Market Outlook

India Research
March 26, 2012

Dealers Diary
The Indian markets are expected to open in the negative today tracing flat to negative opening in most of the Asian bourses. Asian stocks fell after U.S. home sales unexpectedly fell last week, damping the outlook for global economic growth. US markets traded choppily on Friday and ended slightly in the positive territory after overcoming an early dip. The morning slide came on the heels of disappointing new home sales data, which showed an unexpected decline for February. New government data released showed that new home sales fell 1.6 percent in February, dropping to a pace of 313,000 homes. Prices were up, however, climbing 8.3% to US$233,700. Meanwhile Indian markets rebounded sharply on Friday, as investors considered Thursday's sell-off a bit overdone after government auditor Controller and Auditor General clarified that its draft report on coal acreage allocation was at a very preliminary stage. Data showing renewed FII buying in recent sessions and an uptrend in European shares after a four-day losing trend also helped lift investor sentiment to a certain extent.

Domestic Indices BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT Global Indices Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com

Chg (%)

(Pts)

(Close)

1.0 1.0 0.6 0.4 0.8 0.2 1.3 0.9 (0.5) 0.6 1.4
Chg (%)

165.3 17,362 49.8 38.3 26.7 50.4 17.5 90.7 46.9 83.0
(Pts)

5,278 6,351 6,626 6,467 7,383 9,999 8,059 6,095

(Close)

148.3 11,860 (57.5) 11,223

0.3 0.2 0.2

(1.1) (1.1) 0.4 (1.1)

34.6 13,081 4.6 9.2 3,068 5,855

Markets Today
The trend deciding level for the day is 17,333 / 5,270 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17,487 17,612 / 5,320 5,362 levels. However, if NIFTY trades below 17,333 / 5,270 levels for the first half-an-hour of trade then it may correct up to 17,208 17,054 / 5,228 5,178 levels.
Indices SENSEX NIFTY S2 17,054 5,178 S1 17,208 5,228 PIVOT 17,333 5,270 R1 17,487 5,320 R2 17,612 5,362

(115.6) 10,011 (232.8) 20,669 10.8 (26.2) 2,990 2,350

Indian ADRs

Chg (%)

(Pts)

(Close)

INFY WIT IBN HDB

Advances / Declines Advances Declines Unchanged

1.0 0.2 0.5 1.6

0.6 0.0 0.2 0.5

BSE

$57.0 $10.7 $35.8 $33.4

NSE

News Analysis
detailed news analysis on the following page

Maruti hikes car prices by up to `17,000 JP Associates wins orders worth `913cr

1,429 1,484 115

765 666 74

Net Inflows (March 21, 2012)

` cr FII MFs Purch 3,488 484 Sales 2,836 518 Net 652 (34) MTD 8,466 (1,102) YTD 44,764 (5,129)

Volumes (` cr) BSE NSE

2,372 11,445

FII Derivatives (March 23, 2012)

` cr
Index Futures Stock Futures

Purch 3,382 3,820

Sales 3,773 3,610

Net (391) 210

Open Interest 16,702 30,570

Gainers / Losers
Gainers Company
Century Tex Unitech ADANI POWER Punj Lloyd Dish TV India

Losers Company
Engineers India Voltas Rajesh Exports Indiabulls Fin Mangalore Ref

Price (`)
359 30 68 55 58

chg (%)
9.7 6.9 5.6 4.9 4.6

Price (`)
255 116 114 232 63

chg (%)
(4.0) (4.0) (3.5) (3.4) (3.3)

Please refer to important disclosures at the end of this report

Sebi Registration No: INB 010996539

Market Outlook | India Research

Maruti hikes car prices by up to `17,000

Maruti Suzuki India Ltd. (Maruti) has increased the prices of its vehicles by up to `17,000 following the rise in excise duty in Union Budget 2012-13. The increase in prices will affect the company's models ranging from small car M800 to mid-size sedan SX4. Under the new pricing, the company's model Alto (800 cc) will cost `4,200 to `5,900 more. The price of Alto K10 has been increased by `5,500 to `5,700. It is priced at `3.14lakh and `3.30lakh (ex-showroom Delhi). Price of Wagon R will be increased by `6,000 to `7,600. It is priced at `3.47lakh to `4.37lakh (exshowroom Delhi). Marutis premium hatchback, Swift, will cost `7,700 to `11,900 more depending on the variant. It is priced between `4.44lakh and `6.76lakh (ex-showroom Delhi). Swift Dzire will cost `8,500 to `12,700 more. It is priced at `4.8lakh and `7.51lakh (ex-showroom Delhi). Mid-size sedan SX4 will cost `9,400 to `17,000 more. Its price will range from `7.11lakh to `9.39lakh (ex showroom Delhi). The price rise will also affect the company's other models, such as Estillo, A-Star, Ritz, Omni, Ecco and Gypsy, which will now cost higher by `3,700 to `10,000, depending on the model. We maintain our Neutral view on the stock.

JP Associates wins orders worth `913cr

JP Associates (JAL) has been awarded two contracts worth `913cr by Mangdechhu Hydroelectric Project Authority, Bhutan. These orders pertain to construction of 720MW Mangdechhu hydro-electric project located in Trongsa district in Bhutan. We have valued JALs cement and construction business at 6x EV/EBITDA (`62.2/share) and (`31.2/share), respectively. We have valued its power and real estate businesses on mcap basis (giving 15% holding company discount), which contributes `66.1/share to our target price. The hotel segment contributes `0.8/share. Treasury shares (`7.7/share) have been valued at the current market price, whereas net debt is accounted for on a per share basis in our valuation at `68.6. We recommend our Buy rating on the stock with an SOTP target price of `99, implying an upside of 24.3% from current levels.

March 26, 2012

Market Outlook | India Research

Economic and Political News

No new gas-based power plant to be set up till 2015-16: CEA CPSE reserves up 10% at `6.65 lakh cr in FY2011 CBDT sets up panel for tax-avoidance

Corporate News
BHEL commissions power gear with 7,900MW capacity Kingfisher to pay only `10cr of its `76cr service tax dues till March-end SKS raises `321cr from four banks
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

March 26, 2012

Market Outlook | India Research

Research Team Tel: 022 - 39357800

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

March 26, 2012