Market Outlook

India Research
March 27, 2012

Dealers Diary
The Indian markets are expected to open in the green today tracing positive opening in most of the Asian bourses. Asian stocks rose the most in two weeks, after Federal Reserve Chairman Ben S. Bernanke said monetary policy needs to focus on creating jobs and South Koreas consumer confidence improved. The US markets (Nasdaq and the S&P 500) closed at their fresh multi-year highs on Monday. The strong upward move by stocks came on the heels of a speech by Bernanke, who noted that the U.S. unemployment rate has declined faster than the Fed predicted but cautioned that the jobs market remains far from normal. He also assured that the Fed's zero-interest rate policy and other support measures would continue to reduce unemployment over time by promoting economic growth. Weak global cues on fears over Spain's fiscal outlook and lingering worries about slowing global growth dragged Indian shares sharply lower on Monday. Also, with the government preparing to pass retrospective amendments to the income-tax laws, investors fear that new tax rules could affect capital inflows through participatory notes.

Domestic Indices BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT Global Indices Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com

Chg (%)

(Pts)

(Close)

(1.8) (309.0) 17,053 (1.8) (1.4) (1.2) (94.0) (93.0) (75.4) 5,184 6,249 6,533 6,391 7,235 9,861 7,910 6,011
(Close)

(1.6) (101.8)

(2.0) (148.2) (1.4) (138.1) (1.9) (149.1) (1.4)

Chg (%)

(2.4) (289.7) 11,571 (2.2) (245.4) 10,978 (83.6)

(Pts)

1.2 1.8 0.8 0.1 0.0 (0.5) 0.1

Chg (%)

160.9 13,242 54.7 47.8 3,123 5,903

Markets Today
The trend deciding level for the day is 17,151 / 5,211 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,280 17,506 / 5,248 5,311 levels. However, if NIFTY trades below 17,151 / 5,211 levels for the first half-an-hour of trade then it may correct up to 16,924 16,795 / 5,148 5,111 levels.
Indices SENSEX NIFTY S2 16,795 5,111 S1 16,924 5,148 PIVOT 17,151 5,211 R1 17,280 5,248 R2 17,506 5,311

6.8 10,018 0.1 20,669 (15.6) 1.1

(Pts)

2,975 2,351
(Close)

Indian ADRs

INFY WIT IBN HDB

Advances / Declines Advances Declines Unchanged

0.7 0.3 (2.0) 0.8

0.4 0.0 (0.7) 0.3

BSE

$57.4 $10.7 $35.1 $33.6

NSE

News Analysis
Proposed hike in stamp duty by Maharashtra govt. to have a negative impact on the real estate sector Reliance Industries BP to jointly work on KG-D6
detailed news analysis on the following page

919 1,955 113

328 1,137 48

Net Inflows (March 22, 2012)

` cr FII MFs Purch 4,941 374 Sales 4,611 286 Net 330 88 MTD 8,797 (1,080) YTD 45,094 (5,107)
Volumes (` cr) BSE NSE

3,801 10,690

FII Derivatives (March 26, 2012)

` cr
Index Futures Stock Futures

Purch 3,102 5,129

Sales 4,536 5,289

Net (1,435) (160)

Open Interest 17,561 30,182

Gainers / Losers
Gainers Company
Max India Jaiprakash Asso Mphasis Dish TV India Thermax

Losers Company
Manappuram Opto Circuits Shree Renuka Sug HDIL IRB Infra

Price (`)
178 82 429 59 483

chg (%)
3.9 2.6 2.3 2.3 1.8

Price (`)
32 255 30 89 180

chg (%)
(11.0) (7.3) (7.3) (7.0) (6.9)

Please refer to important disclosures at the end of this report

Sebi Registration No: INB 010996539

Market Outlook | India Research

Proposed hike in stamp duty by Maharashtra govt. to have a negative impact on the real estate sector
The Maharashtra state government has proposed to increase stamp duty on residential and commercial leave and license agreements according to Times of India. The proposed plan is to increase stamp duty to 0.1% on residential properties from a maximum of `25,000 paid currently for 60 months and 0.4% on commercial properties from a maximum of `50,000 paid currently for 60 months. The commercial and residential segments, which were already witnessing a significant decline in demand from end-users due to high prices and interest rates, have been witnessing an increase in leasing activity since the past one year. If this plan is implemented, it will further affect the leasing segment negatively, as it will push up the overall leasing cost. Stamp duty is paid by the end-user and, thus, developers would not be impacted directly but would find it difficult to increase rents and could witness a decline in demand. This move may affect companies that have a high exposure to the leasing segment in Maharashtra. We continue to remain Neutral on the real estate sector.

Reliance Industries BP to jointly work on KG-D6

Reliance Industries (RIL) and its partner BP are expected to submit an integrated development plan to increase natural gas from all the 18 discoveries in the KGD6 block to the government by October 2012. Both the companies are projected to commence production from R-Series, the third largest gas find in the eastern offshore KG-D6 block, from CY2015 and production from satellite fields from CY2016. KG-D6 gas block had hit an all-time low production of 28mmscmd, as RIL had shut six wells due to water and sand ingress during the week ending March 4, 2012. Further, Dhirubhai 1 and 3 gas fields in the eastern offshore KGDWN-98/3 output had plummeted to 28mmscmd during the same week. Including the gas production of 6.5mmscmd from MA fields, total production from KG-D6 block averaged 35mmscmd (significantly below the field development plan of 70mmscmd approved during 2006) during the same week. We continue to await further clarity on the issue. Meanwhile, we maintain our Buy recommendation on the stock with a target price of `923.

March 27, 2012

Market Outlook | India Research

Economic and Political News

Govt. allows 1mn tonnes of extra sugar exports Power companies lost 8.7bn units due to coal shortages: govt. Interest rates on post-office operated small savings scheme hiked up by 0.5%

Corporate News
Car making operations at Gurgaon plant will continue: Maruti Bank of Maharashtra get shareholders nod for `995cr pref. issue Gammon Infra bags `935 cr road project from NHA
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

March 27, 2012

Market Outlook | India Research

Research Team Tel: 022 - 39357800

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

March 27, 2012