market outlook 141212

7/30/2019 Market Outlook 141212

1/15

Market OutlookDecember 14, 2012

www.angelbroking.com


Dealers Diary

The Indian market is expected to open flat mirroring positive opening trades in

most of the Asian marketsand SGX Nifty. Also the investors sentiment is likely to

be boosted following clearance of Cabinet Committee on Investment by

government.

The US markets ended mostly lower yesterday with lingering concerns about the

looming fiscal cliff overshadowing a batch of largely upbeat economic data. The

weakness that emerged on Wall Street came amid indications that lawmakers in

Washington continue to struggle to reach an agreement to avoid the fiscal cliff.

Meanwhile, a report from Labor Department showed that jobless claims fell to

343,000 in the week ended December 8th, a decrease of 29,000 from the

previous week's revised figure of 372,000.

Meanwhile, the Indian markets fell notably on Thursday as investors awaited

monthly inflation data due to be released today and the passing of the much

awaited Banking Laws Amendment Bill for further directional cues.

Markets Today

The trend deciding level for the day is 19,283 / 5,867 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally

up to 19,368 19,508 / 5,892 5,933 levels. However, if NIFTY trades below

19,283 / 5,867 levels for the first half-an-hour of trade then it may correct up to

19,143 19,058 / 5,826 5,801 levels.

SENSEX 19,058 19,143 19,283 19,368 19,508NIFTY 5,801 5,826 5,867 5,892 5,933

News Analysis

RBI releases draft guidelines to address issues and concerns in the NBFC sector Cabinet Committee on investment cleared HC order may force power companies to cut rates RIL shuts seventh well on KG-D6 gas block JLR union expresses concerns over expansion outside UK JSW Steels November plant utilization contracts Mahindra Satyam settles Aberdeen Global claims Honeywell Automation India - Floor Price for Offer for Sale

Refer detailed news analysis on the following page

Net Inflows (December 12, 2012)

FII 6,417 3,398 3,020 10,311 115,331

MFs 1,151 732 419 (1,766) (19,308)

FII Derivatives (December 13, 2012)

Index Futures 813 1,163 (350) 12,053

Stock Futures 1,319 1,955 (637) 32,818

Gainers / Losers

Jet Air India 604 7.3 United Spirits 1,889 (5.2)

Tata Motors 287 4.0 Financial Tech 1,048 (5.0)

Glenmark Pharma 467 3.9 Gitanjali Gems 478 (4.5)

Bajaj Finserv 934 2.5 Videocon Industries 222 (4.3)

Jain Irrigation 71 2.4 Hexaware Tech 87 (4.2)

BSE Sensex (0.7) (126.0) 19,229

Nifty (0.6) (36.5) 5,852

MID CAP (1.2) (81.5) 6,958

SMALL CAP (1.0) (72.0) 7,348

BSE HC (0.6) (51.1) 8,005

BSE PSU (0.7) (53.6) 7,115

BANKEX (0.3) (44.1) 14,086

AUTO 0.9 96.4 11,097

METAL (1.2) (121.7) 10,331

OIL & GAS 0.1 6.7 8,406

BSE IT (0.5) (26.2) 5,549

Dow Jones (0.6) (74.7) 13,171NASDAQ (0.7) (21.7) 2,992

FTSE (0.3) (16.2) 5,930

Nikkei 1.7 161.3 9,743

Hang Seng (0.3) (57.8) 22,446

Straits Times 0.5 15.0 3,157

Shanghai Com (1.0) (21.2) 2,061

INFY (2.4) (1.0) $41.8

WIT (0.8) (0.1) $8.7IBN (0.7) (0.3) $42.9

HDB (0.4) (0.2) $41.4

Advances 1,078 420

Declines 1,882 1,072

Unchanged 116 45

BSE 2,828

NSE 13,990


2/15



RBI releases draft guidelines to address issues andconcerns in the NBFC sector

The RBI has released draft guidelines, based on the recommendations of Working

Group led by Usha Thorat to address issues and concerns in the NBFC sector.

Major imminent changes are those made in the existing norms for capitaladequacy, asset classification & provisioning and disclosures for NBFCs.

Tier-l capital

requirement has been raised to 12%, for all captive NBFCs (90% and above of net

total assets are on financing parent companys products/services) and for NBFCs

lending to/investing in sensitive sectors namely, capital market, commodities and

real estate (more than 75% of their net total assets), and 10% for other NBFCs

(existing requirement of 7.5%). To comply with the increased tier-I capital

adequacy requirement, they have been granted a period of three years.

The period of classifying

loans into NPAs, in case of NBFCs, which is presently higher at 180/360 days, is

to be made similar to those of banks (90 days). The transition would be done in a

phased manner, a 120-day norm shall be applied from April 01, 2014 to March

31, 2015 and a 90-day norm thereafter, with a permission of one-time adjustment

to the repayment schedule (not amount to restructuring). Moreover, the

provisioning requirement for standard asset is to be raised from 0.25% to 0.4% of

the outstanding amount as of March 31, 2014.

The existing disclosure requirements

for NBFCs, with asset size more than `1,000cr, has been made comprehensive,

in-line with those applicable to banks, i.e now they will need to disclose their

provision coverage ratio, liquidity ratio, asset liability profile, extent of financing of

parent company products, NPAs and movement of NPAs, details of all off-balance

sheet exposures, structured products issued by them as also

securitization/assignment transactions and also comply with mandatory disclosure

requirement of Clause 49 of listing agreement irrespective of whether they are

listed or not.

Additionally, the existing framework on liquidity management has

been changed. All NBFCs, both deposit taking and non-deposit taking, must now

ensure that there should not be any liquidity gap in the 1-30 day maturity bucket,

as against a negative gap of 15% of cash outflows permitted earlier. The existing

requirement of 15% SLR for deposit taking NBFC has been maintained.

