Market & Movers RKG Q1FY12

8/3/2019 Market & Movers RKG Q1FY12

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Market & MoversInstitutional flows & allocations

Chintan Sheth

[email protected]

R K Global Shares & Securities Ltd

Aditya Vikram Jha

[email protected]

2nd September, 2011


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Index

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Daily FII Flows vs SensexFII (LHS) SENSEX (RHS)

Source: SEBI, BSE, Ace Equity, R K Global Research

FII focus shifts towards debt, Sensex falls

FII pumped funds in equities during Q2-Q3FY11 taking indexfrom ~18000 level in Mar10 to ~20500 level inDec10, however following the European debt crisis and fear

of global slowdown, FII activity reversed dragging the indexto a low of 17295 in Jun11.

FIIs cumulative net flows in equity market has improvedamounting to `5171cr in Q1FY12 as compared to a netoutflow of `2929cr in Q4FY11. While, in debt market, FII netinflows declined to `3435cr in Q1FY12 as compared to netinflows of `11400cr in Q4FY11.

FIIs Flows vs Sensex

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4QFY09 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 Q1FY12

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Quarterly FII Flows and Sensex Returns

FII Inflow (LHS) Sensex Q-o-Q Return (RHS)

Source: SEBI, BSE, ACE EQUITY, R K Global Research

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M-o-M net investment flow of FII

Equity Debt

Source: SEBI, BSE, ACE EQUITY, R K Global Research


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BSE100 Shareholding Pattern

FII holding declined 100bps in BSE 100 stocks in Q1FY12

FII holding in BSE100 stocks has declined by 100bps to 14% inQ1FY12 as compared to 15% in Q1 and Q4FY11. While majordecline on Q-o-Q basis was witnessed in Public holding whichstood at 15% in Q1FY12 as compared to 20% in Q4FY11, whileIndian promoters (3%), FIs (1%) and ADR/GDRs (1%) haswitnessed rise in their holding in BSE100 stocks.

FII performance mixed in value terms, but dismal in per unit

terms relative to BSE100

FIIs holding in BSE100 stocks has declined, in market value, by3.0% on Q-o-Q basis in Q1FY12 as compared to 2.6% decline inmarket cap of BSE100 during the same period. Out of the sixquarters we have analyzed, FIIs have outperformed the BSE100index in three instances (Q3FY11, Q2FY11 and Q4FY10) whileunderperformed in the rest. On per unit value terms, FIIs havenot fared well as compared to BSE100 index as they haveunderperformed the index five out of six instances we haveanalyzed.

Share Holding Pattern in BSE100

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Quarterly FII Market Value in BSE100 stocks vis--vis BSE100 Index

Quarters

Index Market Cap (` billion)

FIIQ-o-Q

VarBSE100

Q-o-Q

VarFII

Q-o-Q

VarBSE100

Q-o-Q

Var

Q1FY12 409.72 -3.5% 9803.89 -2.9% 7739.23 -3.0% 47888.89 -2.6%Q4FY11 424.37 -6.8% 10095.74 -5.4% 7980.94 -4.4% 49187.44 -4.2%

Q3FY11 455.18 -3.0% 10675.02 0.4% 8349.45 6.4% 51366.60 4.0%Q2FY11 469.27 8.1% 10627.35 12.5% 7847.37 34.6% 49369.54 13.6%Q1FY11 434.11 1.1% 9442.58 1.5% 5828.17 0.4% 43474.54 2.3%Q4FY10 429.43 0.9% 9300.20 0.8% 5804.14 4.3% 42508.42 -0.5%

Source: Ace Equity, BSE, R K Global Research

* Computed by deriving market value of FII holding using quarter closing stock prices of BSE100

stocks , FII Index value is computed by dividing FII market value by total no. of shares held by FII in

BSE100 stocks; Only 99 BSE100 stocks are included in FII computation as Coal India was not listed & denotes FIIs market value increase & decrease relative to BSE100


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Q-o-Q Change in wt. of FIIs in BSE 100 Scripts - FIIs maintaining OW in BFSI, IT/ITES & Energy, while UW in Cement, Industrial and Pharma

Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y C h. Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y C h. Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y C h.

