Rs 1,011.10. As per reports, RILs bid for the co-operative, Super Bazar, having several shops in and around Delhi, was well above Rs 70 crore, the price offered by Indian Labour Cooperative Society along with Indian Potash. Raymond surged 4.38%, to close at Rs 393.15. The company has formed a joint venture company with UCO NV, a Belgian firm. Raymond and Belgian firm UCO NV will invest Euro 100 million each, in a new joint venture company to merge their denim businesses in Europe, the US and in Asia. Both firms had already signed an agreement in February last. The merged firm will have a combined capacity of 80 million metres per annum. i-flex solutions rose 1.56% to close at Rs 1,321.50. The Development Bank of Mauritius selected the companys flagship product, Flexcube, for its core banking solution. Hindustan Oil Exploration jumped 14.74% to close at Rs 129.60. The company priced its rights issue at Rs 76 per share. 3rd Week ended on 18th August 2011 Firm Asian markets coupled with a fall in crude oil prices triggered an upswing in the market, the BSE Sensex collecting 273 points. The market recorded the fourth straight week of gains as several positive news came in during the past few weeks. The 40

major news that provided relief to the markets was the US Federal Reserves decision to hold interest rates steady at 5.25%. For the week ended Friday (18 August), the BSE Sensex added 273 points (2.4%), to close at 11,465.72. The S&P CNX Nifty gained 82.4 points (2.5%), to close at 3,356.75. The BSE Sensex added 120 points on Monday, taking cue from firm Asian and European markets and receding global crude oil price. On Tuesday the market was closed on account of Independence Day. The Sensex advanced 135.32 points on Wednesday, on trigger from a rally in Asian markets due to easing concerns of inflation in the US, and a further fall in global crude oil price. On Thursday, the BSE Sensex added 29.17 points on the back of sustained buying in blue chips. The benchmark index finished lower on Friday as profit-booking crept in, losing 12 points. Crude oil price declined sharply by about $ 4 a barrel during the week following a truce in the Middle East that came into force from Monday (14 August). FIIs invested to the tune of Rs 962.6 crore in two trading sessions, on Monday and Wednesday, while mutual funds bought Rs 59.53 crore in equities in the same interval. Fall in crude oil prices boosted refiners. HPCL shot up 22.5% for the week to close at Rs 273, BPCL rose 22.6% for the week to close at Rs 374.6 and Indian Oil Corporation advanced 17% for the week to close at Rs 467.15. Refinery firms are incurring losses on marketing of petrol and diesel as a rise in oil price has kept pace with the surge in crude oil price. Their losses will be reduced by a recent fall in crude oil price, which has come down by about $4 a barrel. The BSE Auto index rose 4.47% for the week, to close at 4,924 as global crude oil witnessed a fall in their prices. Tata Motors rose 7% for the week to close at Rs 849.95, Maruti gained 5.80% for the week to close at Rs 840.35, Bajaj Auto rose 2.2% for the week to close at Rs 2,710.20 and Hero Honda gained 1.29% to close at Rs 705.70. The BSE Healthcare index, which includes pharma stocks, rose 173 points (5%) to close at 3,556.53. Reports came in on Friday that the government has agreed to a 1041

year exemption from price control for any new drug molecule emerging out of indigenous research and development. MNC pharma stocks like Glaxosmithkline Pharma shot up 10.2% for the week to close at Rs 1,207.85, Pfizer gained 12% to close at Rs 800.35, Novartis advanced 12% to close at Rs 472. Ranabxy was up 3.55% to close at Rs 408, Dr Reddy's was up 3.7% to finish at Rs 1,495 and Cipla rose 3.4% to close at Rs 249.6. Hindustan Zinc rose 2.24% for the week, to close at Rs 559.65 despite reports that it has cut zinc prices by Rs 8,200 per tonne. Mahindra & Mahindra (M&M) rose 5.2% for the week, to close at Rs 645. The company plans to introduce another new vehicle after Ingenio's launch in 2008. It will set up its single biggest plant by FY 2011. This may have a capacity of up to 5 lakh units. M&M inked a memorandum of understanding (MOU) with the Maharashtra Government to set up a Rs 550 crore project code-named Ingenio. This plant will manufacture the company's new multi-purpose vehicle. ONGC rose 1.3% to Rs 1,210.20. ONGC is looking for stakes in "many more" overseas oil assets in collaboration with Chinese firms, the company's chairman, R S Sharma, said on Monday. Sharma was speaking after announcing ONGC's success in bidding for a 50% share in Colombian oil firm, Omimex de Colombia, along with China's Sinopec. Reliance Industries gained 4.3% for the week, to close at Rs 1,055.50. As per reports, RIL will open its first retail store in September 2011 in Hyderabad. Initially, Reliance will restrict itself to retailing food and vegetables. Infosys rose 1.12% for the week to close at Rs 1,761.7 as substantial buying was witnessed in the stock. 4th week ended on 25th August 2011 The market firmed up further last week, extending its recovery that began in late July 2011. For the week ended 25 August, the Sensex rose 106.48 points (0.9%), to settle at 11,572.20 - its highest closing since 17 May 2011. The S&P CNX Nifty rose 29.20 points (0.8%), for the week to settle at 3,385.95.

42

On Monday, the market received a boost in the second half of the trading session. The BSE Sensex rose 46 points, while losing 9 points on Tuesday despite firm Asian markets. On Wednesday, profit-booking gripped the market, which led to a loss of nearly 100 points in the Sensex. On Thursday, it had finished upbeat on the back of a rise in bond prices, which hit a two-month high, and on expectations that the domestic fuel price may not rise in the near term. The BSE Sensex advanced 125 points on Thursday after it had lost as over 100 points in early trade that day. On Friday, the Sensex rose 40 points in volatile trade. Crude oil price is currently hovering around $72.73 per barrel; high oil prices remain a concern. FIIs invested in equities to the tune of Rs 552.1 crore for the first three days of the week. Mutual funds sold equities worth Rs 81.49 crore during the same period. PSU banks extended their recovery on expectations that interest rates may not rise in the near term. The State Bank of India (SBI) received an additional boost on Friday after the Union Cabinet on Thursday paved the way for a follow-on public issue by the largest commercial bank, by approving the SBI (Amendment) Bill. The bill proposes to lower the floor for RBIs holding in SBI to 51%. RBI, currently, holds 59.73% in India's largest commercial lender. The lowering of RBI's stake will create sufficient space for the bank to hit the capital market with its follow-on offering. Meanwhile, the banks board on Thursday ratified the banks decision early this month to raise prime lending rate by 25 basis points. Reliance Industries rose over 5%, to finish at Rs 1,110.50 on renewed buying. But pharma major Ranbaxy lost over 4%, to Rs 388.95. Media reports on Monday (21 August) stated that Ranbaxy Laboratories is close to acquiring Russian generic drugs maker Akrikhin for $100 million. Select cement shares advanced on expectation of a pick-up in demand as the southwest monsoon nears its end. Gujarat Ambuja Cements, ACC, Grasim and India Cements firmed up. 43

HCL Technologies edged slightly lower for the week to settle at Rs 574.85 even as it reported strong Q4 June 2011 results. For the fourth quarter ended 30 June 2011, HCL Tech reported 21% sequential growth in consolidated net profit to Rs 233 crore. Consolidated topline expanded 12% to Rs 1,253.80 crore.

NIFTY SEPTEMBER

Date 01-Sep-2011 04-Sep-2011 05-Sep-2011 06-Sep-2011 07-Sep-2011 08-Sep-2011 11-Sep-2011 12-Sep-2011 13-Sep-2011 14-Sep-2011 15-Sep-2011 18-Sep-2011 19-Sep-2011 20-Sep-2011 21-Sep-2011 22-Sep-2011 25-Sep-2011 26-Sep-2011 27-Sep-2011

Open

High

Low

Close

3414.00 3439.50 3402.90 3435.45 3435.55 3483.10 3435.55 3476.85 3471.40 3488.60 3457.90 3473.75 3474.40 3490.70 3465.80 3477.25 3477.15 3478.85 3438.80 3454.55 3454.65 3477.95 3442.85 3471.45 3470.35 3486.65 3351.30 3366.15 3363.30 3395.05 3328.45 3389.90 3389.85 3470.65 3389.80 3454.55 3454.60 3484.00 3454.60 3471.60 3471.65 3487.45 3434.55 3478.60 3478.65 3506.20 3478.40 3492.75 3493.50 3514.95 3438.80 3457.35 3457.85 3509.85 3419.75 3502.80 3506.70 3556.35 3506.70 3553.05 3554.05 3562.45 3525.40 3544.05 3545.10 3568.65 3514.85 3523.45 3523.70 3576.75 3517.15 3571.75 3571.75 3603.70 3568.40 3579.30 44

28-Sep-2011 29-Sep-2011

3579.95 3589.30 3560.75 3571.75 3572.15 3599.80 3564.70 3588.40

SENSEX SEPTEMBER

Date 01-Sep-2011 04-Sep-2011 05-Sep-2011 06-Sep-2011 07-Sep-2011 08-Sep-2011 11-Sep-2011 12-Sep-2011 13-Sep-2011 14-Sep-2011 15-Sep-2011 18-Sep-2011 19-Sep-2011 20-Sep-2011 21-Sep-2011 22-Sep-2011 25-Sep-2011 26-Sep-2011 27-Sep-2011 28-Sep-2011 29-Sep-2011

Open 12,414.66 12,388.66 12,359.01 12,206.79 12,257.27 12,244.41 12,167.91 11,946.32 12,103.44 12,006.19 11,977.69 11,936.80 11,723.78 11,564.95 11,959.56 11,859.44 11,893.33 11,908.53 11,927.42 11,824.49 11,699.57

High 12,485.17 12,431.79 12,442.82 12,331.45 12,273.45 12,303.42 12,285.90 12,128.99 12,152.60 12,114.95 12,041.70 12,002.94 11,938.41 11,671.64 11,971.60 11,940.58 11,921.30 11,983.48 11,945.53 11,939.96 11,795.02

Low 12,381.29 12,340.17 12,339.98 12,160.58 12,145.09 12,170.20 12,167.91 11,833.61 11,915.21 12,006.19 11,847.61 11,892.24 11,723.78 11,445.19 11,505.60 11,825.22 11,815.43 11,904.92 11,847.93 11,824.49 11,666.01

Close 12,454.42 12,380.74 12,366.91 12,321.19 12,173.91 12,236.78 12,274.27 12,109.14 11,970.47 12,071.30 12,009.59 11,973.02 11,893.79 11,660.79 11,550.69 11,918.65 11,853.85 11,933.21 11,904.60 11,914.21 11,778.02

ANALYSIS OF STOCK MARKET FLUCTUATIONS AND GLOBAL MARKET 1st week ended on 1st September 2011 45

The markets winning streak continued last week on short covering in the derivatives segment, strong FII-buying and on the back of firm Asian markets. The BSE Sensex jumped 205.82 points, or 1.7%, to a 3- month closing high of 11,778.02, in the week ended Friday (1 September 2011). The S&P CNX Nifty advanced 49.50 points (1.4%), to close at 3,435.45, in the week. Trading for the week began on a positive note, the Sensex rallying 47 points on Monday as blue-chips firmed up towards the close. Firm Asian markets, fall in oil price and short covering in derivatives lifted the Sensex by 87 points on Tuesday. The Sensex rose 17 points on Wednesday in volatile trade. The barometer index oscillated 113 points that day. The benchmark index lost 25 points on Thursday as players chose to unwind positions in August derivatives contracts. Sentiment was also hit by reports on that Stock Holding Corporation of India a clearing member of NSE had sent letters to brokers asking them to bring cash as collateral in place of shares. SCHIL later withdrew the circular following intervention by Securities & Exchange Board of India (Sebi). Renewed buying in blue-chips following a smooth rollover of August 2011 derivatives contracts and reports that the government has decided against a rise in domestic fuel prices helped the barometer index scale 3- month high on Friday. The Sensex jumped 79 points on that day. FIIs pumped in a net Rs 1,236.30 crore in the first four trading sessions of the week till Thursday (31 August). Their inflow in three trading sessions between Tuesday to Thursday was between Rs 336.90 crore and Rs 487.10 crore. Mutual funds purchased shares worth a net Rs 175 crore in the first four trading sessions of the week till Thursday. They were net buyers in three out of four trading sessions. A strong rollover was witnessed in the derivatives segment. About 72% contracts from the August series rolled over to the September series, compared to the usual range of 60-65%.

