5 July 2011

MARKETS TODAY WORLD INDICES & INDIAN ADRs (US$) 4-Jul-11

We expect markets opening flat on tepid cues from overseas market. Latest Points % Chg. Investors will be cautious ahead of corporate earnings this week. Resistance NIKKEI 225 * 9949.9 (15.2) (0.2) is seen at 5663 levels & support is seen at 5614 levels. Stock to watch: Tata HANG SENG * 22760.2 (10.3) (0.1) Tele, Idea, Ashok Leyland, BHEL, Reliance Ind . Data watch: Services PMI of DOWJONES 12582.8 0.0 0.0 NASDAQ 2816.0 42.5 1.5 , Italy, France, Germany and Eurozone, EU retail trade. SGX NIFTY FUT* 5662.0 (3.5) (0.1) KEY OVERNIGHT DEVELOPMENTS INFY 66.1 0.8 1.3 Markets in US were shut on Monday for Independence Day holiday. Asian HDFC BANK 175.9 (0.5) (0.3) stocks were under pressure on speculation as Chinese central bank raised ICICI BANK 50.0 0.7 1.4 expectations of an imminent interest-rate increase. UK's benchmark share TATA MOTORS 22.9 0.4 1.6 index rose in thin trade led by oil producing companies, but the fall in banking WIPRO 13.3 0.1 1.0 TATA COMM. 9.2 0.4 4.3 stocks kept gains under check. Oil futures in London were mostly unchanged * At 08:20 a.m. IST on 5-Jul-11 from previous close as the improved risk appetite due to rise in European MUST KNOW…. shares was offset by a strong dollar. India's electricity generation rose 8.2% on year in June to 70.79 bn kWh vs EQUITY 4-Jul-11 3.8% a year ago and 10.3% in May. The power generation in June is 5.6% Latest 1 Day P/E* P/B* lower than 75.01 bn kWh produced a mnth ago. Thermal power generation SENSEX 18,814.5 0.3 17.1 2.9 NIFTY 5,650.5 0.4 16.8 2.9 in June grew 5.0% on year to 55.93 bn kWh. Nuclear power generation CNXMIDCAP 8,093.3 0.8 12.5 1.9 grew 40.1% to 2.51 bn kWh, while hydel power rose 22.4% on year to 11.95 *Source: Bloomberg bn kWh in June. Electricity in Apr-Jun rose 8.3% to 217.23 bn kWh.

COMMODITIES Jaiprakash Associates Ltd's cement despatches rose 3% on year in June to Latest Points % Chg. 1.37 mn tn. The company's cement despatches during Apr-Jun were 4.17 GOLD 1497.1 9.3 0.6 mn tn, 7% higher from the corresponding quarter last year. CRUDE OIL 94.9 (0.5) (0.5) ARSS Infrastructure Projects Ltd has received an order worth Rs.246 mn

FII ACTIVITIES IN DERIVATIVES 4-Jul-11 from the Odisha government for construction of roads in the state. The FII Net Buy (Rs. Open Ch. in Open company did not provide the details of the order. Crs) Interest Int. (DOD) Dhanlaxmi Bank has forayed into the gold retailing business by launching Index Futures 731.1 12504.0 6.6 24-carat gold coins in denominations of 5 and 10 gm across its various Index Options 1022.9 29951.9 12.0 branches. The gold coins will have a purity of 99.99% and will carry Assay Stock Futures (160.4) 29743.7 3.5 certification, signifying highest purity of gold as per international standards. Stock Options (28.4) 414.7 151.7 Steel Strips Wheels Ltd is planning to raise $16 mn by selling stake in the NET INFLOWS (Rs. Crs.) 1-Jul-11 company by December. The stake sale is likely at around Rs.595 a share. As NET MTD YTD on Mar 31, promoters held 50.78% stake in the company. Garg said the FII 2677.3 2677.3 4730.8 company would utilise the funds for expansion, and for building a new unit. MF (27.5) (27.5) 3197.3 *YTD From January till date Tata Power Co Ltd has tied up coal supplies for the 1,050 MW Maithon EXCHANGE RATE 4-Jul-11 power project in Dhanbad, Jharkhand. The project, which will have two Closing % Chg. units of 525 MW each, is being undertaken by a 74:26 JV between Tata Rs. / $ 44.6 (0.26) Power and Damodar Valley Corp. Besides supplying power to Damodar Rs. / EURO 64.6 (0.16) Valley Corp, the Maithon project will export electricity to the power-deficit Rs. / UK Sterling 71.5 (0.11) northern states for which power purchase agreements have been signed.