Auto 3.4% 4.7% 3.4% 0.3% FMCG 9.9% 10.3% 10.2% -3.4% Metal/Mining 11.8% 8.2% 11.2% 5.2%

Ashok Leyland 1.0% 1.0% 1.3% -23.3% Asian Paints 0.1% 0.1% 0.1% -8.1% Coal India 2.2% 2.1% NL 0.0%

Bajaj 0.3% 0.3% 0.2% 26.6% HUL 2.2% 0.2% 2.6% -15.5% Hindalco 3.3% 0.4% 3.8% -14.0%

Hero Honda 0.4% 0.7% 0.5% -25.5% Indian Hotels 0.6% 0.6% 0.8% -25.9% Jindal Steel 1.2% 2.5% 1.6% -25.5%M&M 0.8% 0.5% 1.0% -19.8% ITC 6.2% 4.2% 3.8% 64.2% JSW Steel 0.3% 1.2% 0.4% -25.4%

Maruti 0.3% 0.8% 0.4% -25.2% Nestle 0.1% 0.6% 0.1% -42.9% NALCO 0.6% 1.2% 0.2% 219.3%

TATA Motor 0.7% 1.4% 0.0% 0.0% Tata Global 0.3% 0.0% 1.8% -83.3% NMDC 0.6% 0.1% 1.2% -46.8%

BFSI 20.6% 18.9% 14.5% 41.8% United Spirits 0.4% 4.6% 1.1% -66.1% Sesa Goa 1.2% 0.7% 1.4% -16.1%

Axis Bank 0.8% 0.9% 1.1% -26.5% INFRA 14.5% 11.7% 13.0% 11.4% SAIL 0.9% 0.1% 0.5% 85.7%

Bank Of Baroda 0.3% 0.4% 0.5% -30.3% DLF 1.4% 0.1% 1.9% -26.2% Sterlite 2.5% 0.5% 1.3% 90.4%

Bank Of India 0.5% 0.4% 0.5% -8.9% GMR Infra 2.7% 0.5% 3.9% -31.7% Tata Steel 0.9% 0.7% 0.3% 202.1%

HDFC Bank 0.8% 0.8% 0.9% -16.0% HDIL 1.0% 2.1% 0.8% 20.9% Welspun 0.3% 0.9% 0.4% -33.7%

HDFC Ltd. 4.7% 0.9% 1.2% 294.3% IVRCL Ltd. 0.7% 6.1% 1.1% -35.1% ENERGY 7.8% 6.0% 6.1% 28.0%

ICICI 2.5% 4.8% 3.1% -20.5% Mundra Port 2.3% 0.0% 0.3% 658.3% BPCL 0.1% 0.1% 0.2% -32.9%

IDBI 0.2% 2.5% 0.4% -54.3% JP Associate 0.6% 0.8% 3.7% -85.0% Cairn India 0.8% 1.2% 1.5% -47.7%

India Bulls 0.5% 1.8% 0.8% -33.3% L&T 1.2% 1.0% 0.7% 78.5% Essar 0.2% 0.2% 0.2% 23.9%IDFC 3.8% 1.2% 0.0% 0.0% Unitech 4.4% 0.2% 0.7% 532.0% GAIL 0.9% 0.1% 1.2% -24.4%

Kotak Mahindra 1.1% 0.3% 0.7% 51.8% Reliance Infra 0.2% 0.9% 4.2% -94.3% HPCL 0.2% 3.3% 0.2% -12.8%

LIC Housing 1.0% 0.5% 0.2% 423.9% IT/ITES 4.3% 1.3% 3.2% 35.8% IOCL 0.1% 0.6% 0.1% 18.3%

PFC 0.4% 1.6% 0.7% -36.9% Educomp 0.2% 0.2% 0.3% -38.1% ONGC 2.3% 0.2% 1.6% 43.4%

PNB 0.3% 0.2% 0.5% -32.3% Fin.Tech 0.1% 0.2% 0.1% -43.7% RIL 3.1% 0.3% 1.2% 162.5%

Rcap 0.3% 0.3% 0.2% 52.9% HCL 0.8% 0.1% 1.1% -26.0% PHARMA 3.4% 9.4% 5.9% -43.0%

RECL 1.0% 0.2% 0.7% 48.4% Infosys 1.2% 0.1% 1.5% -21.8% Cipla 0.7% 0.7% 1.0% -34.5%

