The document provides a market commentary and analysis for Indian and global markets for the period of August 30th to September 1st, 2011. Some key points: - Indian markets rose over 1% for the week led by metals, banking and IT stocks. Mid and small caps also saw buying. - GDP growth for the first quarter of FY2012 came in at 7.7%, lower than estimates. - US stocks fell over the period on weak economic data while Asian markets also declined ahead of US jobs reports. - Key corporate news included Maruti bringing forward production at a new plant and Dr Reddy's launching a new drug in the US market. - Commodity prices were mixed with Brent

1. Sept 2, 2011
Volume: 1 | Issue: 389| November 1, 2010
INDIAN MARKET * 30-Aug 29-Aug % Change COMMENTARY
BSE Sensex 16,677 16,416 1.59 INDIA
NSE Nifty 5,013 4,920 1.89 Indian markets had a splendid first two days in a truncated trading week, with the main Indian stock
BSE Midcap 6,274 6,184 1.44 indices climbing smartly following five straight weeks of steep declines. The Nifty on Tuesday re-claimed
BSE Smallcap 7,131 7,054 1.10 the psychologically important 5,000 mark while the BSE Sensex ended above 16,500, as investors
Nifty Junior 9,996 9,872 1.26 continued their gradual return to the market after being in the sidelines for over a month. The Nifty has
recouped around 280 points or nearly 6% in the past two trading sessions alone. Finally, the BSE Sensex
CNX Midcap 7,309 7,202 1.49
ended at 15,676, adding 260 points on Tuesday. It had earlier touched a day's high of 16,715 and a day's
low of 16,443 after opening at 16,585. The NSE Nifty closed at 5,001, adding 81 points on Tuesday. Indian
equity benchmarks managed to recover from intraday lows hit in the wake of the GDP data and helped by
GLOBAL MARKETS 01-Sep 31-Aug % Change sustained strength in select heavyweights. Tuesday’s rally was led by Metals, Realty, Banking and IT stocks.
Dow Jones Ind (USA) 11,494 11,614 (1.03) Even Mid-Cap and Small-Cap stocks saw buying momentum. The only BSE sectoral index to end in the red
Nasdaq Composite(USA) 2,546 2,579 (1.29) was the BSE FMCG index, down 0.3%.
S&P 500 (USA) 1,204 1,219 (1.20) *Indian financial, commodity and currency markets were shut on Wednesday and Thursday on account of
FTSE 100 (UK) 5,419 5,443 (0.44) ‘Ramzan Eid’ and ‘Ganesh Chaturthi’.
DAX (Germany) 5,731 5,785 (0.94)
Nikkei 225 (Tokyo) 9,061 8,955 1.18 GLOBAL MARKETS
U.S. stocks slid, halting a four-day rally, Treasuries advanced and commodities declined as investors turned
Hang Seng (Hong Kong) 20,585 20,535 0.25
their attention to forthcoming (Friday) report on American jobs to gauge the outlook for the economy. The
Shanghai Comp (China) 2,556 2,568 (0.45) Standard & Poor’s 500 Index lost 1.2 percent to 1,204, after surging 5.1 percent in the previous four
KOSPI (South Korea) 1,881 1,880 0.03 sessions. The Dollar Index climbed for a third straight day, its longest rally since June, while wheat, corn
STI (Singapore) 2,867 2,885 (0.63) and zinc led losses in commodities.
MSCI Emerging Market 401 399 0.50 Asian stocks snapped a six-day streak of advances ahead of reports expected to show the U.S. jobless rate
MSCI Frontier Market 504 502 0.40 remained above 9 percent, adding to signs that growth in the world’s largest economy is weakening.
Nikkei is down over a percent, Hang Seng is down 0.7 percent, Shanghai down 0.4 percent. SGX Nifty is
trading flat, at 5,056.
BOND MARKETS 30-Aug 29-Aug Change
10yr G-Sec Yield 8.32 8.32 0.00 CORPORATE/ ECONOMY NEWS
1yr G-Sec Yield 8.30 8.16 0.14 Confirming fears of a slowdown, India's economy grew by just 7.7% in the first quarter of the 2011-
LIBOR (6m) 0.39 0.39 0.00 12 financial year, compared to 8.8% growth in the same three-month period last fiscal, which was
LIBOR (1m) 0.16 0.16 0.00 mainly due to the poor performance of the manufacturing sector. The government has projected overall
Interbank Call rate 8.0 8.0 0.00 economic growth in the current fiscal at around 8.5%, while the Reserve Bank has projected the growth
to moderate to 8% from 8.5% in FY11.
