Morning Notes 5667. Date: 24.09.2013

For Internal circulation only GRA

GLOBAL NEWS KEY INDICES Indian Markets Aussie Dollar Trades near Five-Year Low Versus Kiwi on Rate Bets Index Close Pt. Chg. Change %

S&P CNX NIFTY 5889.75 -122.35 -2.04 Australia’s dollar traded 0.6 percent from an almost five- year low versus its New Zealand counterpart on bets CNX NIFTY JUNIOR 11276.20 -149.50 -1.31 interest rates at the nations’ central banks will diverge. CNX 100 5755.35 -113.20 -1.93 Traders see 50 percent odds that the Reserve Bank of CNX METAL 2146.10 +3.85 0.18 Australia will reduce its cash target rate by April next year, interest-rate swaps data compiled by Bloomberg show. S&P CNX 500 4482.00 -78.10 -1.71 They see an 87 percent chance the Reserve Bank of New CNX MIDCAP 7016.85 -68.50 -0.97 Zealand will raise borrowing costs in the same period. The NIFTY MIDCAP 50 1905.90 -26.00 -1.35 Aussie held its first gain in three days against the greenback as investors ponder whether the Federal Reserve will start SENSEX 19900.96 -362.75 -1.79 to taper stimulus that has weighed on the U.S. currency. Global Markets Asia Stocks Fall From 4-Month High amid U.S. Budget Talks Index Close Pt. Chg. Change % Asian stocks fell from a four-month high amid a political S&P 500 1701.84 -8.07 -0.47 showdown in Washington over the U.S. budget and as investors examined speeches from Federal Reserve officials NASDAQ 3765.29 -9.44 -0.25 for clues on monetary policy. Nikon Corp., a camera maker DOW JONES 15401.38 -49.71 -0.32 that gets 85 percent of its sales overseas, sank 2 percent as FTSE 6557.37 -39.06 -0.59 a stronger yen weakened the earnings prospects for exporters in Japan. Lixil Corp., a toilet maker that people DAX 8635.29 -40.44 -0.47 familiar with the matter said is in advanced talks to buy CAC 40 4172.08 -31.58 -0.75 German bathroom-fixtures company Grohe Group for more NIKKEI 14609.88 -132.54 -0.90 than 3 billion euros ($4 billion), declined 3.9 percent in Tokyo. HANG SANG 23222.79 -148.75 -0.64 STRAITS TIMES 3215.92 +1.67 0.05 U.S., Europe Stocks Drop as Banks Fall; China Shares Gain Global data recorded/updated last as on 24, Sep. 7.30 a.m. IST Stocks fell in the U.S. and Europe, led by financial shares, amid concern about weakening bank earnings and a political showdown in Washington over the budget. Commodities retreated, while Chinese equities rallied after industrial production beat estimates. The Standard & Poor’s 500 Index lost 0.5 percent to 1,701.84 at 4 p.m. The Stoxx Europe 600 Index dropped 0.5 percent. The Shanghai Composite Index jumped 1.3 percent after a two-day holiday in China.

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

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

SESAGOA 183.20 2.92 BANKBARODA 509.85 -7.33 HCLTECH 1,092.05 2.85 DLF 140.85 -7.03 HINDALCO 116.00 1.80 AXISBANK 1,030.00 -6.56 HEROMOTOCO 2,007.00 1.28 INDUSINDBK 385.00 -6.44 DRREDDY 2,396.00 1.26 JPASSOCIAT 37.60 -6.12

MARKET SUMMARY

The domestic market came under more selling pressure yesterday as the Sensex lost more than 360 points pulled lower by rate-sensitive stocks as mood remained weak after the new RBI governor Raghuram Rajan on Friday raised interest rates to stem surging inflation. In a surprise move, on Friday, the Reserve (RBI) hiked the repo rate by 25 bps to 7.50% from 7.25%. Investors are worried over further rate hike in interest rates as the RBI may sacrifice languishing economic growth for controlling persistent inflation. Mixed cues from Asian and European markets also affected domestic sentiment.

