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Zen Daily Market Report - 18/04/2011 Market Activity Market Review Indices Performance The Indian benchmark indices opened on a weak note on back of weak cues coming in from Particulars 15/04/2011 Gain+/Loss- % Var the global markets and also as investors were cautious ahead of the Infosys' fourth quarter SENSEX 19386.82 -310.04 -1.57 BSE 100 10125.68 -135.82 -1.32 results. With the IT bellwether reporting less-than-anticipated results, the markets drifted BSE 200 2397.24 -29.36 -1.21 lower and continued to move in the negative terrain but in a narrow range. However, the BSE 500 7527.54 -82.44 -1.08 March monthly WPI inflation data punctured the investor sentiment as it rose to 8.98% from NSE NIFTY 5824.55 -86.95 -1.47 the previous month's 8.31% and the market touched the intra-day lows. The market found Jr NIFTY 11606.20 -12.40 -0.11 support at lower levels however, the weakness in Asian and European markets capped the CNX IT 6842.15 -463.95 -6.35 northward movement. By the end of the session, BSE Sensex fell 1.57% or 310.04 points to end Sensex at 19386.82, while NSE Nifty lost 1.47% or 86.95 points to close at 5824.55. Among the broader indices, BSE Midcap and BSE Smlcap slipped 0.20% and 0.17% respectively. The market breadth was in favour of the declines as there were 1300 advances and 1601 declines.