G.SEC. YEILD 4-Jul-11 Punj Lloyd Ltd sought the shareholders' approval to expand into Rate Yield (%) manufacturing, assembly and repair of general and special-purpose

GS CG2021 7.80% 96.3 8.4 equipment for diverse sectors including agriculture, construction, mining, power and industrial applications. Please refer to important disclosures at the end of the report For private Circulation Only. Sushil Financial Services Private Limited Member BSE1 : SEBI Regn.No. INB/F010982338 | NSE : SEBI Regn.No.INB/F230607435. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : [email protected]

CORPORATE ANNOUNCEMENTS Bajaj Auto Ltd sold 16% more vehicles in June than a year ago, and 2% more month-on-month. The company sold 366,657 vehicles in June, up from 315,422 sold last year and 358,849 sold in May. During the Apr-Jun quarter, the company sold 1.09 mn vehicles, the highest ever in a quarter for the company. The company exported 427,364 units during the quarter, up 32% on year. Bajaj Auto's motorcycle sales in June rose 14% on year to 322,827 units. In May, the company had sold 317,989 units. In the commercial vehicle segment, Bajaj Auto sold 43,830 units in June, up 34% on year. In June, exports were up 25% at 142,124 vehicles against 114,024 year ago.

Jindal Steel Bolivia, an arm of Jindal Steel and Power Ltd, has started export of iron ore from the El-Mutun mines at Puerto Aguirre in South Bolivia. JSB will be exporting iron ore mainly to China, Middle East (West Asia), European and South American countries. Media reports that the company expects to garner around Rs.7.65 bn from sale of iron ore from the Bolivian mine in the current financial year to March.

Jindal Saw Limited has made full and final payment towards : (1) redemption of all 0.75% Foreign Currency Convertible Bonds (FCCBs) outstanding as on the date of redemption, i.e., June 30, 2011; and. (2) All premium and interest due on such FCCBs as per Offering Circular dated May 30, 2006. Consequently, the FCCBs have been fully extinguished upon such payment. Further the Company is taking steps to complete the process of delisting the aforesaid FCCBs from Singapore Stock Exchange upon their extinguishment.

Mahanagar Telephone Nigam Ltd has invited bids from banks for a seven-year secured loan of Rs.15 bn with a floating interest rate. The loan will be raised in tranches as per the requirement within the discretion of MTNL without any penalty. The loan would come with a three-year moratorium on principal repayment with interest payment on monthly basis followed by repayment of loan quarterly. The last date for banks to submit their sealed quotations has been set as Jul 12.

Tulip Telecom Ltd has got bids from potential suitors for 30% of the company's stake in its Bengaluru data centre, sources familiar with the development told. The bids have come. The company is yet to enter into a binding agreement with any bidder. The process should take two months, a source said. Tulip Telecom had acquired the Bengaluru data centre facility, SADA IT Parks Pvt Ltd, for Rs.2.30 bn in January.

Hindustan Zinc Ltd raised zinc prices by Rs.3,200 per tn to Rs.121,400. The company also increased lead prices by Rs.2,200 per tn to Rs.135,000. The Vedanta group company aligns its product prices in line with the trend on the London Metal Exchange.

