Friday, May 25 2012 “A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty”

~ Winston Churchill

Headlines
• • • • • • Sensex ends flat Jaipal Reddy hints at no rollback in petrol prices Petrol price rise offers FDI hope to retail chains Essar's Ravi Ruia, Loop execs get bail in 2G case ITC Q4 net up 20% at Rs 1,614 cr US hikes duty on Indian steel pipe

Quick Glance
Vg INDICES INDICES Name Name
BSE Sensex BSE Sensex NSE Nifty NSE Nifty NSE 500 NSE 500 BSE 100 BSE MidCap BSE SmallCap

Closed Closed at at
16215.84 16217.82 4907.80 4920.40 3906.90 3910.60 8487.67 5888.95 6314.57

+/+/Points Points
-77.14 -4.48 -21.10 -1.00 -21.35 5.75 -42.49 -59.76 -80.81

% % Change Change
-0.47 -0.03 -0.43 -0.02 -0.54 0.15 -0.50 -1.00 -1.26

Name Name
BSE Auto BSE Auto BSE TECk BSE TECk BSE Bankex BSE Bankex BSE Metal BSE Oil & Gas

Closed Closed at at
9715.47 9238.89 3216.15 3207.85 10661.64 10899.21 10050.62 7420.47 6625.53

+/+/Points Points
-63.61 -4.32 7.69 1.35 -174.02 33.57 -56.08 51.46 -127.47

%% Change Change -0.65 -0.05 0.24 0.04 -1.61 0.31 -0.55 -1.69 0.78

BSE 100

8509.97 5900.51

9.61

0.11 0.44

BSE Metal

10088.61 7577.63

92.30 -5.12

0.92

BSE MidCap CNX Midcap CNX Nifty Jr. CNX Nifty Jr.

25.73

BSE SmallCap CNX Midcap

6318.33 6922.65 6914.30 9622.75 9519.15

33.49 -63.10 40.50 -41.05 57.00

0.53 -0.90 0.59 -0.42 0.60

BSE Healthcare

BSE Oil & Gas

-0.07

BSE Healthcare BSE Realty BSE Realty BSE FMCG BSE FMCG

6640.08 1541.89 1572.27 4631.02 4590.25

-8.62 -19.84 8.39 13.09 -21.14

-0.13 -1.27 0.54 0.28 -0.46

DEB MA T RKET CP Rates % (3M) Call Rates % 7.59 GS 2016* % 10.23 8.15/8.20 8.32 8.79 GS 2021* % 8.13 GS 2022* % *G-Sec Yields 8.51 NA 1 US $

FOREX (C urrency Rates in Rs .) 55.37 69.32 69.61 106.74 1559.00

1 EURO 100 YEN Brent Crude ($/Bbl) GOLD ($/oz)

Market Commentary
EQUITY
Scrips: Top Gainers Gail India Tata Steel DLF SBI L&T Closing Price 336.30 408.25 188.45 2005.00 1186.40 % Change 3.37 2.43 1.89 1.74 1.54 Index wise (BSE 30) Gainers and Losers Top Losers Jindal Steel Maruti Suzuki Mahindra & Mahindra Hindustan Unilever HDFC Closing Price 456.45 1117.05 638.15 420.95 656.85 % Change -2.59 -2.46 -2.00 -0.88 -0.86