We believe, these draft guidelines, (as and when implemented) would go a long

way in ensuring a strong and resilient non banking finance sector.

Cabinet Committee on investment cleared

The Union Cabinet has cleared a proposal to set up a Cabinet Committee on

investment (CCI) to fast-track clearances of large investments, particularly above

`1,000cr. The committee will be chaired by the Prime Minister and is expected to

set timelines for regulatory and administrative clearances from various individualministries.


3/15



The panel is likely to intervene when timelines are not being met; however the final

decision is likely to rest with the respective ministry. We believe that the committee

is likely to benefit large infrastructure projects in power, roads, highways, ports,

airports, coal and mining sector facing hurdles such as land acquisition issues,

environment clearances, mining clearances in particular etc.

The idea was initially mooted by Finance Minister P. Chidambaram and envisaged

as National Investment Board (NIB) for speeding up clearances of projects.

However it was rechristened as the CCI in view of opposition from the environment

ministry particularly as well as concerns raised by ministry of tribal affairs and

defense.

Although we await further clarity on the proposal we believe that it has various

advantages, namely:

Speedy and time-bound clearance of investment projects thereby reversing thedeterioration in investment cycle of the economy.

Grievance redressal in case of inter ministerial disputes Offer clarity on project pipeline resulting in more certainty in decision making

to investors as well as other stakeholders.

Reviewing the progress of existing infrastructure projects.Meanwhile, the Cabinet Committee on Infrastructure is likely to be dissolved and

its powers vested with the Cabinet Committee of Economic Affairs.

HC order may force power companies to cut rates

The Calcutta High Court has quashed the regulation that empowers the Central

Electricity Regulatory Commission to fix provisional tariffs for generation and

transmission. Power plants producing almost a quarter of India's total capacity will

be affected by the order and may have to cut tariffs. The high court passed the

order after 46 large power consumers, led by Balaji Industries Ltd, challenged the

provisional tariff fixed by CERC for power generated by state-run DVC. This is a

negative development for NTPC. CERC and DVC have filed an appeal in Supreme

Court.

RIL shuts seventh well on KG-D6 gas block

Media reports suggest that Reliance Industries (RIL) has shut its seventh well on KG-

D6 gas block due to high water and sand ingress issues. It awaits regulatory

approval to carry out urgent work to resolve the problem and curb the decline in

gas production. RIL has shut well B4 on the main producing fields of Dhirubhai-1

and 3 (D1& D3) in KG-D6 block due to high water cut and sanding issues. Due to

this shutdown the production from D1& D3 fields in KG-D6 block has declined to

19mmscmd during November compared to 20mmscmd reported during October.


4/15



JLR union expresses concerns over expansion outside UK

As per media reports, the main union of Jaguar and Land Rover (JLR), Unite, has

raised concerns over the companys plans to assemble vehicles in China and

Saudi Arabia. The union is demanding an urgent meeting with senior executives of

Tata Motors to seek assurances over the future of manufacturing plants in UK. Thisis following the announcement earlier in the week that JLR has signed a letter of

intent to form an automotive partnership in Saudi Arabia. While we remain

watchful of the further development on this front; we believe that the concerns of

the JLR union would be allayed by the company management. Tata Motors have

expressed its commitment towards UK plants in the past and have been increasing

its investments in the country since the JLR acquisition. Recently, JLR offered an

overall wage hike of 7.5% to all its employees, which was amongst the best in the

country. Further, the company is also setting up a new engine plant in

Wolverhampton, UK at an investment of 355mn which is expected to create

around 750 new jobs. We would await more clarity on this issue.

JSW Steels November plant utilization contracts

JSW Steels November 2012 crude steel production remained flat yoy to 0.6mn

tonnes. Crude steel production for the month of November was flat mainly due to

shutdown of one of its Corex furnaces for capital repairs purpose. The rolled flat

production increased by 20.0% yoy to 0.51mn tonne whereas the rolled long

production increased 30.0% yoy to 0.16mn tonne. The capacity utilization for the

balance units at the Vijaynagar plant has declined to 70% due to shortage of iron

ore in the region.

Capacity Utilization

Source: Company, Angel Research

80 80 80

75 75 75 75

70

64

6668

70

72

74

76

78

80

82

April

May

June

July

Aug.

Sept.

Oct.

Nov.

(%)

Capacity Utilisation


5/15



Mahindra Satyam settles Aberdeen Global claims

Mahindra Satyam has entered into an agreement to settle claims worth US$68mn

from Aberdeen Asset Management Plc. Mahindra Satyam has entered into a

confidential settlement agreement to settle claims brought in the commercial court

in London by Aberdeen Global and 22 other funds (collectively, the claimants)managed by Aberdeen Asset Management and its units. The claims included

certain allegations of fraudulent misrepresentations said to have been made by the

former management of Mahindra Satyam in London and relied upon by the

claimants investment manager and communicated in meetings alleged to have

taken place in London. The claimants have said that they have suffered losses of

an estimated sum of US$298.34mn and additional consequential losses. By virtue

of the settlement, the claims have been fully and finally disposed of on the basis

of, inter alia, a payment by Mahindra Satyam of US$68mn. In July, the company

settled claims other Aberdeen-affiliated former investors brought in the US. A class

action brought in the US on behalf of other former investors in the company was

also settled in February 2011.

Honeywell Automation India - Floor Price for Offer for Sale

Honeywell Asia Pacific Inc., the promoter of Honeywell Automation India Ltd., has

submitted to BSE a notice of Offer for Sale of 5,51,333 equity shares of Rs. 10/-

each representing 6.24% of the equity share capital of on December 12, 2012.

