Morning Notes

08.06.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

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

Japan Economy Grows More than Initial Estimate Japans economy expanded more than the government initially estimated in the first quarter, adding to evidence that the worlds third-largest economy will sustain its recovery this year. Gross domestic product grew an annualized 4.7 percent in the three months ended March 31, the Cabinet Office said in Tokyo today, compared with a preliminary estimate for a 4.1 percent expansion. The median forecast of 18 economists surveyed by Bloomberg News was for 4.5 percent growth. Oil Drops a Second Day After Bernanke Holds Off on U.S. Stimulus Oil fell for a second day in New York after Federal Reserve Chairman Ben S. Bernanke said the central bank will wait before deciding if economic stimulus is needed for the U.S., the worlds biggest crude user. Futures dropped as much as 1.5 percent, trimming the first weekly increase in six. Fed officials need to assess the risk from Europes debt crisis and U.S. budget cuts, Bernanke said to the Joint Economic Committee yesterday, without specifying the options to boost growth. Crude slumped 17 percent in May, the biggest monthly drop in more than three years, on speculation Europes debt crisis may worsen and curb fuel demand. Asian Stocks Commentary Snap Three-Day Gain on Bernanke

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
5049.65 9691.10 4937.40 3180.20 3996.50 7005.35 2022.60 16649.05

Pt. Chg.
+52.55 +85.40 +50.20 +53.55 +37.50 +59.15 +19.65 +194.75

Change %
1.05 0.89 1.03 1.71 0.95 0.85 0.98 1.18

Global Markets
Change (%) -0.01 -0.48 0.37 1.18 0.82 0.42 -1.76 -0.51 -0.63

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

Close 1314.99 2831.02 12460.96 5447.79 6144.22 3071.16 8487.45 18582.62 2741.95

Asian stocks fell amid concern that central banks and policy makers have too few tools left to bolster global economic growth. Sony Corp. (6758), Japans No. 1 exporter of consumer electronics, slid 3.6 percent. Sharp Corp. (6753), the Japanese maker of liquid- crystal displays that gets more than half of revenue outside the country, dropped 3.9 percent. BHP Billiton Ltd. (BHP), the worlds largest mining company gained 1.4 percent after China cut the benchmark interest rate for the first time since 2008 and metals prices climbed.

Global data recorded/updated last as on 08, June 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 3.90 3.60 3.44 3.19 Indian Markets

NIFTY TOP LOSERS

Change (%) -2.39 -2.26 -1.84 -1.46

Company STERLITE (I) AXIS BANK H D F C BANK MARUTI UDYOG

Close 97.20 1,057.10 537.80 1,143.25

Company WIPRO VIDESH SANCH GAIL POWGRICO LTD

Close 400.80 221.05 320.65 108.05

MARKET SUMMARY
Powered by a global stock market rally, a firm rupee and hopes of a rate cut by the RBI, the key domestic benchmarks notched up robust gains yesterday as the Sensex rallied over 194 points. The Indian rupee appreciated by 34 paise to 55.02 as against the US dollar yesterday. A recovery in the rupee is good news for companies looking to raise funds from overseas markets. Market participants are also pricing in another interest rate cut when the RBI meets later this month. Firm global cues also bolstered sentiment with all eyes on the Fed as it faces a Congressional panel. The Fed may signal more monetary easing to bolster economic growth in the US. Speculation that the EU is working on a rescue plan for Spanish banks, also bolstered sentiment across global markets. Meanwhile, the BSE Sensex touched intraday high of 16,680.59 and intraday low of 16,519.89 The NSE Nifty touched intraday high of 5,059.65 and intraday low of 5,007.75. The BSE MIDCAP closed at 5,975.23, up by 42.93 points or by 0.72 per cent, while the BSE SMLCAP ended at 6,313.63, up by 29.01 points or by 0.46 per cent. The Sensex spurted at start amid firm global cues. The benchmarks pared gains as investors booked profits. However, the benchmarks regained momentum as a stronger rupee, rate cut bets and firm cues from European markets bolstered sentiment. Out of the 30 Sensex stocks, there were 25 advances and 5 declines. The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3522, shares advanced were 1557 while 1217 shares declined and 748 were unchanged. The top gainers of the BSE Sensex pack were Sterlite Industries (India) Ltd. (Rs. 97.20,+3.85%), HDFC Bank Ltd. (Rs. 537.25,+3.45%), Maruti Suzuki India Ltd. (Rs. 1143.55,+3.14%), DLF Ltd. (Rs. 194.00,+3.11%), ICICI Bank Ltd. (Rs. 829.95,+2.83%), among others. Among the Asian stock markets, Shanghai Composite ended down 0.71 per cent, Hang Seng closed up 0.85 per cent and Nikkei 225 gained 1.24 per cent.