Shriram Trans Fin 0.5% 1.1% 1.7% -68.7% TCS 1.4% 0.2% 0.0% 0.0% Divi's Lab 0.1% 0.8% 0.2% -57.3%

SBI 0.4% 0.5% 0.1% 282.6% Wipro 0.7% 0.4% 0.3% 143.4% Dr Reddy's 0.2% 1.5% 0.4% -41.8%

Union Bank 0.4% 0.0% 0.1% 315.0% ULITILIES 7.6% 10.6% 7.0% 9.2% Glaxosmithline 0.1% 0.9% 0.1% -21.2%

Yes Bank 0.9% 0.3% 1.1% -15.7% NTPC 1.6% 1.2% 0.1% 1517.5% Glenmark 0.5% 0.1% 0.6% -22.2%

CEMENT 2.5% 6.2% 3.2% -22.0% Power Grid 3.5% 2.1% 0.3% 1050.0% Lupin 0.6% 1.1% 0.1% 482.5%ACC 0.2% 0.2% 0.2% -20.8% R Power 0.7% 3.2% 0.3% 149.6% Ranbaxy 0.2% 3.4% 0.4% -48.7%

Ambuja 2.0% 2.3% 2.8% -28.1% Suzlon 1.3% 2.5% 0.3% 326.1% Sun Pharma 1.1% 1.0% 3.2% -67.0%

Grasim 0.1% 2.7% 0.1% 19.8% Tata Power 0.3% 0.3% 0.8% -66.9% OTHERS 4.1% 3.6% 9.0% -54.2%

Ultratech 0.2% 0.9% 0.1% 102.9% Torrent Power 0.0% 0.3% 1.0% -95.3% Adani Ent 1.0% 1.0% 0.5% 94.4%

INDUSTRIAL 1.4% 3.9% 2.4% -43.1% TELECOM 6.5% 5.3% 6.8% -3.9% Aditya Birla Nuvo 0.1% 0.1% 0.1% 15.0%

ABB 0.0% 0.0% 0.2% -81.0% Bharti Airtel 3.7% 3.7% 4.7% -21.3% MMTC 0.0% 0.3% 0.0% 0.0%

Bharat Forge 0.2% 0.2% 0.2% -21.7% Idea 1.9% 0.2% 1.5% 23.6% Tata Chem 0.2% 1.1% 1.2% -83.1%

BHEL 0.4% 0.4% 0.5% -29.1% Rcom 1.0% 0.2% 0.4% 140.3% United Phosp. 0.9% 0.4% 6.1% -84.8%

Crompton Greaves 0.8% 2.2% 0.8% -5.1% Tata Comm 0.0% 1.2% 0.2% -88.1% Zee Tele 1.9% 0.7% 1.1% 73.1%

Siemens 0.1% 1.2% 0.6% -90.6%

FIIs weight in BSE100


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Major movement of FIIs Holding during FY10-FY11 in BSE 100 scripts

Company Q1FY12 Q4FY11 Q2FY11 Q3FY11 Q1FY11

Unitech 4.4% 0.2% 0.2% 0.6% 0.7%DLF 1.4% 0.1% 0.1% 1.6% 1.9%ONGC 2.3% 0.2% 0.1% 1.4% 1.6%HUL 2.2% 0.2% 0.2% 2.3% 2.6%RIL 3.2% 0.3% 0.3% 1.0% 1.2%Hindalco 3.3% 0.4% 0.4% 3.2% 3.8%TCS 1.4% 0.2% 0.2% 0.0% 0.0%GMR Infra 2.7% 0.5% 0.5% 3.1% 3.9%Sterlite 2.5% 0.5% 0.5% 1.1% 1.3%Grasim 0.1% 2.7% 2.9% 0.1% 0.1%Ranbaxy 0.2% 3.4% 3.2% 0.4% 0.4%HPCL 0.2% 3.3% 3.3% 0.2% 0.2%IDBI 0.2% 2.5% 2.6% 0.3% 0.4%United Spirits 0.4% 4.6% 5.1% 0.9% 1.1%R Power 0.8% 3.2% 3.3% 0.2% 0.3%IVRCL Ltd. 0.7% 6.1% 6.2% 0.9% 1.1%Crompton Greaves 0.8% 2.2% 2.0% 0.8% 0.8% & denotes Q-o-Q increase & decrease in FII holding

