- Indian markets fell on May 31, ending May with their worst monthly performance since November 2011, after weak economic growth data reinforced concerns about the country's challenges at a time of intense global risk aversion. - India's economy grew at a much lower than expected annual rate of 5.3% in Q4 March 2012, largely due to a decline in manufacturing output. - Many banking stocks recovered initial losses on hopes the Reserve Bank of India will cut interest rates to revive growth after the latest data showed a sharp deceleration in GDP growth in Q4 March 2012.

1.
India Morning Note
a g
Frida June 01, 2012
ay,
Dom
mestic Mark
kets Snapsh
hot Views on markets t
today
Nam of Index
me May 30 May 31 Change (%)
) • India markets fell yesterday, endin May wit the
an s ng th
Sensex 16,312.15 16,218.53 -0.57% wors monthly performan
st nce since November 2011,
N
CNX Nifty
X 4,950.75 4,924.25 -0.54% after weak econ
r nomic grow data rein
wth nforced conncerns
BSE Mid-cap 5,886.92 5,907.95 0.36% abou the coun
ut ntry's challe
enges at a time of inntense
glob
bal risk aversion. However, gains in Euro opean
BSE IT 5,646.54 5,666.08 0.35%
markets as euroo-zone debt worries ea
t ased with a fall in
BSE Banks 10,979.86 10,884.53 -0.87%
year govern
ten-y nment bond yields in Spain and Italy,
d
FII A
Activity (`Cr) aided recovery on the India markets.
an
Date
e Buy Sell Net • India economy grew at a much lowe than exp
a's y er pected
30-M
May 2,197 2,112 86 annu rate of 5
ual 5.3% in Q4 MMarch 2012, largely due to a
29-M
May 1,593 1,405 187 decline in manu
ufacturing output. The data showed that
d
Tota May
al 40,330 41,218 -889 the manufacturring sector shrank 0.3% in the qu uarter
2012 YTD 276,708 234,136 42573
compared with a year earlier. The farm sector grew
1.7% GDP grow for the y
%. wth year ended March 2012 was
MF A
Activity (`Cr) at 6.5%, lower than the government' projection of a
's n
Date
e Buy Sell Net 6.9% expansion
% n.
29-M
May 241 363 -122 • In May 2012, In
M ndian markets dropped 6.4%, a m
d month
28-M
May 342 211 130 marked by inte
ense worries about the fate of the euro
s e
Tota May
al 7,713 7,544 167 zone which is exposing I
e, India's vuln
nerabilities as an
2012 YTD 52,707 58,639 -5933 econ
nomy that needs cap pital inflow to bridg its
ws ge
curre account deficit.
ent t
Volu
ume & Adva
ances / Dec
clines
• Many banking s ersed initial losses on hopes
stocks reve
NSE BSE
the Reserve Ba ank of India (RBI) will cut interest rates
c
Trad
ding Volume (Cr) 91.22 19.19
evive growt after the latest data showed a sharp
to re th a
Turn
nover (`Cr) 16,178 1,749 deceeleration in GDP growth in Q4 Marc 2012.
h ch
Advances 639 1,184
• Mark breadth was weak at ~0.84x as investors sold
ket
Declines 835 1,416
mid and small cap stocks. On provis sional basis, both
,
Unchanged 60 107
FIIs and dome estic institu
utions sold equities worth
Tota
al 1,534 2,707 `6.65bn and `2.66bn, respeectively.
Glob Markets
bal • Asia markets are mixed a Japanese shares dro
as e opped
Inde
ex Late Values
est Change (%)
) on the fall in the US mark
t kets after slowdown in GDP
s n
DJIA
A 12,393.45 -0.21% grow
wth and Chinese share were up on falling China
es
NAS
SDAQ 2,827.34 -0.35% mannufacturing data indica
ated a mon netary easi
ing in
the economy.
e
Nikk *
kei 8,479.12 -0.74%
Hang Seng * 18,670.61 0.22% • We expect a w weak opening for the Indian ma
e arkets
* as o 8.25AM IST
of
following the di
iscouraging cues from the US eco
onomy
and slowing GD growth in India.
DP
Curr
rencies / Co
ommodities Snapshot
s
Latest Previous Econom and Cor
mic rporate Dev
velopments
s
Quote Close • The country’s e economic growth fell to 6.5% in 2011-
t
Indian Rupee per $ 56.08 56.20 12, according to official fig
a gures releas
sed on Thur rsday.
Indian Rupee per € 69.32 69.52 The growth was the lowest in nine yea
s t ars, includin the
ng
NYM
MEX Crude Oil($/bbl) 86.26 86.53 glob financial crisis perio of 2008
bal od 8-09 when i was
it
Gold ($/oz)
d 1,555.80 1,562.60 6.7% The adva
%. ance estimates for 2011-12 had pe egged
Silve ($/oz)
er 27.61 27.76 the growth at 6 6.9%. GDP ggrowth in th fourth qu
he uarter
last fiscal fell to a 32-quart low of 5.3%.
o ter
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note Capitals Research
h (reseaarch@keyno otecapitals.net) (+91222-3026600 00)
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2.
