indian stock markets 06 sep 2010

Morning EQ-Tea 6 September 2010

Indian Indices

1 Day MTD YTD

Sensex (0.1) 1.4 4.3

Nifty (0.1) 1.4 5.4

CNX Midcap 0.7 2.8 20.1

CNX IT 0.3 1.7 4.4

Bankex 0.1 2.3 21.7

Auto 0.9 1.8 20.6

Metal (1.1) 2.5 (11.8)

FMCG 0.1 2.1 23.8

Global Indices1 Day MTD YTD

Shanghai 0.9 1.5 (18.3)

Nikkei 225 1.5 4.9 (12.3)

Straits Times 0.2 2.0 3.9

Hang Seng 1.1 3.2 (3.1)

DJIA 1.2 4.3 0.2

S&P 500 1.3 5.3 (0.9)

FTSE 1.1 3.9 0.3

Dollar Index 0.0 (1.4) 5.3

Live Markets

Nikkei SGX NiftyHangSeng

Current Quote 9,253 5,504 21,198

% Change 1.5% 0.4% 1.1%

NSE Close 1 Day 1Mth

INFOSYS 2777 1.8 (0.2)

ICICI BANK 1001 0.9 0.6

TATA COM 339 0.4 (0.9)

HDFC BANK 2194 16.8 16.0

STERLITE 158 2.2 75.3

Volumes Moving Average (Rs bn)1 Day 5 Day 30 Day

BSE CASH 48 49 50

NSE CASH 124 128 169

NSE F&O 653 131 22

Institutional Activities (Net)1 Day MTD YTD

FII (Rs bn) 2.8 7 456

MF (Rs bn) (1.2) (1) (193)

Bond Market1 Day 1M 1 Yr

10Yr Yield (G-Sec) 7.96 7.95 7.59

Currency Market1day MTD YTD

INR/USD 0.2 0.9 (0.2)

INR/EURO (0.2) (0.7) 10.9

INR/GBP (0.1) 0.2 4.3

Commodities UpdateUnit Close 1 Day MTD YTD

Crude Oil(NYME) $/Bbl 74 (0.4) 3.3 (6.4)

Gold (OTC) $/Oz 1,248 0.1 0.0 13.8

Copper (LME) $/MT 7,633 0.1 2.8 4.0

Aluminum (LME) $/MT 2,121 0.1 3.9 (3.5)

Sugar (LIFFE) $/MT 592 0.0 2.4 1.8

Zinc (LME) $/MT 2,151 (1.1) 4.2 (16.0)

Baltic Dry Index 1.4 3.9 0.32,876

82

ADR Close

ADR (CONVERTED TO INR) Prem / (Disc) in (%)

% Change

Spot market

Historical Data (%)

% Change

% Change

% Change

As on 0730 hours IST

Last Close

18,221

5,479

8,923

6,076

10,991

8,970

15,347

3,457

Last Close

3,003

9,114

2,655

20,972

10,448

1,105

5,428

2,676

2,636

162

2,829

1,010

340

0.8%

72.11

Last Close

46.64

60.06

Shanghai

Source: Bloomberg, NSE, BSE & SEBI

Page No.

Page No.

• Corporate News 2 • Price Shockers 3

• Macro Economic News 2 • Event Calendar 4

• International News 2 • Corporate Actions 4

• Bulk Deals 3 • Board Meetings 4

• Insider Trades 3

“We should sell some of our excess stock by having swap deals with other countries, as we are currently not able to create the storage capacity or able to distribute it to the poor” – Kaushik Basu - Chief Economic Advisor

18221.43

18205.8717971.1218032.1117998.41

18238.31

-8000

-6000

-4000

-2000

0

2000

4000

6000

27-Aug 30-Aug 31-Aug 01-Sep 02-Sep 03-Sep

(Rs Mn)

17400

17600

17800

18000

18200

18400

18600

18800

19000

FII (LHS) MF (LHS) Sensex (RHS)

Provisional Figures for Investments

Source: NSE, BSE & SEBI

1.3

1.7

2.9

0.5

0.8

0.4

0

400

800

1,200

1,600

2,000

27-Aug 30-Aug 31-Aug 1-Sep 2-Sep 3-Sep

Num

ber

of Shar

es

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Advance (LHS) Decline (LHS) Adv/Decl Ratio (RHS)

