Indian markets tumbled to their lowest closing level in almost 16 weeks due to continued lack of clarity regarding taxation for foreign investors and a fall in the rupee. Key sectors like IT and banks were major losers. Global markets also declined as efforts to form a Greek government stoked anxiety about the future of the euro zone. The RBI deputy governor said the central bank has little room to cut interest rates further due to still seeing inflationary pressures.

1. K E Y N O T E
INSTITUTIONAL RESEARCH
India Morning Note
Wednesday, May 09, 2012
Domestic Markets Snapshot Views on markets today
Name of Index May 7 May 8 Change (%) • Indian markets tumbled to their lowest closing level in
almost 16 weeks as continued lack of clarity regarding
Sensex 16,912.71 16,546.18 -2.17%
taxation for foreign investors and fall in the rupee
CNX Nifty 5,114.15 4,999.95 -2.23%
weighed the investor sentiments. The changes
BSE Mid-cap 6,132.58 6,053.89 -1.28% General Anti-Avoidance Rule are still vague and the
BSE IT 5,709.56 5,533.39 -3.09% uncertainty would continue at least until May 31, when
BSE Banks 11,374.31 11,051.80 -2.84% a government committee is expected to provide
FII Activity (`Cr) guidelines. Comments from the RBI’s deputy governor
Subir Gokarn that the RBI has relatively little room to
Date Buy Sell Net cut interest rates and weakness in European stocks
7-May 2,191 2,784 -593 also weighed on the domestic markets. All sectoral
4-May 3,503 2,991 513 indices closed on negative note with capital goods, IT,
Total May 10,297 10,042 255 bank and power stocks were major losers. IT stocks
2012 YTD 246,675 202,960 43717 was also hit after U.S.-based Cognizant Technology
Solutions Corp lowered its full-year forecast, citing
MF Activity (`Cr) weak demand from North American financial services
Date Buy Sell Net clients. TTCS fell 5.7% after JP Morgan downgraded it
7-May 622 596 26 to "neutral" from overweight" saying the stock price
4-May 472 675 -204 was now "fully valued" at current 19 time forward
fiscal 2013 earnings. Gas utility stocks benefitted on
Total May 1,798 2,272 -474
speculation the government was planning to raise
2012 YTD 46,792 53,366 -6574
liquefied natural gas imports to meet gas demand.
Volume & Advances / Declines Reliance Industries fell ~1% on lingering concerns
NSE BSE about a standoff with the government over pricing of
gas and recovery of input costs from projects. Coal
Trading Volume (Cr) 65.08 20.26
India rose 2.04% on reports the company has floated a
Turnover (`Cr) 10,900 2,115
global tender for expression of interest for
Advances 456 1,052 development of its coal blocks in Mozambique after
Declines 1,006 1,688 two failed attempts since 2010.
Unchanged 72 132 • Market breadth was lower at ~0.62x as investors sold
Total 1,534 2,872 large cap stocks. On provisional basis, FIIs sold equity
Global Markets of `3.99bn while domestic institutions bought equity of
`2.58bn in cash segment.
Index Latest Values Change (%)
• Asia markets slumped early Wednesday as efforts to
DJIA 12,932.09 -0.59%
stitch together a Greek government stoked anxiety
NASDAQ 2,946.27 -0.39% about the future for the euro zone, and as a strong
Nikkei * 9,072.18 -1.19% yen pressured exporters in Tokyo.
Hang Seng * 20,321.67 -0.80% • We expect a weak opening for the Indian markets
* as of 8.25AM IST today, following the rising concerns in the Eurozone
Currencies / Commodities Snapshot and domestic economic issues.
Latest Previous Economic and Corporate Developments
Quote Close • The government collected over `4.93 lakh crores as
Indian Rupee per $ 53.14 52.91 per provisional estimates from direct taxes during the
Indian Rupee per € 69.09 68.95 2011-12 fiscal, as against a revised estimate of `5 lakh
NYMEX Crude Oil($/bbl) 96.60 97.01 crores.