Maruti Suzuki has decided to bring forward the launch of its second Manesar plant and start
BSE Turnover Rs Cr('000) Sensex commercial production in a day or two, instead of by the month-end as planned earlier.
16800 3.0
16600 Unitech, the second largest real estate company in India, is planning to sell all three hotels that it is
2.5
currently developing, said vice-president (corporate planning) R Nagaraju.
16400 2.0
16200 Dr. Reddy’s Laboratories on Tuesday announced that it has launched its over-the-counter (OTC)
1.5
16000 Fexofenadine HCl and Pseudoephedrine HCl extended release tablets 180 /240 mg. The United States
15800 1.0 Food & Drug Administration (FDA) approved Dr. Reddy’s Abbreviated New Drug Application (ANDA) for
0.5 Fexofenadine HCl and Pseudoephedrine HCl extended release tablets on June 22nd. Dr. Reddy’s will
15600 market the product under store brand labels in the U.S. market.
15400 0.0
24-Aug 25-Aug 26-Aug 29-Aug 30-Aug The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved disinvestment of 5% paid up
equity in Bharat Heavy Electricals Limited (BHEL), a Central Public Sector Enterprise (CPSE) engaged
in execution of heavy engineering / electrical equipment manufacturing projects. The Government
currently holds 67.72% shareholding in BHEL. The stake sale in BHEL will be done through 100% book
NSE Turnover Rs Cr('000) Nifty building process in the domestic market.
5050 14
5000 12 India's fiscal deficit during April to July period was more than half of the FY12 target and 2.5 times higher
4950 than what it was in the same period a year ago, as net revenue collections moderated and expenditure
4900 10
88.38 #DIV/0! increased, government data showed on Tuesday.
4850 8
4800 6 State-owned Oil and Natural Gas Corp's (ONGC) much-delayed Rs 12,000 crore follow-on public offer
4750 4 may open on September 20 or 27.
4700
4650 2
Auto maker Mahindra & Mahindra has reported 30.38% jump in sales at 37,684 units in August 2011.
4600 0 The company had sold 28,903 units in the corresponding month of 2010, Mahindra & Mahindra (M&M)
24-Aug 25-Aug 26-Aug 29-Aug 30-Aug said in a statement.

2. Sept 2, 2011
Volume: 1 | Issue: 389| November 1, 2010
SECTOR 30-Aug 29-Aug % Change CORPORATE NEWS
METAL 12,097 11,661 3.74% Manipal University and Bank of Baroda have launched Baroda Manipal School of
REALTY 1,740 1,679 3.62% Banking and inaugurated its new campus located in Bangalore. The school is a fully
BANKEX 10,904 10,665 2.24% residential campus offering a one-year full time programme on various areas of banking
IT 5,062 4,959 2.08% and management disciplines. Students will be awarded a post graduate diploma in
TECk 3,205 3,151 1.71% banking and finance by Manipal University.
HC 5,962 5,874 1.51%
India's 180,000 barrels per day (bpd) Bathinda refinery started crude oil processing in
AUTO 8,396 8,292 1.26%
trial runs on August 29 a source with direct knowledge of the plant told Reuters on
OIL&GAS 8,353 8,257 1.16% Tuesday, with first products expected in four to five days. The refinery is owned by
POWER 2,233 2,218 0.68% Hindustan Mittal Energy Ltd (HMEL), a joint venture between state-run Hindustan
CD 6,263 6,223 0.66% Petroleum and billionaire Lakshmi Mittal's Mittal Energy.
CG 12,047 12,000 0.39%
PSU 7,616 7,605 0.13% HCL Technologies on Tuesday have entered into a partnership with Basware
FMCG 3,950 3,962 -0.32% Corporation for induction of the Finnish software provider's purchase-to-pay solutions
to help improve its own customer delivery processes and achieve cost reductions. HCL
will leverage Basware's invoice automation, procurement and connectivity solutions for
process enhancement and increased cost reduction to help its clients improve
productivity.
Future Group is in talks with a clutch of potential buyers including JPMorgan and
BSE Upper Circuit Breakers Kohlberg Kravis Roberts and Co to sell its financial services arm, Future Capital Holdings,
Company Name 30-Aug 29-Aug % Change sources with direct knowledge of the matter told Reuters.
