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.
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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. 75 218.01 ONGC 268.96 271.13 273.29 275.18 275.52 ACC 1266.00 1276.18 1286.37 1295.28 1296.87
PUNJLLOYD 46.10 46.47 46.84 47.16 47.22 HDFCBANK 529.47 533.73 537.99 541.72 542.38 MARUTI 1066.10 1074.68 1083.26 1090.76 1092.10 AXISBANK 991.52 999.49 10 07.47 1014.45 1015.69
BULLISH ON SHORT TERM
JPASSOCIAT BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 73-74-75 SL 70
PFC BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 166-168-169 SL 161
4 We Make Investment Easier Following the MUTUAL FUNDS
Templeton India Eqt Income – G Latest NAV: 18.63 (19/06/12) 52-Week High: 20.94 (07/07/11) 52-Week Low: 16.59 (20/12/11)
Returns Year Fund Category 1 Year -6.08 -6.72 3 Year 11.77 9.56 5 Year 6.94 5.64 Return Since Launch 10.75 -
Top Holdings: As on 31 May. Top 5 Sectors
Name of Holding % Net Assets Top 5 Sectors % Net Assets
Sundaram Finance 10.28 Financial 25.75 Tata Chemicals 9.04 Energy 17 .30 ONGC 6.52 Metals 9.31 Grasim Industries 5.20 Chemicals 9.04 ING Vysya Bank 4.35 Diversified 8.04
Top 3 Holding Company Details
Sundaram Finance Other Funds That Own Sundaram Finance LTP: 660.00 PE Ratio: 10.31 Fund name % Net Date PB Ratio: 2.05 Year to Date Return: 30.06 Asset
Templeton India Equity Income 10.28 May 31, 2012 Templeton India Growth 5.57 May 31, 2012
ICICI Prudential Banking and 4.75 May 31, 2012 Financial Services Ret Reliance Long Term Equity 3.44 May 31, 2012
Other Funds That Own Tata Chemicals Tata Che micals
LTP: 302.15 PE Ratio: 13.12 Fund name % Net Asset Date PB Ratio: 1.53 Year to Date Return: -2.95 Templeton India Growth 10.68 May 31, 2012
Templeton India Equity Income 9.04 May 31, 2012 SBI Magnum COMMA 5.00 May 31, 2012 Principal Dividend Yield 3.05 May 31, 2012
Other Funds That Own ONGC ONGC LTP: 267.60 PE Ratio: 9.11 Fund name % Net Asset Date PB Ratio: 2.05 Year to Date Return: 4.14 Religare PSU Equity 10.58 May 31, 2012 SBI PSU 10.04 May 31, 2012 Baroda Pioneer PSU Equity 9.86 May 31, 2012 Sundaram PSU Opportunities 8.44 May 31, 2012
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HCL Infosystems Ltd HCL Infosystems Ltd., India's Premier Hardware, Services and ICT Systems Integration and Distribution Company launched Next Gen devices at a press conference in the capital city today and reiterated its presence in the consumer computing space. Building on their success of over three decades, HCL Infosystems launched the new Beanstalk range of AIO (All in One) PC and the Smart Series Laptop and also showcased its range of lifestyle technology products including tablets and the soon to be launched HCL Ultrabook and the Ultra Small PC - HCL Tiny Top. The new products encompass the elements of Play, Learn and Entertainment for its users. These products are packed with unique features and innovations, designed to suit diverse technology requirements of modern times. At the launch Mr. Princy Bhatnagar, VP and Head Consumer Computing, HCL Infosystems Ltd. said, "HCL Infosystems has a strong tradition in consumer computing products and today with the unveiling of the first set of Consumer Computing 2012 products we are taking another significant step as a manufacturer of computing devices. The all new range is a perfect balance of technology and lifestyle backed with innovative and sleek features. The next gen HCL devices are loaded with premium features but at the same time offers absolute value for money to our customers. With this launch, HCL Infosystems fortifies its space in the consumer computing space by redefining consumer experience and we are now poised for more growth in this segment." HCL Infosystems has launched the AIO (All-in-One) PC under its Beanstalk range. Packed with edutainment features, presently two models under this series has been introduced - HCL Beanstalk AD1V0027 (MRP: Rs. 33696/-) and the HCL Beanstalk AD1V0028 (MRP: Rs. 37908/). Both the models sports features like a 47 cm (18.5") LED backlit, Anti glare display and 2GB DDR memory models. Powered by 2nd generation Intel core processors, the Beanstalk AIO's has elegant looks and has a sleek, unique space saving design. The machines also have unique acrylic at the stands to give a crystal finish. The Beanstalk AIO's has Crystal Clear Audio as it has integrated bottom speakers with perforated louvers for excellent audio quality . Accumulate.