Gold ($/oz) 1,595.30 1,604.00 • The RBI has little room for lowering interest rates as it
Silver ($/oz) 29.28 29.41 still sees inflationary pressure in the medium to long
term, Deputy Governor Subir Gokarn said.
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2. K E Y N O T E
INSTITUTIONAL RESEARCH
TOP GAINERS Buzzing Stocks
(BSE A-Group) • Suzlon signed contract with state-owned Gujarat
Previous Current Change Mineral Development Corporation (GMDC) for setting
Company Name
Close(`) Price(`) (%) up 50 Mw wind power project in Jamnagar.
MMTC 749.40 789.80 5.39
• Reliance Industries cut estimates for proven gas
Petronet LNG 135.60 141.60 4.42
reserves in its Krishna-Godavari block off the east
TTK Prestige 3026.90 3124.55 3.23 coast by 6.7%, to 3.67 trillion cubic ft (tcf), the
Muthoot Fin 117.40 120.80 2.90 company said in its annual report.
Thermax 417.40 427.55 2.43
• In a major relief to Lanco Infratech, the Supreme
(BSE Mid-Cap) Court passed orders on Tuesday staying the orders
of the Wakf Tribunal and also a division bench of
Previous Current Change
Company Name Andhra Pradesh (AP) High Court which prevented
Close(`) Price(`) (%)
JUBILANT 178.20 187.85 5.42 Lanco Infratech from selling the properties in its
Shree Global Trd 99.55 104.50 4.97 township to third parties.
Bayer Crop 755.45 785.50 3.98 • CESC decided to revive the abandoned Balagarh
3M India 3767.15 3900.00 3.53 power project in West Bengal at an estimated
TTK Prestige 3026.90 3124.55 3.23 investment of `10,500Cr.
• Jindal Steel and Power acquired a 9.25% stake in
TOP LOSERS Australia's Apollo Minerals for AUD1mn (about
(BSE A-Group) `5.30Cr).
Previous Current Change US markets
Company Name
Close(`) Price(`) (%)
U.S. stocks recovered from almost 200 point drop,
Central Bank 88.30 77.55 -12.17
limiting the damage that came with concern about
Pantaloon Retl 165.60 152.70 -7.79 Greece’s struggle to form a government.
Jaiprakash Asso 69.40 64.10 -7.64
After a 198-point drop, the Dow Jones Industrial
Shriram Trans 544.85 507.40 -6.87
Average closed down 76.44 points, or 0.6%, at
Manappuram Fin 25.90 24.20 -6.56
12,932.09. The S&P 500 Index retreated 5.86 points, or
(BSE Mid-Cap) 0.4%, at 1,363.72. The Nasdaq Composite Index shed
11.49 points, or 0.4%, at 2,946.27.
Previous Current Change
Company Name
Close(`) Price(`) (%)
Central Bank 88.30 77.55 -12.17
India Infoline 51.15 45.80 -10.46
VST Inds 1940.65 1776.65 -8.45
Pantaloon Retl 165.60 152.70 -7.79
Manappuram Fin 25.90 24.20 -6.56
Keynote Capitals Institutional Research (research@keynotecapitals.net) (+9122-30266000)

3. K E Y N O T E
INSTIT UT IONAL R ES EAR C H
India and Global Economic Calendar
Countries / Wednesday Thursday Friday Monday
Regions 9/May 10/May 11/May 14/May
India Forex Reserves Data Monthly WPI based
inflation data
Weekly Supplement
of RBI
Cumulative
Industrial Output,
Industrial Output &
Manufacturing
Output
US wholesale Continuing & Initial Producer Price Index
inventories Jobless Claims (YoY)
Trade balance Reuters/ Michigan
Consumer
Sentiment Index
Import Price Index
Global Germany trade China Trade Balance China Producer Price
balance data Index (YoY) &
Consumer Price
Index (YoY)
UK Industrial China Industrial
productions Production (YoY) &
Retail Slaes (YoY)
UK Producer Price
Index - Input (YoY &
MoM) n.s.a
UK Producer Price
Index - Output (YoY
& MoM) n.s.a
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