Morning Notes

07.06.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

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

South Korea GDP Expands 0.9%, Unchanged From Initial Estimate South Koreas economy expanded at the same pace as the central bank initially estimated in the first quarter as corporate investment and government spending rose amid Europes debt crisis. Gross domestic product grew 0.9 percent over the three months through March from the previous quarter, unchanged from an April estimate, the Bank of Korea said in Seoul today. The economy expanded 2.8 percent from a year earlier, also matching the banks April estimate. South Korea is bracing for falling demand for its automobiles and electronics as Europes debt crisis threatens to accelerate a global slowdown. Dollar Is Near Week-Low Before Bernanke Speaks on Economy The dollar was within 0.1 percent of a more than one-week low against the euro on bets Federal Reserve Chairman Ben S. Bernanke today may signal more stimulus is needed to spur a recovery in the worlds largest economy. The yen declined versus most of its 16 major counterparts as Asian stocks extended a global rally, damping demand for loweryielding currencies. The euro remained higher after its biggest gain in three months against the greenback yesterday amid speculation the European Central Bank will act to rein in the regions debt crisis after leaving benchmark interest rates at a record low. Oil Gains a Fourth Day amid Economic Stimulus Speculation Oil advanced for a fourth day in New York amid speculation policy makers in the U.S. and Europe will take steps to revive the slowing economy, boosting fuel demand. Futures increased as much as 0.7 percent for the longest run of gains since April. Federal Reserve Bank of Atlanta President Dennis Lockhart said yesterday a fragile recovery may require more stimulus while European Central Bank President Mario Draghi said officials stand ready to act as the euro regions expansion outlook worsens.

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
4997.10 9605.70 4887.20 3126.65 3959.00 6946.20 2002.95 16454.30

Pt. Chg.
+133.80 +198.05 +126.30 +103.45 +96.45 +144.45 +54.40 +433.66

Change %
2.75 2.11 2.65 3.42 2.50 2.12 2.79 2.71

Global Markets
Change (%) 2.30 2.40 2.37 2.36 2.09 2.42 1.06 1.56 0.23

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

Close 1315.13 2844.72 12414.79 5384.11 6093.99 3058.44 8624.18 18808.68 2766.74

Global data recorded/updated last as on 07, June 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 5.75 4.82 4.65 4.62 Indian Markets

NIFTY TOP LOSERS

Change (%) -0.19 -0.18

Company TATA MOTORS HERO HONDA GUJ AMB CEME LARSEN & TOU

Close 234.40 1,955.05 152.90 1,267.15

Company CIPLA DR. REDDY

Close 309.15 1,615.50

MARKET SUMMARY
Buying interest gained momentum at Dalal Street yesterday as the Sensex notched up its biggest daily percentage gain since early January as bets increase that the RBI may cut interest rates this month while a forecast of a good monsoon also bolstered sentiment. Firm cues from the Asian and European markets were the icing on the cake as G7 officials vowed to undertake coordinated and swift action to respond to Europes debt troubles. Acceleration in US service sector industry also tempered fears of a slowdown in the worlds largest economy. Investors were closely eying the ECB monetary policy decision later yesterday and hoping for further monetary easing measures in the debt plagued Euro area. The BSE SENSEX closed at 16,454.3, up by 433.66 points or by 2.71 per cent and the NSE Nifty ended at 4,997.1, up by 133.8 points or by 2.75 per cent. The BSE Sensex touched intraday high of 16,494.5 and intraday low of 16,100.36 The NSE Nifty touched intraday high of 5,010.45 and intraday low of 4,886.15. Meanwhile, the BSE MIDCAP closed at 5,932.3, up by 103.84 points or by 1.78 per cent, while the BSE SMLCAP ended at 6.284.62 up by 91.4 points or by 1.48 per cent. The Sensex spurted at start as firm cues from the Asian markets and a recovering rupee boosted domestic sentiment. The domestic benchmarks continued their northward journey during noon trade and hit the days high as buying picked up amid firm European markets cues. All 30 Sensex stocks advanced yesterday. The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3071, shares advanced were 1893 while 1050 shares declined and 128 were unchanged. The top gainers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 234.20,+5.71%), Larsen & Toubro Ltd. (Rs. 1267.25,+4.77%), Jindal Steel & Power Ltd. (Rs. 432.05,+4.63%), Hero MotoCorp Ltd. (Rs. 1945.75,+4.29%), Sterlite Industries (India) Ltd. (Rs. 93.60,+4.06%), among others. Among the Asian stock markets, Shanghai Composite ended down 0.10 per cent, Hang Seng closed up 1.43 per cent and Nikkei 225 advanced 1.81 per cent.