Source: BSE

Institutional Activity Vis-à-vis Sensex Movement

Statement of the day

Corporate News/Results Corner

BSE Advance/Decline

Britannia to invest Rs1000 mn in 2 new plants BRITANNIA Industries (BIL) will invest around Rs 1000mn to set up a plant each in Bihar and Orissa to scale up production to cater to the growing market. Nalco now sets sights on Namibia’s uranium assets HINDUSTAN Copper and Nalco’s joint bid to acquire a copper mine in Namibia has fallen flat after the mine owner decided to withdraw the offer halfway through the due diligence process. Nalco has instead decided to renew its efforts in the African country by scouting for uranium assets. BEML inks deal with MECL for coal mining projects BEML and Mineral Exploration Corporation Limited (MECL) engaged in exploratory activities for the mining sector, have signed a memorandum of understanding (MoU) for participating in coal & metal mining projects. HCL, TCS, Wipro, Sify vie for Andaman project HCL, Tata Consultancy Services, Wipro and Sify are among the six companies that are learnt to have submitted bids to set up and maintain ‘State Data Centre' in Andaman and Nicobar Islands. The project entails building and managing the entire data centre infrastructure for the Union Territory, for a period of five years. Industry watchers expect the value of the SDC contract to be below Rs 350 mn. IDBI Bank likely to raise equity capital IDBI Bank may consider raising equity capital, thereby diluting the Government's stake, over the next 12-15 months.The bank will explore the options of going in for a rights issue, follow-on public offer, qualified institutional placement or preferential placements for raising funds. RBI excludes banks from class action Banks could be excluded from class-action suits, which have been proposed under the new Companies Bill, 2009. The move will help to ensure that the interests of depositors remain paramount. Class action is a new clause that would allow members, shareholders or creditors of a company to file complaints against the organization in case of serious instances of mismanagement. Steelmakers hike flat prices, unfazed by cheaper imports (positive) Imported steel flat products may become cheaper, with domestic steelmakers' recent move to hike prices of flats by Rs 750-1,500 a tonne from September 1. Post-taxes, steel prices in the domestic market are expected to go up by Rs 2,000 a tonne to about Rs 40,000 (a tonne), while the landed cost of imports are $625 (Rs 28,750) a tonne and end up at Rs 38,000 a tonne after addition of Customs duty, freight and other local taxes.

Macro Economic and Other News International News India's food and fuel inflation edges higher Inflation for the Food Articles group stood at 10.86% in the week ended August 21 as against 10.05% in the previous week. It was at 14.86% in the comparable week last year. The index for Food Articles group rose by 1.8% to 303.3 in the week ended August 21. Inflation for the Primary Articles group also rose to 15.19% from 14.75% in the week ended August 14, the data revealed. It stood at 8.87% during the week ended Aug. 22, 2009. Loans waived will be treated as taxable income in the hands of the borrowers The Direct Tax Code (DTC) provides that loans waived by lenders will be treated as income in the hands of the borrowers and taxed accordingly. It may then not matter whether the loan was utilised for acquisition of capital asset or for revenue expenditure purposes, say some tax experts. The DTC Bill seeks to directly bring within the scope of income the amount of remission or cessation of any liability by way of loan, deposit, advance or credit. More rains forecast for Central, North-west India The low-pressure area over Northwest and adjoining West-central Bay of Bengal has crossed the coast and lay centred over Orissa and neighborhood. Two other systems have been operating over Central India and Northwest India, an India Meteorological Department (IMD) update said.

US private employment and non farm payroll expands faster than estimate US private employment for the month of August came in at 67,000 vs consensus estimates of 40,000. The non farm payroll for the month of August came in at -54,000 vs consensus estimates of -105,000. The US unemployment rate comes in-line with estimates The US unemployment rate for the month of August came in at 9.6%, in-line with consensus estimates.

Source: Economic Times, Business Line, Business Standard, Times of India, DNA Money, Mint, Financial Express, Bloomberg

Corporate News/Results Corner

Company Acquirer Qty Price Seller Qty Price

Development Credit Bank L Edelcap Securities Ltd. 1,997,353 51.5 Edelvalue Partners 1,997,353 51.5 Emami Infrastructure Ltd N.A.

