You are on page 1of 4

LALKAR

THE DAY ON DALAL STREET


Wednesday, 3rd November, 2010

Indian Market Round Up

In Focus Market Action Technically


Market News Flow INDEX WATCH
INDEX CLOSE %
Transgene Biotek plans to SENSEX 20345.69 -0.05
raise funds through GDRs NIFTY 6119.00 +0.02

Realty shares sink as RBI SECTORAL WATCH)


tightens norms for home CD 6,780.70 1.64
loans CG 16,163.48 1.42
IT 6,035.43 0.62
Kemrock Industries signs FMCG 3,620.00 0.49
MOU with DSM PSU 10,221.46 0.40
Equity benchmarks closed TECk 3,721.65 0.30
rangebound session on a flat note BANKEX 14,490.31 0.22
Splash Media plans to raise
and shrugged off key rates hike by POWER 3,140.58 0.19
funds by exploring the low
the Reserve Bank of India (RBI). The HC 6,550.06 0.07
cost option
consolidation was imminent today METAL 16,830.75 -0.07
after a steep rally on Monday. Sensex AUTO 10,004.84 -0.53
Spicejet to buy 30
fell marginally and closed at 20345.69 OIL&GAS 10,987.62 -0.80
turboprop aircraft from REALTY 3,740.63 -2.58
and Nifty gained marginally and
Bombardier
ended at 6119.
MAJOR GAINERS (NSE)
Lupin gets USFDA nod for
The impact of RBI policy was seen on Company Close %
Suprax
realty, oil & gas, auto and metal Gain
sectors. However consumer durable, ACC 1,061.85 4.73
Tata Motors Finance to Ambuja
fmcg, banks, capital goods witnessed 148.25 3.89
extend funding to all Fiat Cements
buying.
cars Wipro 433.85 2.40
In midcap space, Wockhardt shot up
Goldiam International MAJOR GAINERS (BSE)
17.4%. Rajesh Exports, GE Shipping,
sparkles on export order Company Close %
Rashtriya Chemical and AIA
Engineering were up 7-12.5% while Gain
ACC strikes 52-week high
ING Vysya Bank, IBN18 Broadcast,
as cement dispatches ACC 1,056.95 4.20
Phoenix Mills and Indiabulls Financial
surge in October 2010 Larsen 2,133.25 2.53
lost 3-4.5%.
Mortgage lenders slip as Wipro 434.00 2.49
In smallcap space, Reliance Media,
70 RBI tightens provisioning
Ahmednagar Forging, Mandhana
norms on home loans MAJOR LOSERS (NSE)
Industries, Tata Elxsi and Talwalkars
Company Close %
Fitness went up 9-11% while Intra
Kiri Dyes acquires Dystar Loss
Infotech, Splash Media, Asian Star,
Group DLF 349.20 3.35
Oscar Invest and Eveready Industries
Suzlon Energy 56.65 3.08
declined 5.6-9.7%. Bharti Airtel 329.25 1.80
Govt works on subsidy
regime for petro goods
About 1545 shares advanced while MAJOR LOSERS (BSE)
1754 shares declined on BSE. Nearly
ABG Shipyard sets sail on Company Close %
143 shares remained unchanged
large order win Loss
DLF 349.10 3.28
Cipla 350.75 1.78
Reliance 1,074.35 1.72

5th Floor, Crescent Chamber, Tamarind Lane, Fort, Mumbai - 400 001, India T: +91 22 2265-2626, F: +91 22 2265-1642. PAGE 1
LALKAR
DALAL STREET BREAKFAST
Wednesday, 3rd November, 2010

Global Markets

Asian Update US: Market Action Technically


Japan

RBS Said in Talks for $6.4 US INDEX WATCH


Billion Asset Sale to
Mitsubishi UFJ INDEX Close/Last %
CHG
Yen Trades Near One- Dow 11,188.72 +0.58
Week Low Against Euro on S&P 500 1,193.57 +0.78
Stock Gains, Global Nasdaq 2,533.52 +1.14
Recovery
A day before the Federal Reserve
Toyota Says Sudden- (most probably) unveils new GLOBAL WATCH
Acceleration Lawsuits quantitative easing measures, US
Don't Identify an `Actual stocks and treasuries showed Nikkei 9159.98 +0.06%
Defect' handsome gains as investors lapped TOPIX 803.12 -0.02%
up securities in an manner which Hang
China 24106.80 +1.84%
could very loosely (and satirically) be Seng
described as "front running the Fed". S&P/ASX
Airbus Set to Erode 4728.40 +0.57%
Boeing's Lead in China 200
The Dow rallied 64 points as Home Shanghai 3050.66 +0.17%
With 100-Jet Order
Depot, American Express and S&P/TSX 12681.40 +0.13%
Microsoft all climbed at least 1.6 Mexico
Hong Kong Biggest 35722.70 +0.43%
percent, leading the index to touch Bolsa
Beneficiary of QE2, Global
its highest level since the Sept 15
Recovery, Goldman Sachs
Lehman Brothers' bankruptcy before SECTORAL WATCH)
Says
paring gains and retreating from
higher levels. US markets
Metals Producers Rise on
Report China Studies Sector Change
Mastercard surged 2.9 percent after %
Starting Strategic Reserves
its results beat analyst estimates. Energy 1.11%
Other stocks also broadly advanced Materials .91%
Market with the S&P rising 0.78 percent and Industrials .78%
the Nasdaq rising 1.14 percent. Cons Disc 1.05%
Opinion Cons Staples .43%
Among other asset classes, oil surged Health Care .78%
“70 to a six month high of almost Financials .26%
The Fed created all these $84/barrel while cotton rose to record Info Tech .92%
levels and sugar reached a 29-year Telecom Svc .85%
expectations and it’s going
high. Utilities 1.18%
to be hard for them to
deliver; anything less than Today’s rise (particularly in STOCKS IN THE NEWS
$500 billion in QE would commodities) indicates, at least to us, Stock News %
be uncivilized. that the market is increasingly surer CHG
that the Fed is going to announce
” quantitative easing measures and
JP Morgan Strong
John Lynch, Kinect 1.63
that the quantity is going to be in line
chief equity strategist, orders
with (if not significantly more than)
Wells Fargo Funds Mastercard Stellar
market expectations. 2.92
Management earnings
Still, tomorrow is another day.