R. Wadiwala

NEWS UPDATES
MACRO India is seeking investments from Germany and the UK to develop National Manufacturing and Investment Zones, proposed under the Delhi-Mumbai Industrial Corridor (DMIC) project. "Major countries are coming forward to be partners for establishment of NMIZs. Japan has already come and has made major commitments. We are in active discussion with Germany and the UK and you will see things changing," Commerce and Industry Minister Anand Sharma said. COMPANY KEC International, a global infrastructure EPC major, an RPG group company has secured new ordres worth Rs 3.91 billion spread across its Transmission and Telecom business. In Transmission, the company has received an order worth Rs 3.61 billion for 400kv double ciruit transmission line on turnkey basis in Tamilnadu. Ashok Leyland has bagged an order worth USD 6 million for 50 vestibule buses from the Bangladesh Road Transport Corporation (BRTC) under the India Line of Credit (LOC) scheme offered. This order is for the improvement of urban transportation in that country. We were the first to introduce vestibule buses in India and now are excited about introducing this vehicle in Bangladesh and help tale urban transportation there to a new level in partnership with BRTC with whom we share a long and mutually beneficial relationship.`` In a setback to thermal plants facing fuel shortage, Coal India has informed power producers that it can assure only 60% of supply and would "gradually" reach the 80% mark in the coming years. "Coal India is saying 80% coal supply to power plants is not possible, they can only supply up to 60% and would increase it to 80% in the next four years," a Power Ministry official said. This proposed arrangement would be applicable for thermal power plants commissioned after March, 2009. Tata Motors` Dharwad plant for small commercial vehicles is now operational and has begun to produce the Tata ACE Zip and the Tata Magic IRIS. Established with an investment of over Rs 9 billion, the plant spans across an area of 405 acres. The plant has been constructed as per the norms specified by Indian Green Building Council (IGBC). The plant has been equipped with state-of-the-art equipment following lean manufacturing principles. GVK Power & Infrastructure won approval on Wednesday from the Australian state of Queensland for a proposed 500-km rail line, clearing another hurdle for its $10 billion Alpha coal project. The state is looking to speed approvals for projects in its Galilee Basin in central Queensland, where five major mines could produce more than 200 million tonnes of coal a year, putting it on par with the state's coal-rich Bowen Basin. Gujarat Pipavav Port Ltd has announced that the Board of Directors at its meeting held on June 05, 2012, have approved the project expansion plan for Pipavav Port at a total cost of Rs. 10,972mn. This will be financed through a mix of Debt, Equity and Internal Accruals. Further to the resolution passed in the Board meeting held on May 03, 2012, the Board has also approved convening of an Extraordinary General Meeting of shareholders on July 02, 2012 at its Registered Office to approve issue of equity shares for an aggregate amount of Rs. 3,500 mn. Alstom T&D India, an arm of French firm Alstom, said it has bagged a contract worth Rs 41 crore from PowerGrid Corp for setting up transmission network at Daltonganj in Jharkhand. Alstom T&D India has been awarded a contract worth Rs 41 crore from Power Grid Corporation of India Limited for the supply, erection and commissioning of a substation at Daltonganj, Jharkhand, an official statement said.

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 4949.15 9533.37 705.08 62.24 309.23 460.40 1240.09 91.39 799.83 2124.75 406.10 94.33 90.35 2386.80 212.38 256.58 1140.69 Lower 1 4975.93 9620.87 710.78 63.76 312.73 465.14 1250.14 92.13 806.26 2141.84 409.37 95.09 91.08 2406.00 214.08 258.65 1149.87 Axis 5000.72 9745.36 715.48 65.28 315.24 471.89 1265.20 93.88 812.69 2158.93 412.64 95.85 91.80 2425.20 215.79 260.71 1159.04 Higher 1 5020.54 9856.17 720.46 66.23 318.43 475.16 1279.00 94.53 818.32 2173.89 415.50 96.51 92.44 2442.00 217.29 262.52 1167.07 Higher 2 5036.75 9968.27 725.35 67.51 320.82 478.75 1288.57 95.64 819.33 2176.56 416.01 96.63 92.55 2445.00 217.55 262.84 1168.51

BULLISH ON SHORT TERM

ITC DABUR BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 239-241-243 SL 228 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 110-112-113 SL 104

FII and DII Investments

FIIs Date *06 June June-2012 2012 Till Date Purchase 3310.26 10884.40 282137.90 Purchase 1411.75 1414.20 52091.60 Sale 3041.05 12861.20 240970.30 Sale 922.61 1071.80 57955.30
Inv (crs)

