Morning Notes Date: 27.01.2012

For Internal circulation only GRAPH

GLOBAL NEWS

Asia Stocks Snap 2-Day Rally, Yen Rises

Asian stocks snapped a two-day rally after U.S. home sales unexpectedly fell and the yen gained against the dollar, damping the earnings outlook for the region’s exporters. James Hardie Industries SE (JHX), a building-materials KEY INDICES supplier that gets almost 70 percent of sales from the U.S., Indian Markets slid 0.3 percent in Sydney. Inpex Corp. (1605), Japan’s No. 1 energy explorer, advanced 2 percent after oil and metal prices gained. NEC Corp., a Japanese electronics maker, slid Index Close Change (%) 7.1 percent after saying it will cut 10,000 jobs and S&P CNX NIFTY 5158.30 0.60 forecasting its third annual loss in four years. CNX NIFTY JUNIOR 9751.00 1.46

South Korean Manufacturers’ Confidence Index Is Near CNX 100 5031.05 0.74

Lowest Since July ‘09 S&P CNX DEFTY 3569.70 0.51 S&P CNX 500 4051.80 0.87 South Korean manufacturers’ confidence is near a 30- CNX MIDCAP 7051.00 1.39 month low as Europe’s debt crisis dims the outlook for exports. An index measuring expectations for February was NIFTY MIDCAP 50 2096.85 1.71 at 81 from January’s 79, the lowest level since July 2009, a SENSEX 17077.18 0.48 statement from the Bank of Korea showed in Seoul today. A measure of expectations at non-manufacturing companies Global Markets was unchanged at 79. South Korea’s economy grew the least in two years in the fourth quarter as exports sank Index Close Change (%) because of Europe’s crisis and a faltering global expansion, a government report showed yesterday. S&P 500 1318.43 -0.57 NASDAQ 2805.28 -0.46

Japanese Stocks Decline on Falling U.S. Home Sales, Rising DOW JONES 12743.63 -0.18 Jobless Claims FTSE 5795.20 1.26 DAX 6539.85 1.84

Japanese stocks fell for a second day after new homes sales CAC 40 3322.65 -0.47 unexpectedly fell in the U.S. and jobless benefit claims rose, NIKKEI 8850.67 0.01 clouding the outlook for exporters. Sony Corp. (6758), a HANG SENG 20526.17 0.43 consumer electronics company that gets about 70 percent STRAITS TIMES 2900.09 0.19 of its sales overseas, slid 1.5 percent. Nintendo Co. sank 5.9 percent after the world’s largest maker of video-game Global data recorded/updated last as on 27, Jan. 7.30 a.m. IST consoles said its loss would triple. Mitsubishi Corp. (8058), Japan’s largest commodities trader by market value, rose 1.1 percent as prices for crude and metals gained.

1 We Make Investment Easier NIFTY TOP GAINERS NIFTY TOP LOSERS Indian Markets Indian Markets

Change Change Company Close (%) Company Close (%)

RELIANCE ENR 513.80 7.14 TATA POWER 105.45 -2.04 SESA GOA LTD 200.70 5.99 HERO HONDA 1,853.90 -1.81 VIDESH SANCH 236.40 4.23 H C L TECH 420.80 -1.79 BHARAT PETRO 579.60 4.18 CAIRN IND 345.85 -1.66

MARKET SUMMARY

Wednesday, the key domestic benchmarks closed on a strong note as the Sensex surpassed the 17K mark amid firm cues from the Asian markets. The Metal and PSU space led the rally.

BSE SENSEX closed at 17077.18 up by 81.41 points or by 0.48 % and then NSE Nifty ended at 5158.3 up by 30.95 points or by 0.6 %.The BSE MIDCAP closed at 5834.04 up by 72.13 points or by 1.25 %, while the BSE SMLCAP ended at 6408.45 up by 70.44 points or by 1.11 %.The BSE Sensex touched intraday high of 17130.24 and intraday low of 17016.69 The NSE Nifty touched intraday high of 5174.15 and intraday low of 5130.25.