• •

• • •

The BSE Sensex ended flat on Friday, as state-controlled oil companies fell on fears this week's petrol price hike would be partially rolled back, casting doubts about a potential increase in other fuels such as diesel. NHPC Ltd said that it targets to invest Rs 4,000 crore in the current financial year. It will set up nearly 1200 megawatts of hydro-power in the year, said Mr A B L Srivastava, Chairman & MD of NHPC. This capacity addition is spill over from last financial year and NHPC is planning no new capacities this year, he added. NHPC invested Rs 3,546 crore in 2011-12. He said the total outstanding payment from state utilities is Rs 1,600 crore. Out of this Rs 440 crore has been declared default. Engineering major Crompton Greaves posted 37.11% decline in net profit for the quarter ended March 31, 2012 at Rs 136.87 crore due to increase in overall expenditure during the period. The company's net profit during three months ended March 31, 2011 was Rs 217.64 crore, it said. During the quarter under review, the company's total expenditure rose 15.59% to Rs 1,761.81 crore, compared to Rs 1,524.06 crore in the fourth quarter of 2010-11. Smallcap as well as midcap stocks out performed the frontline stocks. BSE Smallcap closed up 0.53% & CNX Midcap closed up 0.65, while BSE 100 closed up 0.11% & NSE 50 closed down 0.03%. Asian indices ended on a mixed note. The markets of Indonesia (-2.07%) and China (-0.74%) were among the major losers while the markets of Thailand (0.63%) and South Korea (0.53%) were among the major gainers. At BSE 1477 stocks advanced, while 1242 stocks declined.
Date 2 /0 2 1 5/1 2 /0 2 1 5/1 Investment (Equity) FIIs MFs Purchases (Cr) 13 .30 30 30 9.50 Sales (Cr) 13 .80 88 2 .50 05 Net (Cr) -58 .50 10 3.90 May Cum. (Cr) 1 .50 51 6.9 0

DEBT
• • Indian federal bond yields edged higher after the government came under severe pressure after allowing a petrol price hike, while a sharp recovery in the rupee cast doubts about more debt purchases from the central bank. The Call money rates at 8.10-8.15%, ended marginally higher from its previous close of 8.15-8.20%.

FOREX
• • The Indian rupee strengthened for a second session, continuing its recovery from record lows hit this week, after the RBI stepped in to defend the currency and exporters and custodian banks were heavy sellers of dollars. The euro inched up from 2 year lows against the dollar as bearish investors took a breather from a sharp sell-off this week, but worries about a possible Greek exit from the euro zone & the risk of contagion could make gains fleeting.

INDUSTRY & ECONOMY
• As public protest against Wednesday's steep hike in petrol gathered momentum, Oil Minister Jaipal Reddy gave no indication of a rollback in the immediate future. Speaking to the press shortly after meeting UPA chairperson Sonia Gandhi, Reddy said his ministry will watch the trend for a few days but "cannot take a definitive view on a rollback right now." The minister said the historical and unpopular decision was taken because of the devastation faced by oil companies The recent decision by state-owned oil marketing companies to increase petrol prices steeply has raised hopes of retail chains, which expects the government will now initiate steps to take the long-pending decision on allowing foreign direct investment (FDI) in multi-brand retail. Many of the retail chains, which have been on a silent mode for months, sent out feelers on Thursday that all was not lost on the FDI front. In another indication that things could be moving, India head of French retail chain Carrefour SA, Jean Noel Bironneau met Commerce and Industry Minister Anand Sharma. Five businessmen, including billionaire Ravi Ruia from the Essar conglomerate, have won bail in a case probing a telecoms licensing scandal which has drawn in tycoons and a former minister. A special court in New Delhi, which is hearing the case, approved criminal conspiracy charges against Ruia, his nephew Anshuman Ruia, and senior Essar group executive Vikash Saraf, and allowed them bail. Ravi Ruia, who along with his brother Shashi is India's ninth richest, as ranked by Forbes, is among the top businessmen to be touched by a CBI probe into the scandal, which was estimated to have cost the government as much as $34 billion lost revenue. ITC Ltd, which has interests in diversified businesses such as cigarettes, edible oil and hotels, has posted a 20% rise in net profit, at Rs 1,614 crore for the quarter ended March 31, 2012.. The company's profit in the corresponding period a year ago was Rs 1,281.48 crore. The firm's total Income was up about 18%, from Rs 6,063.38 crore for the quarter ended March 31, 2011 to Rs 7,162.51 crore for the period under review. Net sales rose 17.6% to Rs 6,861 crore. The United States piled another layer of preliminary duties on a certain type of steel pipe from India, one month after New Delhi complained at the World Trade Organisation about an earlier US round. The US Commerce Department said it had determined that Indian companies were selling circular welded carbon-quality steel pipe in the United States at 48.43% below fair market value. The duties will require importers to post bonds or cash deposits based on the preliminary rates until a final decision on anti-dumping duties is made later this year.
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