Markets for you

Indices Global DJIA Nasdaq FTSE Nikkei Hang Seng India Sensex S&P CNX Nifty SGX Nifty CNX Bank Index BSE Power BSE Small Cap BSE Healthcare July 22 12681 2859 5935 10132 22445 July 22 18722 5634 5634 11292 2570 8463 6418 July 21 12724 2834 5900 10010 21987 July 21 18436 5542 5539 11050 2546 8394 6341 Absolute % Change Change -43 24 35 122 458 -0.34 0.86 0.60 1.22 2.08

25 July 2011

GLOBAL INDICES Dow Jones ended lower on Friday due to disappointing earnings from Caterpillar. At 9.00 am in the morning, Asian markets were trading lower, with Nikkei trading 0.63% down and Hang Seng trading around 0.89% lower. Nikkei rose on Friday following the successful conclusion of negotiations over a new Greek bailout and as the yen weakened against the euro. Hang Seng index ended higher on Friday on news that European leaders had finally reached agreement for a second Greek bailout. FTSE index ended higher on Friday, in spite of banks paring gains after initial euphoria over a Greek debt bailout wore off. INDIAN EQUITY MARKET At 9.00 am in the morning, the SGX Nifty was trading 0.34% lower. Indian equities ended higher on Friday as sentiments improved after Eurozone leaders approved a 109bn euro second bailout plan to prevent debt- ridden Greece from a default. First-quarter corporate earnings on domestic front gave a further boost to the market. Bank, IT, capital goods, and automobile stocks were among the major gainers. Axis Bank, the top gainer on Nifty, ended up 4.6% on posting better than expected earnings. Fertiliser companies surged on news that the government is likely to buy around Rs 7000 cr of outstanding bonds from the companies during July 22-29. RIL closed up 1.45% on news that the CCEA is likely to meet on Friday to discuss Britain's BP Plc's proposal to buy 30% stake in 23 of the company's oil and gas blocks for $7.2 bn. Bharti Airtel ended up 4.1% on prospects of an improvement in margins as the company raised call charges in some circles. Short covering in other heavyweight stocks also helped key indices end higher with SBI, Tata Steel, Infosys, L&T, ICICI Bank, and RComm ended up 1.7-3.5%. UBI and Indiabulls Power gained over 5% on better than expected results. DOMESTIC NEWS Industry Ministry is looking at revising base year to 2010-11 for computation of inflation index with a view to present more realistic picture of the price situation. Indias forex reserves fell marginally by $112 mn to $314.51 bn for the week ended July 15. SEBI starts probing a strange upsurge in FII buying activities days before the companies announce their quarterly results. A senior finance ministry official says India will allow qualified foreign investors to invest up to $10 bn in domestic mutual funds from August 1. IRDA says that LIC was dominating the pension market which could be risky and it was important for other insurance companies to participate in the pension market. Nalco plans to bid for an upcoming 4000MW ultra-mega power project in Bhedabahal in Orissa. Tata group's retail venture Trent Ltd signs a MoU with Spain's Inditex Group for Massimo Dutti stores in India. L'Oreal SA plans to invest Rs.500cr to open more factories, laboratories and an innovation centre in India. Zydus Cadila is in talks to acquire the brands and manufacturing facility of Biochem Pharmaceuticals. Valecha Engineering Ltd wins two road projects with a combined value of Rs.148cr. Varun Industries Ltd's Madagascar arm signs an agreement to sell rare earth minerals to an Indian state-owned company which comes under the Department of Atomic Energy. Redington (India) Ltd to invest around Rs.50cr in setting up distribution centres at Kolkata, Delhi and Mumbai. Axis Bank seeks modifications to the in-principle approval given by the RBI for the acquisition of certain businesses of Enam Securities after the central bank raised some objections. IDFC to raise at least Rs.200cr through two-year bonds. PNB Housing Finance Ltd to raise Rs.200cr through a 10-year Bond issue. Religare Capital Markets to acquire a controlling stake in South African brokerage firm Noah Financial Innovation for an undisclosed amount.

Absolute % Change Change 286 92 95 242 24 69 77 1.55 1.67 1.72 2.19 0.93 0.82 1.21

Date July 22 Month Ago Year Ago

P/E, Dividend Yield Sensex Div. P/E Yield 20.57 1.26 18.63 21.48 1.19 1.15

Nifty P/E 19.64 19.46 22.75 % Change 4.62 4.06 3.48 % Change -0.24 -0.17 -0.08 Div. Yield 1.42 1.34 0.9

Nifty Top Out performers Axis Bank Bharti Airtel RComm Nifty Top Under performers Jindal Steel DLF Hindalco Advance Decline Ratio BSE Advances Declines Unchanged FII / Mutual Fund data (Rs Cr) FIIs Mutual Funds Economic Indicators YoY (%) Monthly Inflation IIP GDP Current 9.44% (Jun 11) 5.6% (May 11) 7.8% (Jan- Mar 11) July 21 -172.00 206.20 1715 1188 124