The floor price for the same is intimated to be `2,150 which is at a 10% discount

to its last trading price of `2,388.

Economic and Political News

Domestic air demand down 5-8% in December Government to auction spectrum held by telcos in 900 MHz band Government notifies new drug pricing policy India Inc raises US$4.29bn via ECB, FCCB Indian Railway Fin Corp to raise `9,000cr via bonds

Corporate News

Cyrus Mistry to become Tata Motors Chairman from Dec 28 EID Parry buys out foreign partner's stake in Silk Road Refinery Hitachi to invest `4,700cr in India by 2016 Kingfisher caps FII holding at 3% PFC's `4,590cr tax-free bond issue opens on Dec 13Source: Economic Times, Business Standard, Business Line, Financial Express, Mint


6/15

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

December 14, 2012 2:00PM Germany PMI Manufacturing Value Dec A 46.80 47.30

2:00PM Germany PMI Services Value Dec A 49.70 50.00

12:00PM India Monthly Wholesale Prices YoY% % Change Nov 7.45 7.60

3:30PM Euro Zone Euro-Zone CPI (YoY) % Nov 2.50 2.20

7:00PM US Consumer price index (mom) % Change Nov 0.10 (0.20)

7:45PM US Industrial Production % Nov (0.43) 0.30

December 18, 2012 11:00AM India RBI Repo rate % Dec 18 8.00 8.00

11:00AM India RBI Cash Reserve ratio % Dec 18 4.25 4.00

3:00PM UK CPI (YoY) % Change Nov 2.70 --

11:00AM India RBI Reverse Repo rate % Dec 18 7.00 7.00

December 19, 2012 7:00PM US Housing Starts Thousands Nov 894.00 873.00

7:00PM US Building permits Thousands Nov 868.00 870.00

December 20, 2012 8:30PM Euro Zone Euro-Zone Consumer Confidence Value Dec A (26.90) --

7:00PM US GDP Qoq (Annualised) % Change 3Q T 2.70 2.80

8:30PM US Existing home sales Millions Nov 4.79 4.85

December 21, 2012 3:00PM UK GDP (YoY) % Change 3Q F (0.10) --

December 27, 2012 8:30PM US Consumer Confidence S.A./ 1985=100 Dec 73.70 --

8:30PM US New home sales Thousands Nov 368.00 --

January 1, 2013 6:30AM China PMI Manufacturing Value Dec 50.60 --

January 2, 2013 3:00PM UK PMI Manufacturing Value Dec 49.10 --

January 3, 2013 2:25PM Germany Unemployment change (000's) Thousands Dec 5.00 --

January 4, 2013 7:00PM US Change in Nonfarm payrolls Thousands Dec 146.00 --

7:00PM US Unnemployment rate % Dec 7.70 --

January 9, 2013 5:29PM China Consumer Price Index (YoY) % Change Dec 2.00 --5:29PM China Industrial Production (YoY) % Change Dec 10.10 --

January 10, 2013 5:29PM India Imports YoY% % Change Dec 6.40 --

5:29PM India Exports YoY% % Change Dec (4.20) --

5:29PM China Exports YoY% % Change Dec 2.90 --

5:30PM UK BOE Announces rates % Ratio Jan 10 0.50 0.50

6:15PM Euro Zone ECB announces interest rates % Jan 10 0.75 --

January 11, 2013 3:00PM UK Industrial Production (YoY) % Change Nov (3.00) --

January 13, 2013 5:29PM China Real GDP (YoY) % Change 4Q 7.40 --

January 14, 2013 11:00AM India Industrial Production YoY % Change Nov 8.20 --

January 23, 2013 3:00PM UK Jobless claims change % Change Dec (3.00) --

January 31, 2013 12:45AM US FOMC rate decision % Jan 30 0.25 --

Source: Bloomberg, Angel Research

December 14, 2012

Market Outlook


7/15



Macro watch

Exhibit 1 :Q uarterly G D P trends

Source: CSO, Ang el Research

Exhibit 2 :IIP trends

Source: M O SPI, Ang el Research

Exhibit 3 :M onthly WPI inflation trends

Source: M O SPI, Ang el Research

Exhibit 4 :M a nufacturing a nd services PM I

Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion

Exhibit 5 :Expo rts an d impo rts growth trends

Source: Bloomberg, Angel Research

Exhibit 6 :Key policy rates

Source: RBI, Angel Research

3. 5

5. 7

9. 0

7. 5

11.2

8. 5

7. 68 .2

9. 2

8. 0

6. 76. 1

5. 3 5. 5 5. 3

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

11.0

12.0

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

1Q

FY13

2Q

FY13

(%)

6. 0

2 .7

1. 0

4. 3

(2.8)

(1.3)

2 .5

(2.0)

(0.1)

2. 3

(0.7)

8 .2

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

10.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

(%)

9. 5

7. 76. 9

7. 4 7. 7 7. 5 7. 6 7. 6 7. 58. 0 7. 8 7. 5

0. 0

1. 0

2. 0

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

(%)

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

Nov

-12

M fg. PM I Services PM I

(30.0)

(15.0)

0 .0

15.0

30.0

45.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

Exp orts yoy g ro wth Im ports yo y growth( %)

8.00

7.00

4.25

4.00

5.00

6.00

7.00

8.00

9.00

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

Nov

-12

Repo rate Reverse Repo rate C RR(%)


8/15

Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

Agri / Agri Chemical

Rallis Neutral 150 - 2,918 1,466 1,686 14.8 14.8 7.0 8.1 21.4 18.5 4.6 3.9 22.6 22.5 2.1 1.8