Hsbc Global Investment Fu Nds Mauritius Ltd 137,000 59.2

Lakshmi Vilas Bank Ltd Edelcap Securities Ltd. 647,522.0 123.9 Edelvalue Partners 647,522 123.9

MVL Ht Media Limited 1,980,317 66.6

Piramal Health Bmk Laboratories Private 7784677 505.0 Phl Holdings Private Limited 7784677 505.0

Roselabs Inds Jayshree Shankar Bhosle 200,000 34.7 N.A.

Sankhya Info Bakliwal Fincom Private 105,000 32.8 Rajeev Khanna 186,378 32.7 Shree Ashtavinayak Cine Satyam Realtors Pvt Ltd 5,000,000 21.0 N.A. Simmonds Marshall Sanjay Suresh Kilachand 105,260 51.0 Sravanthi Koduru 100,000 51.0

N.A. = Not Available Source: BSE & NSE

Company Acquirer/Seller Bought/Sold Qty

Ganesh Benzoplast Ltd Rishi R Pilani S 750000

Jamna Auto Industries Ltd MAP Auto Ltd B 1052631

Kadvani Securities Ltd Bhanwarlal Mangilal Jain B 800000

Kemrock Industries and Exports Ltd Clartia International Ltd S 337221 Orchid Chemicals & Pharmaceuticals Ltd R Vijayalakshmi B 1571000

Rubfila International Ltd Minal B Patel S 210000

Sahyadri Industries Ltd V L Patel S 140000 Sanghi Industries Ltd Spinnaker Global Emerging Mkts Fund Ltd S 6599370

Shree Ashtavinayak Cine Vision Ltd Dahlia Traders Pvt Ltd B 3000530 Source: BSE NSE & Capitaline Note: The above insiders Trades might include ESOPs conversion.

Gainers Losers

Company Close Price (Rs)

Change Price (Rs)

Change Price (%)

Company Close Price (Rs)

Change Price (Rs)

Change Price (%)

Godrej Cons 401 26 7.0 HPCL 511 (19) (3.5)

BEML 1134 73 6.9 Suzlon Energy 50 (1) (2.6)

Rashtriya Chem 86 4 5.3 Jet Air India 699 (17) (2.3)

Bosch 6303 315 5.3 Glenmark Pharma 283 (7) (2.3)

Chambal Fert 74 4 5.1 Jindal Steel 683 (15) (2.1)

India Infoline 99 4 4.0 Tata Comm 340 (7) (2.1)

Allahabad Bank 225 8 3.9 Central Bank 181 (3) (1.8)

Tata Chemicals 410 15 3.7 Sesa Goa 318 (6) (1.8)

Religare Enter 480 17 3.7 Gujarat NRE Coke 60 (1) (1.6)

Tech Mahindra 700 23 3.5 Jaiprakash Asso 113 (2) (1.5)

Gujarat Mnrl 126 4 3.2 Hindalco Inds 170 (3) (1.5)

Bajaj Auto 2872 87 3.1 Balrampur Chini 87 (1) (1.4)

Indian Bank 260 7 2.9 Chennai Petro 240 (3) (1.4)

Unitech 81 2 2.9 Sterlite Inds 159 (2) (1.3)

Sintex Inds 372 10 2.7 Ispat Inds 20 (0) (1.3) Source: Capitaline

Price Shockers

Bulk Deal

Insiders Trades

• Sep 03: India Markit Services PMI for Aug • Sep 03: HK PMI for Aug • Sep 03: US Unemployment Rate for Aug • Sep 06: US Personal Spending

Source: Bloomberg

Ex Date Company Purpose Ex Date Company Purpose

6-Sep Industrial Investment Trust Limited

Annual General Meeting / Dividend Re.1.50 Per Share

6-Sep eClerx Services Limited

Annual General Meeting And Dividend Rs.10/- Per Share

6-Sep Havells India Limited Dividend-Rs.2.50 Per Share

6-Sep Kabra Extrusion Technik Limited

Bonus 1:1

6-Sep Max India Limited Annual General Meeting 6-Sep Genesys International Corporation Limited