BHARATI SHIPYARD 108.6 90.5 20.00
POLYTEX INDIA 263.0 239.1 10.00 Energy company Oil and Natural Gas Corp plans to commission two large
AVT NATURAL PRODUCTS 341.4 325.1 5.00 petrochemicals projects it is developing through joint ventures in 2012 and 2013
BINAYAK TEX PROCESSORS 420.4 400.4 5.00 respectively, its chairman said in a written speech to shareholders on Tuesday.
0
SAHARA HOUSINGFINA CORP 65.1 62.0 5.00
Sanghvi Forging & Engineering Ltd, one of the top engineering and forging
companies in India announced that it has bagged two orders worth Rs. 10 cr. The first
order is from the Of! & Gas sector. The estimated value of the Project is Rs, 4.S Cr and it is
expected to be completed in the period of next 12 months. The second order is from
the Ship Building sector. The estimated value of the Project Is Rs, 5,5 Cr and is also
expected to be completed In the period of next 12 months.
BSE Lower Circuit Breakers
Company Name 30-Aug 29-Aug % Change Kavveri Telecom launched a 16dBi Array Antennae in AWS Band (1710-2155 mhz) for
TRANSCHEM 14.6 16.3 (10.00) the North American Market. This product will be used for cellular networks in AWS Band
KAIRA CAN CO 285.1 300.1 (5.00) in North America. This product could have a requirement of about USD 10 million over
(5.00) the next 3 years.
GAYATRI PROJECTS 153.0 161.1
PRABHAV INDUSTRIES 117.1 123.3 (5.00)
Hindustan Unilever Limited (HUL), India’s Largest FMCG company, and Star Bazaar,
NIRAV COMMERCIALS 205.3 216.0 (5.00) of Trent Hypermarket Limited, the retail arm of Tata Group, on Tuesday announced a
unique consumer initiative titled ‘India’s Favourites’ to promote the cause of education
of underprivileged children.
Aster Silicates Ltd has said that the Company has done successful trials on small scale
for growing cash crops and nutritive, value added products in desert land. Company
plans to put a demo plant after Diwali on 10 Acres of land in desert area and also plans
to take 100 Acres of land on lease from Government before March in desert area. Hence,
Company has done two major breakthrough.
Zuari Industries Limited (ZIL), a K K Birla Group of Companies venture, has shut down
its Urea manufacturing plant temporarily due to shortage of feedstock, a senior official
said on Wednesday.
COMMODITY 01-Sep 31-Aug % Change COMMODITY / CURRENCY NEWS
Brent Crude Oil (USD/bbl) 115 113 1.72
1.73 Brent Crude Oil ended 1.72 percent higer at $115 per barrel . Gold ended higher by 1.73
Gold (Rs/10gm) 27,200 26,738
percent at Rs 27,200 and Silver closed up by 1.46 percent at Rs 62,220.
Silver (Rs/kg) 62,220 61,325 1.46
CURRENCY 30-Aug 29-Aug % Change The Indian Rupee closed lower against the dollar at Rs 46.11 as the Indian equity
INR / USD 46.11 46.04 0.15 benchmarks ended on a very positive note.
USD / Euro 1.44 1.46 (1.37)
Yen / USD 76.76 76.71 0.07

3. Sept 2, 2011
Volume: 1 | Issue: 389| November 1, 2010
FUTURES PREMIUM/DISC Cash Futures P/D% ECONOMY / POLICY / GLOBAL NEWS
JSWISPAT 14.0 14.8 5.36 Many of the world's biggest energy companies may have to surrender most of the gas
CROMPGREAV 143.2 150.8 5.34 from Iraq's vast southern oilfields to a processing and export project led by Shell, a
HAVELLS 324.2 340.0 4.87 final draft contract between Baghdad and Europe's biggest company, obtained by
DISHTV 76.6 79.3 3.52 Reuters, shows. Oil giants including Royal Dutch Shell, BP, US-based Exxon, China's
HINDOILEXP 119.3 123.5 3.48 CNPC, and Italy's Eni signed technical service contracts to develop three oilfields in
GODREJIND 194.3 200.5 3.19 southern Iraq in 2009-2010.