Hindustan Copper Ltd has raised prices of cut copper cathode by Rs.5,186 a tn to Rs.442,684. It also raised prices of full copper cathode by a similar quantum to Rs.441,184 a tn. The new prices came into effect Jul 1, and are exclusive of taxes and other levies. The state-owned company aligns its product prices in line with the trend on the London Metal Exchange.

Lyka Labs Ltd's factory at Ankleshwar is sealed, without following due procedure of law, by the Mamlatdar of Ankleshwar for alleged recovery of dues towards DPEA., under DPCO 1979. This has happened despite the matter being Sub Judice before the Hon'ble Gujarat High Court. The hearing is on in the matter in the Hon'ble Gujarat High Court and the Company hope the matter will be resolved soon.

Indiabulls Real Estate Ltd has received clearance from the Maharashtra Pollution Control Board for the three commercial towers of its Finance Centre project at the Elphinstone Mills compound in central Mumbai.

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Bharat Sanchar Nigam Ltd is likely to float tender for 15-mn GSM lines in two weeks. Last month, Upadhyay had said the telecom services provider was looking at ways to procure equipment and emergency procurement was one of the options that the company was evaluating. The tender will be based on vendor-financing model.

The government has appointed P.K. Bajpai as the director (finance) of Bharat Heavy Electricals Ltd. Bajpai was earlier heading the navratna company's financial services division as executive director and took charge of his new post from Jul 1. The post was earlier held by C.S. Verma, who became the chairman and managing director of Steel Authority of India Ltd last year.

NCC Ltd, erstwhile Nagarjuna Construction Co Ltd has received several construction orders totalling Rs.8.15 bn. The Hyderabad-based company has received a Rs.2.15-bn-order, to be completed in 36 months, from Rail Vikas Nigam Ltd. NCC has also got a Rs.1.59-bn-order from City and Industrial Development Corp of Maharashtra Ltd to build an elevated viaduct road in 24 months. Another order, worth Rs.1.19 bn, NCC received from the Bangalore Development Authority for construction, within 15 months, of a flyover and underpass roads. NCC has also got other orders totalling Rs.3.2 bn.

Rasoya Proteins Ltd has started commercial production from its Solvent Extraction Unit of 1000 tons per day located at Taluka Malkapur. District Buldhana Maharashtra. This would help the Company to meet the ever increasing demand of Soya Edible oil especially of Western parts of Maharashtra where the Company's brand "Rasoya" has become extremely popular and well established in the market.

Nagpur Power & Industries Ltd has further acquired equity shares of, The Motwane Manufacturing Private Limited (Subsidiary Company) for Rs. 2.21 Crores in the month of June 2011. The Companys shareholding in The Motwane Manufacturing Company Private Limited has increased from 50.41% to 56.28%.

Over 100,000 casual and contract workers of state-owned telecom services provider Bharat Sanchar Nigam Ltd will observe an "All India Protest Day" on Jul 7, to protest non-payment of minimum wage and non- implementation of social security measures like employee provident fund. The workers have also organised a march to BSNL corporate office here on Aug 11.

International Finance Corp, the private sector investment arm of the World Bank, will give a loan of up to $15 mn to fund a 51 MW wind farm project in Satara district of Maharashtra to be developed by Bhilwara Energy Ltd. The total cost of the project is around $71.5 mn. The wind farm will be built under an engineering, procurement and construction contract with ReGen Powertech, a company that designs and manufactures gearless wind turbine generators.

Standard Chartered Bank India has refused to comment on speculation surrounding Neeraj Swaroop's vacating the India chief executive position to takeover as the regional chief executive for South East Asia. "It's pure speculation," a representative of the bank said. Media reports over the weekend had indicated that Swaroop, who currently holds the position of regional chief executive for India and South Asia, was likely to replace Ray Ferguson as the chief executive for South East Asia.

With reference to increase in volume, Prime Focus Ltd has clarified that the Company is not aware of any events, information, etc. that have a bearing on volume of the Company shares. Further the Company has clarified that Company is exploring various possibilities of raising funds through private equity institutional investment / strategic investment / listing of foreign subsidiary Company (ies) and has appointed Merchant Bankers for exploring and advising on various alternative for raising funds.

