- Indian markets edged lower to reach their lowest closing level in over 4.5 weeks after the Finance Minister said India is making efforts to check abuse of a double taxation avoidance pact with Mauritius. - Banking stocks such as Axis Bank and ICICI Bank declined due to concerns over growing impaired loans as the economy slows. - Asian markets are flat ahead of the European Central Bank meeting while the US markets declined after a report showed manufacturing shrinking.

1.
India Morning Note
a
Thurs
sday, Septem
mber 06, 2012
Dom
mestic Markets Snapshot
t V
Views on ma
arkets today
y
• Indian markets edg
m ged lower to reach the lowest
o eir
Nam of Index
me Sept 4 Sept 5 Change (%)
closing level in ov ver 4-1/2 w weeks after Finance
r
Sens
sex 17,440.87 17,313.34
1 -0.73%
Minister P. Chidam mbaram said India is making
s
CNX Nifty 5,274.00 5,225.70 -0.92% consisten efforts to check the abuse of a double-
nt o e
BSE Mid-cap 6,042.41 6,023.53 -0.31% taxation-
-avoidance pact it has with Mau uritius as
BSE IT 5,731.64 5,726.24 -0.09% Mauritius has bec
s come an attractive r
a route for
BSE Banks 11,501.58 11,292.73
1 -1.82% investmeents by thi ird-country residents into India
through treaty abuse The fall mirrored Asian peers as
e. n
FII Ac
ctivity (`Cr) investors grew edgy ahead of a European Central
s f
Date
e Buy Sell Net Bank me eeting on Th hursday to ddiscuss the euro-zone
debt cris
sis. Dropped was also le by banking stocks
d ed
4-Sep
p 1,634 1,332 302
such as AAxis Bank an ICICI Bank as concern loomed
nd ns
3-Sep
p 1,666 1,713 -47
over gr rowing impaired loans at a tim
s me when
Total Sept
l 3300 3045 256 corporates are battliing a sluggis economy. Impaired
sh .
2012 YTD
2 425579 362312 63267 assets d
during fiscal 2013 acros the banking sector
ss
may exceed initial foorecasts as t
the economy slows, at
y
MF A
Activity (`Cr) a time when domestic macro indicators suggest
o s
governmment should act soon o executive reforms,
on e
Date
e Buy Sell Net
Fitch Rat
tings said in note.
4-Sep
p 290 354 -64
• PSU OMCs gained for the sec cond straigh day on
ht
3-Sep
p 278 431 -153 reports tthe petroleu
um ministry plans to ra aise diesel
Total Sept
l 569 785 -216 rates by `4-5 per lit after the monsoon p
tre parliament
2012 YTD
2 82256 91905 -9649 session ends on September 7 as oil firms' revenue
loss has soared to aalmost half tthe retail price. While
Global Markets oil exploration stocks declined as US crude o futures
oil
traded nnear the lowe level in a week after a report
est
Index
x Latest Values
t Change (%) showed manufactur ring shrinkiing in the US, the
DJIA 13
3,047.48 0.09% world's biggest crude consumer.
b e
NASD
DAQ 3,069.27
3 -0.19% • Market bbreadth was negative at ~0.79x as investors
t
Nikke *
ei 8,684.92
8 0.06% sold larg cap stock On provis
ge ks. sional basis, both FIIs
,
Hang Seng *
g 19
9,114.03 -0.16% and dommestic institu
utions sold equities worth `1.88bn
and `1.66bn, respect tively in cash segment.
h
* as of 8.25AM IST
f
• Asian markets are flat today, as investors showed
Curre
ency Snapsh
hot caution ahead of the Europ pean Centra Bank's
al
meeting.
Future contract RBI
Latest Previous • We expe a cautiou opening fo the Indian markets,
ect us or n
expir on
re Reference
R
Quote Close tracking the cues fr rom the Asia markets. Investors
an
29/08/12 Rate
India Rupee per $
an 56.14 55.81 55.90 may also discount th political u
o he uncertainty rising due
to coal block allocation issues.
b
India Rupee per €
an 70.37 70.25 88.63
India Rupee per £
an 89.11 88.55 70.03
Economic and Corporate Developm
a ments
• The goveernment is p planning to d
divest 9.33% stake in
%
India Rupee per ¥
an 71.56 71.16 71.33
MMTC, b only 5% stake in Ne
but eyveli Lignite as there
e
* NSE Exchange are trad union iss
de sues. It is looking at a special
allotmen of shares for employ
nt yees. Apart ffrom this,
the govvernment is looking a BHEL, H
s at Hindustan
Copper, SAIL, Oil India, NALCO an NMDC.
nd
Keyno Capitals Research
ote (research h@keynotecapitals.net) (+9122-3026 66000)
Keyno Capitals R
ote Research is also available on
Bloom
mberg KNTE <GO>, Thom mson One Ana alytics, Reute Knowledge, Capital IQ, TheMarkets.com and sec
ers , curities.com
Keynote Capi
K itals Institutio
onal Research - winner of “India’s Best IPO Analyst Award 2009” by MCX-Zee Business
h t ” e
To unsubscrib from this m
T be mailing list, p
please reply to unsubscribe@keynotecaapitals.net