United Phosphorus Buy 126 170 5,792 8,421 9,263 16.5 16.5 15.0 17.0 8.4 7.4 1.2 1.1 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Neutral 250 - 4,275 2,911 3,321 16.2 16.2 17.3 19.8 14.5 12.6 4.0 3.1 31.1 27.6 1.4 1.2

Apollo Tyres Accumulate 86 96 4,332 13,713 15,341 11.2 11.2 12.5 14.8 6.9 5.8 1.3 1.1 20.2 19.9 0.5 0.4

Ashok Leyland Buy 27 31 7,171 14,490 16,606 9.5 9.6 2.2 2.9 12.1 9.5 2.3 2.0 13.6 16.1 0.6 0.5

Automotive Axle# Neutral 360 - 544 1,103 1,240 11.0 11.3 39.1 45.0 9.2 8.0 1.7 1.6 19.5 22.8 0.5 0.4Bajaj Auto Neutral 2,083 - 60,282 21,121 23,642 18.4 18.5 108.7 122.6 19.2 17.0 7.9 6.4 46.2 41.6 2.4 2.0

Bharat Forge Buy 261 324 6,084 6,754 7,565 15.5 15.7 18.8 23.2 13.9 11.3 2.4 2.1 18.5 19.7 1.0 0.9

Bosch India* Neutral 9,155 - 28,745 8,776 10,276 16.6 18.0 331.9 417.7 27.6 21.9 5.2 4.3 18.7 19.5 3.0 2.5

CEAT Buy 104 163 355 4,989 5,634 8.2 8.5 27.1 40.8 3.8 2.5 0.5 0.4 13.2 17.2 0.3 0.2

Exide Industries Neutral 143 - 12,142 6,229 7,200 14.8 15.8 7.2 9.0 19.9 16.0 3.5 3.0 18.5 19.9 1.7 1.4

FAG Bearings* Neutral 1,704 - 2,832 1,489 1,750 16.5 17.5 103.3 126.9 16.5 13.4 3.2 2.6 21.3 21.6 1.7 1.4

Hero Motocorp Accumulate 1,873 1,956 37,403 24,743 27,996 14.8 15.2 118.2 130.4 15.9 14.4 6.8 5.4 48.3 41.9 1.2 1.0

JK Tyre Buy 120 165 495 7,517 8,329 6.6 6.6 37.2 41.3 3.2 2.9 0.6 0.5 18.8 17.8 0.3 0.3

Mahindra and Mahindra Accumulate 941 986 57,766 40,035 46,272 11.5 11.6 54.7 62.8 17.2 15.0 3.9 3.2 24.3 23.4 1.2 1.0

Maruti Neutral 1,475 - 42,604 42,019 50,246 7.3 8.6 66.1 94.4 22.3 15.6 2.5 2.2 11.9 15.1 0.9 0.7

Motherson Sumi Neutral 193 - 11,337 24,285 27,317 6.7 7.2 8.1 10.6 24.0 18.2 5.0 4.1 22.9 24.7 0.6 0.6

Subros Buy 30 35 179 1,286 1,479 9.4 9.7 2.6 5.1 11.5 5.9 0.6 0.6 5.6 10.3 0.4 0.4

Tata Motors Accumulate 287 319 76,598 192,330 219,770 12.8 13.1 37.0 44.5 7.8 6.5 2.1 1.7 31.2 28.9 0.4 0.4

TVS Motor Buy 38 45 1,827 7,466 8,290 6.2 6.3 4.8 5.6 8.0 6.9 1.4 1.2 18.2 18.7 0.2 0.2

Capital Goods

ABB* Sell 706 573 14,959 7,796 9,907 4.8 7.8 9.2 22.0 76.7 32.1 5.6 4.9 7.5 16.4 1.9 1.5BGR Energy Neutral 261 - 1,882 3,605 4,542 11.8 10.7 25.1 27.9 10.4 9.4 1.5 1.4 31.1 27.1 1.0 0.9

BHEL Neutral 228 - 55,818 47,801 43,757 18.5 18.0 24.6 21.8 9.3 10.5 2.8 2.4 33.5 24.5 1.1 1.2

Blue Star Buy 192 242 1,729 2,763 2,948 3.1 5.6 2.6 8.6 73.1 22.5 4.2 3.7 5.9 17.6 0.8 0.7

Crompton Greaves Buy 111 145 7,140 12,370 14,277 5.2 7.3 4.0 7.8 27.8 14.3 1.9 1.7 6.9 12.6 0.6 0.6

Jyoti Structures Accumulate 45 53 370 2,794 3,048 10.6 10.6 9.2 11.7 4.9 3.9 0.5 0.5 10.9 12.5 0.4 0.4

KEC International Accumulate 65 73 1,658 6,858 7,431 7.1 7.5 8.3 9.8 7.8 6.6 1.3 1.1 25.1 24.0 0.4 0.4

LMW Reduce 2,149 1,992 2,421 2,369 2,727 11.7 11.7 143.4 166.0 15.0 13.0 2.5 2.3 17.4 18.4 0.6 0.4

Thermax Neutral 612 - 7,292 5,514 5,813 9.3 10.2 28.1 31.2 21.8 19.6 3.9 3.4 19.2 18.5 1.2 1.1


Market Outlook

Stock Watch

December 14, 2012


9/15



Cement

ACC Neutral 1,396 - 26,209 11,085 12,415 21.6 21.4 79.4 83.1 17.6 16.8 3.4 3.1 20.1 19.2 2.1 1.8

Ambuja Cements Neutral 206 - 31,777 10,272 11,884 26.4 26.1 11.5 12.9 18.0 16.0 3.9 3.5 20.8 21.1 2.8 2.3