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With reference to news item appearing in leading financial daily titled "Kanoria Chemicals to enter renewable energy biz", Kanoria Chemicals & Industries Ltd has clarified to BSE that post divestment of Company's Chloro Chemicals business, the Company is contemplating foray into diversified business segments as also Company's current businesses. The article therefore is correct to the extent of Company's intentions of getting into various businesses as mentioned in the same. However, as these are at very initial stage, the Company is not in a position to confirm and quantify the details of capacities and costs involved.

Two of Redington (India) Ltd's major shareholders, Taiwan's Synnex Corp and Singapore-based Kewalram Chanrai Group trimmed their respective stakes in the company through block deals. Standard Chartered Private Equity bought 12% of the company from two shareholders for around $98 mn. Srinivasan said the two shareholders sold their stake, as it was the management's decision that no shareholder should have over 26% stake in the company. Post the block deals, Synnex and Kewalram Chanrai Group now have around 23% stake each in the company.

Blue Star Infotech Ltd has entered into a partnership with NASDAQ-listed QuilkTech to offer business intelligence solutions in India. BSIL will deliver solutions based on QuilkTech's business discovery platform, QuilkView. Through this partnership, QuilkTech will gain access to BSIL's BI implementation experience and presence in the domestic mid-market space.

Polaris Software Lab Ltd has received an order from Sri Lankan financial institution Citizens Development Business Finance Plc to implement its core banking software, Intellect. The Bengaluru-based company did not reveal the financial details of the order. Polaris said the core banking software will be deployed by its local partner Millennium Information Technologies Pvt Ltd, which is owned by the London stock exchange group. Intellect software will help Citizens Development Business Finance to integrate a range of banking operations including loans, deposits, general ledger, operational accounts, securitisation, loan origination and management information system.

Page Industries Ltd has entered into an exclusive licensing agreement with Speedo International Ltd for the manufacture and distribution of Speedo brand swim wear, water shorts, apparel, equipment and footwear with effect from July 01, 2011.

Sun TV Network Ltd has informed as under : "This has reference to the news item that Mr. Hansraj Saxena, Chief Operating Officer, Sun Pictures has been taken into custody by the City Police on a complaint lodged by an individual for non-refund by Mr. Hansraj Saxena of alleged losses incurred by the said individual to the tune of Rs. 82.53 lakhs towards distribution of the film "Theeradha Vilayattu Piliai". The Company is examining the complaint and FIR filed against Mr. Hansraj Saxena and is taking necessary legal recourse as may be required."

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Information of Bulk Deals – 04th Jul, 2011 on BSE Scrip name Name of Client BUY (B) / Quantity Trade Price/ SELL (S) Shares W Avg. Price Compact Disc Shreedhar Kallur V B 69461 50.46 Compact Disc Shriparasramholdingpvtltd S 51655 50.42 Elecon Engr Birla Sun Life Insurance Co Ltd B 2010000 68.01 Elecon Engr Icici Prudential Life Insurance Company Limited S 2009907 68 Inani Marbles Saroj Sugandhi B 24579 117.49 Kanchan Intl Abhay.Dattatray.Javlekar B 17381 86.73 Rcl Foods Bp Comtrade Pvt Ltd B 50000 52.35 Rcl Foods Nazmuddin Gulamhusein Kheraj B 43473 50.3 Redington India Ecl Finance Limited B 7950000 91.9 Redington India Redington Mauritius Limited S 30480673 91.9 Redington India Standard Chartered Pvt Eq Mauritius Ltd B 39736500 91.89 Redington India Synnex Mauritius Limited S 15895000 91.9 Regency Trust Mukesh Nanubhai Desai S 50000 96 Sharp Inds Madhukar Chimanlal Sheth B 110000 70.44 Sky Inds Jamnadas Vora B 23541 115.97