NSE 930 518 65

MTD 6781.70 480.20

YTD 8834.60 3417.20

Quarter Ago 9.68% (Mar 11) 6.5% (Feb 11) 8.3% (Sep- Dec 10)

Year Ago 10.25% (Jun 10) 8.5% (May 10) 9.4% (Jan- Mar 10)

Markets for you

FII Derivative Trade Statistics July 21 (Rs Cr) Index Futures Index Options Stock Futures Stock Options Total Buy 1182.17 6507.08 2423.95 245.45 10358.65 Sell 1332.75 6632.90 2531.15 226.43 10723.23 Open Interest 12166.68 43430.65 32990.77 1166.78 89754.88

25 July 2011

DERIVATIVES MARKET Nifty July futures (near future) closed up against the spot index with around 12 point premium; it however witnessed 1.04 mn decrease in open interest. Put Call Ratio (open interest) rose to 1.24 on July 22 from 1.08 on July 21. Nifty 5800 July Call strike continued to witness the highest open interest. Nifty 5500 July Put strike continued to witness the highest open interest. India VIX (volatility index based on the Nifty 50 Index Option prices) fell sharply to 17.91% on July 22 from 18.75% on July 21. INDIAN DEBT MARKET Indian call money rate ended slightly higher at 7.65-7.70% on Friday because of strong demand for funds and due to a surprise fall in the quantum borrowed from the RBI 's repo auction. Banks borrowed Rs 45645 cr from the central bank's repo auction as against Rs 60855 cr on Thursday. Demand was slightly higher as banks had to make payments for the treasury bills and cash management bills acquired at the auctions this week. Gilts ended down on Friday on fear that the government may overshoot its borrowing target in the second half of this fiscal year. Sentiments were battered after the government announced on Thursday that it would conduct the gilt auction worth Rs 10000 cr originally scheduled for the week ending Sep 23 in the week ending Aug 19 instead. The 10 year benchmark 7.80%, 2021 bond weakened to Rs 96.60 or 8.3142% yield from Rs 96.86 or 8.2727% Thursday. A senior finance ministry official's comment that the government would henceforth issue cash management bills regularly to meet short-term fund mismatches further dampened sentiment. Sell-off was also witnessed as participants made room for fresh gilts supply. Prices were further dragged down by the improving economic outlook globally and reducing chances of Greece defaulting on its sovereign debt.

Derivative Statistics- Nifty Options July 22 Put Call Ratio (Open Interest) Put Call Ratio (Volume) Debt Watch Call Rate CBLO Repo Reverse Repo 10 Yr Gilt G-sec Volume (Rs Cr) 3-mth CP rate 5 yr Corp Bond 3-mth CD rate 1 yr CD rate Currencies Vs INR July 22 USD GBP Euro 100 Yen Commodity Prices NYMEX Crude Oil ($/bbl) London Brent Crude Oil ($/bbl) Gold (oz/$) Gold (Rs per 10 grams) 44.35 72.34 63.87 56.45 July 22 99.87 Week Ago 97.24 July 21 44.51 71.90 63.41 56.38 Month Ago 95.41 Change 0.16 -0.45 -0.46 -0.07 Year Ago 79.30 1.24 0.93 July 22 7.70% 7.49% 7.50% 6.50% 8.31% 8550 9.00% 9.38% 8.73% 9.55% Week Ago 9.75% 10.25% 7.50% 6.50% 8.27% 8905 8.95% 9.34% 8.62% 9.45% July 21 1.08 0.98 Month Ago 7.75% 7.45% 7.50% 6.50% 8.25% 7055 9.10% 9.60% 8.85% 9.80% Change 0.16 -0.05 Year Ago 5.75% 5.55% 5.50% 4.00% 7.68% 6725 6.90% 8.28% 6.50% 7.20%

Currency Overview Indian rupee rose sharply against the US dollar due to gain in Euro currency and local stocks after the announcement of a Greece second bailout plan. Dollar sales from some exporters also boosted the Indian unit. Commodity Overview Crude oil prices rose 74 cents to settle at $99.87 a barrel on the NYMEX. Gold prices ended higher supported by fresh concerns about the U.S. debt ceiling.

118.67 1602 23011

117.26 1587 22900

114.21 1553 22500

77.82 1200 18275

INTERNATIONAL NEWS US Treasury Secretary says the economy may have slowed during the second quarter of the year. Eurozone industrial new orders increased 3.6% on month in June, after dropping 0.1% in April. Japanese government plans to issue 10 trillion yen in reconstruction bonds and cut spending by 3 trillion yen to pay for more projects to rebuild the devastated northeast. Emirates Aluminium plans to spend $4.5bn on expansion to nearly double output.

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