At the sectoral level with the exception of Auto, Capital Goods and Consumer Durables all other indices closed in red. IT, Technology, Realty, Banking and Power were the major under Sectoral Indices Performance performers of the day. Indices 15/04/2011 Gain + / Loss - %Var AUTO 9439.08 11.00 0.12 IT space reeled under pressure after the IT major Infosys came with less-than-expected Q4 CG 13979.29 13.51 0.10 results and Oracle Financial, HCL Technologies, Core Projects, Wipro and Infosys sky-dived CD 6381.24 5.57 0.09 2.20% to 9.59%. Technology index too followed the peer IT index and closed in red as Zee FMCG 3713.73 -5.58 -0.15 PSU 9070.76 -22.54 -0.25 Entertainment, Financial Technologies, Sun TV Network, Reliance Communication and TCS HC 6142.02 -30.75 -0.50 slumped 0.83% to 1.52%. Realty space reeled under pressure and DLF, Unitech and D B Realty OIL&GAS 10031.67 -54.67 -0.54 slipped 2.43%, 2.65% and 3.84% respectively. Banking stocks witnessed selling pressure and METAL 16334.54 -106.05 -0.65 POWER 2775.39 -24.44 -0.87 PNB, Kotak Mahindra Bank, Yes Bank, Axis Bank and ICICI Bank slumped 0.75% to 2.37%. BANKEX 13382.96 -127.68 -0.95 Power closed in the negative domain as JSW Energy, Lanco Infra, GVK Power, Suzlon Energy REALTY 2410.15 -29.75 -1.22 TECK 3751.26 -188.24 -4.78 and Siemens pared 2.04% to 3.69%. IT 6258.54 -427.58 -6.40 Auto was the top performer of the day as Hero Honda, Cummins India and Bajaj Auto surged Top NSE Nifty Gainers & Losers Gainers Losers 5.52%, 1.26% and 1.06% respectively. Capital Goods closed in the positive terrain as Havells HEROHONDA INFOSYSTCH India, Crompton Greaves, Areva T&D, ABB and L&T gained 0.59% to 3.73%. Titan Industries BAJAJ-AUTO WIPRO BHARTIARTL SIEMENS and Rajesh Exports ascended 0.31% and 0.69% respectively that pulled the Consumer Durables JPASSOCIAT HCLTECH DRREDDY DLF index into the positive domain. Market Breadth Exchange Advances Declines Unchanged BSE 1300 1601 93 Market Outlook NSE 534 912 46 No. of Stocks That Hit Price Bands On the heavy selling witnessed in the domestic market during the last session Upper Circuit Lower Circuit Total and on the mixed cues coming in from the global peers, the domestic indices BSE 226 122 348 NSE - - 53 are expected to open on a sideways note with a negative bias. Trading Turnover (Rs.Cr.) Thereafter, the market is expected to witness stock specific movement on the 15/04/2011 13/04/2011 back of the quarterly results coming in from the corporate. NSE 15127.45 13024.00 BSE 3760.44 3394.41 Following the heavy plunge witnessed in the IT stocks during the last session Index Futures 15747.68 18016.04 triggered by the disappointing result from Infosys, the stocks in the sector are Stock Futures 18451.41 16533.82 expected to witness marginal recovery. Index Options 86803.29 93907.32 Stock Options 6606.12 4095.34 With the inflation concerns still prevailing in China and the central bank of F&O Total 127608.49 132552.51 China expected to raise the lender rate by 50 basis points pressure is expected Institutional Activity (Rs.Cr.) on the local indices, especially in the metal counters. Equity Buy Sell Net With the IRB Infrastructure Developers winning a road project of Rs 3600 Cr., FII (15.04 Prov) 3135.81 3389.24 -253.43 some buying is expected in the stock during the next few sessions. DII (15.04 Prov) 1373.07 1733.95 -360.88 Ramco Systems' signing of over 300 new Enterprise Resource Planning (ERP) Most Actively Traded Stocks clients in the aviation, aerospace and defence industries,could pull investor Stock Total Qty Value (Lakhs) INFOSYSTCH 10127467 309717.18 interest. ICICIBANK 5965130 66613.80 FIIs turned out to be net sellers during the last session with a net sale of Rs LT 2682799 46567.22 253.43 Cr., any continuation of this trend is expected to add further downward TCS 3783385 45268.58 pressure on the market. SBIN 1367244 38611.52 For the Nifty 5785and 5725 are the immediate support levels, while 5880 and RELIANCE 3240001 32889.90 JPASSOCIAT 31274801 31049.62 5925 are the immediate resistance levels. EVERONN 3913635 25760.72 While 19260 and 19090 are the immediate support levels for the Sensex, 19560 HDFC 3427985 24536.15 and 19700 are the immediate resistance levels. BHARTIARTL 5974975 22225.11 www.zenmoney.com Global Markets Major World Indices Nikkei in the morning trade fell after China raised banks’ reserve requirements, limiting growth in Particulars 15/04/2011 % Var Japan’s biggest overseas market. With the yen advancing, the exporter counters too witnessed DOW 12341.80 0.46 selling pressure. As of 7.30 AM, the Nikkei is still trading in red and is down 0.19% to stand at NASDAQ 2764.65 0.16 9573.04. On the European front, the British Benchmark indices rose as rally was witnessed in the FTSE 5996.01 0.54 drug makers and tobacco stocks. GlaxoSmithKline gained 1.4% after Pozen Inc said a federal court BRAZIL BOVESPA 66684.20 0.61 granted a preliminary injunction ordering Par Pharmaceutical Cos Inc not to develop and sell a MEXICO BOLSA 36988.40 -0.22 NIKKEI * 9573.04 -0.19 generic version of Pozen's migraine drug in the United States. Goldman Sachs highlighted potential HANG SENG * 24081.60 0.31 M&A activity in a sector it views as inexpensive and underlevered. By Friday’s close, the FTSE 100 SHANGHAI COMP * 3045.38 -0.17 was up 0.54%, to stand at 5996.01, while CAC and DAX were up by 0.10% and 0.44%, to stand at * - As of 18th April 7.30AM 3974.48 and 7178.29 respectively. In the US markets, the stocks rose due to encouraging economic ADRs/GDRs as on 15/04/2011 indicators, but the market's recent struggles are set to continue into next week when more than Company LTP $ % Chg one-fifth of S&P 500 companies report results. Disappointing results from Google and Infosys Dr. Reddy's 37.68 0.08 weighed on technology shares, while financials were pressured by Bank of America's results. HDFC Bank 170.24 -1.35 Consumer price inflation remained contained in March while industrial production increased. A ICICI Bank 49.03 -1.94 separate survey showed improvement in consumer sentiment in April. Investors have been MTNL 2.21 1.37 concerned that higher energy and food costs would slow consumer spending, while at the same Patni Computer 21.28 -0.04 Satyam 3.47 2.06 time force the Federal Reserve to tighten its very loose monetary policy earlier that anticipated. By Sterlite Ind (I) 15.24 -0.65 the close of Friday’s trade, Dow was up 0.46% to stand at 12341.80, while the S&P 500 and the Tata Comm 11.54 1.85 Nasdaq were up by 0.39% and 0.16% to stand at 1319.68 and 2764.65 respectively. Tata Motors 27.68 -1.42 Wipro 14.07 -5.25 Commodities Infosys 63.21 -13.42 Brent Crude Oil ($/BRL): US Brent crude oil prices rose as improving U.S. consumer confidence and Commodities Market industrial production eased concerns about rising fuel costs. Investors have been concerned that Particulars 15/04/2011 % Var higher energy and food costs would slow consumer spending. By the close of Friday’s trade, the GOLD ($/Oz) 1487.20 0.70 Dated Brent Spot was up by 1.13% to $124.06/ barrel, as against the previous close of $122.67/barrel. COPPER ($/ton) 9326.00 - ALUMINIUM ($/ton) 2617.00 - Gold:Gold prices rose due to inflation worries amid a crude oil rally and a downgrade of Ireland's STEEL ($/ton) 525.00 - sovereign debt powered bullion to its fifth consecutive weekly gain. By the close of session, the OIL ($/barrel) 124.06 1.13 spot gold was up by 0.70% to trade at $1487.20/Oz, as against the previous close of $1476.80/Oz. Forex & Debt Market Economy & Industry News Particulars 15/04/2011 % Var Rs. Vs $ 44.33 0.38 Union Coal Minister Shriprakash Jaiswal said that the draft bill for setting up the coal 8.08% G-Sec 98.70 (8.24% YTM) -0.56 regulator is almost ready and is likely to be tabled in the next session of the Parliament. The govt is looking at an investment of over Rs one lakh crore in 13 major ports, to expand their capacity by 767.15 MT in the next 10 years.