Annual General Meeting And Dividend Re.0.75 Per Share

6-Sep Subex Limited Annual Book Closure 6-Sep Norben Tea & Exports Limited

Annual General Meeting

6-Sep Cairn India Limited Annual General Meeting 6-Sep Kitply Industries Limited


6-Sep IFCI Limited Annual General Meeting And Dividend Re.1/- Per Share

6-Sep Zodiac JRD- MKJ Limited

Annual General Meeting And Dividend Re.0.50 Per Share

6-Sep Sakuma Exports Limited Annual General Meeting 6-Sep Selan Exploration Technology Limited


6-Sep Tantia Constructions Limited

Annual General Meeting And Dividend Rs.1.50 Per Share

GI Engineering Solutions Limited


6-Sep S.E. Investments Limited


Source: NSE

Date Company Results Dividend

6-Sep Gemini Communication Limited

Source: NSE

Board Meetings

Corporate Actions

Event Calendar

Advisory Group

Karun Mutha

SVP & Head - Equity & Derivatives Advisory

Tel +91-22-67897833

Email: [email protected]

Fundamental Team Designation/Sectors covered

Supriya Madye AVP Analyst–Auto Cement Infra 022 39673815 [email protected]

Deepan Sankaranarayanan Analyst–Media Logistics 022 39673818 [email protected]

Jignesh Shial Analyst–Banking Real Estate 022 39673820 [email protected]

Hitesh Punjabi Analyst–IT Pharma 022 39673823 [email protected]

Prerna Jhunjhunwala Analyst–Retail FMCG Capital Goods 022 39673822 [email protected]

Chetan Thacker Associate Analyst–Metal Mining Agri 022 39673821 [email protected]

Priyanka Rai Assistant Manager (Production) 022 39673852 [email protected]

Quantitative Team

Tina Khetan Derivative Analyst 022 67897828 [email protected]

Akshay Bhagwat Derivative Analyst 022 67897830 [email protected]

Nikunj Shah Derivative Analyst 022 67897827 [email protected]

Technical Team

Mukesh Singh Vice President- Technical Analyst 022 67897816 [email protected]

Rahul Randeria Technical Analyst 022 67897817 [email protected]

A.SenthilRaj Technical Analyst 022 39673998 [email protected]

Advisory Support

Tony Nawani Manager 022 67897825 [email protected]

Ashutosh Desai Assistant Manager 022 67897826 [email protected]

Vinod Hassija Assistant Manager 022 67897827 [email protected]

Disclaimer: Issuer of the Document:- HSBC InvestDirect Securities (India) Limited* Registered Office:- Dhana Singh Processor Premises J B Nagar Andheri - Kurla Road Andheri (East) Mumbai – 400 059 Telephone: +91 22 6789 7830 Fax: +91 22 6789 7700 Website: www.hsbcinvestdirect.co.in

Disclosure HSBC InvestDirect Securities (India) Limited (“HISL”) its associate and group companies its directors associates and employees may have various positions in any of the stocks securities and financial. Instruments dealt in this document or may make sale or purchase or other deals in the securities from time to time or may deal in other securities of the companies / organizations described in this document.

Certification The views and opinions expressed by the author in the document are his own and do not reflect the views of HSBC InvestDirect Securities (India) Limited or any of its associate and group companies.

Disclaimer Clause The above is for customer information only and does not constitute investment advice or an offer to purchase or subscribe for any investment. This document is not directed to or intended for display downloading printing reproducing or for distribution to or use by any person or entity who is a citizen or resident or located in any locality state country or other jurisdiction where such distribution publication reproduction availability or use would be contrary to law or regulation or would subject HSBC InvestDirect Securities (India) Limited (HISL) or its associates or group companies to any registration or licensing requirement within such jurisdiction. If this document is inadvertently sent or has reached any individual in such country the same may be ignored and brought to the attention of the sender. This document may not be reproduced distributed or published for any purpose without prior written approval of HISL. This document is not intended to provide legal accounting or tax advice and should not be relied upon in that regard. Persons accessing this document are advised to obtain appropriate legal accounting or tax advice where necessary. Financial advice provided has not been prepared taking into account the particular investment objectives financial situation and needs of any particular investor. As a result investors using the advice should assess whether it is appropriate in the light of their own individual circumstances before acting on it.

* Formerly known as IL&FS Investsmart Securities Limited

indian stock markets 06 sep 2010

Economy & Finance