46

Oil prices remained in the $70-71 a barrel range, way off a record high of $78.40 a barrel reached in July 2011, which also supported the global bourses. Refinery shares edged higher in volatile trade as crude oil price remained off its record high. These shares have underperformed the benchmarks in the last couple of years due to earnings uncertainty arising from a disparity between crude oil prices and domestic retail prices of petroleum products domestic fuel price rise has lagged a surge in crude oil price over the past few months. Bank shares extended their recent recovery. Buying was conspicuous in stocks like ICICI Bank, Punjab National Bank, Canara Bank, Bank of Baroda and Bank of India. A number of state-run banks have raised prime lending rates (PLRs) in the past few weeks to protect their margins in a rising interest rate regime. Further, the Reserve Bank of Indias decision allowing banks to float hybrid debt overseas to shore up their capital base, too, has lifted bank stocks. This will help bank raise funds without equity dilution. Telecom software firm Tech Mahindra made a strong debut. The stock settled at Rs 552.80 on the 'd-day' (28 August), attracting a huge 51.4% premium over the IPO price of Rs 365. Tech Mahindra (TML) is a leading provider of IT services and solutions to the telecommunications industry. Nasscom ranked TML as the eighth largest Indian IT services company in terms of export revenues for 2005-06. Engineering & construction major L&T firmed up after the company set 29 September as the record date for a liberal 1:1 bonus issue. On Friday, the company announced a Rs 1,150 crore order from Indian Oil Corporation. Cigarette major ITC firmed up on short covering in derivatives. The stock rose 5% for the week, to settle at Rs 189.60. A section of the market feels that the stock is overvalued at the current level. TV broadcasters witnessed a sell-off on Thursday after Telecom Regulatory Authority of India (TRAI) capped tariff for pay channels under the conditional access system at Rs 5 per subscriber per month. But Zee Telefilms recovered on Friday. The stock rose on heavy volumes of 97 lakh shares on Friday. Steel shares Tata Steel and Sail dropped ahead of price cuts announced by most steel firms from 1 September 2011. Sail has cut prices of steel by between Rs 700 - Rs 1,500 47

tonne, JSW Steel has reduced prices on different grades of hot rolled coils by Rs 750 Rs 1,000 a tonne and Essar Steel has cut prices of hot rolled coil prices by Rs 800 - Rs 900 a tonne effective 1 September. Auto shares firmed up on Friday on decent-to-strong sales for August and also on reports that the government will not hike fuel prices. Car major Maruti Udyogs domestic sales rose 16% in August 2011, from 41,717 units. Bajaj Auto reported 11% growth in sales for August to 2,08,163 units. But Hero Honda reported 13% fall in sales in August 2011 to 2.15 lakh units. 2nd week ended on 8th September 2011 The markets gained for the second week in September on the back of continued inflow from FIIs and as oil prices dipped to a 5-month low. The BSE Sensex rose 140.63 points, to finish on 11,918.65, for the week ended Friday (8 September 2011). The S&P CNX Nifty gained 36 points, to close at 3,471.45. The BSE Sensex rallied on Monday, surging 136 points on the back of a strong US and steady Asian and European markets. Another major trigger was the governments statement that status quo remains on participatory notes. The market witnessed a lacklustre session on Tuesday. The overall movement of the Sensex for the day was just about 100 points, between 11,847.93 and 11,945.53. The BSE Sensex shed 9.60 points, that day. On Wednesday, the BSE Sensex finished positive, gaining 28.6 points. Heavyweights were purchased in good numbers that day. There was a spike in turnover on BSE, indicating fresh buying interest. The market witnessed volatility on Thursday with the BSE Sensex losing 79 points. Weak global markets weighed down sentiments on the domestic bourses that day. Banking, refinery and IT shares also declined. On Friday, the market finished strong as buying emerged at lower level. The BSE Sensex surged 65 points on the back of a rebound in Japans Nikkei 225 average and as

48

oil retreated close to a 5-month low. Nymex crude was hovering at $ 66.91 a barrel on Friday. The Bank of Japan on Friday kept key interest rates unchanged at 0.25%. FIIs invested in equities to the tune of Rs 816.4 crore in four trading sessions, between Monday and Thursday while mutual funds purchased Rs 13.5 crore worth of equities. Tata Motors rose 4%, to close at Rs 898. The total sales for August rose 26.2%, to 45,681 units. Total commercial vehicle sales advanced 35%, to 23,069 units while passenger car sales rose 26.4%, to 17,541 units. Sales of the mid-sized sedan, Indica, surged 48%. Metal stocks advanced as prices firmed up on the London Metal Exchange. Aluminium producer Nalco rose 5%, to close at Rs 212.55. As per reports, the company has cut aluminium prices by Rs 2,000 per tonne. Hindalco was up 6.21% to close at Rs 184. Cement shares were in demand on expectations of a pick-up in demand post-monsoon. ACC gained 3.3%, to close at Rs 945.45, Gujarat Ambuja Cements added 1.5%, to close at Rs 115.15, Grasim advanced 3.6%, to close at Rs 2,335. United Western Bank shed 7%, to close at Rs 21. The central bank on Saturday (2 September) placed the bank under a moratorium, citing poor financials and to protect its depositors. The private sector bank forwarded a reconstruction scheme to RBI. A clutch of banks, including India's second-largest lender ICICI Bank, and state-run Canara Bank, Allahabad Bank, Andhra Bank and Corporation Bank have evinced keen interest in the bank. Reliance Energy (REL) jumped 9.6%, to close at Rs 488.10. The company, as per reports, plans to invest Rs 20,000 crore in the Dadri power plant. Car major Maruti Udyog (MUL) rose 7.4%, to close at Rs 940.80. MUL aims to increase annual car sales to 1 million units a year by 2011. MUL also plans to introduce five new models over as many years. Managing Director Jagdish Khattar said on Thursday (7 September) that MUL will invest an additional Rs 3,000 crore to expand capacity. Maruti has already pledged Rs 6,000 crore to boost output. The excess Rs 3,000 crore will be distributed between raising the diesel engine capacity at Manesar to 3 lakh and increasing the assembly line to 3 lakh. Also, there are reports that the heavy 49

industries minister is awaiting a finance ministry clearance for the sale of residual stake of the government, in the company. Ashok Leyland advanced 4.3% to close at Rs 43.35. The commercial vehicle maker's sales in August rose 37%, to 6,483 from 4,737 units a year earlier. Domestic sales rose 29%, to 5,697 units from 4,406 units, while exports more than doubled to 786 units. Infosys fell 0.90%, to close at Rs 1,794.70. ONGC fell 0.44%, to close at Rs 1,197.70, as oil price dropped to a 5-month low. India-dedicated funds have started receiving inflows in recent months, which has resulted in a steady influx from FIIs in Indian stocks since late July 2011. However, a section of the market expects correction in the near term, as there has been a sharp rally over the past few days. From a low of 10,085.91 on 21 July, the Sensex has jumped 1,832.74 points (18.1%), to current 11,918.65. 3rd Week ended on 15th September on 2011 The BSE Sensex rallied for the week, breaching the 12,000 mark for the first time since 18 May on consistent inflows from FIIs and falling crude oil prices, which dipped to a 5-month low. The Sensex rose 91 points, to finish at 12,009.59, for the week ended Friday (15 September, 2011). The S&P CNX Nifty gained 7 points, to close at 3,478.60. The BSE Sensex plunged 368 points on Monday, on account of heavy selling by FIIs in the derivatives segment. Foreign investors pulled out Rs 1,660 crore from the derivatives segment on Thursday (7 September 2011) & Friday (8 September 2011). In the cash segment, there was a net FII outflow, to the tune of Rs 65.20 crore during the same sessions. The index rose 110.10 points on Tuesday. The markets remained weak for most part of the first half. In the second half the markets bounced back, led by a rally in heavyweights Reliance Industries (RIL), TCS, Infosys and SBI. Strong data on industrial production for July 2011, contributed to the rally in the latter part of the session. 50

On Wednesday, the Sensex jumped 233 points, taking cue from firm Asian markets and a further fall in global crude oil price. The fall in global crude oil price eased worries about inflation and interest rates. The Sensex advanced 79 points on Thursday on the back of firm US markets. The market also welcomed Sebis decision to widen the scope of entities eligible to register as an FII in India. On Friday the Sensex ended with a gain of 36.57 points amid choppy trade and settled above 12,000 for the first time in four months. Sebi, on Wednesday (13 September), made amendments in the Sebi Foreign Institutional Investors (Second Amendment) Regulations 2011 to treat overseasregistered or incorporated pension funds, mutual funds, investment trusts, insurance companies, reinsurance companies, international or multilateral agencies, foreign governmental agency or a foreign central bank as an FII. US crude oil slid to $63.02 a barrel as bulging US inventories offset geopolitical worries. The fall in oil price raised hopes that the government may not raise domestic fuel prices in the near term. India's industrial production rose 12.4% in July from a year earlier, higher than expected, due to robust manufacturing and electricity output, government data released showed on Tuesday. FIIs invested in equities to the tune of Rs 985 crore for the first four days of the week (Monday to Thursday). Mutual funds bought Rs 412.46 crore in equities for the four days. The BSE IT Index rose 1.9% in the week, to close at 4,357. Satyam rose 4% in a week, to close at Rs 828.80. TCS gained 1%, to end at Rs 1,003.15. Infosys advanced 0.79%, to finish at Rs 1,809. The BSEs banking sector index, the BSE Bankex, rose 5% in the week, to close at 5,635.43. HDFC Bank rose 2.8%, to close at Rs 874, ICICI Bank jumped 7.2%, to finish at Rs 647.25. State Bank of India gained 3.8%, to close at Rs 979.7. Auto shares extended gains on hopes that the government will not raise domestic fuel prices in the near term due to falling global crude oil price. Maruti gained 0.90% to end 51

at Rs 949.25, Bajaj Auto was up 0.48% to close at Rs 2,792 and Hero Honda advanced 4.16% to close at Rs 766.65. Index heavyweight Reliance Industries rose 0.90%, in a week, to close at Rs 1,140.50. The company is reportedly planning a mega ethanol facility in Brazil, and possibly a partnership with oil PSUs, or US oil giants, to bid during the latest round of oil & gas exploration blocks. Pharma major Dr Reddys Labs advanced 1.11% in a week, to close at Rs 746.30. The company is reportedly on the look out for acquisitions in Italy and Spain, and plans to expand into Europe. Ranbaxy lost 0.66% in a week, to close at Rs 414. Ranbaxy Laboratories said on Monday (11 September) that it had received approval from the US FDA to market Loperamide Hydrochloride and Simethicone tablets. Loperamide is an anti-diarrhoeal drug, while simethicone relieves gas. Cement shares also firmed up last week. ACC was up 0.92% to close at Rs 954.15 and Grasim Industries surged 6.4% to close at Rs 2,486.05 4th Week ended on 22th September on 2011 The market surged for the third consecutive week on account of falling crude oil price, strengthening of rupee, strong FII-buying and on expectations of robust results from corporate India. The market moved up as the US Federal Reserve kept interest rates unchanged at a meeting on Wednesday (21 September). The market also rose on expectations that the RBI may keep short-term interest rates unchanged at its credit policy meeting next month. The BSE Sensex gained 227.41 points, to finish on 12,236.78. The S&P CNX Nifty rose 65 points, to close at 3,544. The BSE Sensex rallied on Monday, gaining 62 points on the back of strong FII inflows, and steady-to-firm Asian markets. On Tuesday, the Sensex fell 101 points on profit-booking and on concerns over possible sales by hedge funds after US hedge fund Amaranth Advisors said on Monday 52

(18 September) it may suffer billions of dollars in natural gas losses following a steep fall in price recently. Amaranths woes fuelled concerns that many other hedge funds could also have been hurt by the steep fall in crude oil and natural gas price, and has bred concerns that such funds may book profits in Indian equities, to make up for losses suffered in their energy related investments globally. On Wednesday, the BSE Sensex jumped 139 points as crude oil prices fell below $61 a barrel. On Thursday, the benchmark index rose 165 points, as investors stocked up equities ahead of the second quarter results and after the US Federal Reserve kept interest rates unchanged. Buoyant direct tax collections in the current fiscal also lifted the market as it indicated a rise in corporate profits. The centres gross direct tax collections registered a 33.5% growth in April-September 2011, to Rs 87,831 crore. On Friday, the Sensex lost 37.49 points, taking cue from weak global markets. FIIs invested to the tune of Rs 1,296.5 crore in equities in four trading sessions, from Monday to Thursday, while mutual funds offloaded Rs 15.76 crore worth of equities. Engineering and construction major L&T was up 0.64% in the week, to close at Rs 2,656.75. Investors mopped up the scrip ahead of the record-date for a bonus issue. The company will allot bonus shares on 29 September 2011. Cipla rose 2.1% in a week to close at Rs 260.15. Recently, it received tentative FDA approval for Lamivudine and Zidovudine, both anti-AIDS drugs. Ranbaxy fell marginally by 0.06% in a week, to close at Rs 413.80. The pharma major has received approval from the US Food and Drug Administration to manufacture and market Furosemide Tablets 20 mg, 40 mg, and 80 mg. FMCG giant Hindustan Lever rose 5.6% in a week, to close at Rs 257.25. The company has hiked prices by an average 3%, across portfolio over the last two months. ONGC rose nearly 2% in a week, to close at Rs 1,184.45. The companys foreign subsidiary and Sinopec, in joint venture, acquired Colombian oil assets of US-based Omimex Resources. Omimex has oil & gas operations exclusively in Colombia, which include onshore production and exploration areas with proven reserves of more than 53

