Morning Notes Date: 21.06.2012 For Internal circulation only GRAPH GLOBAL NEWS Euro Falls before Spanish Sale amid Debt Crisis Concern The euro fell, snapping a two-day gain against the dollar and yen, as Spain prepared to auction bonds today amid concern that the European debt crisis is deepening in the bloc’s fourth largest economy. Euro-area finance ministers KEY INDICES are set to meet in Luxembourg today to discuss the Indian Markets currency union’s financial woes. Demand for the dollar was limited on prospects the Federal Reserve will implement Index Close Pt. Chg. Change % further stimulus if the economy warrants it, depreciating the greenback. The central bank said yesterday it will S&P CNX NIFTY 5120.55 +16.70 0.33 extend its so-called Operation Twist program, while cutting CNX NIFTY JUNIOR 9697.60 +93.15 0.97 estimates for growth in the largest economy. CNX 100 4996.75 +21.00 0.42 New Zealand GDP Growth Accelerates 1.1%, Most in 5 S&P CNX DEFTY 3168.95 +14.95 0.47 Years S&P CNX 500 4037.80 +21.35 0.53 CNX MIDCAP 7046.75 +76.75 1.10 New Zealand’s economy grew at the fastest pace in five years last quarter, sending the local currency near a seven- NIFTY MIDCAP 50 2033.65 +26.05 1.30 week high as investors reduced bets the central bank will SENSEX 16896.63 +36.83 0.22 cut interest rates. Gross domestic product rose 1.1 percent in the three months ended March 31 from the previous Global Markets quarter, when it expanded a revised 0.4 percent, Statistics New Zealand said in a report released today in Wellington. Index Close Change (%) Growth was the quickest since the first quarter of 2007 and S&P 500 1355.69 -0.17 almost three times the 0.4 percent projection by the central NASDAQ 2930.45 0.02 bank and the median estimate in a Bloomberg News survey of 14 economists. DOW JONES 12824.39 -0.10 FTSE 5622.29 0.64 Oil Falls to Eight-Month Low as U.S. Supplies Increase DAX 6392.13 0.45 CAC 40 3126.52 0.28 Oil fell to the lowest price in eight months after crude NIKKEI 8837.86 0.98 stockpiles unexpectedly climbed to the highest level in 22 HANG SENG 19458.10 -0.31 years in the U.S., the world’s biggest user of the STRAITS TIMES 2843.42 -0.43 commodity. Futures slipped as much as 1.3 percent in New York after dropping 2.7 percent yesterday. Inventories Global data recorded/updated last as on 21, June. 7.30 a.m. IST increased 2.9 million barrels last week to 387 million, the most since July 1990, an Energy Department report showed. 1 We Make Investment Easier NIFTY TOP GAINERS NIFTY TOP LOSERS Indian Markets Indian Markets Change Change Company Close (%) Company Close (%) A C C 1,271.20 3.52 COAL INDIA 337.90 -1.77 STERLITE (I) 97.25 3.40 TCS 1,252.80 -1.66 TATA MOTORS 245.95 3.28 BHARTI TELE 310.35 -1.46 H C L TECH 486.75 3.14 I T C 246.05 -1.34 MARKET SUMMARY With all eyes on the US Federal Reserve’s policy decision on Wednesday, most market participants stayed on the sidelines as the Sensex closed on a flat note, with a positive bias yesterday. Most Asian markets closed higher yesterday as investors waited with bated breath over the Fed policy decision. Speculation is rife that the Federal Reserve may announce further measures to spur growth in the world’s largest economy. Slowing job growth and deepening global headwinds are threatening to derail US economic recovery, adding the case for additional monetary stimulus. The Fed may extend its Operation Twist program which involves selling short-term debt and buying longer-term debt to lower long-term interest rates. A more drastic measure could see another round of quantitative easing or an outright purchase of bonds by the Fed to inject liquidity into the banking system. On the domestic front, the Sensex closed higher for a second straight day after shedding 1.5 per cent on Monday, when the RBI failed to deliver a rate cut to ease growth concerns. After witnessing a gap up opening, the domestic benchmarks traded on a lackluster note throughout the day as traders awaited news on the US monetary policy. The BSE SENSEX closed at 16,896.63, up by 36.83 points or by 0.22 per cent and the NSE Nifty ended at 5,120.55, up by 16.7 points or by 0.33 per cent. On the Sectoral front, Metal and Capital Goods gained 1.28 per cent and 1.17 per cent, respectively. Out of the 30 Sensex stocks, there were 18 advances and 12 declines. The Market breadth, indicating the health strength of the market, was strong. On BSE out of total shares traded 3489, shares advanced were 1642 while 1137 shares declined and 710 were unchanged. The top gainers of the BSE Sensex pack were Sterlite Industries (India) Ltd. (Rs. 97.25,+3.07%), Dr. Reddy's Laboratories Ltd. (Rs. 1589.50,+2.96%), Tata Motors Ltd. (Rs. 245.05,+2.83%), Jindal Steel & Power Ltd. (Rs. 