Morning Notes

01.06.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

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

Yen Gains on Safety Bid amid European, U.S. Concerns The yen strengthened versus all 16 major counterparts this week as investors sought haven assets ahead of U.S. economic data and while Europes leaders struggle to resolve the regions debt crisis. Japans currency was 0.4 percent from its strongest level in more than 11 years against the euro after the leaders of Italy and the European Central Bank demanded bolder steps to stabilize the economies of the 17 nations in the currency bloc, clashing with Germany. Reports today may show U.S. payrolls climbed last month, while a factory index declined. Australias dollar headed for a fifth weekly loss before figures on Chinese manufacturing are released. Japan, Australian Stock Futures Fall on U.S. Data, Spain Japanese and Australian stock futures fell after U.S. economic data missed estimates ahead of an employment report today and as Spain denied it is in talks about a bailout as its bond yields near a level that prompted rescues in other nations. American depositary receipts of Sony Corp. (6758), Japans No. 1 exporter of consumer electronics that gets 38 percent of its sales in the U.S. and Europe, fell 1.2 percent from the closing share price in Tokyo. Those of Komatsu Ltd. (6301), Japans largest construction machinery maker that depends on China for 14 percent of its revenue, slid 1.8 percent before the release of Chinas manufacturing data. Crude Set for Longest Weekly Losing Streak Since January 2007 Oil traded near the lowest close since October, set for the longest weekly losing streak in five and a half years, on speculation that slowing U.S. growth and Europes debt crisis will reduce fuel demand as supplies rise. Futures were little changed after dropping 17 percent in May, the biggest monthly decline since December 2008. U.S. jobless claims climbed to a one-month high and the nations gross domestic product expanded slower than estimated, reports showed yesterday.

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
4924.25 9563.15 4823.45 3049.95 3913.05 6898.40 1984.55 16218.53

Pt. Chg.
-26.50 +55.30 -17.75 -8.75 -10.80 +15.05 +8.45 -93.62

Change %
-0.54 0.58 -0.37 -0.29 -0.28 0.22 0.43 -0.57

Global Markets
Change (%) -0.23 -0.35 -0.21 0.18 -0.26 0.05 -1.04 -0.52 -0.89

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

Close 1310.33 2827.34 12393.45 5306.95 6264.38 3017.01 8453.46 18532.52 2747.04

Global data recorded/updated last as on 01, June 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 5.37 3.78 3.47 3.30 Indian Markets

NIFTY TOP LOSERS

Change (%) -4.41 -4.16 -4.14 -2.98

Company ASIAN PAINTS NATION ALUM SAIL PNB

Close 4,021.55 57.65 95.35 755.50

Company MARUTI UDYOG ICICI BANK TATA MOTORS AXIS BANK

Close 1,100.25 783.25 233.00 970.95

MARKET SUMMARY
The slowest pace of growth in nine years last quarter rattled investors as the Sensex ended lower yesterday, capping its highest monthly loss since last November. Indias economy grew by 5.3 per cent in the first quarter of 2012 from the same month last year amid a slowdown in investment. A record low rupee continued to rattle investors. The rupee hit a record low of 56.50 per dollar on Thursday as capital outflows by foreign funds increased, while strong demand for the greenback by oil importers also hurt the rupee. Weak cues from Asian markets also dampened domestic sentiment. Asian markets fell on Thursday amid worries that Europes debt turmoil was escalating as concerns grew about Greeces future in the euro and the deteriorating health of the Spanish banks. The BSE SENSEX closed at 16,218.53, down by 93.62 points or by 0.57 per cent and the NSE Nifty ended at 4,924.25, down by 26.50 points or by 0.54 per cent. After witnessing a gap down opening amid weak global cues and a falling rupee, the key domestic benchmarks extended losses and slumped to the days low as GDP growth came well short of expectations. The benchmarks pared some of the losses after the Cabinet approved the new Telecom policy, while positive opening of the European stock markets also improved domestic sentiment. On the Sectoral front, the Auto and Banking shed 1.96 per cent and 0.87 per cent, respectively. Out of the 30 Sensex stocks, there were 12 advances and 18 declines. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3507, shares advanced were 1214 while 1454 shares declined and 839 were unchanged. The top losers of the Sensex were Tata Motors Ltd. (Rs. 233.20,-4.17%), ICICI Bank Ltd. (Rs. 784.30,-4.00%), Maruti Suzuki India Ltd. (Rs. 1106.45,-3.86%), Jindal Steel & Power Ltd. (Rs. 441.45,-2.57%), Sun Pharmaceutical Industries Ltd. (Rs. 567.50,-2.37%), among others. Among the Asian indices, Shanghai Composite ended down 0.52 per cent, Hang Seng closed down 0.32 per cent and Nikkei 225 shed 1.05 per cent.