5th Floor, Crescent Chamber, Tamarind Lane, Fort, Mumbai - 400 001, India T: +91 22 2265-2626, F: +91 22 2265-1642. PAGE 2
LALKAR
DALAL STREET BREAKFAST
Wednesday, 3rd November, 2010

Observations

US elections and other Observations

Well, we’d have liked to use


our artistic license and call it
100 years of solitude, but
given that governance
(especially polity) leaves
quite a bit to be desired
when it comes to elegance,
we’ rather simply call it 100
years of governance.

John W Palmer (at


www.johnwpalmer.com) has
done a wonderful job
encapsulating the 100 years
of give-and-take between
the Republicans and the
Democrats. As we move into
the last leg of the US
elections, with Democrats
Fig 1.1: Mapping 100 years of US governance facing one of their worst
(Source: johnwpalmer.com) defeats in decade, its nice to
get a bit of perspective on
hits and misses. .

And finally, before the Fed’s (“all-important”) announcement tomorrow, a puzzle for you to decode
(courtesy the Fed and John Lohman/Zerohedge):

70

More on it tomorrow!

5th Floor, Crescent Chamber, Tamarind Lane, Fort, Mumbai - 400 001, India T: +91 22 2265-2626, F: +91 22 2265-1642. PAGE 3
Stock Ratings
Positive Ratings
Buy (B) – This rating means that we expect the stock price to move up and achieve our specified price target, if any, over the specified time period.
Buy at Declines (BD) – This rating means that we expect the stock to provide a better (lower) entry price and then move up and achieve our specified price target, if
any, over the specified time period.
Outperform (OP) – This is a relative rating, which means that we expect the stock price to outperform the specified market/sector index over the specified time
period.
Neutral Ratings
Hold (H) – This rating means that we expect no substantial move in the stock price over the specified time period.
Market perform (MP) – This is a relative rating, which means that we expect the stock price to perform in line with the performance of the specified market/sector
index over the specified time period.
Negative Ratings
Sell (S) – This rating means that we expect the stock price to go down and achieve our specified price target, if any, over the specified time period.
Sell into Strength (SS) – This rating means that we expect the stock to provide a better (higher) exit price in the short term, by going up. Thereafter, we expect it to
move down and achieve our specified price target, if any, over the specified time period.
Underperform (UP) – This is a relative rating, which means that we expect the stock price to underperform the specified market/sector index over the specified
time period.
Avoid (A) – This rating means that the valuation concerns and/or the risks and uncertainties related to the stock are such that we do not recommend considering the
stock for investment purposes.

ANALYST DISCLAIMER

This document has been prepared by Lalkar Securities Pvt. Ltd. This report is the personal information of the authorized recipient and does not construe
to be any investment, legal or taxation advice to you. This document does not constitute an offer or solicitation for the purchase or sale of any financial instrument or
as an official confirmation of any transaction.

We, at Lalkar Securities Pvt. Ltd., have prepared this report based on the data we consider reliable, but we do not vouch it to be accurate or complete, and
it may not be relied upon as such. Lalkar Securities Pvt. Ltd. does not in any way be responsible for any loss or damage that may arise to any person due to the
content in the report. Each recipient of this document should make an independent valuation of their own in the securities referred to in this report.

Besides, the data in this document is subject to change without prior notice and is intended only for the person or entity to which it is addressed to and
may contain confidential and/or privileged material and is not for any type of circulation. Any review, retransmission, or any other use of the report and the content
within, is prohibited.

For detailed disclaimer please visit http://www.lalkar.in.

Disclosure of Interest
1. The analysts who have prepared the report have in no way received or are expected to receive any compensation from the subject company.
2. The analysts may or may not hold any position in the subject company’s stock, as on the date of release.
3. Neither the company nor an affiliate company Lalkar Securities Pvt. Ltd. has received a mandate from the subject company.
4. Lalkar Securities Pvt. Ltd., or its affiliates do not hold any paid up capital in the company