Information of Bulk Deals – 04th Jul, 2011 on NSE Scrip name Name of Client BUY (B) / Quantity Trade Price/ SELL (S) Shares W Avg. Price Agre Developers Ltd Pilot Consultants Private Limited B 80000 51.63 Jagran Prakashan Limited Jagran Media Network Investment Private Limited B 18146355 124.05 Jagran Prakashan Limited Shailendra Mohan Gupta S 18146355 124.05

Declaration made under SEBI (Insider Trading) Regulation 2002

Company Name Name of Acquirer / Seller Transaction Buy / No. of Shares Holding after Date Sell Transacted Transaction

Qty % Qty %

Hindustan Tin Works Ltd Usha Bhatia 16/06/2011 B 335 364236 3.50

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Rating Scale This is a guide to the rating system used by our Equity Research Team. Our rating system comprises of six rating categories, with a corresponding risk rating. Risk Rating Risk Description Predictability of Earnings / Dividends; Price Volatility Low Risk High predictability/ Low volatility Medium Risk Moderate predictability / volatility High Risk Low predictability/ High volatility

Total Expected Return Matrix Rating Low Risk Medium Risk High Risk Buy Over 15 % Over 20% Over 25% Accumulate 10 % to 15 % 15% to 20% 20% to 25% Hold 0% to 10 % 0% to 15% 0% to 20% Sell Negative Returns Negative Returns Negative Returns Neutral Not Applicable Not Applicable Not Applicable Not Rated Not Applicable Not Applicable Not Applicable

Please Note  Recommendations with “Neutral” Rating imply reversal of our earlier opinion (i.e. Book Profits / Losses). ** Indicates that the stock is illiquid With a view to combat the higher acquisition cost for illiquid stocks; we have enhanced our return criteria for such stocks by five percentage points. “Desk Research Call” is based on the publicly available information on the companies we find interesting and are quoting at attractive valuations. While we do not claim that we have compiled information based on our meeting with the management, we have taken enough care to ensure that the content of the report is reliable. Although we have christened the report as “Desk Research Calls” (DRC), we intend to release regular updates on the company as is done in our other rated calls.

For any information or suggestion, please contact the below mentioned… Vatsal Shah ([email protected]) Pritesh Bumb ([email protected]) Ankit Mehta ([email protected]) Nishita Shah ([email protected])

Sushil Financial Services Private Limited Member BSE : SEBI Regn.No. INB/F010982338 | Member NSE : SEBI Regn.No.INB/F230607435. Office: 12, Homji Street, Fort, Mumbai 400 001. Phone +91 22 4093 6000 Fax +91 22 2266 5758

Additional information with respect to any securities referred to herein will be available upon request. This report is prepared for the exclusive use of Sushil Group clients only and should not be reproduced, re-circulated, published in any media, website or otherwise, in any form or manner, in part or as a whole, without the express consent in writing of Sushil Financial Services Private Limited. Any unauthorized use, disclosure or public dissemination of information contained herein is prohibited. This report is to be used only by the original recipient to whom it is sent. This is for private circulation only and the said document does not constitute an offer to buy or sell any securities mentioned herein. While utmost care has been taken in preparing the above, we claim no responsibility for its accuracy. We shall not be liable for any direct or indirect losses arising from the use thereof and the investors are requested to use the information contained herein at their own risk. This report has been prepared for information purposes only and is not a solicitation, or an offer, to buy or sell any security. It does not purport to be a complete description of the securities, markets or developments referred to in the material. The information, on which the report is based, has been obtained from sources, which we believe to be reliable, but we have not independently verified such information and we do not guarantee that it is accurate or complete. All expressions of opinion are subject to change without notice. Sushil Financial Services Private Limited and its connected companies, and their respective directors, officers and employees (to be collectively known as SFSPL), may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities. SFSPL may act upon or make use of information contained herein prior to the publication thereof. 6