2.
TOP GAINERS
G Buzzing Stocks
(BSE A-Group) • Governmment says 5 of 25 cancel lled blocks re
e-allotted
Previous Current Change to Coal India (CIL), Jindal Steel & Power.
Company Name
Close(`) Price(`) (%) • Exide Industries won 15-year tra
n ademark spa against
at
Torre Power
ent 157.45 163.80 4.03
global battery giant Exide Techn
nologies.
Strides Arco 819.05 851.20 3.93
• US-base International Paper ey
ed yes West Coa Paper
ast
Bhar Airtel
rti 249.65 257.85 3.28
, deal se
een around `
`800-1200Cr.
GMR Infra 18.95 19.50 2.90
Idea Cellular 75.50 77.35 2.45 • Videocon may sell 110% stake in Mozambiq
que basin
for USD 3 billion.
(BSE Mid-Cap)
E
• ICICI Bank plans to repatriate pa of capita from its
art al
Previous Current Change UK arm.
Company Name
Close(`) Price(`) (%)
KSK Energy 58.70 64.55 9.97 • Reliance Infrastruct
e ture announces exit f
from the
INDIA POWER
AB 10.55 11.56 9.57 Worli-Ha Ali sea link project.
aji k
Resp
ponsive Inds 89.15 94.00 5.44 • Divi's La denies st
abs take sale buz
zz.
D B CORP
C 190.05 199.90 5.18 • Govt’s proposed ac
p cquisition of Institutiona lenders
al
Edelw
weiss 29.55 31.05 5.08 of IFCI will need multiple regulat
w tory approvaals.
Finan
ncial
• Rajshree Sugar board meets to
e oday to cons
sider pref
TOP LOSERS
L
issue to promoters.
(BSE A-Group)
• Fulford India open of
ffer at `830 per share st
tarts from
Previous Current Change Septemb 14.
ber
Company Name
Close(`) Price(`) (%)
BHEL
L 218.90 208.00 -4.98
• Dalmia Sugar: Prom
moters to bu 55 lakh s
uy shares at
maximum Rs 19.5/shhare, to trigg open offe
ger e.r
Axis Bank 978.25 930.35 -4.90
REC 191.45 182.25 -4.81 • Maruti S
Suzuki expec Manesar f
cts facility to sta full by
art
Jinda Steel
al 352.85 336.00 -4.78 month-eend. The coompany will produce ab bout 700
Castr India
rol 284.50 273.75 -3.78 cars per day from M
r Manesar shor
rtly (Currentl around
ly
580 cars
s).
(BSE Mid-Cap)
E
• SBI cuts fixed depos rates by u to 1%.
sit up
Previous Current Change
Company Name
Close(`) Price(`) (%)
India Cements
a 84.05 80.25 -4.52
Jain Irrigation 64.20 61.85 -3.66
COX KINGS 131.30 127.05 -3.24
Sadb
bhav Engr 131.35 127.15 -3.20
Punj Lloyd 45.85 44.40 -3.16
Keyno Capitals Research
ote (research
h@keynotecapitals.net) (+9122-3026
66000)

3.
India and Global Economic C
Calendar
Cou
untries / Thursd
day Friday
y Monday Tuesday
y
Reg
gions 6/Se
ep 7/Sep
p 10/Sep
p 11/Sep
p
Forex Reserv Data
F ves
India
a
Challenger Job Cuts Average Hou
A urly
(YoY) Earnings (YoY
E Y); NFFIB Small
US
Average Wee
A ekly Bu
usiness Optimism
Hours
H (A
AUG)
Initial and Nonfarms Pa
N ayrolls;
Continuing Jobless Unemployme Rate
U ent
Claims US Trade Bala
S ance
ISM Non-
Manufacturing PMI
Eurozone's GGross Japan Coinciddent China Export Import
C
Glob
bal Domestic Pr roduct Index; Leadinng data
s.a. (QoQ) and (YoY) Economic Ind
E dex UK Trade Ba
K’s alance
UK's BoE Intterest UK Industrial
U l apan Consum
Ja mer
Rate Decisioon Production (Y
P YoY & Confidence
C
MoM);
M
Manufacturin
M ng
Production (Y
P YoY & Japan’s Man npower
MoM)
M Suurvey (4Q)
Eurozone's EECB UK Producer Price
U UK Housing P
U Price
Interest Rate
e Index - Input (YoY &
t Balance
B
Decision MoM); Producer
M
Price Index - Output
P
(YoY & MoM)
(
Germany Ind
G dustrial
Production (Y
P YoY &
MoM); Trade Balance
M
s.a
s
Germany Exp
G ports &
Import (MoM)
KEYNOTE CAPITALS LTD.
E
The Ruby, 9th Floor, Senapati Ba
, S apat Marg, Dadar (W), M
D Mumbai – 40 028
00
Tel. : +912
22-30266000
0 • www.ke
eynotecapita
als.com
Disclaim
mer: This repo is purely for informatio purpose an is based on public infor
ort f on nd o rmation. News content is a attributable to
o
various media, unles specified ot
s ss therwise. All m
market related statistical da pertains to the immedia
d ata o ately preceding trading dayy,
unless stated otherw
wise. Neither the information nor any opin
nion expresse in this repo constitutes an offer, or a invitation to
ed ort an o
make an offer, to bu or sell the s
a uy securities menntioned herein We or any o our directors, officers or employees sh
n. of hall not in any
y
way be responsible for any loss a
e arising from th use of this report. Inves
he s stors are advi
ised to apply their own jud
dgment before e
acting o the conten of this repo The report has not been edited due t time constraints.
on nts ort. t n to