RCOM
Reliance Communications Limited , the second largest integrated telecom service provider in the country, announced their partnership with BIGFLIX, a part of Reliance Group’s digital entertainment business to provide premium full length movies to all Reliance 3G subscribers at Rs. 30/- per movie. This premium service is available with No DATA charges or HIDDEN Cost. To avail this economic offer all that the Reliance subscribers have to do is log on to http://vod.rcom.co.in using their Reliance Mobile. On this link, the subscribers can access an extensive movie catalogue powered by BIGFLIX. Reliance subscribers can now choose a movie of their liking and let a completely seamless and crystal clear movie viewing experience on their Reliance Mobile enthrall them.
Now, every Reliance subscriber will get a chance to convert their mobile phone into their own personal BLOCKBUSTER THEATRE offering them ultimate movie watching experience. Commenting on this partnership, Kunal Ramtekke, Senior Vice President and Head – Value Added Services (VAS), Reliance Communications Limited said, “We are thrilled to offer the first of its kind full length movie streaming service to our customers powered by BIGFLIX fulfilling the needs and desires of all the movie buffs on our superior Reliance 3G network with incredible affordability. Every movie lover will surely love to avail this service as we are now the home for full length mobile movies and experience seamless video on demand streaming through our superior 3G network.”
“This unique service requires an exceptional 3G QOS for supporting an uninterrupted movie experience and we have been rated as one of the best telecom operators in QOS by TRAI,” he added. Commenting on this association with Reliance Communications, Shreyash Sigtia, Business Head, Big Flicks Pvt. Ltd. said, “We are delighted to partner with Reliance 3G. Accumulate.
6 We Make Investment Easier DERIVATIVES NOTES
Nifty June 2012 futures were at 5129.90, at a Institutional Investment Trends premium of 9.35 points over spot closing of 5120.55. Turnover on NSE`s futures & options (F&O) segment declined to Rs 118567.04
(in Crores) June 20, 2012 crore from Rs 152482.69 crore on Tuesday, 19 June 2012.
BUY SELL OIEoD State Bank of India (SBI) June 2012 futures 1097.25 911.27 12067.67 INDEX FUTURES were at 2115.05, at a discount compared to spot closing of 2124.75. Tata Motors June 14402.01 13947.60 47430.25 INDEX OPTIONS 2012 futures were at 245.55, near spot closing of 245.40. 1724.83 1732.33 23674.07 STOCK FUTURES
858.10 866.36 1373.07 L&T June 2012 futures were at 1349, near STOCK OPTIONS spot closing of 1347.15. In the cash market,
the S&P CNX Nifty advanced 16.70 points or 0.33% to settle at 5,120.55, its highest closing level since 15 June 2012.
Put Call Ratio
Symbol Expiry Date Put Call Ratio NIFTY 25-Jun-15 177050 50 3541.00 NIFTY 24-Dec-14 56500 700 80.71
NIFTY 27-Jun-13 244600 23550 10.39 LT 30-Aug-12 41250 5250 7.86 PNB 26-Jul-12 24750 4250 5.82 MINIFTY 26-Jul-12 3880 720 5.39 ABB 28-Jun-12 1250 250 5.00
HINDUNILVR 26-Jul-12 583000 137000 4.26 M&M 26-Jul-12 40500 11000 3.68 BANKBARODA 26-Jul-12 7250 2000 3.63 ORIENTBANK 28-Jun-12 3000 1000 3.00 SBIN 30-Aug-12 1125 500 2.25
CIPLA 26-Jul-12 18000 8000 2.25 ACC 28-Jun-12 240000 107500 2.23 AMBUJACEM 28-Jun-12 2208000 1218000 1.81 NIFTY 27-Sep-12 1185700 687150 1.73
7 We Make Investment Easier DIVIDEND AND OTHER INFORMATION
Minda Industries Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on June 19, 2012 have recommended the dividend, subject to approval of the Shareholders in the ensuing Annual General Meeting of the Company on :- (1) Equity Shares @ 30% i.e. Rs 3/- per Equity Share on the face value of Rs.10/- each; (2) 3% Cumulative Redeemable Preference Shares of Rs.10/- each (Class 'C') @ 3% i.e. Rs.0.30 per 3% Cumulative Redeemable Preference Share.
Tata Elxsi Limited has informed the Exchange that Dividend if approved at the Annual General Meeting on July 24, 2012 will be payable on or after July 24, 2012.
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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