FIIs were OW on BFSI and UW on Infra & Telecom relative to

BSE100

During Q1FY12, FIIs weight-age in BSE100 stocks has declined Q-o-Qbasis in almost every sector barring FMCG and Cement, but theycontinue to hold more of BFSI (20.6% wt), Metal/Mining (14.5% wt.)and FMCG (11.8% wt.) stocks. However, FIIs remained OW in BFSI by9.8% while they stayed away from controversial sectors like Telecomand Infra by -8.3% and -7.6% respectively in Q1FY12 as compared to

their respective weights in BSE100 Index. Though, change in FIIsweight in BSE100 was also attributed to the composition change ofthe index and free-float adjustments done by the FIIs.

FIIs witnessed value appreciation in FMCG and Telecom while

value declined in Cement and Energy in Q1FY12 as compared to

Q4FY11

FIIs market value has appreciated in sectors like FMCG(17.9%), Telecom (12.1%), Pharma (6.7%) and Others (8.1%) on Q-

o-Q basis, while their value declined in Cement (-16.0%), Energy (-13.8%), BFSI (-6.6%), Industrials (-5.9%) etc.

FIIs sector-wise movements

Q-o-Q Sector-wise changes in wt. of BSE100 and FIIs Holding in BSE100 stocks

SectorsQ1FY12 Q4FY11 Q3FY11

BSE100 wt FII wt OW/UW BSE100 wt FII wt OW/UW BSE100 wt FII wt OW/UW

Automobiles 2.7% 3.4% 0.7% 2.6% 3.5% 0.9% 2.8% 3.8% 1.0%

BFSI 10.7% 20.6% 9.8% 10.2% 21.4% 11.1% 10.6% 21.1% 10.5%

Energy 1.7% 2.5% 0.8% 1.7% 2.8% 1.2% 1.8% 3.0% 1.2%Cement 9.6% 9.9% 0.3% 9.3% 9.7% 0.4% 10.0% 9.9% 0.0%

Others 1.6% 1.4% -0.2% 1.5% 1.5% -0.1% 1.6% 1.5% -0.1%

Metal / Mining 11.5%14.5% 3.0% 11.1%15.1% 4.0% 11.9%16.4% 4.5%

IT/ITES 4.8% 4.3% -0.5% 4.6% 4.4% -0.2% 5.0% 4.6% -0.4%

INFRA 15.2% 7.6% -7.6% 14.7% 7.6% -7.1% 15.8% 7.2% -8.6%

Industrials 7.8% 6.5% -1.3% 7.5% 6.5% -1.0% 8.1% 6.7% -1.4%

FMCG 12.4% 11.8% -0.6% 15.3% 11.6% -3.7% 14.7% 11.2% -3.6%

Telecom 16.1% 7.8% -8.3% 15.6% 8.2% -7.3% 11.2% 6.8% -4.5%

Pharma 2.8% 3.4% 0.6% 2.7% 3.4% 0.7% 2.9% 3.6% 0.7%

Utilities 3.2% 4.1% 0.9% 3.1% 4.2% 1.1% 3.4% 4.2% 0.8%

Sector-wise Q-o-Q growth in value of FII holding in BSE100*

Sectors Q1FY12 Q4FY11 Q3FY11 Q2FY11 Q1FY11

AUTO -4.3% -14.9% 15.8% 21.4% 12.0%

BFSI -6.6% -1.7% -4.6% 89.9% -0.8%

CEMENT -16.0% 3.0% 11.8% 42.3% -21.0%

INDUSTRIALS -5.9% -13.5% -6.2% 1.6% 3.4%FMCG 17.9% -7.3% 0.3% 53.8% 13.6%

INFRA -1.7% -20.4% -13.8% 25.5% 4.6%

IT/ITES -5.3% -4.4% 18.7% 12.3% 3.9%

UTILITIES -0.6% -1.9% 31.1% 6.9% -0.5%

TELECOM 12.1% -3.1% -3.2% 38.3% -17.7%

METAL/MINING -3.0% -2.6% 23.8% 17.7% -14.5%

ENERGY -13.8% 8.2% 8.7% -5.3% 2.4%

PHARMA 6.7% -13.0% 50.5% 13.5% 9.3%

OTHERS 8.1% -2.1% 21.5% 77.7% 17.6%*growth in value is computed using quarterly closing prices of the BSE100 stocks and FII

holdings as on that date


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Daily flow of DII vs Sensex

DII (LHS) SENSEX (RHS)