R. Wadiwala

NEWS UPDATES
MACRO Indian refiners cut imports from Iran by 38% in May from a year ago, tanker discharge data showed, in a second month of steep reductions as they switch suppliers to cushion the impact of new U.S. sanctions on Tehran. The cutbacks raise New Delhi's chances of winning a waiver similar to that granted by the United States to Japan and some European countries after "substantial" reductions in their imports. COMPANY YES bank and Export-Import Bank of Malaysia Berhad (EXIM Bank), a development financial institution whollyowned by Malaysia`s Ministry of Finance, have entered into a USD 100 million master facility agreement, in order to facilitate ongoing trade finance transactions between YES Bank and its importing customers. This facility will play an active role towards further augmenting trade flows in the Indo Malaysia corridor by arranging overseas trade credit for Indian importers. L&T Construction, part of the Larsen & Toubro conglomerate has announced on Thursday that it has bagged new orders valued Rs 24.1 billion across various business during the first quarter of 2012-13. The buildings & Factories IC has secured new orders worth Rs 18.21 billion from leading developers for the construction of major residential towers across various cities in the northern part of the contry. State-run BHEL said it has commissioned a 250 MW unit at Harduaganj thermal power project in Uttar Pradesh. "BHEL has commissioned a 250 MW unit at Harduaganj Thermal Power Station (TPS), in Uttar Pradesh. With this, six million units of electricity will be added to the grid of the power deficit state, every day," a company statement said. Wipro Technologies, the Global Information Technology, Consulting and Outsourcing business of Wipro Limited has announced the launch of Wipro m-eXecute. Wipro m-eXecute is the first ever mobility app for the manufacturing sector, developed in collaboration with SAP and caters to the niche space of manufacturing operations. Dr. Reddy's Laboratories announced that it has launched Ropinirole Hydrochloride XR (Extended-Release) tablets (2 mg, 4 mg, 6 mg, 8mg, and 12 mg), a bioequivalent generic version of REQUIP XL tablets in the US market on June 06, 2012 following the approval by the United States Food & Drug Administration (USFDA) of Dr. Reddy's ANDA for Ropinirole Hydrochloride XR (extended-Release) tablets. HCL Technologies Ltd., leading provider of global IT services unveiled its Global Delivery Centre for business process outsourcing services in Quezon City, Manila in the presence of Ms Fe Agoncilo-Reyes, assistant secretary of the Department of Trade and Industry (DTI). This centre which will emplo y 400 profe ssionals, expands HCL's Integrated Global Deli very Model (IGDM) to create global delivery capability for its clients. Apollo Hospitals Enterprise Ltd will buy out partner Imperial Hospitals stake in a Bangalore hospital-cum-research facility for around Rs 100 crore. We have entered into an agreement to buy 100 per cent (stake) of the Bangalore facility, in which we earlier had 51 per cent, said Suneeta Reddy, joint managing director of Apollo. Banswara Syntex Ltd has entered into Joint Venture Agreement with Treves S.A., France with 50:50 Equity Shareholding and incorporated a Special purpose vehicle (SPV) to be known as Treves Banswara Pvt Ltd.

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 5019.27 9754.94 714.54 63.11 330.52 473.87 1258.00 94.37 827.42 2148.62 406.75 96.34 92.24 2433.99 216.80 260.56 1142.18 Lower 1 5033.60 9844.30 718.30 64.64 332.18 477.70 1269.18 95.04 834.08 2165.90 410.02 97.12 92.98 2453.57 218.55 262.66 1151.37 Axis 5050.93 9953.65 723.05 66.16 336.85 482.52 1279.37 96.91 840.74 2183.19 413.29 97.89 93.72 2473.15 220.29 264.75 1160.56 Higher 1 5063.22 10053.09 728.09 67.62 340.18 486.87 1290.28 97.58 846.56 2198.31 416.16 98.57 94.37 2490.28 221.82 266.59 1168.60 Higher 2 5080.52 10135.49 732.99 68.70 343.60 490.47 1299.87 98.70 847.60 2201.01 416.67 98.69 94.49 2493.34 222.09 266.91 1170.03

BULLISH ON SHORT TERM

HDFCBANK ZEEL BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 543-545-547 SL 531 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 140-142-143 SL 134

FII and DII Investments

FIIs Date *07 June June-2012 2012 Till Date Purchase 2737.99 14213.70 285467.20 Purchase 939.25 2245.00 52922.40 Sale 2062.51 16021.30 244130.40 Sale 972.99 1432.60 58316.10
Inv (crs)

+675.48 -1807.70 +41236.70

Inv (crs)

