Morning Notes

24.05.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

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

Euro Is Near 22-Month Low after European Summit The euro was 0.3 percent from the lowest since July 2010 after German Chancellor Angela Merkel said at a European Union summit that her nation stands by its opposition to jointly issued common bonds. The 17-nation currency maintained a drop versus the yen before data forecast to show Europes services and manufacturing industries shrank for a fourth month. The yen and dollar remained higher after gaining yesterday against most major counterparts on increasing demand for haven assets amid Europes deepening debt crisis. Japan Stocks Rise on Optimism Europe Can Contain Debt Crisis Japanese stocks rose amid optimism European leaders will do more to halt contagion from the regions debt crisis, offsetting concern Greece will leave the euro region. Sumitomo Mitsui Financial Group Inc., Japans secondbiggest bank by market value, climbed 0.7 percent. Renesas Electronics Corp. gained 1.1 percent on a report the chipmaker will form alliance with Taiwan Semiconductor Manufacturing Co. for microcontrollers. Inpex Corp., the nations largest oil explorer by market value, lost 0.4 percent after crude prices dropped. Not only Europe, but also the world is agreeing to coordinate help to deal with the European crisis, boosting markets, said Kenichi Hirano, general manager and strategist at Tachibana Securities Co. in Tokyo. Oil Advances from Seven-Month Low as Drop May Be Overdone Oil climbed from the lowest settlement in seven months in New York after a technical indicator signaled that the decline may be exaggerated. Futures advanced as much as 0.8 percent after falling below long-term technical support. Prices also rallied as stocks erased losses on optimism European leaders will do more to halt the contagion in the regions debt crisis. Talks with Iran on the nations nuclear program will resume in Baghdad today, according to a Western official. The negotiations are aimed at forestalling a military strike against OPECs second-biggest crude producer.

KEY INDICES
Indian Markets
Index
S&P CNX NIFTY CNX NIFTY JUNIOR CNX 100 S&P CNX DEFTY S&P CNX 500 CNX MIDCAP NIFTY MIDCAP 50 SENSEX

Close
4835.65 9388.45 4736.45 2987.70 3848.80 6821.85 1956.55 15948.10

Pt. Chg.
-24.85 -75.25 -26.45 -57.65 -21.00 -35.50 -14.50 -78.31

Change %
-0.51 -0.80 -0.56 -1.89 -0.54 -0.52 -0.74 -0.49

Global Markets
Change (%) 0.17 0.39 -0.05 -2.53 -2.33 -2.62 -0.07 -0.14 0.16

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

Close 1318.86 2850.12 12496.15 5266.41 6285.75 3003.27 8550.84 18759.23 2784.85

Global data recorded/updated last as on 24, May 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 3.46 1.63 1.61 0.97 Indian Markets

NIFTY TOP LOSERS

Change (%) -4.42 -3.33 -3.23 -2.00

Company GAIL RANBAXY LAB. VIDESH SANCH MAH & MAH

Close 324.75 501.05 204.50 644.65

Company BHARTI TELE KOTAK BANK SESA GOA LTD BK OF BARODA

Close 282.10 532.80 178.00 657.15

MARKET SUMMARY
The key domestic benchmarks ended lower, with the Sensex retreating from the psychological 16K mark as the rupee tanked to a fresh low against the greenback, while Europe worries continued to rattle investors. The rupee hit a fresh low of 56.18 per dollar as rising global risk aversion and worries over Indias fiscal and current account deficit dampened the demand for the Indian currency. A weak rupee may drive up inflationary pressures by increasing the cost of imports and raise overseas borrowing costs for Indian companies. Worries over Europes debt woes continued to bite investors as speculation heightened over Greeces exit from the euro. BSE SENSEX closed at 15,948.1, down by 78.31 points or by 0.49 per cent and the NSE Nifty ended at 4,835.65, down by 24.85 points or by 0.51per cent. The BSE Sensex touched intraday high of 16,002.03 and intraday low of 15,847.03 The NSE Nifty touched intraday high of 4,853.75 and intraday low of 4,803.95. After witnessing a gap down opening, the key domestic benchmarks extended losses as a falling rupee and weak Asian cues dampened sentiment. The benchmarks pared losses but continued to languish below the baseline in noon trade. However, selling pressure escalated in the last few hours of trading as a rupee at a record low level and weak global cues rattled investors. On the Sectoral front, the Consumer Durables and Capital Goods shed 2.08 per cent and 0.89 per cent, respectively. Out of the 30 Sensex stocks, there were 10 advances and 20 declines. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3537, shares advanced were 1139 while 1658 shares declined and 740 were unchanged. The top losers of the BSE Sensex pack were Bharti Airtel Ltd. (Rs. 281.95,-4.29%), Tata Power Company Ltd. (Rs. 88.65,-1.99%), Hero MotoCorp Ltd. (Rs. 1826.20,-1.86%), Jindal Steel & Power Ltd. (Rs. 452.95,-1.84%), Sterlite Industries (India) Ltd. (Rs. 94.35,-1.51%), among others. Asian markets fell on Wednesday amid media speculation that Greece is preparing to exit the Euro. The concerns shed optimism ahead of the European Union summit beginning, while the World Bank cut Chinas economic growth forecast to 8.2 per cent in 2012 from 8.4 per cent. Shanghai Composite ended down 0.42 per cent, Hang Seng closed down 1.33 per cent and Nikkei 225 tanked 1.98 per cent.