Indian stocks fell for the second straight day yesterday, 23 September 2013. Most pharma stocks declined. PSU banking major dropped 5.84%, with the stock extending intraday losses. The state-run bank on 18 September 2013 said it has raised the base rate by 10 basis points (bps) to 9.8% per annum (pa) from 9.7% and the benchmark prime lending rate by 10 bps to 14.55% from 14.45% with effect from 19 September 2013. The bank also raised interest rates for retail term deposits.

Among other PSU bank stocks, , , Bank of India, and shed 4.03% to 9.97%. Among private bank stocks, ICICI Bank was down 4.49%. HDFC Bank declined 2.74% to Rs 641, off the day's low of Rs 633.

The BSE Sensex settled at 19,900.96, down by 362.75 points or by 1.79%, and the NSE Nifty closed at 5,889.75, down by 122.35 points or by 2.04%. The BSE Sensex touched intraday high of 20,199.81 and intraday low of 19.826.3. The NSE Nifty touched intraday high of 5,989.4 and intraday low of 5,871.4.

The BSE MIDCAP settled at 5,605.06, down by 72.18 points or by 1.27%, while the BSE SMLCAP closed at 5,453.36, down by 31.94 points or by 0.58%. Banking and Realty sectors declined 4.41% and 4.33% respectively.

The overall trend of the market was negative. On BSE, out of total 2525 shares traded, 1033 shares advanced, 1343 shares declined and 149 shares remained unchanged. The top losers of the BSE Sensex were State Bank of India (Rs. 1652.45, -5.39%), Oil And Natural Gas Corporation Ltd. (Rs. 276.25, -4.86%), ICICI Bank Ltd. (Rs. 944.00, - 4.39%), India Ltd. (Rs. 1402.05, -4.37%), Larsen & Toubro Ltd. (Rs. 811.45, -4.20%). The total turnover on BSE amounted to Rs. 1779 crore yesterday.

2 We Make Investment Easier

NEWS UPDATES

MACRO

Petrol prices may fall sharply by the end of the month . Moily had proposed detailed action plan to the PM to cut India's oil import bill by $19-20 billion. The government is worried about the impact of raising prices. "We can't ignore the message of RBI, which preferred containment of inflation over economic growth. A sharp hike in diesel price will stroke inflation and hit the common man," a senior government official reportedly. Earlier Oil Minister Veerappa Moily's proposal to the Prime Minister included a shift from monthly increase in diesel price by 50 paise to weekly price revisions.

COMPANY

Pawan Goenka, President-Automotive & Farm Equipment at M&M reportedly said that the auto company plans to launch 3-4 new platforms in the next three years. "Most of our launches are in the UV segment. We will expand our range to encompass both the lower and higher-end price segment of the market," Pawan Goenka reportedly said. Goenka said that the segment has witnessed de-growth. M&M is likely to hike prices for the UV and tractor segment, but the increase will be marginal in nature, reports Goenka.

Dabur India announced the launch of a first-of-its-kind standalone oral health portal. The portal will be a one-stop shop for all your oral hygiene needs, right from providing natural solutions for a variety of dental problems like toothaches, cavities, bad breath, gingivitis etc, to providing information about natural kitchen ingredients for dental care, the company said.

Sundaram Business Services, the BPO subsidiary of Sundaram Finance , said it had bagged five deals from Indian and Australian companies and the firm will hire 150 people in the next 12 months. "Sundaram Business Services (SBS) announced the company, which employs over 1,100 people, will be hiring another 150 people in the accounting space for its BPO facilities in and Mumbai over the next 12 months," it said in a release. The Chennai-based firm has also bagged five outsourcing deals for accounts payable solutions from companies in India and Australia, it added. SBS offers end to end accounts payable processing, which includes processing and summarising payments to vendors, as well as employee expense reimbursements.

Omaxe , one of the leading real estate developers in India and premier entertainment agency Wizcraft are associating for the first time for creation of a Special Theme Zone at Omaxe Connaught Place in Greater Noida. The entertainment zone will be spread over 30,000 sq ft in the project Omaxe Connaught Place. Mohit Goel, CEO, Omaxe said, ''We are extremely happy to associate with Wizcraft to creat something innovting and the next big thing for the people of Delhi-NCR. Entertainment brings happiness and rejuvenates human mind.