India Cements Neutral 88 - 2,689 4,293 4,666 17.7 18.1 8.6 10.8 10.2 8.1 0.8 0.7 7.5 9.0 1.1 0.9

J K Lakshmi Cements Accumulate 130 143 1,591 2,082 2,423 22.9 23.1 20.8 22.5 6.3 5.8 1.1 0.9 18.4 17.4 0.9 1.2

Madras Cements Neutral 212 - 5,041 3,814 4,045 29.3 27.5 18.7 19.2 11.3 11.0 2.1 1.8 19.9 17.4 2.0 1.7

Shree Cements^ Neutral 4,309 - 15,013 5,701 6,210 29.7 28.1 240.7 260.7 17.9 16.5 4.3 3.5 27.1 23.6 2.0 1.7

UltraTech Cement Neutral 1,948 - 53,417 21,368 24,043 22.5 23.5 103.5 121.4 18.8 16.1 3.5 3.0 20.2 20.1 2.5 2.3Construction

Ashoka Buildcon Buy 201 304 1,057 2,034 2,315 22.4 22.4 27.1 31.7 7.4 6.3 0.9 0.8 13.1 13.4 1.8 2.1

Consolidated Co Neutral 13 - 234 2,262 2,522 6.7 7.5 1.5 2.7 8.5 4.8 0.4 0.4 4.4 7.5 0.4 0.4

IRB Infra Buy 137 164 4,552 3,843 4,212 43.1 43.6 16.8 17.8 8.1 7.7 1.4 1.2 18.3 17.0 3.3 3.6

ITNL Accumulate 205 225 3,985 6,564 7,054 27.2 27.4 26.3 29.0 7.8 7.1 1.2 1.1 14.0 11.8 2.7 2.8

IVRCL Infra Neutral 41 - 1,272 4,249 6,897 7.8 8.2 0.3 3.3 134.4 12.6 0.6 0.6 0.4 4.4 0.9 0.6

Jaiprakash Asso. Neutral 103 - 22,011 13,842 15,863 26.9 26.4 3.7 4.6 28.1 22.6 1.7 1.6 6.2 7.3 3.1 2.8

Larsen & Toubro Neutral 1,626 - 99,956 60,556 69,167 11.2 11.6 73.8 85.5 22.0 19.0 3.5 3.1 13.5 14.1 1.9 1.6

Nagarjuna Const. Reduce 48 44 1,226 5,947 6,569 8.5 8.6 3.1 4.1 15.4 11.6 0.5 0.5 3.3 4.2 0.6 0.6

Punj Lloyd Neutral 58 - 1,923 11,892 13,116 9.0 9.0 1.8 3.2 32.0 18.0 0.7 0.6 2.5 3.7 0.6 0.5

Sadbhav Engg. Buy 131 168 1,983 2,344 2,804 10.6 10.7 7.2 8.7 18.3 15.1 2.2 1.9 13.0 13.5 1.2 1.1

Simplex Infra Buy 212 251 1,050 6,882 8,032 9.1 9.1 23.2 31.3 9.2 6.8 0.8 0.7 9.1 11.2 0.5 0.5

Financials

Allahabad Bank Accumulate 157 181 7,870 6,392 7,238 2.7 2.8 30.3 33.3 5.2 4.7 0.8 0.7 14.8 14.5 - -

Andhra Bank Neutral 114 - 6,388 4,731 5,431 2.9 3.0 21.5 21.8 5.3 5.2 0.9 0.8 15.2 13.8 - -

Axis Bank Buy 1,325 1,550 56,580 15,686 18,687 3.1 3.2 116.8 138.0 11.4 9.6 2.1 1.8 20.0 20.2 - -Bank of Baroda Neutral 816 - 31,933 15,436 18,208 2.5 2.6 111.8 137.4 7.3 5.9 1.1 1.0 15.8 17.0 - -

Bank of India Accumulate 304 334 17,420 12,491 14,883 2.2 2.4 43.8 63.7 6.9 4.8 0.9 0.8 12.1 15.8 - -

Bank of Maharashtra A ccumulate 58 64 3,396 3,563 3,876 3.1 3.1 9.7 12.0 5.9 4.8 0.8 0.7 14.6 16.1 - -

Canara Bank Accumulate 465 544 20,577 10,699 12,213 2.1 2.2 67.3 80.1 6.9 5.8 1.0 0.9 13.7 14.6 - -

Central Bank Neutral 80 - 5,867 7,171 8,236 2.5 2.6 16.4 21.5 4.9 3.7 0.9 0.7 12.7 14.9 - -

Corporation Bank Accumulate 438 480 6,486 4,780 5,569 2.0 2.1 101.8 99.2 4.3 4.4 0.7 0.6 17.0 14.7 - -

Dena Bank Accumulate 114 132 3,996 3,087 3,453 2.7 2.8 25.9 24.1 4.4 4.7 0.8 0.7 19.4 15.6 - -

Federal Bank Neutral 485 - 8,299 2,617 2,968 3.3 3.2 45.9 51.7 10.6 9.4 1.3 1.2 13.1 13.3 - -


Market Outlook

Stock Watch

December 14, 2012


10/15



Financials

HDFC Neutral 854 - 131,664 7,336 8,802 3.5 3.5 31.5 37.8 27.1 22.6 5.4 4.8 34.8 32.1 - -

HDFC Bank Neutral 691 - 163,559 21,696 26,811 4.4 4.5 28.7 36.0 24.1 19.2 4.6 3.9 20.7 22.0 - -

ICICI Bank Buy 1,122 1,296 128,950 22,271 26,690 3.0 3.0 69.2 83.1 16.2 13.5 2.0 1.8 14.2 15.7 - -