+269.21 -1976.90 +41067.50

Inv (crs)

DIIs

Date *06 June June-2012 2012 Till Date * Provisional Data

+489.14 +342.40 -5863.30

R. Wadiwala

Following the MUTUAL FUNDS

IDFC Nifty G
Latest NAV: 9.47 (05/06/12) 52-Week High: 10.90 (07/07/11) 52-Week Low: 8.74 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
ITC Reliance Industries Infosys ICICI Bank HDFC

Top 5 Sectors
% Net Assets
7.64 7.24 6.84 5.86 5.73

Top 5 Sectors
Financial Energy Technology FMCG Automobile

% Net Assets
25.63 16.86 12.40 10.11 8.59

Top 3 Holding Company Details ITC

LTP: 225.85 PB Ratio: 9.42 PE Ratio: 28.65 Year to Date Return: 12.20 Other Funds That Own ITC
Fund name
SBI Magnum FMCG ICICI Prudential FMCG LIC Nomura MF Equity LIC Nomura MF Growth

% Net Asset
36.78 35.75 9.78 9.75

Date
Apr 30, 2012 May 31, 2012 Apr 30, 2012 Apr 30, 2012

Reliance Industries
LTP: 702.25 PB Ratio: 1.40 PE Ratio: 11.37 Year to Date Return: 1.35

Other Funds That Own Reliance Industries

Fund name
Goldman Sachs Shariah BeES ICICI Prudential Dynamic ICICI Prudential Dynamic Inst I ICICI Prudential Dynamic Inst

% Net Asset
16.44 10.15 10.15 10.15

Date
Mar 31, 2012 May 31, 2012 May 31, 2012 May 31, 2012

Infosys
LTP: 2389.30 PB Ratio: 4.61 PE Ratio: 17.18 Year to Date Return: -13.59

Other Funds That Own Infosys

Fund name
Franklin Infotech ICICI Prudential Technology SBI Magnum IT DSPBR Technology.com Reg

% Net Asset
42.52 41.24 38.91 38.40

Date
Apr 30, 2012 May 31, 2012 Apr 30, 2012 Apr 30, 2012

R. Wadiwala

DERIVATIVES NOTES
Nifty June 2012 futures were at 4975.50, at a discount of 21.60 points compared to spot closing of 4997.10. Turnover on NSE`s futures & options (F&O) segment surged to Rs 108848.26 crore from Rs 73256.34 crore on Tuesday, 5 June 2012.
% Change OI
1.43

Institutional Investment Trends

(in Crores) JUNE 06, 2012

BUY
1778.36

SELL
1818.63

Net Buy/Sell
-40.27

OIEoD
7776.56

INDEX FUTURES

State Bank of India (SBI) June 2012 futures were at 2148, at a discount compared to spot closing of 2153.10. Tata Motors June 2012 futures were at 233.90, near spot closing of 233.65. L&T June 2012 futures were at 1266.80, near spot closing of 1264.05. In the cash market, the S&P CNX Nifty surged 133.80 points or 2.75% to settle at 4,997.10, its highest closing level since 8 May 2012.

STOCK FUTURES

1856.06

1277.78

578.28

21664.07

6.34

Put Call Ratio Symbol BAJAJ-AUTO INFY ABGSHIP NTPC WIPRO BANKNIFTY NIFTY NIFTY RANBAXY NIFTY CAIRN RELIANCE NIFTY Expiry Date 26-Jul-12 26-Jul-12 28-Jun-12 26-Jul-12 26-Jul-12 26-Jul-12 30-Jun-16 31-Dec-15 26-Jul-12 26-Jul-12 26-Jul-12 26-Jul-12 27-Sep-12 Put 2250 60875 44000 14000 3500 8625 1700 2050 2500 10544000 2000 50000 876500 Call 125 8250 6000 2000 500 1500 350 500 1000 4802650 1000 28000 521350 Ratio 18.00 7.38 7.33 7.00 7.00 5.75 4.86 4.10 2.50 2.20 2.00 1.79 1.68

R. Wadiwala

DIVIDEND AND OTHER INFORMATION

Indian Metals & Ferro Alloys Limited has informed the Exchange that the dividend cheque/ warrants/ demand drafts will be dispatched on or before August 25, 2012. Atlanta Limited has informed the Exchange that Mr. Mahesh Koirala, Chief Financial Officer of the Company has resigned from the office, from the closure of working hours of May 26, 2012. Innoventive Industries Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 30, 2012 has recommended a final dividend of Rs.3/- (Rupees Three Only) per Equity share of Rs.10/- each for the year ended March 31, 2012.

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.

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R. Wadiwala