Source: SEBI, BSE, Ace Equity, R K Global Research

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Sensex return with DII flow

DII Inflow ( LHS) Sensex Q-o-Q (RHS)

Source: SEBI, BSE, ACE Equity, R K Global Research

DIIs played smart and cautiously

DII pumped funds of`3435cr during Q1FY12 as compared to `2912cr during the same period last year. However, DII withdrawncumulatively `17268cr during FY11 as against net buying of 24280 during FY10. Thus, DII were the most beneficiated among theinvestors by entering when markets are at their lows and exiting when they are attaining their previous high.

DIIs flows vs Sensex


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Q-o-Q Changes in wt. of DIIs in BSE 100 - DIIs remain bullish on BFSI , Utilities, while sold Energy & Auto

Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y C h. Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y C h. Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y C h.

AUTO 2.2% 4.0% 4.6% -44.8% FMCG 20.4% 27.9% 17.3% -27.0% METAL/MINING 9.1% 13.0% 13.9% -30.3%

Ashok Leyland 1.3% 1.9% 2.3% -32.4% Asian Paints 0.1% 0.1% 0.1% -48.4% Coal India 0.6% 0.6% 0.0% -5.0%

Bajaj 0.1% 0.2% 0.1% -31.4% HUL 1.5% 2.2% 2.6% -32.2% Hindalco 1.4% 2.1% 2.7% -31.6%

Hero Honda 0.1% 0.1% 0.1% -46.6% Indian Hotels 1.1% 0.6% 1.8% 89.5% Jindal Steel 0.1% 0.5% 0.2% -87.4%M&M 0.3% 1.2% 1.3% -74.6% ITC 16.3% 23.2% 12.4% -29.9% JSW Steel 0.2% 0.1% 0.1% 133.2%

Maruti 0.0% 0.1% 0.1% -69.4% Nestle 0.0% 0.1% 0.1% -53.9% NALCO 0.0% 0.9% 0.2% -94.9%

TATA Motor 0.4% 0.6% 0.8% -33.9% Tata Global 0.9% 1.7% 0.2% -45.5% NMDC 2.0% 2.0% 3.0% -2.2%

BFSI 27.3% 12.1% 11.4% 125.4% United Spirits 0.5% 0.0% 0.1% 50.0% Sesa Goa 0.2% 0.2% 0.3% 18.6%

Axis Bank 0.1% 0.1% 0.2% 38.1% INFRA 8.0% 5.0% 8.6% 59.1% SAIL 1.8% 2.0% 2.7% -9.1%

Bank Of Baroda 0.4% 0.5% 0.6% -25.2% DLF 0.0% 0.1% 0.1% -56.4% Sterlite 1.6% 2.4% 2.4% -31.8%

Bank Of India 0.4% 0.6% 0.6% -34.1% GMR Infra 1.8% 0.1% 2.9% 1742.8% Tata Steel 1.5% 2.1% 2.0% -29.7%

HDFC Bank 0.3% 0.5% 0.5% -39.2% HDIL 2.5% 0.0% 0.0% 2.5% Welspun 0.2% 0.2% 0.3% -24.2%

HDFC Ltd. 1.7% 1.7% 0.4% -0.2% IVRCL Ltd. 1.4% 0.1% 0.3% 1340.7% ENERGY 9.1% 13.2% 9.9% -30.9%

ICICI 0.9% 2.3% 2.3% -60.9% Mundra Port 0.4% 0.1% 0.2% 257.1% BPCL 0.4% 0.6% 0.6% -28.6%

IDBI 1.5% 1.2% 1.3% 28.7% JP Associate 0.2% 1.8% 1.8% -88.0% Cairn India 0.8% 0.3% 0.4% 172.2%

India Bulls 1.1% 0.1% 0.1% 1036.8% L&T 0.8% 1.9% 2.1% -59.4% Essar 0.1% 0.2% 0.2% -37.5%IDFC 16.3% 1.7% 1.9% 856.9% Unitech 0.4% 0.4% 0.7% 9.9% GAIL 1.4% 2.0% 2.0% -31.2%