The weak closing of the US markets on Tuesday made little impact on domestic sentiment during morning trade. On Tuesday, the Dow Jones Industrial Average ended down by 0.26% or 33.07 points at 12,675.75, the S&P 500 ended down 0.10% or 1.35 points at 1,314.65 and the Nasdaq closed up by 0.09% or 2.47 points at 2,786.64. Soon after witnessing a gap up opening, the benchmarks continued to trade in the positive terrain amid firm Asian market cues. Asian markets were trading in the positive terrain on Wednesday as a weaker yen boosted the outlook for Asian exporters. Moreover, record quarterly earnings reported by Apple Inc., the world’s largest technology company also lifted sentiment. Apple Inc. said that its first quarter profit more than doubled to USD 13.06 billion from USD 6 billion in the year ago period on robust iPhone and iPad sales. Moreover, the euphoria over the CRR cut by the RBI on Tuesday also supported sentiment. However, the benchmarks pared off some of their gains as Greece and its private creditors struggled to reach a deal on bond swap. Moreover, a third straight decline in Japanese exports in December 2011 also weakened sentiment. Moreover, the IMF slashed its global growth forecast to 3.3 per cent in 2012 from 4 per cent estimated earlier, which also weighed on sentiment. On the domestic front, the expiry of the F&O contracts also lead to volatility in trade. The benchmarks extended their gains during afternoon trade as the Sensex regained the 17K level. The benchmarks continued to trade on a firm note before surging to the day’s high. The benchmarks pared off some their gains in the final hour of trading amid weak opening in the European markets. Finally, the benchmarks ended on a robust note, with the Sensex and the Nifty gaining over 0.40% each. Among the BSE Sectoral indices, BSE Metal and BSE PSU ended up 1.79% and 1.24% respectively.

Among the 30 Sensex stocks, Coal India, Tata Motors, Tata Steel, Sterlite Industries and Maruti Suzuki closed up 3.9%, 3.78%, 2.97%, 2.47% and 2.44% respectively. Among the Sensex stocks, there were 18 advances and 12 declines. On BSE out of total shares traded 3026 , shares advanced were 1837 while 1067 shares declined and 122 were unchanged.

On the Economic front, the RBI has said that it prefers non-debt inflows into the Indian economy over debt inflows, adding that any increase in the investment limit for foreigners in Indian debt will not be automatic.

2 We Make Investment Easier

NEWS UPDATES

MACRO

India and Thailand will sign a free trade agreement by the middle of this year , Thai Prime Minister Yingluck Shinawatra said on Wednesday. "I hope this free trade agreement with India will be in place by the middle of this year," Shinawatra said here in a speech at a business conference. She also said the proposed agreement will be one of the main points of the discussion when she meets Prime Minister Manmohan Singh later on Wednesday. In the backdrop of the stuttering Doha world trade talks, India has pushed a slew of trade agreements with the likes of Japan and Malaysia. It also hopes to sign a similar deal with the European Union, its biggest trade partner.

COMPANY

Essar Projects , part of the Essar Group, has bagged the EPC contract for the prestigious Ro-Ro Ferry Service Terminals at Gogha & Dahej from the Gujarat Maritime Board. The total project will cost Rs. 2.25bn and is scheduled to be completed in 15 months. The Bhoomi Pujan of Gogha – Dahej Ro Ro Ferry Service Terminal was performed by Honourable Chief Minister Shri. Narendrabhai Modi. The Honourable Chief Minster also laid the foundation stone at Gogha.

Mangalore Refinery & Petrochemicals Ltd (MRPL), is reportedly worried about possible supply disruption because of international sanctions and is keeping all options open. Sudhir Vasudeva, Chairman, MRPL was quoted as saying that there is no supply disruption but the company is prepared for any eventuality and is in discussions with suppliers in Latin America, the Middle East and Africa. MRPL will import about 7.1 million tonnes of Iranian crude in 2011-12 and plans to continue such imports in the next fiscal year too, added reports.

PBA Infrastructure has bagged contract worth Rs 544 million from ``Pimpri Chinchwad Municipal Corporation, Pimpri``. The contract is for improvement and development of Dehu Alandi Road from Ch. 0/000 Km to Ch. 8/250 Km (Dehu Village to Moshi Jadhawwadi village border road).

Welspun Energy Ltd . (WEL) has inked an MoU with the Government of Andhra Pradesh for installing 500 MW of wind power projects. WEL is the latest entrant in the booming wind energy sector in India. As a leading player in solar energy with a portfolio of 500 MW under different stages of development, Welspun Energy has been aggressively moving forward in the renewable energy space. The company was recently awarded the largest solar project in India of 50 MW in a single location under the prestigious Jawaharlal Nehru National Solar Mission (JNNSM).