300 million barrels of oil, and a current production of approximately 20,000 oil barrels per day. Reliance Industries rose 1.2% in a week, to close at Rs 1,155.20. The company paid Rs 425 crore as advanced tax, in the second installment this year, compared to Rs 225 crore last year. IT stocks were in demand this week. Satyam rose 1% in a week, to close at Rs 838, Wipro rose nearly 2% in a week, to close at Rs 519.55 and Infosys gained 1.1% in a week, to finish at Rs 1,830.10. PSU power equipment manufacturer Bhel gained nearly 2%, to close at Rs 2,312.30. There were reports that it may acquire an IT company in the west, to enhance capacity and technological expertise. The company is reportedly said to have bagged Rs 1,224 crore contract from Uttar Pradesh Rajya Vidyut Utpadan Nigam (UPRVUNL). 5th Week ended on 29th September on 2011 Short covering in derivatives ahead of the expiry of September 2011 derivativecontracts, expectation of strong Q2 September 2011 results, cheaper oil, and sustained FII-buying took the market higher. The BSE Sensex rose 217.64 points (1.7%), to end at 12,454.42, in the week ended 29 September. The barometer index is now just about 200 points away from a lifetime high, 12,671, struck in intra-day trade on 11 May 2011. The S&P CNX Nifty rose 44.35 points (1.2%), to settle at 3,588.40 in the week ended 29 September. The BSE Sensex lost 63 points on Monday. On Tuesday, the barometer index jumped 147 points riding on gains in banking, auto, IT shares and index heavyweight Reliance Industries. Firm European markets supported the domestic bourses that day. On Wednesday, the BSE Sensex rose 46 points. It was in the pink of health till lateafternoon, but slipped suddenly as selling began in the late-afternoon, ending with much lesser gains for the day. On Thursday, the BSE Sensex rose 14 points amid a mixed trend in various constituents of the barometer index. A smooth rollover from September series to the October series, in the derivative segment, lifted the Sensex 74 points on Friday. In the derivatives 54

segment, the market-wide rollover of September contracts to October was 77%. Rollover in Nifty futures was over 70%. Bank shares hogged the limelight. The rally was across the board in private sector and state-run banks. Most PSU banks are expected to come out with strong Q2 results, as they will not be required to make provision for a depreciation in their bond portfolios due to rising bond prices, analysts reckon. This is in contrast to large provisions they made over the past few quarters, when bond prices were continuously falling. Housing finance major HDFC surged on expectation of continued strong demand for housing loans. Reliance Industries (RIL) came within a striking distance of its all-time high of Rs 1,195, it had struck in early-May 2011. As per reports, RIL promoters have hiked their stake by 2% to over 49%, to consolidate their holdings. Meanwhile, RIL has struck gas in an exploration block off the east coast, the potential of which is yet to be ascertained. Infosys scaled a 52-week high of Rs 1,874.70, in intra-day trade on 28 September 2011. Infosys said it will announce Q2 September 2011 results on 11 October 2011. The company will also consider the payment of an interim dividend along with Q2 results. Tata Power firmed up. The company said on Wednesday it will commission the first unit of its 1,000-Megawatt Maithon power project in eastern India by the end of 2010, and a second unit by mid-2011. It expects to achieve financial closure for the project by mid-2007. Real estate developers Unitech and Mahindra Gesco Developers (MGDL) rallied on renewed buying. Cement shares held steady-to-firm on expectation of a pick-up in cement price post-monsoon. FII-inflow for September 2011, to 28 September, aggregated Rs 5,424.70 crore, compared to an inflow of Rs 4,643 crore in August 2011. Mutual funds purchased shares worth a net Rs 1,218 crore, in the month (till 28 September), compared to an inflow of Rs 426 crore in August 2011.

55

Market regulator SEBI extended the deadline to provide a Permanent Account Number (PAN) by demat account holders, to 31 December 2011. The watchdog had earlier asked all demat account holders to provide PAN by 30 September 2011. SEBI also reduced the turnover fees for brokerages with effect from 1 October 2011. Under the new fee structure, brokerages are required to pay Rs 20 per crore worth transactions (0.0002 per cent) in the securities market, down from the earlier Rs 1,000 per Rs 1 crore worth of transactions. In the futures & options segment, the fee has been marginally increased to Rs 20 per crore (0.0002 per cent) from the existing Rs 10 per crore. Trading on the bourses was extended by 45 minutes from 25 September due to sun outage till 16:15 IST. The revised trading time is applicable till 9 October 2011.

NIFTY OCTOBER

Date 03-Oct-2011 04-Oct-2011 05-Oct-2011 06-Oct-2011 09-Oct-2011 10-Oct-2011 11-Oct-2011 12-Oct-2011

Open 3588.95 3570.95 3515.60 3565.45 3570.05 3567.45 3581.55 3562.55

High 3606.20 3580.05 3574.95 3583.75 3585.35 3597.20 3614.50 3626.80 56

Low 3561.70 3508.65 3515.60 3560.90 3540.45 3563.10 3544.25 3545.95

Close 3569.60 3515.35 3564.90 3569.70 3567.15 3571.05 3558.55 3621.05

13-Oct-2011 16-Oct-2011 17-Oct-2011 18-Oct-2011 19-Oct-2011 20-Oct-2011 21-Oct-2011 23-Oct-2011 26-Oct-2011 27-Oct-2011 30-Oct-2011 31-Oct-2011

3621.65 3668.90 3726.40 3715.20 3711.10 3678.75 3680.85 3683.40 3656.20 3676.85 3739.35 3770.50

3682.35 3729.70 3742.50 3727.00 3726.95 3714.25 3708.40 3690.85 3686.85 3747.35 3776.05 3782.85

3621.65 3668.90 3691.35 3701.30 3655.05 3665.50 3662.85 3651.20 3651.20 3674.80 3719.45 3726.75

3676.05 3723.95 3715.00 3710.65 3677.80 3676.85 3683.50 3657.30 3677.55 3739.35 3769.10 3744.10

SENSEX OCTOBER

Date 03-Oct-2011 04-Oct-2011 05-Oct-2011 06-Oct-2011 09-Oct-2011 10-Oct-2011 11-Oct-2011 12-Oct-2011 13-Oct-2011 16-Oct-2011 17-Oct-2011 18-Oct-2011

Open 13,048.76 12,925.43 12,741.85 12,636.16 12,757.31 12,756.41 12,881.80 12,886.33 12,981.53 12,785.03 12,632.62 12,387.89

High 13,075.85 13,039.30 12,921.23 12,718.31 12,766.30 12,849.02 12,925.60 12,920.59 12,994.45 12,953.76 12,756.23 12,558.71 57

Low 12,907.94 12,844.85 12,741.85 12,636.16 12,612.36 12,679.85 12,654.98 12,830.84 12,819.35 12,785.03 12,632.62 12,315.02

Close 12,961.90 13,024.26 12,906.81 12,698.41 12,623.28 12,709.40 12,723.59 12,858.48 12,883.83 12,928.18 12,736.42 12,537.98

19-Oct-2011 20-Oct-2011 21-Oct-2011 03-Oct-2011 04-Oct-2011 05-Oct-2011 06-Oct-2011 09-Oct-2011

12,446.72 12,416.43 12,335.82 12,391.26 12,299.21 12,401.09 12,473.79 12,414.66

12,514.18 12,481.93 12,429.74 12,434.22 12,415.97 12,419.65 12,489.28 12,485.17

12,301.51 12,341.34 12,261.49 12,357.96 12,299.21 12,178.83 12,343.80 12,381.29

12,353.49 12,363.77 12,365.83 12,372.81 12,389.41 12,204.01 12,366.39 12,454.42

ANLAYSIS OF STOCK MARKET FLUCTUATIONS AND GLOBAL MARKET 1st week ended on 6th October 2011 The market eased a bit last week as FIIs and traders resorted to profit-booking. The BSE Sensex lost 81.42 points and settled on 12,373. The S&P CNX Nifty fell 18.7 points, to close at 3,569.70. The market was closed on Monday on account of Dussehra. The Sensex lost 88.03 points on Tuesday as traders booked profits, taking cue from weak global markets. The Sensex plunged 162.38 points on Wednesday as Asian markets closed weak. Concerns over possible sales by hedge funds also added to the weak sentiment, as it bred speculation that such funds may book profits in the Indian equity market to make up for losses suffered in energy related investments. On Thursday, the Sensex finished 185.40 points higher on the back of robust global markets. On Friday, the Sensex lost 16 points as blue-chips succumbed to profit taking. FIIs offloaded equities worth Rs 713.7 crore for two days (Tuesday and Wednesday), while mutual funds sold equities worth Rs 112.37 crore. India's wholesale price index rose 4.77% in the 12 months to 23 September, higher than 4.56% a week earlier, due to an increase in food, mineral and manufactured product prices.

58

Zinc producer Hindustan Zinc fell marginally (0.15%), to close at Rs 592.70. The company increased zinc price by Rs 2,000 per tonne, and lead price by Rs 1,100 per tonne. Tractor and utility vehicle maker Mahindra & Mahindra gained 3.2%, to close at Rs 702.70. The company revealed sales figures on Tuesday. The company's sales rose 15%, to 15,976 units from 13,839 units a year earlier. Domestic auto sales, including utility vehicles, light commercial vehicles and three-wheelers, rose 12%, and exports climbed 96%, to 1,055 units from 539 units. Mahindra, also India's top-tractor maker, sold 9,729 units in September, up 37% from 7,099 units a year earlier. Tata Steel rose 0.23%, to close at Rs 536.90. It has raised spot price of galvanised corrugated sheets by Rs 3,500 ($76.40) per tonne, and that of cold rolled steel by between Rs 300 - Rs 500 a tonne. The price increases are effective 1 October 2011. Index heavyweight Reliance Industries (RIL) was down 0.68%, to close at Rs 1,163.05. The company has cut retail price of petrol and diesel by a rupee, following a fall in global crude oil price. Maruti Udyog slipped 3.92%, to close at Rs 942.70. The auto major said on Tuesday, that it had sold 59,420 vehicles in September, up 20.6% from 49,278 units in the same month last year. Maruti sold 56,606 units in the domestic market, up 22% from 46,393 units a year earlier. It also exported 2,814 units in September, down 2.5% from 2,885 units last year. Bajaj Auto rose 3.3%, to close at Rs 3,099.20. The company reported a healthy 38% growth in vehicle sales in September 2011. Tata Motors gained 3.6%, to close at Rs 893.70. The company on Tuesday reported 24% growth in vehicle sales for September 2011. Cement and IT stock witnessed a mixed trend. ACC fell 0.65%, to close at Rs 986.80. The cement majors despatches rose 7.8% to 1.38 million tonnes for September 2011, against 1.28 million tonnes in the same period last year. The cumulative cement dispatches for January - September 2011 has increased 7.2%, to 13.82 million tonnes, compared to 12.88 million tonnes for the same period last year. 59

Grasim was marginally up (0.05%), closing at Rs 2,520.90. Gujarat Ambuja rose 4.36%, to close at Rs 122. Infosys rose 1.31%, to close at Rs 1,872.05. Wipro fell 2.18%, to close at Rs 513.65. TCS fell 2.7%, to close at Rs 993.10. Refinery shares surged on expectations of improved Q2 results. HPCL jumped nearly 8.9%, to close at Rs 304.55. The scrip rose on a heavy volume of 22.1 lakh shares as a slew of block deals were executed in the stock on BSE. Indian Oil Corporation jumped 7.34%, to close at Rs 561.95 and BPCL rose 7.55%, to close at Rs 394.45. Following a sharp fall in crude oil price, oil marketing firms are said to be now making profits compared to earlier losses, when the price had surged to record highs. 2nd week ended on 13th October 2011 The market closed at a lifetime high last week on the back of robust numbers from IT bellwether Infosys and falling global crude oil prices. The market sentiment is positive as traders expect corporate majors to beat street expectations and post better results. The BSE Sensex jumped 363.42 points (2.9%), to close at an all-time high of 12,736.42. The benchmark index overtook its previous all-time high of 12,671.11, of 11 May 2011. The S&P CNX Nifty rose 106.35 points, to close at 3,676.05. The market commenced the week on a positive note; the BSE Sensex gained 32.62 points on Monday. However, it was gripped by high volatility for the entire day. On Tuesday, the BSE Sensex lost 2.06 points as traders turned cautious ahead of the earnings season and resorted to profit-booking. The BSE Sensex closed 10 points lower on Wednesday despite Infosys posting better-than-expected results. In the first half of the trading session, the market soared but declined in the second half and finally closed weak. On Thursday, the BSE Sensex jumped 184.49 points on the back of firm Asian and European markets. Tracking firm global markets, the BSE Sensex surged 198.44 points 60

on Friday, and breaking the previous records of closing. Heavyweights were suddenly in demand at the fag end of the session. FIIs invested in equities to the tune of Rs 1,393.4 crore (From Monday to Thursday) while mutual funds offloaded equities worth Rs 127.73 crore. India's wholesale price index rose 5.16% in the 12 months to 30 September, higher than 4.77% a week earlier due to an increase in food, energy and manufactured product prices, data showed on Friday. Software major Infosys jumped 11.5% in a week to close at Rs 2,088.65. The software outfit announced Q2 September 2011 results on Wednesday (11 October 2011). The company reported a net profit of Rs 929 crore for Q2 September 2011 as per Indian GAAP, compared to Rs 606 crore for Q2 September 2005, a growth of 53.3%. Consolidated revenue rose 50.4% to Rs 3,451 crore from Rs 2,294 crore. Both net profit and revenue have surpassed market expectations. Infosys has revised upwards its EPS and revenue growth guidance for FY 2007 (year ending 31 March 2007). The company has forecast revenue of between Rs 13,853 crore and Rs 13,899 crore for FY 2007, transforming into a projected year-on-year growth of 45.5 - 46%. EPS for FY 2007 is forecast at Rs 66, transforming into a projected year-on-year growth of 46.6% Reliance Energy slumped 3.61% in a week, to close at Rs 462.40 on reports that the company has decided against the stiff hike in tariffs for Mumbai customers. Tata Steel lost 4.77% in a week to close at Rs 511.30. UK's Sunday Telegraph reported that the steel firm had lined up $ 6.5 billion to stave off any takeover bid for the AngloDutch steel maker. Earlier, Tata Steel said it may bid for the steel conglomerate. NTPC lost 0.46% in a week to close at Rs 130.05. There are reports that the company has offered Qatar (government) 40% stake in a gas-fired power project in Kerala. NTPC runs a 350-megawatt power plant in Kerala, and plans to expand it to a 1,950Megawatt unit by 2011-11. Tata Motors rose 1.90% in a week, to close at Rs 910.65. The company has raised the market price of buses and trucks by up to 2%, because of rising costs of key inputs like steel and tyres. The company, however, kept car price unchanged. 61