IDBI Bank Accumulate 108 119 13,743 7,684 9,264 1.8 2.1 15.6 22.0 6.9 4.9 0.8 0.7 10.9 13.9 - -

Indian Bank Buy 193 230 8,290 5,874 6,551 3.2 3.2 40.6 41.8 4.8 4.6 0.8 0.7 18.1 16.4 - -

IOB Neutral 83 - 6,643 7,050 8,313 2.3 2.5 12.3 19.9 6.8 4.2 0.6 0.6 8.8 13.1 - -

J & K Bank Neutral 1,362 - 6,603 2,762 2,885 3.6 3.6 226.7 193.0 6.0 7.1 1.3 1.2 24.4 17.7 - -LIC Housing Finance Accumulate 272 313 13,739 1,799 2,255 2.3 2.4 20.3 27.3 13.4 10.0 2.1 1.8 16.9 19.7 - -

Oriental Bank Accumulate 340 370 9,926 6,277 7,090 2.6 2.7 60.5 65.1 5.6 5.2 0.8 0.7 15.0 14.4 - -

Punjab Natl.Bank Accumulate 819 890 27,770 19,652 22,601 3.2 3.3 135.0 164.3 6.1 5.0 1.0 0.9 16.3 17.3 - -

South Ind.Bank Accumulate 26 29 3,488 1,556 1,750 2.8 2.7 3.5 3.9 7.5 6.8 1.3 1.1 19.1 16.9 - -

St Bk of India Accumulate 2,262 2,520 151,777 61,883 71,546 3.4 3.4 227.2 257.5 10.0 8.8 1.7 1.5 17.8 17.7 - -

Syndicate Bank Accumulate 128 139 7,699 6,756 7,783 3.0 3.0 26.3 27.1 4.9 4.7 0.8 0.7 18.3 16.6 - -

UCO Bank Neutral 77 - 5,148 5,234 6,097 2.3 2.4 11.8 14.7 6.6 5.3 1.0 0.9 11.9 13.4 - -

Union Bank Accumulate 256 285 14,080 9,912 11,536 2.8 2.9 40.4 46.7 6.3 5.5 1.0 0.9 16.1 16.4 - -

United Bank Buy 75 91 2,718 3,500 3,912 2.6 2.8 15.8 21.2 4.8 3.6 0.6 0.5 13.1 15.7 - -

Vijaya Bank Accumulate 60 66 2,983 2,354 2,754 2.0 2.2 7.4 10.2 8.2 5.9 0.8 0.7 9.3 11.9 - -

Yes Bank Buy 448 542 15,999 3,270 4,240 2.8 3.0 34.5 42.2 13.0 10.6 2.8 2.3 23.5 23.5 - -

FMCG

Asian Paints Neutral 4,301 - 41,252 11,198 13,184 16.2 16.2 123.7 146.4 34.8 29.4 11.8 9.3 38.1 35.4 3.6 3.0

Britannia Buy 495 584 5,921 5,627 6,581 4.9 5.7 18.3 24.7 27.1 20.1 9.9 7.6 39.1 42.7 1.0 0.8

Colgate Neutral 1,404 - 19,095 3,146 3,573 20.6 21.4 36.4 42.5 38.6 33.0 35.7 29.9 102.0 98.5 5.9 5.2

Dabur India Neutral 130 - 22,684 6,124 7,101 17.0 16.8 4.5 5.2 29.1 24.9 12.0 9.5 43.2 41.5 3.8 3.2

GlaxoSmith Con* Neutral 3,741 - 15,733 3,124 3 ,663 17.1 17.6 1 04.5 1 23.8 35.8 30.2 11.2 8.9 34.4 32.8 4.7 4.0

Godrej Consumer Neutral 719 - 24,452 6,355 7,548 18.4 18.6 22.8 27.6 31.5 26.0 7.2 5.9 26.4 26.1 4.0 3.3

HUL Neutral 520 - 112,378 25,350 28,974 13.3 13.5 14.7 17.1 35.3 30.5 27.9 19.7 84.5 75.8 4.5 3.9

ITC Neutral 295 - 232,197 29,409 34,060 35.7 36.1 9.3 10.9 31.6 27.0 10.5 8.7 35.8 35.3 7.8 6.7

Marico Neutral 221 - 14,261 4,840 5,643 13.1 13.1 6.2 7.8 35.9 28.4 6.8 5.6 25.4 22.6 3.0 2.5

Nestle* Neutral 4,844 - 46,707 8,529 10,079 20.8 21.1 113.1 137.8 42.8 35.2 25.7 18.0 70.5 60.2 5.5 4.5

Tata Global Neutral 168 - 10,392 7,207 7,927 9.7 10.0 6.6 7.8 25.4 21.5 2.6 2.5 8.6 9.5 1.4 1.2


Market Outlook

Stock Watch

December 14, 2012


11/15



IT

HCL Tech^ Accumulate 620 648 43,048 24,214 26,772 19.5 18.1 44.0 48.0 14.1 12.9 3.3 2.8 24.0 22.0 1.7 1.5

Hexaware* Buy 87 135 2,586 1,944 2,159 21.8 21.1 11.4 12.2 7.7 7.1 2.0 1.7 26.4 24.1 1.1 0.9

Infosys Accumulate 2,283 2,573 131,097 39,174 41,580 29.5 30.4 159.2 171.6 14.3 13.3 3.5 3.1 24.1 23.1 2.8 2.6

Infotech Enterprises Neutral 194 - 2,168 1,886 2,032 17.9 17.3 18.7 20.2 10.4 9.6 1.6 1.4 14.9 14.0 0.8 0.7

KPIT Cummins Accumulate 111 132 1,980 2,195 2,317 15.5 15.0 10.7 12.1 10.3 9.2 2.2 1.8 21.0 19.8 0.9 0.8