HINDPETRO 377.6 360.9 (4.42)
IDBI 109.1 105.3 (3.48) Annual inflation in the Food Articles group rose to 10.05% in the week ended August
SCI 85.8 83.1 (3.21) 20, from 9.80% in the previous week, the Commerce & Industry Ministry said in a
IOC 306.6 297.9 (2.84) statement.
BGRENERGY 324.9 316.5 (2.57)
As the income of BCCI was entirely exempt from tax under section 12A of the Income
CHAMBLFERT 107.8 105.6 (2.04)
Tax Act 1961, the question of disclosing low earnings to avoid paying taxes did not
arise. Gross receipt disclosed by BCCI in its tax returns for the assessment years 2007-
INSTITUTIONAL ACTIVITY (Rs Cr) 18-Aug 17-Aug YTD 08 to 2010-11, are Rs. 651.82 crore, Rs. 1,000.40 crore, Rs.1.387.02 crore and Rs.
FII Cash Net -1281.7 -407.6 7,460 1,666.84 crore respectively IPL is a part of BCCI and has no separate legal status.
FII Stock Futures 7.41 490.36 323
FII Index Futures -326.55 -139.78 8,899 India's infrastructure output accelerated in July to notch its highest growth in 15
Mutual Fund -66.2 -33 5,401 months, as strengh in Steel, Cement and Electricity offset weakness in Crude Oil,
Natural Gas and Fertilizers space. The Index of Eight core industries, having a
VALUATIONS P/E P/B DIV YLD combined weight of 37.90% in the Index of Industrial Production (IIP) with base 2004-
BSE 18.4 3.4 1.5 05, stood at 143.22 in July 2011. It was at 139.05 in June and stood at 132.91 in July
2010.
NSE 18.2 3.1 1.4
BSE500 Mcap/GDP Ratio 0.59
MOVERS & SHAKERS
4.91
TOP 5 FRONTLINE GAINERS TOP 5 MIDCAP GAINERS TOP 5 SMALLCAP GAINERS
Name Rs % Name Rs % Name Rs %
DLF 196.4 6.42 State Bank Mysre 602.3 15.38 Confidence Petro 10.8 16.20
Jindal Steel 519.8 5.34 Manappuram Finance 50.4 14.81 Man Inds 145.5 15.43
Sun Pharma 490.3 5.16 State Bank Trav 682.0 13.90 Bharati Ship 104.0 14.86
Tata Steel 468.6 4.79 State Bank BikJpr 450.1 12.68 Karuturi Glob 9.1 14.36
Hindalco Inds 150.4 4.34 Bajaj Elect 193.4 10.23 ICSA India 76.4 13.70
TOP 5 FRONTLINE LOSERS TOP 5 MIDCAP LOSERS TOP 5 SMALLCAP LOSERS
Name Rs % Name Rs % Name Rs %
ONGC 263.2 -4.29 Simplex Infra 230.4 -10.09 Prraneta Inds 38.4 -9.96
ITC 200.0 -0.97 Bajaj Finserv 541.6 -5.30 Bodal Chemicals 16.8 -8.45
Tata Power 1041.3 -0.54 SKS Microfinance 198.4 -4.98 Prabhav Inds 117.1 -4.99
L&T 1609.8 -0.31 IFCI 37.7 -3.46 Asian Star-$ 1093.0 -4.96
Bharti Airtel 404.2 -0.16 EDELWEISS 28.9 -2.70 Shri Ganesh Spi 33.5 -4.96
BULK DEALS
SCRIP NAME CLIENT NAME TYPE QTY % PRICE
NSE
MindTree Limited Coffee Day Resorts Pvt Ltd BUY 5.68% 428.0
MindTree Limited Ashok Soota SELL 5.50% 428.0
Bharat Forge Ltd Barclays Capital Mauritius Limited SELL 0.55% 307.6
Balrampur Chini Mills Balrampur Chini Mills Ltd BUY 0.86% 62.9
Balrampur Chini Mills Barclays Capital Mauritius Limited SELL 0.87% 61.9
BSE
Bedmutha Inds INVENTURE GROWTH & SECURITIES LTD. BUY 1.23% 123.0
BGIL Films KAILASH CHANDRA BUY 0.80% 4.7
Gemstone Invest SUKRATI CONSULTANCY SERVICES SELL 2.25% 8.9
Monnet Ispat BLACKSTONE MANAGEMENT PARTNERS BUY 1.80% 478.1
Sanraa Media JMP SECURITIES PVT LTD BUY 2.30% 0.1