Hindustan Zinc soared 21% in a week, to close at Rs 717.55. The company raised zinc price by Rs 1,500 per tonne to Rs 1,82,000, since 7 October 2011. The company raised zinc prices for the second time on 12 October by Rs 14,000 a tonne, to Rs 1,96,000 a tonne, effective immediately. Lead prices were also raised by Rs 2,700 a tonne, to Rs 78,100 a tonne. Maruti Udyog (MUL) was up 1.6% in a week, to close at Rs 957.85. MUL and ONGC on Monday (9 October) inked an agreement for leasing vehicles under an end-to-end (N2N) scheme of Maruti. ONGC has decided to initially lease 29 vehicles through MUL on a pilot basis, 22 for its Mumbai region and 7 for Delhi. Index heavyweight Reliance Industries (RIL) rose 2.33% in a week, to close at Rs 1,190.15. There are reports that the company will open shutters of its first retail store in about a week. The first such store in Hyderabad spanning 27,000 square feet of store space will be inaugurated on 18 October 2011. The store will sell agri-produce and dairy products. Meanwhile, RIL has cut retail prices of petrol and diesel for the second time this month. Following the latest price cut, RILs prices will equal those of staterun refineries. On Thursday (12 October) RIL overtook state-run oil exploration major to become the top company in India in terms of market-capitalization. i-flex solutions rose marginally 0.07% in a week to close at Rs 1,443.20. The company formed an alliance with IBM and Oracle for offering banking solutions to customers. The banking collaboration will combine the business and IT architectural leadership of IBM in banks; banking-specific application solutions from Oracle; and core banking and risk solutions from the company. Cement stocks also firmed up last week. ACC rose 1.9% to close at Rs 1,005.85 and Grasim shot up 6%, to close at Rs 2,672.40. 3rd week ended on 20th October 2011 The market cooled down after reaching within striking distance of 13,000 last week. For the week, the benchmark BSE Sensex lost 27 points to 12,709.40, on profitbooking, after a solid spurt in the previous few sessions on the back of impressive quarterly results from IT companies. 62

Trading started strong for the week, the Sensex advanced 191.76 points on Monday, to 12,928.18. Expectations of strong Q2 results, firm Asian markets and data showing an increased inflow from FIIs aided the rally that day. The Sensex, however, slipped 44.35 points (0.34%), to 12,883.83 on an increase in crude oil price. The benchmark index lost 25.35 points (0.2%), to 12,858.48, on Wednesday amid a mixed trend in pivotals. The market weakened on Thursday after Ranbaxys Q3 results, which failed to meet expectations, plunging 134.89 points (1.05%) to settle at 12,723.59. On Friday, the Sensex witnessed high volatility, swinging 169 points from the days high of 12,849.02, and a low of 12,679.85. The BSE Sensex finally settled at 14.19 points, at 12,709.40. For the first time in history, the Dow Jones Industrial finished above the 12,000 mark on Thursday. Reliance Industries (RIL) rose 0.6% to Rs 1,203 on Friday. RIL reported 9% growth in net profit for Q2 September 2011 to Rs 2,709 crore from Rs 2,481 crore in Q2 September 2005. Net sales rose 37.4%, to Rs 28,474 crore from Rs 20,717 crore. ONGC shed 0.32% to Rs 1,151.70, on Friday, after its net profit rose less than 1% in Q2 September 2011, to Rs 4,174 crore, from Rs 4,138 crore as discounts given to refiners, staff costs and the flooding of a plant capped gains accruing from high crude prices. Net sales rose 11% to Rs 14,068 crore from Rs 12,679 crore. Subsidy rose 78% to Rs 5,032 crore in Q2 September 2011, from Rs 2,876 crore in Q2 September 2005. Software major TCS declined 1.60% for the week, to Rs 1,087. TCS consolidated net profit as per US GAAP rose 14.9% on a sequential basis to Rs 991.50 crore in Q2 September 2011 from Rs 862.57 crore in Q1 June 2011. Net profit beat expectations. Revenue rose 8.15% on sequential basis to Rs 4,482.17 crore, from Rs 4,144.33 crore in Q1 June 2011. Revenue growth was also in line with market expectations. Kalyani Steels surged 19.50% for the week, to Rs 367.45. The steel maker said it will buy 80% in alloy steel maker SJK Steel Plant for Rs 24 crore, and invest an additional Rs 32 crore in the company. SJK operates an integrated plant with a capacity of 2.5 63

lakh tonnes a year, in southern India. Kalyani's board also approved a preferential issue of 1.6 million shares to an investor, at Rs 315 a share. Kalyani Steel reported a sharp 58% fall in net profit for Q2 September 2011, to Rs 21.31 crore (Rs 50.49 crore). Net sales rose 49.20% to Rs 224.61 crore, from Rs 150.53 crore. Tata Steel lost 0.70% for the week to Rs 507.80. On Friday, Corus Group's board accepted Tata Steels takeover bid. Tata Steel has offered 455 pence per share, or about $ 8 billion, for Corus. Satyam Computer Services declined 3.20% on Friday, to Rs 426.75, despite an upward, albeit marginal, revision in FY 2007 EPS guidance. On a sequential basis, Satyams consolidated net profit as per Indian GAAP declined 9.6% to Rs 319.81 crore from Rs 354.12 crore. Sales rose 11% to Rs 1,601.88 crore, from Rs 1,442.93 crore in Q1 June 2011. HDFC Bank declined 2.35% for the week to Rs 965. On Tuesday, HDFC Bank reported 31.7% growth in net profit for Q2 September 2011 to Rs 262.94 crore. The net profit beat market expectations. Net interest income rose 38.1% to Rs 845.60 crore (Rs 612.30 crore). Bajaj Auto witnessed a sell-off soon after the company announced Q2 results during trading hours on Wednesday. Bajaj Autos net profit rose 10% in Q2 September 2011, to Rs 317.59 crore from Rs 289.36 crore in Q2 September 2005. Net sales rose 30.4% to Rs 2,435.97 crore from Rs 1,866.95 crore. For the week, the stock shed 12.11% to Rs 2,743. IT major Wipro rose marginally for the week, to Rs 557. Wipro on Wednesday reported 48% jump in net profit as per US GAAP to Rs 696 crore in Q2 September 2011. Total revenue rose 41% to Rs 3,514 crore. The company said Earnings Before Interest and Tax (EBIT) of global IT services and products segment was up 48% to Rs 665 crore. The company expects revenue from Global IT Services & Products business at approximately $633 million for quarter ending 31 December 2011. Wipro expects 2% impact on margins in Q3 December 2011 due to wage hike. Glenmark Pharma jumped 18.72% to Rs 392.30, on Wednesday after a development agreement with Merck for a diabetes drug. Under the terms of the agreement, Merck will pay Glenmark up to Euro 190 million ($238 million), which includes an up-front 64

payment of Euro 25 million along with various milestone payments for the drug, GRC 8200, which is undergoing Phase II, or mid-stage, trials. On Tuesday Gayatri Projects finished at a slight premium, at Rs 298.85, on a volume of 46.80 lakh shares. The company had priced its IPO at Rs 295. Tech Mahindra jumped 28.32% for the week to Rs 895 following robust set of Q2 September 2011 results. Its net profit surged 379.50% to Rs 141 crore from Rs 36.50 crore in Q2 September 2005. Total income jumped 162% to Rs 648 crore (Rs 257 crore). L&T lost 2.56% to Rs 1,275 for the week, even as the company reported 40.6% growth in net profit for Q2 September 2011. L&Ts net profit has risen 40.6% to Rs 201.22 crore in Q2 September 2011, from Rs 143.05 crore in Q2 September 2005. Net profit adjusted for last years extra-ordinary income has risen 68%, to Rs 201.22 crore from Rs 119.62 crore. Revenue has rose 10.8%, from Rs 3,371.60 crore to Rs 3,736.07 crore. Hanung Toys and Textiles (HTTL) settled at a modest premium, at Rs 96.45, compared to the IPO price of Rs 95 per share on Friday. The stock listed at 28.42% premium, at Rs 122. It clocked 1.20 crore shares on BSE. 4th week ended on 27th October 2011 The market witnessed renewed buying following a robust set of results for Q2 September 2011 and is now within striking distance of a lifetime high of 12,994.45. For the week, the benchmark BSE Sensex spurted 197.40 points to finish above the 12,900, on strong demand for index pivotals. On 21 October, the Sensex opened with a sharp 76-point surge at 12,785.78, on the first day of Samvat year 2063. It, however, finished 27.42 points (0.22%) higher as selling began in the latter part of Muhurat trading session. Market lost 113.54 points to 12,623.28, on profit-booking on 23 October. The volatility was ahead of the expiry of derivative contracts for October series on Thursday (26 October). The market remained closed on Tuesday and Wednesday on account of local holidays. 65

The Sensex rose 75.13 points on 26 October, to settle at 12,698.41 on the back of steady-to-firm global bourses and on the US Federal Reserves decision to keep US interest rates unchanged, triggered fresh buying. Short covering in derivatives due to expiry of October 2011 derivative contracts also aided the rally. On 27 October, the BSE Sensex surged 208.40 points, to 12,906.81. It settled above 12,900 for the second time after 16 October 2011 as buying resumed in heavyweight counters, taking the Sensex near to its all-time high of 12,994.45, inspired by the smooth rollover of October derivative contracts. FIIs invested Rs 638.90 crore in equities in three trading sessions, between 21 October and 26 October. Tata Steel slipped 1.44% for the week, to Rs 500.50. The company last week won approval from Anglo-Dutch firm Corus Group for its 4.3 billion pound ($ 8.04 billion) takeover bid, creating the world's fifth-largest steelmaker. For the week, Mahindra & Mahindra (M&M) advanced 9.45% to Rs 765, on the back of robust Q2 results, which hit the market on 26 October. M&M net profit jumped 70.4% to Rs 270.51 crore (Rs 158.69 crore). Net sales rose 30% to Rs 2,490.50 crore (Rs 1,914.81 crore). The company said, it expects a healthy performance in the second half of the year. M&Ms Q2 results hit the market in afternoon trade. Bharti Airtel surged 5.03% on 27 October 2011, to Rs 529.70 after the company came out with better-than-expected results. It had attained a new high of Rs 530. On a consolidated basis, the group posted a net income of Rs 933.82 crore for Q2 September 2011, compared to Rs 520.91 in Q2 September 2005. Total revenue increased from Rs 2,709.10 crore to Rs 4,357.14 crore. Reliance Industries (RIL) jumped 4.35% on 27 October to Rs 1,226.35 after it clarified that it was running the 6,60,000 barrels per day Jamnagar (Gujarat) refinery at fullcapacity. The stock had lost 1.5% to Rs 1,175.20 on Thursday (26 October) as doubts ran high that a fire at the Jamnagar refinery on Wednesday (25 October), may impact production at the refinery. A hydrotreater, or desulphurisation unit, at the refinery caught fire on Wednesday morning.