Mahindra Satyam Buy 103 115 12,099 7,597 8,141 20.0 18.8 9.7 10.4 10.7 9.9 2.9 2.3 27.5 22.9 1.1 1.0

Mindtree Accumulate 698 747 2,868 2,324 2,437 20.0 17.7 73.3 74.7 9.5 9.4 2.3 1.8 24.1 19.7 1.0 0.8Mphasis& Neutral 382 - 8,024 5,700 5,993 18.0 16.9 37.0 37.3 10.3 10.2 1.5 1.3 14.3 12.6 0.9 0.8

NIIT Accumulate 31 36 513 1,048 1,161 9.3 10.9 4.2 6.2 7.4 5.0 0.8 0.7 10.5 14.1 0.3 0.2

Persistent Neutral 493 - 1,970 1,261 1,352 26.4 24.7 48.2 54.0 10.2 9.1 2.0 1.6 19.0 17.9 1.2 1.0

TCS Buy 1,223 1,410 239,349 61,053 67,313 28.7 29.1 69.7 76.2 17.6 16.0 5.7 4.7 32.6 29.1 3.7 3.3

Tech Mahindra Buy 917 1,070 11,714 6,603 7,150 19.8 18.4 92.9 102.0 9.9 9.0 2.3 1.9 23.7 21.0 1.8 1.6

Wipro Accumulate 374 421 91,983 43,219 47,241 20.0 20.0 26.1 28.1 14.3 13.3 2.8 2.4 19.3 17.9 1.8 1.6

Media

D B Corp Buy 218 259 3,988 1,581 1,784 23.3 25.0 11.6 14.4 18.8 15.1 3.6 3.1 21.0 22.3 2.4 2.1

HT Media Accumulate 105 113 2,462 2,111 2,272 15.0 15.2 7.4 8.3 14.2 12.7 1.5 1.4 11.3 11.4 0.8 0.7

Jagran Prakashan Buy 101 117 3,182 1,503 1,681 23.1 23.1 6.4 7.3 15.7 13.9 3.9 3.5 25.8 26.5 2.3 2.0

PVR Neutral 294 - 848 682 786 17.3 16.9 17.6 19.7 16.7 15.0 2.0 1.7 14.9 14.5 1.6 1.4

Sun TV Network Neutral 400 - 15,773 1,942 2,237 77.2 75.5 17.6 19.1 22.7 21.0 5.7 5.1 25.8 25.2 7.8 6.7

Metals & Mining

Bhushan Steel Neutral 446 - 9,468 11,307 14,287 29.5 29.1 45.1 51.0 9.9 8.7 1.1 1.0 12.2 12.2 2.9 2.3

Coal India Neutral 354 - 223,694 66,666 70,292 25.7 27.3 24.2 26.6 14.7 13.3 4.3 3.5 33.1 29.1 2.4 2.1

Electrosteel Castings Buy 23 29 798 1,984 2,074 10.6 11.6 0.8 2.0 27.6 11.4 0.4 0.2 1.7 4.1 0.6 0.6Hind. Zinc Neutral 137 - 57,739 12,446 13,538 52.3 52.9 15.0 16.4 9.1 8.4 1.8 1.5 21.4 19.7 2.8 2.2

Hindalco Neutral 116 - 22,190 79,148 89,258 9.4 9.0 15.0 15.6 7.7 7.5 0.7 0.6 8.8 8.4 0.7 0.6

JSW Steel Neutral 733 - 16,344 39,586 41,459 17.6 17.0 78.7 90.1 9.3 8.1 0.9 0.8 10.2 10.7 0.8 0.8

MOIL Neutral 261 - 4,384 941 1,019 47.3 48.3 25.8 28.1 10.1 9.3 1.6 1.4 16.7 16.2 2.5 2.1

Monnet Ispat Accumulate 302 344 1,942 2,501 3,264 22.2 24.6 41.8 55.2 7.2 5.5 0.8 0.7 11.3 13.4 1.9 1.3

Nalco Reduce 47 44 12,023 6,898 7,841 9.9 14.7 2.0 3.2 23.5 14.7 1.0 1.0 4.3 6.8 1.3 1.2

NMDC Buy 157 198 62,306 11,209 12,525 78.4 78.3 18.5 20.6 8.5 7.6 2.1 1.7 27.0 24.6 3.7 3.1

SAIL Neutral 81 - 33,478 47,252 60,351 14.2 14.8 9.6 11.7 8.5 6.9 0.8 0.7 9.4 10.6 1.2 1.0


Market Outlook

Stock Watch

December 14, 2012


12/15


13/15



Power

NTPC Neutral 151 - 124,177 74,111 85,789 22.7 23.1 12.1 13.7 12.5 11.0 1.5 1.4 12.6 13.2 2.3 2.2

Real Estate

Anant Raj Sell 92 78 2,708 657 875 52.0 56.1 8.4 12.7 10.9 7.2 0.7 0.6 6.3 8.9 5.6 4.2

DLF Neutral 214 - 36,427 9,878 12,033 44.7 46.1 9.6 13.4 22.4 16.0 1.4 1.4 6.4 8.7 6.2 5.1

HDIL Neutral 116 - 4,846 2,441 3,344 55.1 48.2 22.7 26.6 5.1 4.3 0.4 0.4 8.8 9.4 3.9 2.9

MLIFE Neutral 410 - 1,673 813 901 26.2 26.6 32.0 37.1 12.8 11.1 1.3 1.2 10.4 11.0 2.4 2.1

TelecomBharti Airtel Neutral 317 - 120,287 81,984 90,718 32.1 33.8 10.9 16.9 29.0 18.8 2.2 2.0 7.6 10.6 2.1 1.8