The Power Ministry is likely finalise the draft report forecasting the electricity generation and demand scenario for the 12th five-year plan period (2012-17), next month.

India's foreign exchange reserves rose by $2.71 billion to $308.2 billion on the back of an increase in foreign currency assets.

Corporate News Rel Inds group is planning a big splash in financial services sector, but may take a path different than those adopted traditionally in the business of money.

Maruti Suzuki is considering to set up a new plant, over and above the two new upcoming units in Manesar, as it aims to sell up to three million units every year by 2015-16.

IOB said that it has raised $500 million (about Rs 2,250 crore) from overseas markets.

IRB Infra Developers said that they had secured a road project worth Rs 3600 cr which would be built in 3 years under the terms of the contract in Gujarat.

Indian Bank said that it is eyeing 24% growth in its total business to Rs 2,25,000 crore in the current fiscal, as it looks to expand aggressively by opening over 130 branches, including five overseas in 2011-12.

Dabur said that it is entering into the hand sanitiser market under its 'Fem Care' brand.

The SCI has signed contracts for acquisition of two resale Supramax bulk carriers with M/s Grand Yard Investments Ltd., China.

Ramco Systems has signed over 300 new ERP clients in the aviation, aerospace and defence industries, the company has said.

Aditya Birla Chemicals (I) said that it will acquire the chloro chemicals division of Kanoria Chemicals & Industries Ltd for Rs 830-crore.

Pennar Engg Building Systems has bagged the order for the first phase of construction of Pre-Engineered Steel Buildings from L&T for Chennai Metro Rail.

Muthoot Finance has raised about Rs 130 crore from 11 cornerstone investors, the company said in exchange filings, ahead of the launch of its initial public offering to raise up to $203 million.

SEL said that it would invest Rs 1,150 crore on setting up new spinning unit and expanding its terry towel business in Punjab. Disclaimer This document was prepared by Zen Securities Ltd (ZSL), on the basis of publicly available information, internally developed data and other sources believed to be reliable. The material contained herein is for information only and under no circumstances should be deemed as an offer to sell or a solicitation to buy any security. ZSL or its employees, may, from time to time have positions in the stocks mentioned in this document. While all care has been taken to ensure that the facts are accurate and the opinions are reasonable, ZSL shall not be liable for any loss or damage howsoever arising as a result of any person acting or refraining from acting in reliance on any information contained therein. www.zenmoney.com