66

IFCI jumped 11.78% to Rs 13.28 for the week, on strong buying interest, after the company came out with turnaround results. NIIT Technologies jumped 14% to Rs 236, during the week, following robust set of results for Q2 September 2011 declared on 20 October 2011. NIIT Technologies reported a surge in net profit for Q2 September 2011 to Rs 21.55 crore from Rs 13.31 crore in Q2 September 2005. Net sales rose 27.20% to Rs 68.72 crore from Rs 54.02 crore. Hero Honda shed 1.7% to Rs 740 for the week. It reported a 9.2% fall in net profit for Q2 September 2011 to Rs 215.97 core. Net sales rose 2.9% to Rs 2,229.96 crore. The core operating profit margin (OPM) declined sharply from 2.71% in Q2 September 2005 to 15.3%. TVS Motors dropped 7.53% to Rs 108 during the week. It reported 22% fall in net profit for Q2 September 2011, to Rs 24.83 crore. Net sales jumped 36.5% to Rs 1,077.89 crore. OPM declined to 5.19% from 5.81% in Q2 September 2005. On 21 October, JHS Svendgaard Laboratories ended at Rs 57.05, a marginal discount to the IPO price of Rs 58. The equity capital of the company is Rs 12.50 crore. Face value per share is Rs 10. Development Credit Bank ended at a sharp premium of 82.7%, at Rs 47.50, over the IPO price of Rs 26 on 27 October. It clocked a huge volume of 5.76 crore shares on the day of debut

67

4.5 NIFTY NOVEMBER

Date 01-Nov-2011 02-Nov-2011 03-Nov-2011 06-Nov-2011 07-Nov-2011 08-Nov-2011 09-Nov-2011 10-Nov-2011 13-Nov-2011 14-Nov-2011 15-Nov-2011 16-Nov-2011 17-Nov-2011 20-Nov-2011 21-Nov-2011 22-Nov-2011 23-Nov-2011 24-Nov-2011 27-Nov-2011 28-Nov-2011 29-Nov-2011 30-Nov-2011

Open

High

Low

Close 3767.05 3791.20 3805.35 3809.25 3798.75 3777.30 3796.40 3834.75 3858.75 3865.90 3876.30 3876.85 3852.80 3856.15 3918.25 3954.75 3945.45 3950.85 3968.90 3921.75 3928.20 3954.50

3744.10 3777.70 3737.00 3769.40 3805.50 3761.90 3793.05 3809.65 3771.00 3804.75 3822.40 3798.25 3812.15 3840.45 3789.40 3799.20 3809.95 3737.20 3777.80 3808.20 3769.80 3796.05 3842.40 3785.40 3834.80 3862.05 3834.00 3862.00 3883.00 3850.75 3865.95 3888.80 3838.25 3876.40 3900.40 3863.85 3877.00 3891.85 3835.70 3852.65 3866.95 3794.30 3859.50 3921.70 3856.75 3918.30 3960.00 3909.60 3955.30 3976.80 3933.70 3945.45 3965.80 3935.30 3974.95 3974.95 3948.85 3966.00 3966.00 3911.55 3922.50 3952.40 3920.00 3929.40 3973.00 3929.40

68

SENSEX NOVEMBER

Date 01-Nov-2011 02-Nov-2011 03-Nov-2011 06-Nov-2011 07-Nov-2011 08-Nov-2011 09-Nov-2011 10-Nov-2011 13-Nov-2011 14-Nov-2011 15-Nov-2011 16-Nov-2011 17-Nov-2011 20-Nov-2011 21-Nov-2011 22-Nov-2011 23-Nov-2011 24-Nov-2011 27-Nov-2011 28-Nov-2011 29-Nov-2011

Open 13,649.20 13,690.67 13,716.46 13,669.81 13,667.13 13,625.09 13,434.58 13,390.95 13,678.04 13,500.70 13,476.28 13,439.71 13,295.24 13,187.51 13,107.78 13,176.08 13,208.79 13,155.11 13,119.34 13,062.52 12,992.62

High 13,711.76 13,691.12 13,799.02 13,767.85 13,790.82 13,740.39 13,630.41 13,463.06 13,678.04 13,588.01 13,506.08 13,486.74 13,410.08 13,303.85 13,192.89 13,202.68 13,300.69 13,206.87 13,146.86 13,137.74 13,050.73

Low 13,586.04 13,577.38 13,716.46 13,665.52 13,643.47 13,625.09 13,434.58 13,200.36 13,383.43 13,459.28 13,390.79 13,380.77 13,287.28 13,104.98 13,069.85 12,950.57 13,135.21 13,113.39 13,017.84 13,014.65 12,937.30

Close 13,616.73 13,601.95 13,773.59 13,703.33 13,680.83 13,706.53 13,616.77 13,430.71 13,429.48 13,505.89 13,469.37 13,425.50 13,399.00 13,282.91 13,137.49 13,072.51 13,156.66 13,186.89 13,130.79 13,091.12 13,033.04

69

ANALYSIS OF STOCK MARKET FLUCTUATIONS AND GLOBAL MARKET 1st week on 2nd November 2011 Market continued its winning streak to settle at lifetime high on strong demand for index pivotals. The Sensex rose 223.98 points or 1.73% for the week ended 3 November 2011 to 13,130.79. Nifty gained 66 points or 1.76% for the week to settle at 3,805.35. Sensex rose 117.45 points on Monday to settle at 13,024.26, as investors mopped up heavyweights and scrips that have reported strong Q2 results. Sensex declined 62.36 points to 12961.90 on Tuesday, on selling pressure throughout the day. 70

The benchmark index advanced 71.14 points on Wednesday, to settle at 13,033.04 as investors bought blue chip shares. On Thursday, the Sensex finished 58 points higher to 13,091.12. Sensex rose 39.67 points on Friday to settle at 13,130.79, a lifetime closing high, as shares staged a rebound in later part of the day. The total inflow of FIIs in the Indian equity market was Rs 1848.60 crore in the first four days of the week till Thursday (2 November). On 31 October, Reserve Bank of India in its mid-term review of annual policy kept Reverse Repo rate unchanged at 6%, while the Repo rate was raised by 25 basis points to 7.25%. Bank rate was kept unchanged at 6% while the Cash Reserve Ratio (CRR) was kept steady at 5%. The central bank also raised 2011/07 economic growth forecast to "around 8%" from a previous 7.5-8% estimate. The central bank said inflation would be driven by demand conditions rather than supply-side effects. It said keeping inflation in 5.0-5.5% range needed monitoring, appropriate policy response. PSU oil exploration major ONGC surged 12.06% to Rs 884.50 for the week. The stock was boosted by news on Thursday that Norway's Norsk Hydro had offered it stake in two exploration blocks. Also there were reports, that it plans joint ventures with Russian oil companies to acquire oil and gas assets. The joint ventures would look for properties in Russia and other countries but not India. ONGC once again regained its numero uno slot in terms of market cap displacing Reliance Industries from that slot. Reliance Industries rose 5.41% for the week to Rs 1289. It had surged to a lifetime high of Rs 1298.50 on Thursday. RIL kickstarted its retail initiative by opening its first retail store in Hyderabad. Also there were on reports that it will invest $5.2-billion to double the output from its D6 block in Krishna Godavari basin to 80 million standard cubic meters per day (mmscmd). RIL had earlier proposed investment of $2.47 billion to produce 40 mmscmd from discoveries - Dhirubhai 1 and 3 (in the D6 block) - out of a total 34 wells. RIL plans to raise up to $2 billion overseas to fund its oil & gas exploration and production business. FMCG major, Hindustan Lever (HLL) advanced 4.15% to Rs 236 for the week. The company posted 60% rise in September quarterly earnings on strong demand for soaps, shampoos and packaged foods, as well as one-off gains from stake sales. Net profit rose 71

to Rs 520.74 crore for the quarter ended 30 September 2011 where as the same was Rs 325.96 crore for the quarter ended 30 September 2005. The net profit included exceptional items such as gains from sale of stakes in some firms. Total Income rose to Rs 3162.82 crore (Rs 2816.42 crore). Bharti Airtel rose 3.78% to Rs 547 for the week. It reported 79% growth in net profit to Rs 934 crore for the quarter ended September 2011, from Rs 521 crore in the corresponding period of the previous year. The company's net sales jumped 61% to Rs 4,357 crore from Rs 2,709 crore. Colgate surged 11.44% for the week, to Rs 419.30. It reported 25% fall in net profit for Q2 September 2011 due to a huge VRS outgo of Rs 58.80 crore. Colgates net profit in Q2 September 2011 declined 24.9% to Rs 23.18 crore (Rs 30.88 crore). Net sales rose 15% to Rs 320.01 crore (Rs 278.12 crore). Jaiprakash Associates surged 30.73% to Rs 596 during the week, after the cabinet of state government of Uttar Pradesh gave clean chit to a land development project which was earlier awarded to the company by the state government. Cummins India rose 5.88% to Rs 270.70 during the week, after it reported 66% surge in net profit for Q2 September 2011 to Rs 62.69 crore (Rs 37.76 crore). Net sales has surged 30.8% to Rs 467.44 crore (Rs 357.29 crore). KPIT Cummins Infosystems jumped 24.70% during the week, to Rs 619. The companys board would meet on 08 November 2011 to consider a 1 for 1 bonus issue and splitting its 5-rupee share into shares of 2 rupees face value each. AIA Engineering jumped 23.48% to Rs 1145, during the week, after it reported a 122.4% surge in net profit for Q2 September 2011 to Rs 14.81 crore (Rs 6.66 crore). Net sales rose 35.1% to Rs 95.51 crore. The latest economic data showed infrastructure sector output grew 9.9% in September 2011 from a year earlier, much faster than revised annual growth of 5.7% in August 2011. Output rose an annual 6.3% in September 2005. It was up an annual 7.3% in the April-September 2011 period compared with 6.1% during the same period a year earlier. 72

2nd week on 10th November 2011 The market continued its winning streak on the back of sustained buying for bluechips. The BSE Sensex rose 164.57 points (1.25%), for the week had settled at a lifetime high of 13,295.36, while the S&P CNX Nifty rose 36.30 points (0.95%), also to settled at a lifetime high of 3,841.65. On 10 November, the Sensex struck an all-time high of 13,303.85, while the S&P CNX Nifty touched a high of 3,842.40, in intra-day trade. The Sensex rose 56.10 points, to 13186.89 on 6 November following buying demand for index pivotals. Profit-taking struck and the benchmark Sensex declined 30 points to 13,156.66 on 7 November. Sensex lost 84.15 points on 8 November and ended at 13,072.51, on selling pressure in index pivotals. Concerns over Indo-US relations following Democrats wresting control of the House of Representatives from President George W Bush's Republican Party in Congressional elections, hit the Indian market that day. Sensex resumed its winning streak, gaining 64.98 points on 9 November, to 13,137.49 as buying resumed. The Sensex surged 145.42 points, to 13,295.36, on 10 November, on strong buying demand in banking and oil & gas stocks. Strong industrial output data and benign inflation figures boosted the market that day. ICICI Bank advanced 7.89% to Rs 834 for the week. HLL gained 7.21% to Rs 252.50 for the week, on reports that the company is gearing up for a price hike for the fourth time in the year, and is to increase product prices by 4 - 10%. Reliance Industries (RIL) rose 0.11%, during the week to Rs 1,288.25. RILs board had approved raising up to $2 billion through loans and bond issues, or a combination of fund-raising instruments. Bajaj Auto lost 9.43% to Rs 2,595. It ventured into the $ 6 billion Indonesian bike market with its flagship model, the 180 cc Bajaj Pulsar. The company also plans to set up a regional production base in Indonesia by investing $50 million over the next three years in a production base and distribution network. 73

Software major Infosys rose 3.56% to Rs 2,149, after its shareholders approved an issue of up to 30 million American Depositary Receipts. Car major Maruti Udyog lost 7.53% to Rs 906, after Nissan Motor Company terminated talks with Japanese compact car maker Suzuki Motor Corp, for a project in which Suzuki was to build a Nissan model in India for sale in the local market. Following a recent tie-up between the two, MUL was to make cars in collaboration with Nissan Motor Company at Manesar, India. Also, there were reports that the Ministry of Commerce and Industry had rejected the automakers application for granting special economic zone (SEZ) status for its manufacturing facility being developed at Manesar, in collaboration with Nissan. Mahindra & Mahindra gained 8.15% to Rs 830, after Renault said on Thursday it was expanding its existing joint venture with Mahindra & Mahindra to manufacture more models for the Indian market. UTV Software surged 31.52% to Rs 367.40. The stock surged to a 52-week high of Rs 261.35. There were reports that Rupert Murdoch's News Corp is eyeing a sizeable stake in the company, which was later denied by the company. Indiabulls Financial Services advanced 9.56% to Rs 509, after its unit received inprinciple approval from the central government, to develop a multi-product special economic zone (SEZ) in Maharashtra. Solectron Centum Electronics jumped 31.38% to Rs 247.05 after the company decided to separate services business into a separate company effective from 1 October 2011. The new company will be called Solectron EMS India (SEIL). At present, the company has two businesses, products business and services business. The services business comprises of electronic manufacturing services (EMS). The products division makes hybrid microcircuits. FII-inflow for the first four days of the week (from 6 to 9 November) amounted to Rs 1,279.10 crore. Mutual fund outflow for the first three days of the week (from 6 to 8 November) amounted to Rs 125.60 crore. 74

India's wholesale price index rose 5.09%, in the 12-months to 28 October, lower than the previous week's 5.41% due to a fall in the prices of manufactured products, data showed on Friday. India's industrial production rose 11.4% in September from a year earlier due to robust manufacturing and electricity output, government data showed on Friday. Output had grown at 9.9% in August. Manufacturing production rose 12% in September from a year earlier, compared with 11.1% in August. On Tuesday, 7 November, National Council for Applied Economic Research (NCAER) revised up its 2011/07 economic growth forecast from 7.9% to 8.1%, previously due to good monsoon rains, robust exports and foreign investment inflows. It expects GDP to expand by an average annual rate of 8.2% in the next five years. Finance Minister P Chidambaram said on Tuesday the economy can sustain 8 - 10% growth in the coming years with more reforms.

3rd week ended on 17th November 2011 The Sensex maintained its winning streak, as buying continued at higher levels. Strong FII-inflows and revision in earnings estimates by brokerages have fuelled the latest bull-run on the bourses. For the week ended Friday (17 November), the Sensex gained 147 points (1.10%), to settle at 13,429.48 The S&P CNX Nifty advanced 18 points (0.47%) for the week ended Friday (17 November), to settle at 3,852.80. On 13 November, the Sensex jumped 116.09 points to 13,399 as select blue-chips were in demand. It gained 26.50 points to 13,425.50 on 14 November, as buying continued. On 15 November 2011, the Sensex has gained 43.87 points, settling at 13,469.37 on demand for banks and cement makers. On 16 November 2011, the Sensex finished 36.52 points higher, at 13,505.89, on buying interest for banking and cement stocks.