Idea Cellular Neutral 96 - 31,656 22,234 24,161 26.9 27.7 3.3 4.9 28.9 19.4 2.2 2.0 7.7 10.3 1.8 1.6

Rcom Neutral 75 - 15,408 21,090 22,308 31.8 29.9 3.0 3.8 24.6 19.6 0.4 0.4 1.7 2.1 2.4 2.2

zOthers

Abbott India Accumulate 1,458 1,590 3,099 1,629 1,886 11.8 13.3 60.8 79.5 24.0 18.3 4.9 4.1 22.0 24.4 1.7 1.4

Bajaj Electricals Neutral 211 - 2,104 3,497 3,968 6.6 7.6 9.8 15.5 21.5 13.6 2.8 2.4 12.7 17.4 0.6 0.6

Cera Sanitaryware Neutral 428 - 542 427 528 15.7 14.6 30.0 34.0 14.3 12.6 3.1 2.6 24.6 22.5 1.3 1.1

Cravatex Buy 460 545 119 272 308 7.2 7.3 37.5 45.4 12.3 10.1 2.9 2.3 23.7 22.7 0.5 0.5

CRISIL Neutral 1,044 - 7,334 982 1,136 34.3 34.3 34.3 40.0 30.4 26.1 13.8 11.0 50.9 46.9 6.9 5.8

Finolex Cables Neutral 59 - 905 2,304 2,552 9.9 9.1 8.2 10.1 7.3 5.9 1.0 0.9 13.7 14.7 0.4 0.3

Force Motors Accumulate 486 537 633 2,318 2,700 5.0 5.7 45.0 67.0 10.8 7.3 0.5 0.5 5.0 7.0 0.2 0.2

Goodyear India Accumulate 324 360 747 1,494 1,607 6.4 7.8 23.9 33.0 13.5 9.8 2.1 1.8 16.5 20.1 0.3 0.2

Greenply Industries Neutral 309 - 746 1,925 2,235 10.6 10.9 29.6 44.1 10.5 7.0 1.7 1.4 16.8 21.0 0.7 0.6

Hitachi Accumulate 131 146 300 873 989 4.4 6.5 6.4 12.2 20.6 10.8 1.7 1.5 8.3 14.4 0.4 0.3

Honeywell Automation* Buy 2,388 2,842 2,111 1,745 1,993 4.0 5.3 59.5 90.4 40.1 26.4 3.0 2.6 8.1 11.3 1.1 0.9

Styrolution ABS India* Neutral 733 - 1,288 1,059 1,116 8.5 9.5 36.0 42.0 20.4 17.4 3.0 2.6 15.4 16.0 1.3 1.2ITD Cementation Neutral 233 - 268 1,323 1,455 12.4 12.4 23.2 27.7 10.1 8.4 0.7 0.6 6.8 7.6 0.7 0.6

Jyothy Laboratories Neutral 172 - 2,771 1,228 1,443 9.0 10.9 3.9 6.4 44.2 26.9 4.4 4.0 10.1 15.6 2.8 2.3

MCX Reduce 1,503 1,440 7,667 553 624 65.3 66.3 62.5 72.0 24.1 20.9 6.6 5.7 27.5 27.4 11.0 9.3

MRF Accumulate 12,091 12,884 5,128 11,804 12,727 10.4 10.5 1,289.9 1,431.3 9.4 8.5 1.8 1.5 21.3 19.4 0.6 0.5

Page Industries Neutral 3,408 - 3,802 836 1,023 20.2 20.6 105.6 133.4 32.3 25.6 16.4 11.6 59.3 53.2 4.7 3.8

Relaxo Footwears Buy 771 933 925 1,019 1,208 11.0 12.5 47.0 66.7 16.4 11.6 4.1 3.0 28.2 30.1 1.1 0.9

Sintex Industries Buy 64 79 1,914 4,751 5,189 16.3 16.6 13.6 15.8 4.7 4.1 0.6 0.5 12.9 13.2 0.8 0.6

Siyaram Silk Mills Buy 307 366 288 1,043 1,149 12.3 12.9 65.7 73.3 4.7 4.2 0.9 0.8 21.0 19.6 0.5 0.5

S. Kumars Nationwide Neutral 14 - 406 7,134 7,985 19.7 19.4 12.2 14.1 1.1 1.0 0.1 0.1 11.3 11.5 0.6 0.6


Market Outlook

Stock Watch

December 14, 2012


14/15



zOthers

SpiceJet Reduce 48 43 2,330 5,720 6,599 5.3 6.8 3.6 5.4 13.3 9.0 19.3 6.1 - - 0.5 0.4

TAJ GVK Buy 72 108 450 300 319 35.8 36.2 7.9 9.1 9.1 7.9 1.2 1.1 13.9 14.4 1.8 1.6

Tata Sponge Iron Buy 306 384 472 750 803 18.6 18.4 65.4 69.1 4.7 4.4 0.7 0.6 16.5 15.3 0.2 0.1

TVS Srichakra Buy 271 335 207 1,476 1,643 7.0 8.2 32.6 55.9 8.3 4.8 1.3 1.1 16.8 24.8 0.4 0.3

United Spirits Neutral 1,889 - 24,703 10,289 11,421 12.8 12.8 26.0 45.3 72.6 41.7 3.3 3.1 5.8 7.6 2.9 2.6

Vesuvius India Neutral 342 - 695 560 611 16.1 17.0 24.7 28.8 13.9 11.9 2.1 1.8 15.8 16.2 1.2 1.1

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 13, 2012


Market Outlook

Stock Watch

December 14, 2012


15/15


market outlook 141212

Documents