Morning Notes Date: 18.02.2013 For Internal circulation only GRAPH GLOBAL NEWS Singapore’s January Exports Rise Less Than Estimated on Drugs Singapore’s exports rose less than estimated in January as manufacturers shipped fewer electronics and pharmaceutical goods. Non-oil domestic exports gained 0.5 KEY INDICES percent from a year earlier, after a 16.3 percent drop in Indian Markets December, the trade promotion agency said in a statement today. The median of 11 estimates in a Bloomberg News Index Close Pt. Chg. Change % survey was for a 3 percent increase. “It’s still looking a little bit subdued” outside of China, Euben Paracuelles, an S&P CNX NIFTY 5887.40 -9.55 -0.16 economist at Nomura Holdings Inc. in Singapore, said CNX NIFTY JUNIOR 11871.35 +26.95 0.23 before the report. The U.S. economy is still weak and CNX 100 5798.10 -5.95 -0.10 Europe remains in a recession, he said. S&P CNX DEFTY 3774.10 -18.80 -0.50 Yen Weakens After G-20 Refrains From Censuring Japan S&P CNX 500 4647.25 -3.10 -0.07 CNX MIDCAP 7925.20 +29.85 0.38 The yen fell against the dollar, extending losses that made it the worst-performing major currency in the past three NIFTY MIDCAP 50 2152.25 +12.45 0.58 months, after the Group of 20 refrained from censuring SENSEX 19468.55 -29.03 -0.15 Japanese policies driving the decline. The final G-20 communique released in Moscow on the weekend fell short Global Markets of last week’s Group-of-Seven statement and means recent trends in major currencies are now set to resume, Morgan Index Close Pt. Chg. Change % Stanley’s foreign-exchange strategy team, led by Hans Redeker in London, wrote in a research note. S&P 500 1519.79 -1.59 -0.10 NASDAQ 3192.03 -6.63 -0.21 Poland’s Euro Bid Requires Revamp Not Deadline DOW JONES 13981.76 +8.37 0.06 FTSE 6328.26 +0.90 0.01 Poland won’t set a deadline to join the euro because the European Union’s biggest eastern economy first needs DAX 7593.51 -37.68 -0.49 revamping to avoid “unpleasant consequences” from CAC 40 3660.37 -9.23 -0.25 adopting the currency, Finance Minister Jacek Rostowski said. Poland’s euro-entry preparations, which have been NIKKEI 11417.97 +244.14 2.18 revived amid a lull in the currency region’s debt crisis, will HANG SANG 23374.88 -69.68 -0.30 be the focus of talks today between central bank Governor STRAITS TIMES 3285.37 +2.30 0.07 Marek Belka and Prime Minister Donald Tusk’s economic advisory council that begin at 4 p.m. in Warsaw, said three Global data recorded/updated last as on 18, Feb. 7.30 a.m. IST government officials. 1 We Make Investment Easier NIFTY TOP GAINERS NIFTY TOP LOSERS Indian Markets Indian Markets Change Change Company Close (%) Company Close (%) TATAMOTORS 304.70 2.52 DRREDDY 1,814.00 -3.22 IDFC 157.45 1.78 CAIRN 305.00 -2.37 BHARTIARTL 316.35 1.49 GRASIM 3,002.35 -2.31 GAIL 339.40 1.42 DLF 248.00 -2.30 SUNPHARMA 788.30 1.20 ULTRACEMCO 1,910.10 -2.21 MARKET SUMMARY The 30-share benchmark index ended marginally lower on Friday in an overall volatile trading session as investors remained cautious about the health of Indian economy amid mixed cues. Inflation falling to over three-year low in January hardly helped markets as focus remained on Union Budget 2013-14 to know the economic agenda of the government for next fiscal as well as its willingness to sustain reforms momentum. Rating agency Moody’s said that India need to pursue its domestic policy initiatives to rein in the current account deficit as global economic growth remains subdued and commodity prices continue to rise. The BSE SENSEX closed at 19468.15 down by 29.03 points or by 0.15 per cent while NSE Nifty ended the day at 5887.4 down by 9.55 points or by 0.16 per cent. The BSE MIDCAP closed at 6626.86 up by 18.45 points or by 0.28 per cent, while the BSE SMLCAP at 6540.92 down by 42.15 points or by 0.64 per cent. The top gainers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 304.05,+2.48%), Tata Power Company Ltd. (Rs. 96.70,+1.79%), Bharti Airtel Ltd. (Rs. 316.25,+1.23%), Sterlite Industries (India) Ltd. (Rs. 99.25,+1.22%), GAIL (India) Ltd. (Rs. 337.65,+0.99%), among others. Sugar stocks cheered the statement of Food Minister KV Thomas that Centre is likely to take a decision on decontrol of sugar in next 15 days following the recommendations of Rangarajan committee. The top losers of the BSE Sensex pack were Dr. Reddy's Laboratories Ltd. (Rs. 1811.50,-3.55%), Bajaj Auto Ltd. (Rs. 1974.00,-1.41%), Tata Steel Ltd. (Rs. 375.95,-1.21%), Reliance Industries Ltd. (Rs. 844.85,-1.20%), Infosys Ltd. (Rs. 2785.20,-0.99%), among others. The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3034, shares advanced were 1188 while 1720 shares declined and 126 were unchanged. In BSE, BSE Oil&Gas index was at 8928.35 down by -74.55 points or by -0.83%. Cairn India Ltd. (Rs. 304.25,-2.61%), Bharat Petroleum Corporation Ltd. (Rs. 380.15,-1.87%), Reliance Industries Ltd. (Rs. 844.85,-1.20%), Petronet LNG Ltd. (Rs. 149.40,-1.09%), Hindustan Petroleum Corporation Ltd. (Rs. 310.10,-0.97%). In BSE, BSE_IT index was at 6477.68 down by -37.68 points or by -0.58%. Satyam Computer Services Ltd. (Rs. 114.80,-0.99%), Infosys Ltd. (Rs. 2785.20,-0.99%), HCL Technologies Ltd. (Rs. 698.40,-0.98%), Mahindra & Mahindra Ltd. (Rs. 993.00,-0.92%), Oracle Financial Services Software Ltd. (Rs. 2923.05,-0.41%). 