75

Sensex lost 76.41 points on 17 November to settle at 13,429.48 on profit booking. It had struck an all time high of 13,678.04 in opening trade on that day. Reliance Industries lost 2.35% to Rs 1,258.10 for the week, after two brokerages downgraded the stock to `underperform from market performer citing stretched valuations and weakening fundamentals. TCS rose 1.91% for the week to Rs 1,091, amid reports that it had bagged a $100 million contract in the US. On 14 November 2011, block deals for an aggregate 85.05 lakh shares were executed in the scrip on BSE, at an average Rs 1,059 in early trade, constituting 0.8% of TCS equity capital of Rs 97.86 crore (face value Re 1 per share). Foreign fund HSBC Global purchased the shares from promoters, who hold 84% in the company. Cellular services major Bharti Airtel advanced 6.89% during the week, to Rs 582.20. It had hit Rs 586.95, an all-time high on 17 November. Bharti Airtel said on Monday it was roping in Microsoft Corporation, to offer software and other services to small and medium scale businesses in India. On 15 November, it replaced TCS as the fifth largest company in terms of market-cap. Gujarat Ambuja Cements rose 1.37% for the week to Rs 135.65. On 16 November, two big deals of 2.5 crore shares each were struck in the counter, at an average Rs 138.75 per share. Swiss cement maker Holcim, which presently holds 15.6% in Gujarat Ambuja Cements, acquired an additional 3.6% stake from the promoter group. The block deals with a turnover of Rs 694 crore, constituted 3.6% (5 crore shares, 2.5 crore shares each) of its equity capital of Rs 272.02 crore (face value Rs 2 per share). Bank shares surged on easing interest rate worries. RBI on Tuesday said the recent fall in global crude oil prices should help ease inflation pressures. HDFC Bank gained 8% for the week, to Rs 1,122.10. On 16 November, it struck an alltime high of Rs 1,150. ICICI Bank rose 4.63% to Rs 877. On 16 November, it struck an all-time high of Rs 925 on Reserve Bank of India's permission for new branches and ATMs. SBI jumped 7.86% during the week to Rs 1,229. It had also surged to an alltime high of Rs 1,241 on 17 November.

76

Airliners rose on reports that they are to raise airfares between 3 - 5%. Reports also add that the number of low-priced tickets available on each flight is also likely to be reduced as a cost-cutting measure. Jet Airways rose 4.82% to Rs 652.10, while Deccan Aviation jumped 38.23% to Rs 149.35, during the week. Thermax rose 5.15% to Rs 367 during the week following strong Q2 results. The company reported 38.6% growth in net profit for Q2 September 2011 to Rs 35.08 crore (Rs 25.31 crore). Total income has risen 57.6% to Rs 491.05 crore (Rs 311.43 crore). The company has a robust order-book position with a order backlog of Rs 2,973 crore on a consolidated basis as on 30 September 2011, which is 142% higher from that of last year. FIIs have been the key drivers of the recent rally. They were net buyers to the tune of Rs 2,302 crore for the first two days of the week. Mutual funds made an inflow of Rs 150.59 crore in the first three days of the week. On 16 November, the Bank of Japan left its monetary policy unchanged on Thursday as widely expected. Indias wholesale price index rose to 5.30% for 12 months ended 4 November, higher than the previous week's 5.09% due to an increase in the prices of food articles and manufactured products. The blue-chip Dow average achieved its longest winning streak since August, rising 54.11 points on Thursday to finish at a record 12,305.82. 4th week ended on 24th November 2011 Market continued to head higher, on consistent buying support from FIIs. For the week ended 24 November, the BSE Sensex gained 273.85 points or 2.04% to settle at 13,703.33. The S&P CNX Nifty rose 98.05 points or 2.54% to 3,950.85 On 20 November, the Sensex staged a solid intra-day reversal, from its lows of 13,200.36, to settle 1.23 points higher, at 13,430.71. The Reserve Bank of India (RBI's)'s draft circular prescribing tighter guidelines for banks capital market exposure had resulted in Sensex tumbling over 200 points in intra-day trade on that day.

77

Renewed buying in blue-chips helped the Sensex surge 186.06 points to 13,616.77 on 21 November. The Sensex rose 89.76 points on 22 November to settle at 13,706.53, an all-time closing high, backed by firm Asian markets. The BSE Sensex ended 25.70 points lower at 13,680.83 amid a mixed trend in various constituents of the barometer index on 23 November after surging to a life high of 13,790.82 in early trade. Sensex finished with a modest 22.50-point gain on 24 November at 13,703.33 as buying support continued. Telecom services provider Bharti Airtel rose 5.56% to Rs 614.20 after hitting a lifetime high of Rs 644.90 on 23 November. There are reports that the Department of Telecom (DoT) will make available, additional radio frequency for cellular service providers. On 21 November, shares in Info Edge (India), which runs web sites for job search and matrimony, closed at Rs 593.20, a premium of 85.3% over the IPO price (Rs 320). The scrip clocked a massive volume of 78 lakh shares on BSE. Tata Steel 1.61% to Rs 483.55. On Friday, it denied media reports about a sweetened bid for Corus Group, to stall the counter-bid by a Brazilian company. Soon after Brazils CSN on 17 November launched a counter bid for Corus, the Tata Steel stock started languishing with investors worrying that the steel maker will over-pay in a bidding war. NTPC advanced 7.87% to Rs 149.95 after striking 52-week high of Rs 150.70. Siemens lost 1.71% to Rs 1,172.50, after the company reported 32% growth in net profit for Q4 September 2011 to Rs 137 crore (Rs 104 crore). It along with its consortium -Siemens AG, Germany, also bagged a contract worth Rs 4,000 crore from the Qatar General Electricity and Water Corporation (KAHRAMAA) in which Siemens' share was pegged at Rs 3,600 crore. Aditya Birla Nuvo rose 3.20% to Rs 1,107, after the companys board decided to issue 2 shares for every 17 held on a rights basis, at Rs 793 per share. Following the rights issue, the equity will go up to Rs 93.32 crore from Rs 83.50 crore. United Phosphorus surged 13% to Rs 329.90, after it bought the global propanil herbicide business of DowAgroSciences, for about $25 million. The total turnover of this product in 2005 was $18.9 million. Propanil is a global product 78

with more than 100 registrations in over 30 countries in North America, Latin America, Europe, Africa and Asia-Pacific. Deccan Aviation lost 3.35% to Rs 142.75, amid reports that it had suffered a fall in market share in recent months. As per latest reports, Air Deccans market share has been declining despite the low-cost airline offering a large number of tickets at nominal prices of Rs 3 and Rs 9. After touching a high of 21.2% in June, the airlines share registered an average of 19.3% in the second quarter of the current financial year, and further dropped to 18.1% in October 2011. Development Credit Bank (DCB) advanced 19.65% to Rs 61.80, after its board approved a hike in Foreign Institutional Investors (FII) ceiling from the existing 24% to 49%. They also approved an issue of equity shares of an aggregate amount up to Rs 225 crore to Qualified Institutional Buyers (QIB).

NIFTY DECEMBER

Date 01-Dec-2011 04-Dec-2011 05-Dec-2011 06-Dec-2011 07-Dec-2011 08-Dec-2011 11-Dec-2011 12-Dec-2011 13-Dec-2011 14-Dec-2011 15-Dec-2011 18-Dec-2011 19-Dec-2011 20-Dec-2011 21-Dec-2011 22-Dec-2011

Open

High

Low

Close

3955.70 4001.30 3953.95 3997.60 4002.40 4015.25 3991.55 4001.00 4001.25 4033.20 4001.25 4015.75 4016.00 4036.20 3982.50 4015.95 4015.00 4027.70 4001.40 4015.35 4015.75 4046.85 3948.70 3962.00 3961.90 3965.05 3798.30 3849.50 3849.10 3861.25 3661.60 3716.90 3716.75 3777.60 3657.65 3765.20 3765.70 3855.05 3763.50 3843.05 3849.60 3908.45 3845.45 3888.65 3888.20 3934.00 3828.15 3928.75 3928.85 3931.90 3783.45 3832.00 3832.15 3886.10 3787.55 3815.55 3814.75 3851.20 3768.80 3833.50 3834.90 3880.15 3823.40 3871.15 79

26-Dec-2011 27-Dec-2011 28-Dec-2011 29-Dec-2011

3871.30 3946.10 3870.45 3940.50 3942.75 3986.75 3937.70 3974.25 3974.20 3997.35 3961.95 3970.55 3971.65 3991.60 3960.45 3966.40

SENSEX DECEMBER

Date

Open

High

Low

Close

01-Dec-2011 13,873.03 13,929.10 13,770.06 13,786.91 04-Dec-2011 13,893.29 13,960.39 13,819.77 13,846.34 05-Dec-2011 13,734.01 13,911.59 13,734.01 13,859.69 06-Dec-2011 13,501.44 13,726.62 13,490.77 13,708.34 07-Dec-2011 13,398.13 13,493.88 13,362.11 13,471.74 08-Dec-2011 13,313.91 13,441.36 13,182.35 13,384.86 11-Dec-2011 13,452.69 13,568.09 13,232.56 13,340.21 12-Dec-2011 13,737.36 13,748.62 13,237.39 13,382.01 13-Dec-2011 13,695.60 13,744.17 13,416.40 13,731.09 14-Dec-2011 13,545.60 13,669.65 13,545.60 13,614.52 15-Dec-2011 13,256.81 13,524.77 13,239.79 13,487.16 18-Dec-2011 13,039.02 13,223.00 12,830.38 13,181.34 19-Dec-2011 13,413.61 13,492.21 12,801.65 12,995.02 20-Dec-2011 13,783.00 13,801.98 13,261.73 13,399.43 21-Dec-2011 14,007.67 14,009.56 13,756.86 13,799.49 22-Dec-2011 13,962.94 14,002.72 13,915.74 13,972.03 26-Dec-2011 13,951.09 14,035.30 13,847.67 13,949.00 27-Dec-2011 14,028.47 14,028.47 13,905.65 13,937.65 28-Dec-2011 13,846.71 13,912.54 13,828.90 13,874.33 29-Dec-2011 13,729.67 13,857.81 13,725.78 13,844.78

80

ANALYSIS 1st week on 1st December 2011 The market kept its rally intact as investors continued to mop-up shares at higher levels. The BSE Sensex advanced 141.45 points (1.03%) during the week ended 1 December, to 13,844.78, a record closing high. The S&P CNX Nifty rose 46.75 points (1.18%), to settle at 3,997.60, an all-time closing high. 81

Trading for the week began on a firm note. On Monday (27 November), the Sensex jumped 70.26 points, to 13,773.59, a record closing, partly on steady-to-firm Asian markets and partly due to short covering in the derivatives segment. The Sensex plunged 171.64 points, to 13,601.95, tracking weak global markets on 28 November 2011. The BSE Sensex rose marginally by 14.78 points, to 13,616.73 on 29 November, amid a mixed trend in its constituents. On 30 November 2011, the Sensex finished with a gain of 79.58 points, at 13,696.31. Sensex jumped 148.47 points to 13,844.78 on Friday (1 December), a record closing following a smooth rollover of November contracts and the sunsequent build up for December series, coupled with robust GDP figures. Tata Power rose 1.32% to Rs 598.10. The company reported 61% growth in net profit for Q2 September 2011, to Rs 202.32 crore (Rs 125.67 crore). Total revenue rose 16.5% to Rs 1,279.17 crore, from Rs 1,097.21 crore. Software major TCS rose 2.85% to Rs 1,183.30. TCS signed a 7-year deal worth $65 million for reorganising Somerfield's IT services. Somerfield is a leading UK-based, small-format food retailer. Oil & refinery stocks slipped after the government announced a cut in retail prices of diesel and petrol by Re 1 and Rs 2, respectively, on Wednesday. Also crude oil prices moved near $62 per barrel, leading to a further fall in these stocks. Indian Oil Corporation (down 11.10% to Rs 445.50), Hindustan Petroleum Corporation (down 7.30% to Rs 289.75) and Bharat Petroleum Corporation (down 9.15% to Rs 342) declined. Punj Lloyd jumped 15.46% to Rs 1,112. Punj Lloyd Group, a global infrastructure services provider, has bagged the order through Simon Carves, UK, a group company. The order is from PTT Polyethylene Company (PTT PE), a wholly-owned subsidiary of PTT Chemical Company, jointly with its partner Toyo Thai Corporation. Ranbaxy Laboratories rose 0.10% to Rs 385.60. The company on Friday announced the acquisition of Be-Tabs Pharmaceuticals, the fifth largest generics company in South Africa, for $70 million. 82

Car major Maruti Udyog added 4.45% to Rs 952.60. In early-trade on Friday, the car major reported selling 55,033 vehicles in November, a 16.1% rise from a year earlier. The company said domestic sales rose an annual 20.7%, to 52,574, but exports fell 35.7% to 2,459 units. Godfrey Phillips surged 42.49% to Rs 1,449.05, even as company denied rumours of a bonus issue and stock-split. On 28 November 2011, Torrent Power (TPL), the umbrella company of the newly amalgamated generation, transmission and distribution businesses of the Torrent Group, settled at Rs 70.70 on BSE after listing at Rs 60 on BSE. Three companies, Torrent Power AEC (TPAL), Torrent Power SEC (TPSL) and Torrent Power Generation (TPGL), were merged into TPL giving shape to a scheme of arrangement. GE Shipping re-listed on 27 November at Rs 264.65, and settled at Rs 222.70 that day, compared to the last trading price of Rs 336.70 of 7 November 2011. The scrip was relisted after giving effect to a restructuring scheme, whereby its offshore services division has been demerged into a separate company, and will be listed separately at a later date. On 27 November, Lanco Infratech closed at Rs 241.40 on BSE, a marginal premium compared to the IPO price of Rs 240. Its public issue was oversubscribed nearly 12 times. On 30 November, Parsvnath Developers settled at Rs 526.30, compared to the IPO price of Rs 300 per share. The company's paid-up equity capital is Rs 181.60 crore. Mutual funds were net sellers for the first four days of the week, to Rs 262.48 crore, while FIIs purchased shares worth Rs 265.40 crore during the same period. The domestic economy grew by 9.2% in the July-September quarter from a year earlier, higher than market expectations of 8.90%, data released earlier today showed. The annual growth rate in the second quarter of the 2011/07 financial year was higher than the April-June rate of 8.9%.