R. Wadiwala

NEWS UPDATES
MACRO India's infrastructure sector output grew 2.2% in April from a year earlier, in line with the upwardly revised annual growth of 2.2% in the previous month, government data showed on Thursday. For the 2011-12 fiscal year that ended in March, the output rose 4.4%, compared with an annual rise of 6.6% in the previous year, data showed. The infrastructure sector accounts for 37.9% of India's industrial output. COMPANY Mahindra & Mahindra, India's biggest utility vehicle maker, will spend Rs 5,000 crore on capital expenditure over the next three years starting 2012-13, a company executive said. Mahindra plans to spend an additional Rs 2,500 crore on investments including acquisitions over the next three years, said Pawan Goenka, head of the company's automotive and farm equipment divisions. IL&FS Transportation Networks Ltd has announced that the consortium comprised of the Company and its subsidiary, Futurcage Infrastructure India Limited had been mandated with the project for undertaking the development of an Integrated Multi level Automatic Car parking facility at Khilwat, Hyderabad (the "Project") by the Greater Hyderabad Municipal Corporation (GHMC), Hyderabad. Unity Infraprojects Ltd has announced that the Company have been awarded the following Project: The company has bagged order for the Construction of Concrete Road and allied civil works in Market-I, Market - II and Additional Shop cum Godown, Vashi Navi Mumbai by Mumbai Agricultural Produce Committee Mumbai and the said project is to be completed within a period of 18 months. The Project Value is Rs. 488.1mn. State-owned BHEL said it has bagged a Rs 1,143 crore contract from country's largest power generation utility NTPC for setting up a 500-Mw power generating unit at its Vindhyachal Super Thermal Power Station in Madhya Pradesh. "NTPC has placed a major order on the company for supply and installation of the main plant package (boilers, turbines and generators) for a power project in Madhya Pradesh involving one generating unit of 500 Mw," BHEL said in a statement. Footwear manufacturer and retailer, Bata India said on Wednesday that it will invest Rs 15 crore for three years each in modernisation and expansion of three existing plants in Patna, Batanagar and Bangalore. Besides this, the company will also invest Rs 70 crore this year, in opening at least 100 stores across India. The plant modernisation will enable us to increase production capacity in our plants by 15-20 per cent each year, said Rajeev Gopalakrishnan, MD, Bata India at a press conference after the companys annual general meeting. Fertilisers player, Gujarat State Fertilizers and Chemicals Ltd (GSFC) has planned investments to the tune of Rs 800 crore during fiscal 2013 to increase capacity and set up new projects for various fertilisers products including urea and di-ammonium phosphate (DAP). "We have planned investments for expansions and a greenfield project at Dahej, which will be a replica of our Vadodara facility. In the current financial year, we are planning to invest around Rs 800 crore for these projects," said B M Bhorania, executive director - finance, GSFC. TVS Groups steel wheel manufacturing company, Wheels India Limited, has reported a net profit of Rs 7.05 crore for the fourth quarter ended March 31, 2012. Its net profit stood at Rs 11.29 crore during the same period last year. The company, however, said that the net profit for the period was not comparable since there was a onetime provisioning on the tax front.

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 4890.08 9274.85 708.07 62.12 306.33 440.97 1155.02 91.23 783.17 2059.06 404.12 92.99 92.41 2448.96 209.22 250.86 1142.68 Lower 1 4910.42 9360.34 713.79 63.64 309.82 445.58 1167.45 92.98 789.47 2075.63 407.37 93.73 93.16 2468.66 210.90 252.88 1151.87 Axis 4925.75 9455.84 719.50 65.15 312.30 450.19 1183.87 94.73 795.77 2092.19 410.62 94.48 93.90 2488.36 212.58 254.90 1161.06 Higher 1 4950.17 9531.89 725.50 66.60 315.47 455.35 1199.12 96.39 801.28 2106.68 413.46 95.14 94.55 2505.59 214.06 256.66 1169.11 Higher 2 4962.32 9613.69 729.39 67.68 318.85 459.91 1209.60 97.51 802.27 2109.27 413.97 95.25 94.67 2508.67 214.32 256.98 1170.54

BULLISH ON SHORT TERM

PNB INDHOTEL BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 758-762-765 SL 741 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 58-59-60 SL 54

FII and DII Investments

FIIs Date *31 May May-2012 2012 Till Date Purchase 6379.64 42443.30 271253.50 Purchase 1323.22 7805.80 50069.70 Sale 7045.40 42790.70 228109.10 Sale 1589.60 7431.50 55550.10
Inv (crs)