Tata Power , country's largest private power generator, said it has signed an agreement with EESL for energy efficiency and conservation initiatives. EESL (Energy Efficiency Services Ltd) is a joint venture of public sector units of the Ministry of Power. and EESL have signed an MoU (Memorandum of Understanding) to carry out collaborative activities and partnerships in the field of Energy Efficiency and Demand Side Management (DSM), Tata Power said in a statement. The MOU provides a framework and strategy for collaborative activities and partnership for energy efficiency and conservation, the statement added.

India’s largest multiplex chain, PVR Cinemas, is planning to invest close to Rs 100 crore in the next six months to open 50 new movie screens, especially in tier II cities. This apart, PVR is also expecting to consolidate the merger process with its recent acquisition, Cinemax India, by the end of this year. The company recently bought 138 screens from Cinemax India, a Mumbai-based company, for Rs 395 crore. Post-acquisition, PVR owns nearly 398 screens across 37 cities.

3 We Make Investment Easier TECHNICAL ANALYSIS

MOST ACTIVE STOCKS PIVOTAL GUIDANCE Company Lower 2 Lower 1 Axis Higher 1 Higher 2

NIFTY 58 55 .57 58 70 .38 5890 .08 592 3.14 5940 .45 BANK NIFTY 10 00 3.94 10 110 .37 10 212 .81 10 32 8.07 10 42 0.80 RELIANCE 86 0.74 866.74 872 .03 88 0.85 887 .95 RCOM 150 .03 152 .19 155 .05 157.36 159 .54 RELCAPITAL 339 .56 34 1.31 34 4.07 346 .48 348 .91

REL INFRA 400 .32 402 .42 406 .51 408 .21 410 .70 LT 798 .08 805 .73 812 .38 820 .20 828 .24 STER 88.01 88.72 89.43 90.05 90.16 ICICIBANK 930 .61 937 .12 944 .64 952 .22 961 .40 SBIN 16 25 .99 16 35 .24 16 45 .49 16 55 .08 16 67.15

TATASTEEL 29 0.13 292.52 294 .01 296 .00 298 .38 RPOWER 70 .25 71 .50 72 .35 73.2 3 74 .01 TATAPOWER 77.12 77.74 78.36 78.91 79.00 INFOSYSTCH 30 00.30 30 10 .59 30 24 .89 30 40.15 30 53.94 BHEL 126 .19 128 .33 13 0.07 132 .46 135 .64

ONGC 272 .55 274 .81 276 .56 278.04 28 0.39 ACC 10 88 .28 10 98.60 1109 .92 1120 .20 1130 .50 PUNJLLOYD 24.74 24.94 25.14 25.31 25.34 HDFCBANK 621.56 626.56 631.56 635.94 636.72 1306.13 1316.63 1327.14 1336.33 1337.98 MARUTI AXISBANK 1050.61 1059.07 1067.52 1074.91 1076.23

BULLISH ON SHORT TERM

HINDALCO BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 118-120-122 SL 114

GODREJCP BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 826-832-838 SL 811

Stocks Moving Sensex Stocks Moving Nifty

Stock Name LTP Change (%) Day’s Stock Name LTP Change (%) Day’s Weightage in % Weightage in % TCS 1,955.45 0.1 11.27 TCS 1,955.10 0.2 9.58 Reliance Inds. 874.60 [0.9] 8.40 Reliance Inds. 874.35 [0.9] 7.14 ITC 349.85 [1.6] 8.29 ITC 349.85 [1.5] 7.05 O N G C 276.25 [4.9] 7.32 O N G C 275.65 [4.8] 6.22 304.75 1.2 5.61 Coal India 304.75 1.0 4.77 3,018.65 0.8 5.07 Infosys 3,019.40 0.8 4.31 HDFC Bank 642.25 [2.5] 4.64 HDFC Bank 641.95 [2.6] 3.95 Hind Unilever 644.25 [1.1] 4.15 Hind Unilever 642.60 [1.3] 3.53

