1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Monday, May 07, 2012
Domestic Markets Snapshot Views on markets today
• Indian markets posted their biggest daily fall since late
Name of Index May 3 May 4 Change (%)
February on Friday on news that the government is
Sensex 17,151.19 16,831.08 -1.87%
considering a review of the Double Taxation Avoidance
CNX Nifty 5,188.40 5,086.85 -1.96% Treaty with Mauritius to raise revenues and as the
BSE Mid-cap 6,234.75 6,100.80 -2.15% rupee continued to weaken. As per Junior Finance
BSE IT 5,786.99 5,733.26 -0.93% Minister S.S. Palanimanickam, Indian government is
BSE Banks 11,653.70 11,284.03 -3.17% considering a review of its double taxation treaty with
Mauritius, spooking investors given a majority of
FII Activity (`Cr)
foreign portfolio inflows are believed to be routed
Date Buy Sell Net through the East African country. The potential end of
3-May 2,365 2,274 91 the treaty would open up the prospect of capital tax
2-May 2,237 1,993 244 gains for those foreign investors who have a legal
Total May 4,603 4,267 335 presence in Mauritius. The worries over foreign
outflows are also being reflected by a rupee that
2012 YTD 240,981 197,185 43797
continues to plumb four-month lows, given the deep
MF Activity (`Cr) concerns about India's economic and fiscal challenges.
Date Buy Sell Net Except pharma, all sector indices closed on negative
3-May 351 585 -234 note with capital goods, bank, metal and real estate
stocks were major losers. Auto stocks were hit hard for
2-May 353 416 -63
the week after widespread disappointment over their
Total May 704 1,001 -297
April sales. Hero MotoCorp fell 4.61% while Bajaj Auto
2012 YTD 45,698 52,095 -6397 shares ended lower by 3.8%. Banks were also routed
Volume & Advances / Declines after Fitch Ratings and Macquarie said this week's RBI
directives on Basel III guidelines could lead to a equity
NSE BSE
dilution of around $30-35bn over the next five years.
Trading Volume (Cr) 66.19 29.47
Reliance Industries dropped 1.7%, following media
Turnover (`Cr) 11,475 2,629 reports that petroleum ministry has struck down its
Advances 259 744 plans to recover $1.2bn in costs before the energy
Declines 1,230 2,070 major starts sharing profits with the government from
Unchanged 57 100 its gas field off the country's east coast.
Total 1,546 2,914 • Market breadth was lower at ~0.36x as investors sold
large cap stocks. On provisional basis, FIIs bought
Global Markets
equity of `4.28bn while domestic institutions sold
Index Latest Values Change (%) equity of `2.80bn in cash segment.
DJIA 13,038.27 -1.27% • Asian shares tumbled Monday after poor jobs data
NASDAQ 2,956.34 -2.25% raised fresh fears about the health of the U.S.
Nikkei * 9,134.26 -2.62% economy, and European elections over the weekend
Hang Seng * 20,554.10 -2.52% added to jitters about the euro zone’s future.
* as of 8.25AM IST
• We expect a weak opening for the Indian markets
today, following the cues from the Asian markets, as
Currencies / Commodities Snapshot
fresh fears rose on European economies. While crude
Latest Previous prices retreated sharply, a chance that outflow of
Quote Close money will weaken rupee thereby limiting the benefits
Indian Rupee per $ 53.47 53.37
fall in crude prices.
Indian Rupee per € 69.96 70.20
Economic and Corporate Developments
NYMEX Crude Oil($/bbl) 96.62 98.49
• India will have a all-time high foodgrain production of
Gold ($/oz) 1,638.40 1,645.20 over 252 million tonne in FY12 with a record output of
Silver ($/oz) 30.21 30.38 wheat, rice and cotton, Agriculture Minister Sharad
Pawar said.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Godrej Properties planned 15 launches in 2012-13,
Previous Current Change including new phases in existing projects, said
Company Name
Close(`) Price(`) (%) Pirojsha Godrej, managing director. It launched five
Ruchi Soya 88.20 91.45 3.68 projects in FY12.
Essar Oil 51.60 53.45 3.59
• Kavveri Telecom is closing in on a private equity deal
Cipla 317.40 325.20 2.46 to raise $20mn (around `100Cr) in its subsidiary
WELCORP 123.00 125.95 2.40 Kavveri Telecom Infrastructure Limited.
Lupin 539.45 550.40 2.03
• Jindal Steel & Power Limited’s (JSPL) projected two
(BSE Mid-Cap) steel plants will be “bigger” than other private sector
steel players in Jharkhand.
Previous Current Change
Company Name
Close(`) Price(`) (%) • Coal India (CIL) will soon invite fresh bids for
Shree Global Trd 90.35 94.85 4.98 exploration of its two coal mines in Mozambique
Ruchi Soya 88.20 91.45 3.68 having reserves of over one billion tonnes, according
Infotech Enter 162.40 168.00 3.45 to sources.
Sobha Dev 315.05 325.00 3.16 • Bank of India cuts its home loan rates by up to
WELCORP 123.00 125.95 2.40 0.75% as well as a 0.25% drop in the base rate to
10.50%.
TOP LOSERS
US markets
(BSE A-Group)
U.S. stocks fell sharply on Friday, sending the S&P 500
Previous Current Change and Nasdaq Composite to their worst week of the year,
Company Name
Close(`) Price(`) (%)
after April job gains came in below forecasts and
IRB Infra 149.65 128.75 -13.97
investors fretted about weekend elections in Europe.
Pantaloon Retl 184.85 161.00 -12.90
The Dow Jones Industrial Average closed down 168.32
MRF 11213.10 10327.95 -7.89
points, or 1.3%, to 13,038.27. The S&P 500 Index lost
Astrazeneca Ph 2046.90 1910.00 -6.69
22.47 points, or 1.6%, to 1,369.10. The Nasdaq
Financial Tech 657.35 615.50 -6.37
Composite declined 67.96 points, or 2.3%, to 2,956.34.
(BSE Mid-Cap)
Previous Current Change
Company Name
Close(`) Price(`) (%)
IRB Infra 149.65 128.75 -13.97
Pantaloon Retl 184.85 161.00 -12.90
S Mobility 66.50 60.60 -8.87
MRF 11213.10 10327.95 -7.89
Astrazeneca Ph 2046.90 1910.00 -6.69
Keynote Capitals Institutional Research (research@keynotecapitals.net) (+9122-30266000)

3. K E Y N O T E
INSTIT UT IONAL R ES EAR C H
India and Global Economic Calendar
Countries / Monday Tuesday Wednesday Friday
Regions 7/May 8/May 9/May 11/May
India Forex Reserves Data
Weekly Supplement
of RBI
Cumulative
Industrial Output,
Industrial Output &
Manufacturing
Output
US Consumer Credit NFIB Small Business wholesale Producer Price Index
Change Optimism Index inventories (YoY)
ICSC-Goldman Store Reuters/ Michigan
Sales Consumer
Sentiment Index
Global UK's RICS Housing Germany trade China Producer Price
Price Balance balance data Index (YoY) &
Consumer Price
Index (YoY)
Germany's Industrial China Industrial
Production s.a. Production (YoY) &
(MoM) Retail Slaes (YoY)
UK Producer Price
Index - Input (YoY &
MoM) n.s.a
UK Producer Price
Index - Output (YoY
& MoM) n.s.a
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