-665.76 -347.10 +43044.40

Inv (crs)

DIIs

Date *31 May May-2012 2012 Till Date * Provisional Data

-266.38 +374.50 -5480.00

R. Wadiwala

Following the MUTUAL FUNDS

SBI Bluechip G
Latest NAV: 13.15 (30/05/12) 52-Week High: 14.57 (07/07/11) 52-Week Low: 11.83 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
HDFC Bank Tata Motors Infosys ICICI Bank Reliance Industries

Top 5 Sectors
% Net Assets
6.31 5.60 5.51 5.04 4.63

Top 5 Sectors
Financial Energy Technology Healthcare Automobile

% Net Assets
20.22 15.89 14.81 11.16 10.73

Top 3 Holding Company Details HDFC Bank

LTP: 500.65 PB Ratio: 3.93 PE Ratio: 22.78 Year to Date Return: 17.23 Other Funds That Own HDFC Bank
Fund name
Reliance Banking ETF Goldman Sachs Banking BeES Religare Banking ICICI Prudential Banking and Financial Services Ret

% Net Asset
26.05 26.02 23.24 22.77

Date
Apr 30, 2012 Mar 31, 2012 Apr 30, 2012 Apr 30, 2012

Tata Motors
LTP: 243.35 PB Ratio: 3.38 PE Ratio: 53.04 Year to Date Return: 36.41

Other Funds That Own Tata Motors

Fund name
ICICI Prudential Eq & Der Inc Optimiser Retail ICICI Prudential Eq & Der Inc Optimiser Inst ICICI Prudential Target Returns JM Core 11

% Net Asset
11.06 11.06 9.45 9.22

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

Infosys
LTP: 2422.45 PB Ratio: 4.67 PE Ratio: 17.42 Year to Date Return: -12.39

Other Funds That Own Infosys

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

% Net Asset
42.52 39.44 38.91 38.40

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

R. Wadiwala

DERIVATIVES NOTES
Nifty June 2012 futures were at 4927, at a slight premium of 2.75 points compared to the spot closing of 4924.25. Turnover on NSE`s futures & options (F&O) segment declined to Rs 95703.89 crore from Rs 148077.46 crore on Wednesday, 30 May 2012.
% Change OI
-11.51

Institutional Investment Trends

(in Crores) MAY 31, 2012

BUY
3773.29

SELL
5025.07

Net Buy/Sell
-1251.78

OIEoD
6754.76

INDEX FUTURES

State Bank of India (SBI) June 2012 futures were at 2070, at a premium compared to spot closing of 2065.90. Tata Motors June 2012 futures were at 235.65, near spot closing of 233.60. Reliance Industries June 2012 futures were at 715.65, at a discount compared to spot closing of 718. In the cash market, the S&P CNX Nifty lost 26.50 points or 0.54% to settle at 4,924.25, its lowest closing level since 25 May 2012.

STOCK FUTURES

5646.47

5500.38

146.09

19890.00

-9.48

Put Call Ratio Symbol ABGSHIP LT ABGSHIP WELCORP GRASIM NIFTY NIFTY MRPL FTSE100 ASIANPAINT TECHM TATACOMM CAIRN Expiry Date 31-May-12 26-Jul-12 28-Jun-12 31-May-12 28-Jun-12 30-Jun-16 31-Dec-15 31-May-12 15-Jun-12 31-May-12 28-Jun-12 31-May-12 26-Jul-12 Put 47000 6000 47000 106000 625 1700 2050 100000 24450 20250 6500 2000 2000 Call 1000 250 6000 14000 125 350 500 32000 10200 8875 3000 1000 1000 Ratio 47.00 24.00 7.83 7.57 5.00 4.86 4.10 3.13 2.40 2.28 2.17 2.00 2.00

R. Wadiwala

DIVIDEND AND OTHER INFORMATION

Kse Limited has informed the Exchange that the Board of Directors at their meeting held on 30th May 2012 have recommended a dividend at the rate of 110% ( Rs. 11/- per equity share of Rs. 10/- each) for the financial year 2011-2012. Jaiprakash Associates Limited has informed the Exchange that the Board of Directors of the Company in their meeting held on May 30, 2012 has, subject to the approval of the shareholders, recommended Dividend for the Financial Year 2011-12 @ Re.0.50 per equity share of Rs.2 (i.e. 25%) aggregating Rs.106.32 Crores excluding Dividend Distribution Tax of Rs.17.25 Crores. Hercules Hoists Limited has informed the Exchange vide its letter dated May 29, 2012 that the Board of Directors of the Company has recommended a dividend at the rate of Rs. 3.50 per Equity Share of Rs. 1.00 each fully paid up.

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