Suzlon Group -subsidiary REpower Systems SE has concluded a contract for the delivery of 25 wind turbines of the MM92 type with US developer enXco - an EDF Energies Nouvelles company. The turbines will be used at the Shlloh IV wind farm, situated in Solano County, California. After completion, the wind farm will have a power output of more than 50 megawatts (MW). In 2008 and 2011 REpower delivered wind turbines for enXco's Shiloh II and Shiloh III wind farms. Together, Shiloh II, III and IV wind farms will have a capacity of more than 300 MW which makes them REpower's largest US wind project to date.

JSW Steel has finalised a Rs 2,140-crore investment plan in its subsidiary JSW Ispat Steel Ltd to set up a coke oven, a pellet plant and a cold rolling mill. The investments will be made through a special purpose vehicle, Amba River

Coke Ltd, a wholly-owned subsidiary of JSW Steel. The projects will come up at JSW Ispat’s Dolvi unit (in Maharashtra’s Raigad district) and are part of a strategy to make the unit cost-effective. “The coke oven and pellet plants will improve profitability and the cold rolled mill will increase the share of value added products from 10 per cent to 25-30 per cent,” the company said.

3 We Make Investment Easier TECHNICAL ANALYSIS

MOST ACTIVE STOCKS PIVOTAL GUIDANCE Company Lower 2 Lower 1 Axis Higher 1 Higher 2 NIFTY 5126.65 51 47.89 5159 .13 517 5.21 519 1.66 BANK NIFTY 9791.15 98 19.91 9857 .68 9950 .59 100 09.90

RELIANCE 78 0.16 785 .47 79 2.78 80 0.30 803.28 RCOM 94.38 95.14 95.90 96.56 96.68 RELCAPITAL 341.54 344.28 347.03 349.43 349.86 REL INFRA 506.00 510.07 514.14 517.70 518.34 LT 1312.84 1323.40 1333.96 1343.20 1344.85

STER 112 .08 112.98 113.88 114.67 114.81 ICICIBANK 868.89 875.88 882.87 888.99 890.08 SBIN 2028.78 2045.10 2061.42 2075.70 2078.25 TATASTEEL 438.55 442.08 445.61 448.69 449.24 RPOWER 96.04 96.82 97.59 98.27 98.39

TATAPOWER 104.17 105.01 105.85 106.58 106.71 INFOSYSTCH 2639.85 2661.09 2682.32 2700.90 2704.22 BHEL 279.73 281.98 284.23 286.20 286.55 ONGC 270.75 272.93 275.11 277.01 277.35 ACC 1161.58 1170.92 1180.26 1188.44 1189.90

PUNJLLOYD 50.67 51.08 51.48 51.84 51.91 HDFCBANK 486.81 490.72 494.64 498.07 498.68 MARUTI 1147.11 1156.33 1165.56 1173.64 1175.08 AXISBANK 1038.26 1046.61 1054.96 1062.27 1063.58

BULLISH ON SHORT TERM

COALINDIA BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 346-348-350 SL 334

ZEEL BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 127-129-131 SL 121

4 We Make Investment Easier Following the MUTUAL FUNDS

Escorts Growth – G Latest NAV: 61.32 (24/01/12) 52-Week High: 75.21 (25/01/11) 52-Week Low: 51.83 (20/12/11)

Return s Year Fund Category 1 Year -18.62 -12.07 3 Year 19.48 30.24 5 Year 1.68 4.72 Return Since Launch 18.19 -

Top Holdings: As on 31 Oct. Top 5 Sectors Name of Holding % Net Assets Top 5 Sectors % Net Assets

Kalyani Investment 8.85 Financ ial 19.55 SPIC 8.39 Chemicals 18.69 Larsen & Toubro 5.84 Automobile 12.71 UFLEX 5.10 Healthcare 8.35 Duncans Inds. 4.69 Metals 8.19

Top 3 Holding Company Details

Kalyani Investment Other Funds That Own Kalyani Investment LTP: 421.15 PE Ratio: 28.75 Fund name % Net Asset Date PB Ratio: 0.63 Year to Date Return(%): 19.80 Escorts Tax Plan 9.56 Jul 31, 2011 Escorts Balanced 9.55 Oct 31, 2011 Escorts Growth 9.54 Jul 31, 2011