83

India's wholesale price index rose 5.45% in the 12 months to 18 November, higher than the previous week's annual rise of 5.29% due to a rise in mineral and manufactured product prices, data showed on Friday 2nd week ended on 8th December 2011 The market kept its rally intact as investors continued to mop-up shares at higher levels. The BSE Sensex advanced 141.45 points (1.03%) during the week ended 1 December, to 13,844.78, a record closing high. The S&P CNX Nifty rose 46.75 points (1.18%), to settle at 3,997.60, an all-time closing high. Trading for the week began on a firm note. On Monday (27 November), the Sensex jumped 70.26 points, to 13,773.59, a record closing, partly on steady-to-firm Asian markets and partly due to short covering in the derivatives segment. The Sensex plunged 171.64 points, to 13,601.95, tracking weak global markets on 28 November 2011. The BSE Sensex rose marginally by 14.78 points, to 13,616.73 on 29 November, amid a mixed trend in its constituents. On 30 November 2011, the Sensex finished with a gain of 79.58 points, at 13,696.31. Sensex jumped 148.47 points to 13,844.78 on Friday (1 December), a record closing following a smooth rollover of November contracts and the sunsequent build up for December series, coupled with robust GDP figures. Tata Power rose 1.32% to Rs 598.10. The company reported 61% growth in net profit for Q2 September 2011, to Rs 202.32 crore (Rs 125.67 crore). Total revenue rose 16.5% to Rs 1,279.17 crore, from Rs 1,097.21 crore. Software major TCS rose 2.85% to Rs 1,183.30. TCS signed a 7-year deal worth $65 million for reorganising Somerfield's IT services. Somerfield is a leading UK-based, small-format food retailer. Oil & refinery stocks slipped after the government announced a cut in retail prices of diesel and petrol by Re 1 and Rs 2, respectively, on Wednesday. Also crude oil prices moved near $62 per barrel, leading to a further fall in these stocks. Indian Oil Corporation (down 11.10% to Rs 445.50), Hindustan Petroleum Corporation (down 84

7.30% to Rs 289.75) and Bharat Petroleum Corporation (down 9.15% to Rs 342) declined. Punj Lloyd jumped 15.46% to Rs 1,112. Punj Lloyd Group, a global infrastructure services provider, has bagged the order through Simon Carves, UK, a group company. The order is from PTT Polyethylene Company (PTT PE), a wholly-owned subsidiary of PTT Chemical Company, jointly with its partner Toyo Thai Corporation. Ranbaxy Laboratories rose 0.10% to Rs 385.60. The company on Friday announced the acquisition of Be-Tabs Pharmaceuticals, the fifth largest generics company in South Africa, for $70 million. Car major Maruti Udyog added 4.45% to Rs 952.60. In early-trade on Friday, the car major reported selling 55,033 vehicles in November, a 16.1% rise from a year earlier. The company said domestic sales rose an annual 20.7%, to 52,574, but exports fell 35.7% to 2,459 units. Godfrey Phillips surged 42.49% to Rs 1,449.05, even as company denied rumours of a bonus issue and stock-split. On 28 November 2011, Torrent Power (TPL), the umbrella company of the newly amalgamated generation, transmission and distribution businesses of the Torrent Group, settled at Rs 70.70 on BSE after listing at Rs 60 on BSE. Three companies, Torrent Power AEC (TPAL), Torrent Power SEC (TPSL) and Torrent Power Generation (TPGL), were merged into TPL giving shape to a scheme of arrangement. GE Shipping re-listed on 27 November at Rs 264.65, and settled at Rs 222.70 that day, compared to the last trading price of Rs 336.70 of 7 November 2011. The scrip was relisted after giving effect to a restructuring scheme, whereby its offshore services division has been demerged into a separate company, and will be listed separately at a later date. On 27 November, Lanco Infratech closed at Rs 241.40 on BSE, a marginal premium compared to the IPO price of Rs 240. Its public issue was oversubscribed nearly 12 times.

85

On 30 November, Parsvnath Developers settled at Rs 526.30, compared to the IPO price of Rs 300 per share. The company's paid-up equity capital is Rs 181.60 crore. Mutual funds were net sellers for the first four days of the week, to Rs 262.48 crore, while FIIs purchased shares worth Rs 265.40 crore during the same period. The domestic economy grew by 9.2% in the July-September quarter from a year earlier, higher than market expectations of 8.90%, data released earlier today showed. The annual growth rate in the second quarter of the 2011/07 financial year was higher than the April-June rate of 8.9%. India's wholesale price index rose 5.45% in the 12 months to 18 November, higher than the previous week's annual rise of 5.29% due to a rise in mineral and manufactured product prices, data showed on Friday. 3rd week ended on 15th December 2011 The BSE Sensex snapped its winning streak, posting a loss for the week ended Friday, (15 December) on profit-booking. The Sensex lost 184.97 points for the week ended Friday, (15 December) to 13,614.52, while the NSE Nifty lost 63.90 points, to settle at 3,888.65. The Sensex started the week with a sharp plunge of 400.06 points, to settle at 13,399.43, on 11 December 2011, after the RBI came out with a surprise 0.5% hike in cash reserve ratio (CRR), after market hours on Friday (8 December). On 12 December 2011, the BSE Sensex registered a mammoth 404.41 point loss, to settle at 12,995.05 as selling continued following data showing lower-than-expected 6.2% growth in industrial production in October 2011, which raised fears of economic slowdown. The BSE Sensex jumped 186.32 points on 13 December, to settle at 13,181.34, on bargain-hunting after a steep fall and on short covering later in the day. The market continued to recover due to strong buying in index pivotals, with the Sensex gaining 305.82 to 13,487.16 on 14 December 2011. 86

The Sensex jumped 127.36 points, to settle at 13,614.52 on 15 December on the back of firm global markets, and a decline in inflation. Reliance Industries (RIL) lost 1.22% to Rs 1,252.55. RIL has reportedly paid Rs 444 crore towards the third installment of advance tax due 15 December 2011. CLSA, a brokerage, while issuing an outperform rating on the scrip with a 12-month price target of Rs 1,265, recently stated that RIL's scrip performance over the next year will hinge on news flow. State Bank of India (SBI) declined 7.33% to Rs 1,261. The Standing Committee on Finance has endorsed the proposed legislative amendment to reduce State Bank of Indias shareholding in its subsidiary banks from current 55% to 51%. ICICI Bank slipped 0.10% to Rs 868.05, after it announced an increase of 0.5% in its Benchmark Advance Rate (I-BAR) and its Floating Reference Rate (FRR) for consumer loans (including home loans) with effect from 18 December 2011. The hike in lending rates will help protect margins. Tata Steel lost 5.27% to Rs 460. Brazils CSN had announced a higher bid at 515 pence per share for Corus. There are media reports that the company will invest Rs 450 crore for setting up an iron ore smelting plant in Thailand. The iron ore smelter unit will be part of Millennium Steel, Tata Steel's Thai subsidiary. Tata Steel had also hiked its offer for Corus to 500 pence per share, from the earlier 455 pence per share. Reacting to the CSN bid, Tata Steel said Monday, it was considering its position on Corus. Media speculates that Tata Steel may raise its bid to 550 pence per Corus share, raising the price to over $10 billion, to trump Companhia Siderurgica Nacional's (CSN) offer of 515 pence per share. Reliance Communications gained 4.58% to Rs 466, on media reports that it is in talks with three US private equity groups, for buying the India operations of Hutchison Telecommunications International in a deal worth more than $14 billion. ONGC lost 3.39% to Rs 812, on reports that its joint venture with Mittal group, is close to signing an agreement for an oil block in Turkmenistan. Another report that ONGCs overseas investment arm proposes to undertake joint exploration and production activities in Iraq with Reliance Industries (RIL), too, aided the recovery after a steep decline in the past four days. ONGC Mittal Energy (OMEL), the joint venture between 87

ONGC and Mittal group, is eyeing opportunities in Kazakhstan, Azerbaijan and Indonesia, reports add. Larsen & Toubro (L&T) rose 0.39% to Rs 1,454, after announcing that the company won two major contracts of an aggregate value of $ 86 million from a leading Chinese petrochemical company, Sinopec. It had also bagged a massive Rs 5,400 crore contract from GMR Infrastructure, to design and construct the terminal and run-way at New Delhi airport. Also L&T Infotech, the software and services arm of construction major Larsen & Toubro, signed an agreement to acquire US-based GDA Technologies, an electronics design services firm. Diversified firm Grasim lost 0.15% to Rs 2,741. The company is reportedly said to be buying a stake in Austrian cellulose-fibre maker Lenzing AG. The deal could help the firm to get a foothold in the global viscose staple-fibre market, and will increase its fibre production capacity by almost 4,53,000 tonnes. The deal is likely to be completed during the current fiscal. Budget airline SpiceJet advanced 6.33% to Rs 56.25, after Tata group on Monday said it had picked up `less than 10% stake' as a purely financial investment. In a surprise move, the RBI hiked cash reserve ratio (CRR) by 50 basis points after trading hours on Friday (8 December). The RBI move fuelled expectations of rise in lending and deposit rates by Indian banks. They are likely to take a final view on raising interest rates on loans as well as deposits, by the end of this week, or early next week. India's wholesale price index rose 5.16% in the 12 months to 2 December 2011, lower than the previous week's annual rise of 5.30% helped by a decline in food and energy prices, data showed on Friday (15 December). India's industrial production rose 6.2% in October from a year earlier, which was well below market expectations, lower-than-expected manufacturing output being the prime culprit for the slowdown. Output growth for September remained unchanged at an annual 11.4% reported earlier. Manufacturing production, which represents more than 75% of industrial output, rose 6.0% in October from a year earlier, compared with 12.0% annual growth in September.

88

Meanwhile, the US Federal Reserve kept interest rates unchanged on Tuesday (12 December) for the fourth straight time, as worries about inflation continued to overshadow concerns about the slowing economy. At its final meeting of 2011, Fed left its target for federal funds at 5.25%. The funds rate, the interest that banks charge each other, has been at that level since June, when the Fed raised rates for the 17th consecutive time in a two-year effort to combat rising inflation. 4th week ended on 15th December 2011 The market continued its journey downward, posting losses for the third straight week. The barometer index lost 142.78 points (1.05%) for the week ended Friday (22 December) at 13,471.74. The S&P CNX Nifty slipped 17.50 points (0.5%), to 3,871.15. The 30-shares BSE Sensex gained 116.57 points, to 13,731.09, on 18 December, on strong buying in index pivotal, especially for index heavyweight Reliance Industries (RIL). The BSE Sensex plunged 349.08-point on 19 December 2011, to 13,382.01, amid high volatility following a sell-off across Asian emerging markets, sparked by a 10% penalty imposed on foreign funds moving out Thailand within a year, by its central bank. The Sensex lost 41.80 points to 13,340.21 on 20 December following a mixed trend in index pivotal. The BSE Sensex settled with a gain of 44.65 points, at 13,384.86, as buying resumed. On 22 December 2011, the BSE index gained 86.88 points, to 13,471.74, as buying picked up in the fag end of the trading session. PSU oil exploration major ONGC advanced 5.7% to Rs 869.There were reports of huge gas finds in the Bay of Bengal, initial estimates suggesting reserves of about 21 trillion cubic feet. Reliance Industries (RIL) advanced 1.5% to Rs 1,272. It has paid an advance tax of Rs 444 crore for the third installment, taking its total remittance to Rs 1,102 crore, compared to Rs 848 crore paid in the same period last year, reports said. Also, there 89

were reports that RIL is talking with the Russian government for permission to invest in a refinery and petrochemical industry there. Unconfirmed reports suggested that the company had acquired Orient Craft, a leading garment exporter. Maruti Udyog rose 2.13% to Rs. 922.10, after the Cabinet Committee on Economic Affairs (CCEA) approved the sale of the government's residual 10.2% stake. Japanese car giant Suzuki has a majority 54.2% stake in the company. The government's stake in Maruti is valued at Rs. 2,800 crore. PSU engineering major Bhel lost 8% to Rs 2,310. The scrip declined as it failed to secure ceratin equipment orders for the upcoming ultra mega power projects. It also bagged a Rs 165-crore order from IOC for setting up a power plant at the oil major's Haldia refinery in West Bengal. FMCG bigwig, ITC, slipped 2.90% to Rs 169.55, amid reports that it will expand fruit, vegetable retail as well as the wholesale business by opening 54 new outlets in select metros in the next three years. The company will target metropolitan cities for these wholesale-cum-retail stores. Currently, there are 6,500 e-Choupal kiosks in over 38,000 villages across nine states. Telecom software firm, Tech Mahindra, jumped 46.36% to Rs 1,651. It had announced signing of a five-year deal to provide BT with strategic sourcing services. This contract is expected to generate in excess of $1 billion new revenue for Tech Mahindra. The company will support BTs planned growth of managed services to business customers around the globe, while continuing ongoing services related to BTs internal systems, processes and re-usable platforms. L.T. Overseas settled at a slight discount, at Rs 55, compared to its IPO price of Rs 56 per share on 18 December 2011. The stock listed on BSE at 7.14% premium, at Rs 60, and hit an intra-day high of Rs 62.90. The intra-day low was Rs 51. On 20 December 2011, Sobha Developers settled at premium at Rs 968.75 on BSE, compared to its IPO price of Rs 640 per share. The scrip debuted at Rs 1,111.25 on BSE and hit a high of Rs 1,179. Its low was Rs 918.10. Sobha Developers IPO was subscribed over 100 times.