TOP GAINERS Buzzin Stocks
ng
(BSE A-Group)
E • BHE bagged a `1,143Cr contract fro NTPC to set
EL om o
Previous Currennt Change up a 500-Mw power generating unit at its
w g
Com
mpany Name
e
Close(`
`) Price(`
`) (%) Vind
dhyachal Su
uper Therma Power Sta
al ation in Mad
dhya
Bank of India 319.40
0 340.45 6.59 Prad
desh.
Uco Bank 65.70
0 69.40 5.63
• Spic
ceJet hopes to take delivery of the first shipm
e ment
Asia Paints
an 3821.90
0 4034.65 5.57 of directly impo
orted aviatio fuel by early July.
on
Central Bank 72.75
5 76.45 5.09
• Oil and Natural Gas Corporation (ONG
a GC), through the
h
Synd
dicate Bank 88.30
0 92.50 4.76
Persspective Pla 2030, ha set ambi
an as itious long-t
term
(BSE Mid-Cap)
E targ
gets. In 18 y
years, ONGC would see to double its
C ek
exploration and produc ction grow wth, triple its
Previous Currennt Change
Com
mpany Name
e reveenues and earnings before in nterest, taaxes,
Close(`
`) Price(`
`) (%)
MCX
X 862.05 935.05 8.47 depreciation, aand amortis sation, and quadruple its
d e
Jagr
ran Prakashan
n 87.15 94.00 7.86 mar rket capital. It also plans a six-fold rise in
s e
INDI
IAB POWER 12.11 12.97 7.10 international ex
xploration a
and productiion (E&P).
IL&F TRANS
FS 170.45 181.80 6.66 • M&M plans to s
M spend `5,0000Cr as inve
estment tow
wards
Dena Bank 86.65 91.60 5.71 expansion and new produ uct develop
pment over the
r
financial years 2013, 20
s 014 and 20 015. Expan
nsion
TOP LOSERS plan include the next phase of plant augmenta
ns ation
at it Chakan unit, near Pu
ts une.
(BSE A-Group)
E
• IL&F
FS Transp portation N Networks said that a t
Previous Currennt Change
Com
mpany Name
e conssortium coomprised o the com
of mpany and its
d
Close(`
`) Price(`
`) (%)
Suzl
lon Energy 19.75
5 18.05
5 -8.61 subs
sidiary, Futturcage Inffrastructure India Limited,
Unit
ted Spirits 612.05
5 563.60
0 -7.92 has been mand dated to de
evelop an inntegrated m
multi-
Tata Motors
a 243.35
5 233.20
0 -4.17
leve automatic car par
el rking facility at Khil
lwat,
Astr
razeneca Hyderabad, on BOT basis by the Greater Hydera abad
1914.40
0 1835.60
0 -4.12
Phar Munnicipal Corrporation ( (GHMC). The conces
T ssion
ICIC Bank
CI 817.00
0 784.30
0 -4.00
period for the project is 30 years, including two
s ,
(BSE Mid-Cap)
E years of construction perio and the revenue wi be
od, ill
Previous Currennt Change rued from t
accr the parking fee and leasing of r
g retail
Com
mpany Name
e spac a release said.
ce,
Close(`
`) Price(`
`) (%)
Fres
senius Kabi 135.10 108.10 -19.99 • GMR Infrastruct
R ture alleged that state-
d -run Tamil N
Nadu
S Mo
obility-$ 42.75 38.60 -9.71 Elec
ctricity Boar and its g
rd generation arm Tamiln nadu
BOC India
C 424.95 384.85 -9.44 Genneration and Distrib bution Corporation Ltd.
Suzl
lon Energy 19.75 18.05 -8.61 NGEDCO) ow around `850Cr to the compan
(TAN wes t ny.
REI Agro 8.94
4 8.27 -7.49 US markets
U.S. stoocks on Thuursday close one of th worst mo
ed he onths
in year as the c
rs, country revi
ised its GDP growth in the
P n
first qu
uarter to a 1
1.9% annualized pace, slower than the
n
2.2% rate first esttimated and expectations for the May
d
jobs reeport decline sharply.
ed
Keyn
note Capitals Research
h (resea
arch@keyno
otecapitals.net) (+912
22-3026600
00)

3.
India and Globa Economic Calendar
a al c
Countries / Fri
iday Mo
onday Tu
uesday We
ednesday
Reg
gions 1/
/Jun 4/Jun
4 5/Jun 6/Jun
Ind
dia Forex Reserves Data
Bank Loan Growth
n
US Average H
Hourly Factory O
Orders ISM Non-Mfg Index
Earnings (
(YoY &
MoM), Aveerage
Weekly Hoours
Nonfarm P
Payrolls, ICSC-Goldman Store
e
Unemploy
yment Rate Sales
Construction
Spending (MoM)
Glo
obal UK Purcha
asing UK House prices
e Germanyy's Euro zo
one ECB
Manager Index data Purchasi
ing Manage
er interest rate
t
uring
Manufactu Index Se
ervices decision & press
n
confere
ence
German IIP Data
ny
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