Escorts Growth 8.85 Oct 31, 2011

Other Funds That Own SPIC SPIC

LTP: 19.63 PE Ratio: 4.15 Fund name % Net Asset Date PB Ratio: 0 Year to Date Return(%): 35.85 Escorts Growth 9.52 Aug 31, 2011

Escorts Growth 9.38 Jul 31, 2011 Escorts Tax Plan 9.29 Aug 31, 2011 Escorts Tax Plan 9.19 Jul 31, 2011

Other Funds That Own L&T L&T LTP: 1331.50 PE Ratio: 19.56 Fund name % Net Date PB Ratio: 3.39 Year to Date Return:33.81 Asset Goldman Sachs Infra BeES 26.48 Nov 30, 2011 Escorts Leading Sectors 11.45 Aug 31, 2011 Escorts Leading Sectors 10.45 Jul 31, 2011 JM Core 11 9.11 Dec 31, 2011

5 We Make Investment Easier Good for Delivery

JSW Steel

JSW Steel has finalised a Rs 2,140-crore investment plan in its subsidiary JSW Ispat Steel Ltd to set up a coke oven, a pellet plant and a cold rolling mill. The investments will be made through a special purpose vehicle, Amba River Coke Ltd, a wholly-owned subsidiary of JSW Steel. The projects will come up at JSW Ispat’s Dolvi unit (in Maharashtra’s Raigad district) and are part of a strategy to make the unit cost-effective. “The coke oven and pellet plants will improve profitability and the cold rolled mill will increase the share of value added products from 10 per cent to 25-30 per cent,” the company said. The coke oven battery would have a capacity of a million tonnes per annum (mtpa) and would cost the company Rs 975 crore. Of this, Rs 375 crore would be the equity component, the rest coming from loans. ARCL has the environmental clearance and the plant is expected to come on stream by the end of calendar year 2013.

The proposed four- million tonnes pellet plant at the site is estimated to cost Rs 835 crore and a 0.8 mtpa cold rolled mill Rs 330 crore. These two projects are to be financed through a debt-equity ratio of 2:1. JSW said, “These projects will be taken up for implementation on receipt of requisite clearances and commissioned in FY13-14.” These three projects are integral to the turnaround effort at JSW Ispat. JSW Steel had said these projects were priority, to get Ispat on its feet. Experts believe backward integration will solve Ispat’s profitability issues. An analyst, on condition of anonymity, said, “The company has reiterated time and again that Ispat’s Dolvi unit is one of the most technologically advanced in the country. However, lack of coke oven battery, pellet and power plant has made sure the company suffers losses.” Plans to set up the coke oven battery and pellet plant were readied even before JSW Steel decided to invest in Ispat Industries, now known as JSW Ispat Steel. Ispat had even signed deals for this with the Indian arm of Stemcor, the world’s largest steel trading company. With JSW Steel coming into picture, the agreement with Stemcor was dissolved and JSW decided to set up these projects on its own. Finally, over a year after the acquisition, JSW Steel has decided to proceed. Accumulate

Axis Bank

Axis Bank, India’s third largest private Bank, announced its tie up with Samba Financial Group, Saudi Arabia, for remitting money from Saudi Arabia to India through Speed Cash. Samba Financial Group has an asset base of close to USD 50 billion. It has a network of over 65 branches and around 35 dedicated remittance centres branded as “Speed Cash Centers” spread across the Kingdom of Saudi Arabia. Axis Bank has entered into an agreement with Samba Financial Group; Saudi Arabia to facilitate remittance of money to India through Axis Bank accounts or any of the 78000 NEFT enabled branches of over 100 other banks in India. Such remittances would be processed seamlessly and disbursed to the intended beneficiaries by Axis Bank within 24 hours, irrespective of whether they have a bank account or not.