90

Ruchira Papers finished at a discount, at Rs 20.95 on BSE, compared to the IPO price of Rs 23 per share on 20 December. The stock listed on BSE at 5.86% premium, at Rs 24.35 per share, which was also its intra-day high. The stock dipped to a low of Rs 20.65. On 21 December, Great Offshore settled at Rs 727.05. Great Offshore came into existence following a restructuring of GE Shipping, whereby the shipping firms offshore services business was transferred to a separate company. Jindal Drilling & Industries settled at Rs 580 on BSE, on 22 December. Jindal Drillings restructuring scheme involved the amalgamation of two group companies Newsco Newtech and Discovery Hydrocarbons with the company. It also involved demerger of Jindal Drillings Casinvest division into Haryana Engineering. India's wholesale price index rose 5.32% in the 12 months to 9 December, which is higher than previous week's annual rise of 5.16% due to an increase in food prices. The annual inflation rate was 4.39% during the corresponding week of the previous year, data released on Friday showed. Meanwhile, RBI on 15 December came out with new capital market exposure norms for banks, which will come into force from April 2007. In terms of the new guidelines, the exposure of a bank to the capital market cannot exceed 40% of its net worth as on 31 March of the previous year. 5th week ended on 29th December 2011 The market rallied during the week, as buying for index pivotals resumed, after a sharp fall on the back of a surprise hike in CRR announced on 8 December 2011, after completion of trading. The BSE Sensex advanced 315.17 points for the week ended Friday (29 December 2011) to 13,786.91, while the S&P CNX Nifty rose 95.25 to settle at 3,966.40. The market was closed on 25 December 2011 on account of Christmas. The Sensex surged 236.60 points on 26 December 2011, to settle at 13,708.34, on strong buying in IT scrips anticipating robust December quarter results. 91

The Sensex gained a further 151.35 points to end at 13,859.69, on 27 December 2011, on account of short-covering ahead of the December futures contracts expiry (28 December 2011). On 28 December 2011, the BSE Sensex slipped 13.35 points to 13,846.34, amid volatility at the close, due to expiry of December 2011 derivatives contracts. The Sensex declined 59.43 points to 13,786.91, in late-trading on 29 December 2011, under selling pressure. Infosys Technologies rose 3.27% to Rs 2,243, after it scheduled a board meeting on 11 January 2007, to consider Q3 December 2011 results. It is also believed to be in talks with ten global banks for its banking software Finacle. Reports speculate big deals are likely to materialise in a couple of months. The company foresees big opportunity in the software replacement market in the US and Europe, apart from plans to enter the Latin American market. The company announces its Q3 December 2011 results on 11 January 2007. Reliance Industries (RIL) gained 0.43% to Rs 1,270. It is reportedly planning an investment of Rs 5,000 crore for gassification of lignite in south Gujarat. The project will be a joint venture between (RIL) and Gujarat Mineral Development Corporation (GMDC). The private sector oil refiner is said to be negotiating with GMDC, and scouting for lignite reserves in south Gujarat. ITC jumped 4.87% to Rs 176.35, after the FMCG major said it had struck an agroalliance with Marubeni Corp, a Japanese trading house. Under the alliance, both companies will consider joint exports of Indian-made soyabean cake and maize grains for livestock feed, Marubeni said in a statement. The tie-up is aimed at expanding the trade of food and other agricultural products between India and Japan. Dr Reddys Lab gained 0.87% to Rs 811, after it received final approval from the U.S. Food and Drug Administration for cholesterol-lowering simvastatin tablets. Simvastatin is the generic equivalent of Merck & Co. Inc.'s blockbuster drug Zocor. Reliance Communications (RCL) rose 0.48% to Rs 470.60. It is examining the opportunity in mobile operator Hutchison Essar and a potential combination could create compelling value for all shareholders. Chairman Anil Ambani also told a news 92

conference the company had received commitments from global bankers for financial support for any potential bid. Ambani said there was no certainty on the timing of a bid and declined to say how much the firm will offer, saying it will remain within a conservative limit. Meanwhile, RCL plans to invest $1.5 billion to expand capacity of its Flag Telecom submarine cable network. State Bank of India rose 2.47% to Rs 1,245.35. It executed a 50 bps hike in prime lending rate to 11.5% with immediate effect. Indiabulls Financial Services surged 12.82% to Rs 652. The company announced 9 January 2007 as a record date for its demerged real estate business, now under Indiabulls Real Estate (IREL). The stock will stay in the no-delivery period on BSE from 2 January 2007 to 8 January 2007, for the demerger. On 28 December 2011, Ess Dee Aluminium settled at a premium, at Rs 238.75, compared to its IPO price of Rs 225 per share. The stock listed at Rs 260 on BSE. XL Telecom settled at a discount, at Rs 136, compared to the issue price of Rs 150 per share. The stock listed at 18.06% premium, at Rs 177.10, on 28 December 2011. On 29 December 2011, Nissan Copper settled at a sharp 230.25% premium at Rs 128.80 on BSE on high total volumes of 6.11 crore shares. The shares were issued at Rs 39 per share in the recently concluded IPO. The stock debuted at Rs 40 on BSE and hit a high of Rs 135.70, and dipped to a low of Rs 40 for the day. The Reserve Bank of India permitted foreign investment up to 49% in stock exchanges, paving the way for New York Stock Exchange (NYSE) to expand into Asia's best performer. The Reserve Bank of India also said that foreigners could hold up to 49% in depositories and clearing corporations. Under the new rules, foreign direct investment will be limited at 26%, while foreign portfolio investments will be capped at 23% in all such entities, the central bank said. It, however, said portfolio investments will be allowed only through the secondary market. The stock exchange also plans to list shares on its own trading floor.

93

Media reports indicate the New York Stock Exchange is eager to pick up a stake in BSE. The wholesale price index rose 5.43% in 12 months to 16 December, higher than the previous week's annual rise of 5.32% due to an increase in manufactured product prices, data showed on Friday (29 December). The annual inflation rate was 4.62% during the corresponding week of the previous year. The market has ended calendar 2011 on a strong note, with the Sensex gaining 46.7% to settle at 13,786.91, which a less than 200 points off its all-time closing high of 13,972.03 of 7 December 2011. It had struck an all-time high of 14,035.30 on 6 December 2011. The S&P CNX Nifty gained 39.8% for the calendar year 2011. The market settled with gains for the fifth straight year. Banking, telecom, IT and cement shares hogged the limelight in 2011. The Nikkei 225 index finished just 0.01% higher, at 17,225.83, on 29 December 2011. That marked its highest close since early-May. The benchmark ended 2005 at 16,111.43.

FINDINGS After undertaking the indepth study of stock market and various financial markets, it was found that the several events which had most affection in fluctuation of sensex and nifty in particular month. July 2011 94

FMCG stocks rose following the advance of the monsoon. Cement shares edged higher on expectations of strong Q1 results. Mutual funds sold equities worth Rs. 101.97 crore. The metal index was the worst hit in the bearish market

August 2011 FIIs invested to the tune of Rs 653.7 crore in the equity segment four days of the week. Auto shares advanced on expectations of strong sales in the current festival season. Crude oil price declined sharply by about $ 4 a barrel during the week following a truce in the Middle East that came into force from Monday (14 August). Metal shares turned volatile, tracking volatile metal prices on the London Metal Exchange. September 2011

for the first

Bank shares extended their recent recovery. Metal stocks advanced as prices firmed up on the London Metal Exchange. SEBI, on Wednesday (13 September), made amendments in the SEBI Foreign Institutional Investors (Second Amendment) Regulations 2011 to treat overseasregistered or incorporated pension funds, mutual funds, investment trusts, insurance companies, reinsurance companies, international or multilateral agencies, foreign governmental agency or a foreign central bank as an FII.

October 2011

The software outfit announced Q2 September 2011 results on Wednesday (11 October 2011). Infosys has revised upwards its EPS and revenue growth guidance for FY 2007 (year ending 31 March 2007). For the first time in history, the Dow Jones Industrial finished above the 12,000 mark on Thursday. 95

November 2011 Reserve Bank of India in its mid-term review of annual policy kept Reverse Repo rate unchanged at 6%, while the Repo rate was raised by 25 basis points to 7.25%.

Bank rate was kept unchanged at 6% while the Cash Reserve Ratio (CRR) was kept steady at 5%. The central bank also raised 2011/07 economic growth forecast to "around 8%" from a previous 7.5-8% estimate.

Airliners rose on reports that they are to raise airfares between 3 - 5%. Reports also add that the number of low-priced tickets available on each flight is also likely to be reduced as a cost-cutting measure

December 2011 The domestic economy grew by 9.2% in the July-September quarter from a year earlier, higher than market expectations of 8.90%. Oil & refinery stocks slipped after the government announced a cut in retail prices of diesel and petrol by Re 1 and Rs. 2, respectively. The RBI hiked cash reserve ratio (CRR) by 50 basis points after trading hours Friday (8 December). The RBI move fuelled expectations of rise in lending and deposit rates by Indian banks

CONCLUSIONS India has been witness to a four-year up and down cycle in the stock markets. Since 1992, the Indian markets have peaked every fourth year and then dropped 35-45% during the next three years. What is surprising though is that the Dalal Street has bucked the trend this time around. Some of the major conclusions derived in the study are as under.

96

Declaration of any financial result and other information of the company has direct effect on its stock price. News related to any political and economical affair has also the direct effect on stock market.

In short, the following hypothesis have been tested and proved positive. Any fluctuation in foreign market has more effect on Indian stock market than that of domestic market. In the given volatile economic conditions, the market is efficient to any news and information. At the end it is concluded that following are Major factors, which have generally contributed to fall & rise in SENSEX & NIFTY: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. US economic growth Crude oil prices Emerging market valuations Foreign direct investment (FDI) Capital spending Equity supply Government policy toward foreign firms Politics Domestic risk Foreign institutional investors (FII) withdrawals US Fed interest rates Indian industry growth 97

13. 14.

Budget 2011-07 and finance bill Tax circular regarding transaction tax to FII.

RECOMMENDATIONS After this study, I would like to give following recommendations, which can help to the Investors, Brokers and SEBI and the policy makers in general. Investors

I would suggest that Long term Investors should not invest into panic market, which led investors to erode their wealth. 98

It must be remembered that

Long-term investors should go for frontline

stocks, which helps to keep their income regular and steady. I would also suggest that Investors should take into consideration various things before investing into scripts such as: Long term growth prospect in company 1. Financial positions of company 2. Liquidity position 3. Dividend policy 4. Past performance of company Brokers 1. Brokers should separate their portfolio from High Net worth Individuals (HNI). 2. Brokers should not exceed their trading limit in terms of upper and lower limit. 3. Brokers should not go for margin trading which results into defalcation to the investors. 4. Brokers should go for margin trading where HNIs are major clients because of reputation working with them to some extent. SEBI 1. SEBI should come out with new regulation in context of circuit breakers. 2. SEBI should monitor HNI transactions in domestic as well as global market. 3. SEBI should issue regularly draft containing penalty details on defaulters to keep market less speculative. BIBLIOGRAPHY Magazines 1. Business week 2. Frontline 3. Business world News papers 1. Business standard 2. Financial express 3. Economic times 4. Times of India 99

Websites 1. www.capitalmarket.com . 2. www.wikipedia.org 3. www.google.com 4. www.yahoofinance.com 5. www.moneycontrol.com 6. www.yahoofinance.com 7. www.galatime.com 8. www.indiaseekingalpha.com 9. www.sitebysite.com 10.www.skicapital.net 11.www.webindia.com 12.www.yeahindia.com 13.www.nseindia.com 14.www.bseindia.com 15.www.sebi.org 16.www.icicidirect.com 17.www.businessstandard.com Reports and Journals 1. NSE journal 2. BSE journal

100