4 We Make Investment Easier Following the MUTUAL FUNDS

SBI Emerging Businesses – G Latest NAV: 50.06 (20/09/13) 52-Week High: 62.50 (04/01/13) 52-Week Low: 47.28 (03/09/13)

Returns Year Fund Category 1 Year -2.70 -2.42 3 Year 4.82 -3.98 5 Year 15.00 9.10

Return Since Laun ch 19.72 -

Top Holdings: As on 31 Aug. Top 5 Sectors

Name of Holding % Net Assets Top 5 Sectors % Net Assets HDFC Bank 7.74 FMCG 17.81 Divi’s Lab 5.83 Financial 16.61 P&G Hygiene & Health 5.65 Services 9.17 3M India 5.63 Automobile 8.11 Agro Tech Foods 5.53 Healthcare 5.83

Top 3 Holding Company Details

HDFC Bank Other Funds That Own HDFC Bank LTP: 642.25 PE Ratio: 22.02 Fund name % Net Asset Date PB Ratio: 4.10 Year to Date Return: -5.38 Goldman Sachs Banking BeES 32.39 Aug 31, 2013

Religare Invesco Banking 31.73 Aug 31, 2013 Religare Invesco Banking Direct 31.73 Aug 31, 2013 R*Shares Banking ETF 31.65 Aug 31, 2013

Divi’s Lab Other Funds That Own Divi’s Lab

LTP: 995.15 PE Ratio: 21.35 Fund name % Net Asset Date PB Ratio: 4.84 Year to Date Return: -9.85 Reliance Pharma 9.68 Aug 31, 2013

Reliance Pharma Direct 9.68 Aug 31, 2013 IDBI RGESS Series 1 Plan A Reg 6.16 Aug 31, 2013 IDBI RGESS Series 1 Plan A Direct 6.16 Aug 31, 2013

Other Funds That Own P&G Hygiene

P&G Hygiene LTP: 2605.00 PE Ratio: 41.71 Fund name % Net Asset Date

PB Ratio: 10.53 Year to Date Return: -5.56 SBI Emerging Businesses 5.65 Aug 31, 2013 SBI Emerging Businesses Direct 5.65 Aug 31, 2013

SBI Magnum Global Direct 3.71 Aug 31, 2013 SBI Magnum Global 3.71 Aug 31, 2013

5 We Make Investment Easier Good for Delivery

Tata Power

Tata Power, India's largest integrated power utility announced that it has signed an operating Memorandum of Understanding (MOU) with EESL (Energy Efficiency Services Ltd), a joint venture of Public Sector Units under the Ministry of Power, to carry out collaborative activities and partnerships in the field of Energy Efficiency and Demand Side Management (DSM). The MoU commences from 26th August, 2013 and will remain in force till 25th August, 2016. The MOU provides overarching framework and strategy for collaborative activities and partnership for energy efficiency and conservation. This initiative is to implement energy efficiency projects for large Heating, Ventilation and Air-conditioning (HVAC) consumers and also to promote the replacement of R22 based chillers with new environment friendly and energy efficient chillers. EESL is mandated by GOI to be the lead implementing arm of the government to create and sustain markets for energy efficiency. EESL acts as a super ESCO and to help in financing and developing large energy efficiency projects. Possible GEF grant to replace chillers using R22 technologies would form a part of a suite of projects that will be planned. The proposed activity will target high-end HVAC users to demonstrate efficiency implementation.

Anil Sardana, Managing Director, Tata Power stated, "We are proud to announce our association with EESL and look forward to working with them on driving energy conservation and efficiency to our customers. The concept of energy efficiency and demand side management are integral to Tata Power's commitment on Sustainability. The Company is doing its utmost in offering consumers bouquet of choices by way of various energy saving schemes and opportunities to provoke a culture of conservation of scare resource including energy. Following this association, Tata Power will approach consumers duly supported by EESL and facilitate successful energy efficiency projects." On 16th September 2013, EESL and Tata Power had arranged a focused group discussion with high-end HVAC consumers in Mumbai where the consumers expressed that EESL & Tata Power together would add lot of value to carry out large energy efficiency projects at their premises. Saurabh Kumar, Managing Director of EESL said "The partnership with Tata Power is the first of its kind that EESL has inked with a Distribution & Power company. Accumulate.