R. Wadiwala

NEWS UPDATES
MACRO Restructuring of power sector loans have picked up in the March 2012 quarter. Public sector banks have been reported in Financial Express to have restructured loans extended to state electricity boards (SEBs) of around Rs 75,000 crore. According to Crisil, Rs 300,000 crore has been lent to state-owned utilities, which means that nearly 25% of the loan has been restructured. Further, this loan amount has been only from three SEBs from Rajasthan, Uttar Pradesh and Haryana. COMPANY Tech Mahindra announced the launch of its new delivery and development centre in Noida, Uttar Pradesh, India. The new facility was inaugurated by Anand Mahindra, chairman, Tech Mahindra, in the presence of the board of directors and associates. Spread over 2.5 acres of land, Tech Mahindra`s new SEZ facility is 6th SEZ and the 10th joint SEZ with Mahindra Satyam. The delivery and development centre has more than 2000 work spaces and close to 120 training spaces. Wipro Technologies, the Global Information Technology, Consulting and Outsourcing business of Wipro Ltd has announced the launch of its first corporate iPhone app - Wipro Buzz. The app, available free of charge in Apples iTunes store, allows users access to white papers, articles by Wipros thought leaders, press releases, news and events from its global centers spread across 54 countries. The Republic of South Africas Minister for Energy, Dipuo Peters, announced her Departments selection of the 138 MW AmakhalaEmoyeni Phase 1 wind energy project to be carried out in Eastern Cape, by Suzlon Group, the worlds fifth largest wind turbine supplier. The project was submitted by Cennergi under the second window of the Request for Bids for the Independent Power Producers Programme. Aurobindo Pharma said it has received final approval from the US health regulator for its generic Nevirapine tablets and oral suspension used for treating human immunodeficiency virus (HIV). The company has received final approval from the United States Food and Drug Administration (USFDA) for its Nevirapine tablets in the strength of 200 mg and Nevirapine oral suspension in the strength of 50 mg/5ml, Aurobindo Pharma said in a statement. The company plans to launch the products manufactured at its Hyderabad facility soon in the US market, it added. Infosys is planning to integrate several services together, according to reports. Reports stated that IT Company is taking chunks out of its four service lines and is trying to bag multimillion dollar deals with differentiated offerings. EMCO announced it has bagged order worth Rs 1.61 billion from NTPC. The order is for NTPC`s Mauda Super Thermal Power Project - II and Solapur Super Thermal Power Project. This is amongst the largest single order for this rating of Generator Transformers in India. State-owned mining major NMDC's Australian arm Legacy Iron is set to acquire six coal tenements in Queensland, a top official said. MAN Industries, one of the leading pipe manufacturing companies, has redeemed outstanding zero coupon foreign currency convertible bonds (FCCBs) of USD 64.35 million (including premium). The bonds were issued in the year 2007 and redeemed on due date. There are no FCCBs outstanding as on date. After redemption, the company doesn`t have any liability towards FCCB.

R. Wadiwala

TECHNICAL ANALYSIS MOST ACTIVE STOCKS PIVOTAL GUIDANCE

Company NIFTY BANK NIFTY RELIANCE RCOM RELCAPITAL REL INFRA LT STER ICICIBANK SBIN TATASTEEL RPOWER TATAPOWER INFOSYSTCH BHEL ONGC ACC Lower 2 4795.44 9007.80 680.23 61.10 303.50 430.04 1130.66 93.13 788.84 1942.26 392.83 90.03 88.76 2324.15 205.86 240.97 1118.81 Lower 1 4812.08 9111.55 685.72 62.11 306.97 433.55 1140.88 94.09 795.18 1957.88 395.99 90.75 89.47 2342.84 207.52 242.91 1127.81 Axis 4836.72 9210.29 690.20 63.12 310.44 437.05 1150.11 95.04 801.53 1973.51 399.15 91.48 90.19 2361.54 209.17 244.84 1136.81 Higher 1 4855.53 9309.82 695.01 65.56 314.59 442.12 1165.18 96.31 807.08 1987.18 401.91 92.11 90.81 2377.90 210.62 246.54 1144.69 Higher 2 4868.56 9411.35 699.86 66.64 317.98 446.67 1174.62 97.42 808.07 1989.62 402.41 92.22 90.92 2380.82 210.88 246.84 1146.09

BULLISH ON SHORT TERM

COALINDIA DIVISLAB BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 312-314-316 SL 301 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 952-956-960 SL 933

FII and DII Investments

FIIs Date *23 May May-2012 2012 Till Date Purchase 1534.16 31458.70 260268.90 Purchase 780.79 5867.60 48131.50 Sale 1895.23 31307.40 216625.80 Sale 612.30 5814.90 53933.50
Inv (crs)