2 We Make Investment Easier NEWS UPDATES MACRO The Centre is likely to take a decision on giving freedom to the Rs 80,000 crore sugar industry to sell the sweetener in the open market in the next 15 days, Food Minister K V Thomas said. In October last year, the expert panel headed by PMEAC chairman C Rangarajan had recommended immediate removal of two major controls — regulated release mechanism and levy sugar obligation -- and other restrictions gradually. COMPANY HCL Technologies Ltd . (HCL), a leading global IT services provider has entered into a strategic partnership with Linedata, a leading French global applications software provider. HCL had, through its acquisition of Capital Stream in early 2008 became the owner of Finance Center; a commercial lending software suite. HCL through its expertise in product development and domain knowledge, has significantly transformed this product into a management platform automating disparate operations into a fully-integrated straight through processing solution. SBI , the premier bank in rural lending, has entered into a national level tie-up with EPC Industrie Ltd., a part of the US$15.9bn Mahindra Group. EPC Industrie Ltd. is a pioneer of micro-irrigation in India and is engaged in manufacturing and selling of micro-irrigation systems, crop management services and agriculture pumps. The tie-up will help farmers increase their acreage under irrigation by minimum use of available water resource. This will, in turn, increase their productivity and profitability. Mold-Tek Packaging Limited , a Hyderabad-based plastic packaging product manufacturer with over 25% market share in lube and paint packaging segments, has inaugurated its new plant in Satara district of Maharashtra. The plant, which has commenced commercial production, is exclusively dedicated to the packaging needs of paint company, Asian Paints Limited. Tech Mahindra is planning to create structure for its two merged entities — Tech Mahindra and Mahindra Satyam, according to reports. Reports stated that the company plans to double its revenues to $5 bn by 2015, from the present $2.5 bn, by further growing revenues from products platforms and services. The group is also restructuring its management cadre into smaller divisions that will have separate Profit and Loss (P&L) accounts, says report. Ahmedabad-based drug major Cadila Healthcare Limited , also known as Zydus Cadila, has received US Food and Drug Administration's (USFDA) final approval to market Pioglitazone HCI tablets in US. The drug, which falls in the anti-diabetics segment, will be marketed in different strengths of 15 mg, 30 mg and 45 mg. "The estimated sales in 2012 for Pioglitazone HCI tablets is USD 2 billion," the company said in a statement on Thursday. Dynamatic Technologies has signed a Memorandum of Understanding (MoU) and model purchase contract with the Boeing Company for the manufacture of Aft Pylon and Cargo Ramp Assemblies for Boeing'sCH-47F helicopter. The potential work is slated to commerce by the end of 2014. KEC International has secured orders worth Rs 6.46 billion in its transmission and cable businesses. The company has secured two orders from Power Grid Corporation of India worth Rs 2.91 billion. It has bagged an order worth Rs 1.89 billion from Transmission Corporation of Andhra Pradesh (APTransco). SAE towers, the wholly owned subsidiary of the company has secured various orders for supply of lattice towers and poles to United States, Mexico and Brazil. The total value of the orders in Rs 790 million. 3 We Make Investment Easier TECHNICAL ANALYSIS MOST ACTIVE STOCKS PIVOTAL GUIDANCE Company Lower 2 Lower 1 Axis Higher 1 Higher 2 NIFTY 5848.07 5868.06 5888.05 5900.16 5915.50 BANK NIFTY 12140.80 12239.27 12318.74 12403.90 12509.28 RELIANCE 832.22 838.99 844.77 851.70 856.75 RCOM 68.39 69.05 70.61 71.00 71.58 RELCAPITAL 394.32 396.4 9 399.66 403.44 405.93 REL INFRA 468.10 471.88 475.66 478.97 481.56 LT 1412.08 1423.60 1436.12 1446.20 1460.00 STER 97.43 98.22 99.51 100.71 101.83 ICICIBANK 1100.87 1110.86 1120.85 1133.72 1145.13 SBIN 2212.76 2230.56 2248.36 2263.94 2266.72 TATASTEEL 372.94 375.94 378.94 381.56 382.03 RPOWER 78.52 79.15 79.78 80.33 80.43