DIIs

Date *07 June June-2012 2012 Till Date * Provisional Data

-33.74 +812.40 -5393.30

R. Wadiwala

Following the MUTUAL FUNDS

UTI Master Plus '91 G

Latest NAV: 75.73 (06/06/12) 52-Week High: 85.66 (25/07/11) 52-Week Low: 69.39 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
ITC ICICI Bank Infosys Hind Unilever SBI

Top 5 Sectors
% Net Assets
7.36 6.08 5.16 5.01 4.87

Top 5 Sectors
Financial Energy FMCG Technology Automobile

% Net Assets
24.82 13.65 12.37 11.78 6.74

Top 3 Holding Company Details ITC

LTP: 234.15 PB Ratio: 9.60 PE Ratio: 29.21 Year to Date Return: 16.32 Other Funds That Own ITC
Fund name
SBI Magnum FMCG ICICI Prudential FMCG LIC Nomura MF Equity Religare AGILE

% Net Asset
44.01 35.75 9.81 9.71

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

ICICI Bank
LTP: 807.10 PB Ratio: 1.51 PE Ratio: 14.09 Year to Date Return: 17.89

Other Funds That Own ICICI Bank

Fund name
Goldman Sachs Banking BeES Reliance Banking ETF UTI Banking Sector Reg Religare Banking

% Net Asset
27.55 27.10 23.86 23.47

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

Infosys
LTP: 2410.05 PB Ratio: 4.61 PE Ratio: 17.17 Year to Date Return: -12.84

Other Funds That Own Infosys

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

% Net Asset
42.88 42.52 41.24 38.40

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

R. Wadiwala

DERIVATIVES NOTES
Nifty June 2012 futures were at 5,033.75, at a discount of 15.90 points compared to spot closing of 5049.65. Turnover on NSE`s futures & options (F&O) segment declined to Rs 90505.21 crore from Rs 108848.26 crore on Wednesday, 6 June 2012.
% Change OI
9.86

Institutional Investment Trends

(in Crores) JUNE 07, 2012

BUY
2165.35

SELL
1033.84

Net Buy/Sell
1131.51

OIEoD
8543.52

INDEX FUTURES

STOCK FUTURES

1640.05

998.94

641.11

22150.14

2.24

State Bank of India (SBI) June 2012 futures were at 2162, at a discount compared to spot closing of 2166.05. ICICI Bank June 2012 futures were at 829.40, at a discount compared to spot closing of 837. Reliance Industries (RIL) June 2012 futures were at 723.50, near spot closing of 722. In the cash market, the S&P CNX Nifty surged 52.55 points or 1.05% to settle at 5,049.65, its highest closing level since 7 May 2012.

Put Call Ratio Symbol BAJAJ-AUTO MRPL INFY ABGSHIP WIPRO NIFTY NIFTY MINIFTY LT MARUTI ORIENTBANK ABB RANBAXY Expiry Date 26-Jul-12 28-Jun-12 26-Jul-12 28-Jun-12 26-Jul-12 30-Jun-16 31-Dec-15 26-Jul-12 30-Aug-12 26-Jul-12 28-Jun-12 28-Jun-12 26-Jul-12 Put 2250 44000 66125 44000 3500 1700 2050 1160 10000 5500 3000 750 2500 Call 125 4000 8500 6000 500 350 500 320 3000 1750 1000 250 1000 Ratio 18.00 11.00 7.78 7.33 7.00 4.86 4.10 3.63 3.33 3.14 3.00 3.00 2.50

R. Wadiwala

DIVIDEND AND OTHER INFORMATION

Ntpc Limited has informed the Exchange that Meja Urja Nigam Private Limited, a Joint Venture of NTPC Ltd and UPRVUN Limited has achieved financial closure for Meja Thermal Power Project (1320 MW), located in the state of Uttar Pradesh. A loan agreement for Rs. 7,575 crore was signed on June 06, 2012 with consortium of sixteen Banks led by State Bank of India and syndicated by SBI Capital Markets Ltd. Banswara Syntex Limited has informed the Exchange that the Company has entered into Joint Venture Agreement with Treves S.A., France with 50:50 Equity Shareholding and incorporated a special purpose vehicle (SPV) to be known as Treves Banswara Pvt. Ltd. This new J.V. Company will produce laminated knitted and woven textile for internal furnishing of Trains, Buses and other automobiles. Panoramic Universal Limited has informed the Exchange that the present Hotel property structure 'United Inn' of an overseas subsidiary of the Company namely Panoramic Ace Properties Inc. situated at Syracuse, New York has been dismantled in view of company's plan of constructing a new hotel at that place.

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R. Wadiwala