439.00,+2.62%), Oil And Natural Gas Corporation Ltd. (Rs. 272.70,+1.91%), among others. Among the Asian markets, Shanghai Composite ended down 0.34 per cent, Hang Seng closed up 0.53 per cent and Nikkei 225 ended higher by 1.11 per cent. 2 We Make Investment Easier NEWS UPDATES MACRO Energy rivals India and China have decided to work together to address the concern of energy security . For this purpose, China National Petroleum Corp (CNPC) and India’s Oil and Natural Gas Corp (ONGC) have signed an agreement to jointly explore oil and gas assets overseas. The two countries have decided to join hands as the ongoing upsurge in global oil prices is affecting their economies. As aggressive bidding by China and India is pushing the value of overseas oil and gas assets, the two will look at submitting joint bids for potential oil and gas assets. COMPANY Educomp Solution announced the committee of its board of directors approved a comprehensive financial package of USD 155 million. Out of the USD 155 million, approximately USD 111 million is proposed to be utilised for existing FCCB redemption (principal of USD 78.5 million and balance as redemption premium), the balance would be utilised towards capex and strengthening the balance sheet of the company. iGATE , the first integrated technology and operations company providing Business Outcomes-based solutions, has announced the availability of the iGATE Mobile Field Service Solution. The solution empowers field service engineers with new mobile tools to complete a full-cycle of service calls more quickly and efficiently. It is available on BlackBerry, Apple devices like iPhone and iPad, and Android devices. Alstom T&D India announced Wednesday it has secured two contracts from Power Grid Corporation of India (PGCIL) worth Rs 1.76 million. The first contract for Rs 1,050 million is the largest order for 765 kv shunt reactors awarded to the company to date. The order is for the supply, erection, testing and commissioning of 80 MVAR and 110 MVAR reactors for 765 kv substations located at Gaya (Bihar, Ranchi (Jharkand), Dharamjaygarh (Chhattisgarsh and Varanasi (Uttar Pradesh). Japanese pharma major Daiichi Sankyo will start selling Ranbaxy Laboratories products in Venezuela under their hybrid business model, the two companies said. Daiichi Sankyo's subsidiary Daiichi Sankyo Venezuela S.A. would begin marketing products of Ranbaxy, which has been marketing its drugs in Venezuela through a local distributor, the two firms said in a joint statement. Sonata Software Limited , as a part of its integrated strategy of growing new markets, verticals and specialized horizontal services, focusing on transformational outsourcing and setting up of dedicated services based centres of excellence for clients, announced the appointment of Francis Thomas and Pradeep Malgireddy as Sales Directors for the US geography. In their roles as Sales Directors, both Francis and Pradeep will be focusing on new logo acquisition and revenue growth in the US East coast and US Midwest territories respectively. Geometric and DIPRO (Digital Process) announced Wednesday the formation of a Center of Excellence (CoE) to provide a suite of services to DIPRO`s Japanese customers. Under the agreement, the two companies would jointly offer PLM, CAD/CAM/CAE, and engineering services. Mahindra Satyam , a leading global consulting and IT services provider, has announced the opening of its new delivery centre in Fargo, North Dakota. The Company intends to develop Fargo as a near-shore delivery location, offering innovative solutions in Business Processes and Infrastructure Management Services sector and IT Services. Mahindra Satyam will share space with Cargill’s Global Business Services Center in Fargo. Cargill, the international producer and marketer of food, agricultural, financial & industrial products and services major had earlier selected Mahindra Satyam as their business service provider in North America. 3 We Make Investment Easier TECHNICAL ANALYSIS MOST ACTIVE STOCKS PIVOTAL GUIDANCE Company Lower 2 Lower 1 Axis Higher 1 Higher 2 NIFTY 5084.38 5105.28 5122.18 5145.97 5165.36 BANK NIFTY 9646.89 9745.45 9832.02 9952.77 10035.04 RELIANCE 730.95 735.84 740.74 745.90 750. 82 RCOM 62.15 63.06 64.17 65.61 66.69 RELCAPITAL 330.16 333.84 337.52 340.86 343.28 REL INFRA 507.68 512.78 516.88 521.47 525.11 LT 1324.62 1335.36 1348.09 1365.49 1377.16 STER 95.12 96.29 97.66 98.34 99.46 ICICIBANK 825.42 830.08 835.74 845.56 849.6 0 SBIN 2107.84 2124.80 2141.75 2156.59 2159.24 TATASTEEL 420.67 424.06 427.44 430.40 430.93 RPOWER 96.12 96.89 97.66 98.34 98.46 TATAPOWER 91.94 92.68 93.42 94.07 94.18 INFOSYSTCH 2451.44 2471.16 2490.88 2508.14 2511.22 BHEL 212.82 214.54 216.25 217.