Speaking on the occasion, P. Mukherjee, President – Treasury and International Banking, Axis Bank said, “Over 2 million Non-Resident Indians reside in Saudi Arabia. This tie-up with Samba Financial Group reinforces our commitment to provide overseas Indians facilities to remit money to beneficiaries back home from across the globe in a quick, seamless and economical manner. We are focusing on adding remittance channels for the NRI customers of the Bank and to grow the remittance business by tying up with more and more overseas banks.” Axis Bank offers inward remittance facility to India through tie-ups with various overseas banks, exchange houses, money transfer operators as well as through wire transfer and its online money transfer platform, ‘AxisRemit Online’. Accumulate

6 We Make Investment Easier DERIVATIVES NOTES

Nifty February 2012 futures were at 5176.55, Institutional Investment Trends at a premium of 18.25 points compared to spot closing of 5158.30. Turnover on NSE`s futures & options (F&O) segment declined to

(in Crores) Jan 25, 2012 Rs 191776.53 crore from Rs 205305.78 crore on Tuesday, 24 January 2012.

BUY SELL OIEoD
State Bank of India (SBI) February 2012 3122.87 3137.51 11979.65 INDEX FUTURES futures were at 2034, at a discount compared to spot closing of 2045. Tata Motors February 15981.92 15115.36 26090.52 INDEX OPTIONS 2012 futures were at 230.55, near pot closing of 230.45. 6570.20 6373.75 25755.34 STOCK FUTURES

494.63 529.54 287.36
Axis Bank February 2012 futures were at STOCK OPTIONS 1041, at a discount compared to spot closing

of 1054. In the cash market, the S&P CNX Nifty gained 30.95 points, or 0.6% to settle at 5,158.30, its highest closing level since 11 November 2011. Put Call Ratio

Symbol Expiry Date Put Call Ratio INDUSINDBK 25-Jan-12 69000 2000 34.50 MAX 25-Jan-12 26000 1000 26.00

IGL 25-Jan-12 26500 1500 17.67 GESHIP 25-Jan-12 31000 2000 15.50 SYNDIBANK 25-Jan-12 94000 8000 11.75 CNXIT 25-Jan-12 10500 1000 10.50 DCHL 25-Jan-12 180000 20000 9.00

MCLEODRUSS 25-Jan-12 71000 9000 7.89 DABUR 25-Jan-12 182000 24000 7.58 HOTELEELA 25-Jan-12 120000 24000 5.00 BFUTILITIE 25-Jan-12 10000 2000 5.00 NMDC 25-Jan-12 31000 7000 4.43

MRPL 23-Feb-12 32000 8000 4.00 JSWENERGY 25-Jan-12 556000 168000 3.31 MINIFTY 29-Mar-12 60 20 3.00 HEXAWARE 25-Jan-12 156000 52000 3.00

7 We Make Investment Easier DIVIDEND AND OTHER INFORMATION

Sesa Goa Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on

January 25, 2012, inter alia, has declared Interim Dividend for the Financial Year 2011-2012 @ Rs. 2/- per share on face value of Re. 1/- and the Interim Dividend shall be paid / despatched on or before the due date, i.e. February 23, 2012.

Power Grid Corporation Of India Limited has informed the Exchange that the Company has fixed February 14, 2012 as the Record Date for the purpose of ascertaining the eligibility of the Shareholders for payment of Interim

Dividend, if declared, by the Board of Directors.

Equity Research Division 16, Krishna Market, 1st Floor, Kalkaji, New Delhi 110019 Phones: 47152214-15, Fax 47152211 Email: [email protected] Regd. & Corp. Office Equity Research Division 1002A, 10th floor, Arunachal, 19 Barakhamba Road, New Delhi -110001, Phones: 011-46204000 (30 lines), 23717551, Fax 011-46204050

Web: www.ndaindia.com Email: [email protected], [email protected] Mumbai Office 21, Prospects Chamber Annexe Dr. D N Rd, Fort, Mumbai-400001 Phones: 022-22842694, 22851387

Branches &Associates

Disclaimer : This document is meant for private circulation only and has been prepared by RScaS . This document is not to be reported, copied or made available to any other without written permission of NDA. The information contained in this report has been obtained from sources that are believed to be reliable and NDA has no responsibilities for the accuracy of the facts stated. The recommendation made herein does not constitute an offer to sell or solicitation to buy any securities. This report does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The securities discussed in this report may not be suitable for all investors. NDA Securities recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a financial adviser. The appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. The readers using the information are solely responsible for their actions. Either NDA or its affiliates, directors, employees, representatives, clients or their relatives may or may not have position(s) in the stocks recommended.

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