-361.07 +151.50 +43543.00

Inv (crs)

DIIs

Date *23 May May-2012 2012 Till Date * Provisional Data

+168.49 +52.80 -5801.70

R. Wadiwala

Following the MUTUAL FUNDS

Kotak Mid-Cap G
Latest NAV: 23.19 (22/05/12) 52-Week High: 26.17 (25/07/11) 52-Week Low: 19.94 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
Motherson Sumi Solar Industries ING Vysya Bank Hawkins Cookers Whirlpool

Top 5 Sectors
% Net Assets
3.88 3.27 2.96 2.94 2.93

Top 5 Sectors
Financial Chemicals FMCG Services Healthcare

% Net Assets
17.81 11.16 10.89 10.66 9.47

Top 3 Holding Company Details Motherson Sumi

LTP: 166.55 PB Ratio: 5.56 PE Ratio: 24.20 Year to Date Return: 23.37 Other Funds That Own Motherson Sumi
Fund name
SBI Magnum Midcap ICICI Prudential Multiple Yield ICICI Prudential Capital Protection Oriented Series V Kotak Mid-Cap

% Net Asset
7.19 4.43 3.92 3.88

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

Solar Industries
LTP: 853.35 PB Ratio: 5.53 PE Ratio: 28.42 Year to Date Return: 11.78

Other Funds That Own Solar Industries

Fund name
Kotak Emerging Equity Birla Sun Life Small & Midcap Birla Sun Life Small & Midcap HDFC Growth

% Net Asset
4.51 4.42 4.35 4.09

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

ING Vysya Bank

LTP: 336.45 PB Ratio: 1.30 PE Ratio: 11.07 Year to Date Return: 15.03

Other Funds That Own ING Vysya Bank

Fund name
Templeton India Growth Birla Sun Life MNC Birla Sun Life MNC Axis Midcap

% Net Asset
9.70 5.91 5.33 4.58

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

R. Wadiwala

DERIVATIVES NOTES
Nifty May 2012 futures were at 4810, at a discount of 25.65 points compared to spot closing of 4835.65. Turnover on NSE`s futures & options (F&O) segment rose to Rs 136899.22 crore from Rs 123622.32 crore on Tuesday, 22 May 2012.
% Change OI
0.94

Institutional Investment Trends

(in Crores) MAY 23, 2012

BUY
1902.38

SELL
2714.63

Net Buy/Sell
-812.25

OIEoD
11935.13

INDEX FUTURES

State Bank of India (SBI) May 2012 futures were at 1922.85, at a discount compared to spot closing of 1958. Tata Motors May 2012 futures were at 262.80, near spot closing of 261.50. ICICI Bank May 2012 futures were at 778.90, at a discount compared to spot closing of 791.45. In the cash market, the S&P CNX Nifty shed 24.85 points or 0.51% to settle at 4,835.65, its lowest closing level since 12 January 2012.

STOCK FUTURES

1975.28

1798.09

177.19

21957.81

0.40

Put Call Ratio Symbol BAJAJ-AUTO NIFTY FTSE100 WELCORP HCLTECH NIFTY MPHASIS TATACOMM TATAMOTORS SIEMENS ABAN SUNPHARMA MINIFTY Expiry Date 28-Jun-12 27-Jun-13 15-Jun-12 31-May-12 28-Jun-12 27-Sep-12 31-May-12 31-May-12 26-Jul-12 28-Jun-12 28-Jun-12 28-Jun-12 28-Jun-12 Put 4000 243900 11500 106000 15000 1317200 1500 3000 3000 1250 2500 14000 4940 Call 375 23550 1550 16000 2500 438800 500 1000 1000 500 1000 6000 2180 Ratio 10.67 10.36 7.42 6.63 6.00 3.00 3.00 3.00 3.00 2.50 2.50 2.33 2.27

R. Wadiwala

DIVIDEND AND OTHER INFORMATION

Himadri Chemicals And Industries Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 15, 2012 has recommended a dividend of Rs.0.10 per equity share of Rs.1/- each, i.e. 10% for the Financial year ended March 31, 2012, subject to the approval of members at the annual general meeting. Hindusthan National Glass & Industries Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 15, 2012 have considered, recommended and approved a dividend of 75% i.e. Re.1.50 paise per equity share of the Company having face value of Rs.2/- each. Container Corporation Of India Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 22, 2012 has recommended a Final Dividend of Rs.9/- per share of face value of Rs.10/each amounting to Rs.116.98 Crores in addition to the Interim Dividend of Rs.7.50 per share already paid. The dividend is subject to ratification by the shareholders in the ensuing Annual General Meeting.

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

Our Corporate Office 9/2003-4, Vishnu Priya Limda Chowk, Main Road, Surat 395 003. Phone: +91-261-6673500, +91-261-2436536, Fax No: +91-261-6673537

Email: contact@rwadiwala.com Website: www.rwsec.com

R. Wadiwala