PVR Ltd

India’s largest multiplex chain, PVR Cinemas, is planning to invest close to Rs 100 crore in the next six months to open 50 new movie screens, especially in tier II cities. This apart, PVR is also expecting to consolidate the merger process with its recent acquisition, Cinemax India, by the end of this year. The company recently bought 138 screens from Cinemax India, a Mumbai-based company, for Rs 395 crore. Post-acquisition, PVR owns nearly 398 screens across 37 cities. “We will be starting close to 50 new screens in 2013-14, which will include opening new screens in tier II and III cities like Pathankot, Mysore, Bhopal and Pune. Each of the screens would require capex plan of nearly Rs 2 crore,” said Gautam Dutta, Chief Operating Officer, PVR Cinemas.

This financial year, PVR cinemas is expecting a turnover of Rs 1,400 crore, of which nearly Rs 440 crore would come from Cinemax properties. In November 2012, PVR had said its wholly-owned subsidiary Cine Hospitality would acquire a 69.27% stake owned by the promoter group of Cinemax. Over the next few months, PVR cinemas would also invest a substantial amount of capex in giving a facelift to the 138 properties of Cinemax, said Dutta. “Currently, we are in the process to consolidate our position. We had a major inorganic growth after the acquisition of Cinemax. There is a lot of work that needs to be done for people and process integration. Refusrbishing Cinemax properties also need lot of investments after in-depth research,” said Dutta. However, the company was also open to further acquisition after the consolidation process is over. “We had a few discussions (on new acquisitions), and we are open to further acquisition,” said Dutta. Accumulate.

6 We Make Investment Easier DERIVATIVES NOTES

 Nifty October 2013 futures were at 5960.30, Institutional Investment Trends at a premium of 70.55 points over spot closing of 5889.75. Nifty September 2013 futures were at 5912.05, at a premium of

(in Crores) Sept 23. 2013 22.30 points over spot closing. Turnover on NSE`s futures & options (F&O) segment

BUY SELL OIEoD declined to Rs 223770.44 crore from Rs 292205.43 crore on Friday, 20 September

INDEX FUTURES 3870.10 3958.60 17497.93 2013.

INDEX OPTIONS 29138.58 29073.15 76969.00  State Bank of India September 2013 futures were at 1650.50, at a premium over spot

STOCK FUTURES 6697.88 7446.10 28889.06 closing of 1644. September 2013

futures were at 1034.95, at a premium over STOCK OPTIONS 1342.40 1319.69 2177.94 spot closing of 1030.

 Reliance Communications September 2013 futures were at 155.50, near spot closing of 154.55 . Put Call Ratio

Put Call Ratio-Index Options

Symbol Put Call Ratio NIFTY 57,936,950.00 38,939,000.00 1.49 BANKNIFTY 2,270,425.00 2,412,875.00 0.94 - - - -

Put Call Ratio-Stock Options (OI wise)

Symbol Put Call Ratio MCLEODRUSS 389,000.00 43,000.00 9.05 CESC 14,000.00 3,000.00 4.67 COALINDIA 2,386,000.00 1,232,000.00 1.94

Put Call Ratio-Stock Options (Volume wise)

Symbol Put Call Ratio

FEDERALBNK 3,000.00 500.00 6.00 MCLEODRUSS 29,000.00 8,000.00 3.63 BAJAJ-AUTO 100,000.00 38,750.00 2.58

7 We Make Investment Easier DIVIDEND AND OTHER INFORMATION

Precot Meridian Limited has informed the Exchange that the Company has fixed Record Date as October 4, 2013 for the purpose of Issue of bonus shares.

Sun TV Network Limited has informed the Exchange that the Final Dividend, if approved by the Shareholders at the Annual General Meeting to be held on September 27, 2013, will be paid on and from October 03, 2013.

Moser-Baer (I) Limited has informed the Exchange that the petition under Section 434 of the Companies Act, 1956, filed by the trustee on behalf of the bondholders has been admitted and is pending in the Court.

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 positi on(s) in the stocks recommended.

8 We Make Investment Easier