Kotak Mahindra 1.3% 0.3% 0.2% 336.0% IT/ITES 3.4% 2.9% 2.7% 16.5% HPCL 0.6% 0.8% 0.9% -28.0%

LIC Housing 0.5% 0.2% 0.2% 150.7% Educomp 0.0% 0.0% 0.0% 0.0% IOCL 0.7% 1.0% 1.1% -28.2%

PFC 0.7% 0.3% 0.3% 135.6% Financial Tech 0.0% 0.0% 0.0% 0.0% ONGC 4.0% 5.5% 1.5% -27.1%

PNB 0.3% 0.4% 0.5% -19.3% HCL 0.2% 0.3% 0.3% -17.6% RIL 1.1% 2.9% 3.1% -63.0%

Rcap 0.1% 0.1% 0.1% -30.3% Infosys 1.6% 0.4% 0.4% 307.5% PHARMA 2.9% 3.1% 2.6% -6.6%

RECL 0.3% 0.3% 0.5% 0.2% TCS 0.9% 1.3% 1.4% -28.7% Cipla 0.9% 1.2% 1.2% -25.3%

Shriram Trans Fin 0.0% 0.1% 0.1% -71.1% Wipro 0.5% 0.8% 0.6% -32.9% Divi's Lab 0.1% 0.1% 0.2% 24.8%

SBI 0.6% 0.9% 1.0% -28.0% UTILITIES 8.3% 5.9% 13.0% 40.4% Dr Reddy's 0.1% 0.2% 0.2% -27.1%

Union Bank 0.4% 0.5% 0.5% -21.4% NTPC 4.0% 2.7% 1.7% 48.4% Glaxosmithline 0.1% 0.0% 0.1% 10.0%

Yes Bank 0.2% 0.3% 0.3% -20.1% Power Grid 2.1% 1.0% 6.6% 107.5% Glenmark 0.1% 0.1% 0.1% 9.3%

CEMENT 1.7% 2.4% 2.8% -29.2% Reliance Infra 0.3% 0.0% 2.1% 30.0% Lupin 0.8% 0.7% 0.2% 15.8%

ACC 0.2% 0.2% 0.3% -16.7% R Power 0.3% 0.3% 0.4% -4.8% Ranbaxy 0.3% 0.4% 0.4% -26.5%

Ambuja 1.3% 1.9% 2.2% -30.9% Suzlon 0.6% 0.5% 0.6% 10.2% Sun Pharma 0.4% 0.2% 0.1% 117.0%

Grasim 0.1% 0.1% 0.2% -4.5% Tata Power 0.4% 0.6% 0.6% -33.9% OTHERS 2.3% 2.5% 2.7% -6.9%

Ultratech 0.1% 0.2% 0.1% -37.3% Torrent Power 0.6% 0.9% 0.9% -28.4% Adani Ent 0.1% 0.1% 0.1% -38.8%

INDUSTRIAL 1.6% 2.5% 3.3% -34.2% Telecom 3.2% 5.5% 7.2% -41.5% Aditya Birla Nuvo 0.1% 0.0% 0.1% 10.0%

ABB 0.2% 0.0% 0.4% 0.0% Bharti Airtel 1.9% 2.7% 3.0% -30.2% MMTC 0.5% 0.0% 0.0% 50.0%

Bharat Forge 0.3% 0.4% 0.4% -33.3% Idea 0.1% 1.0% 2.3% -93.5% Tata Chem 0.4% 0.6% 0.7% -26.9%

BHEL 0.4% 0.5% 0.5% -27.0% Rcom 1.1% 1.5% 1.7% -28.6% United Phosp. 0.5% 0.7% 0.8% -35.6%

Crompton Greaves 0.7% 1.0% 1.3% -31.2% Tata Comm 0.2% 0.3% 0.3% -34.8% Zee Tele 0.8% 1.1% 0.9% -25.7%

Siemens 0.2% 0.6% 0.7% -71.6%

DIIs weight in BSE100


9/14

Q-o-Q Changes in wt. of Insurance co. in BSE 100 - Insurance companies went bullish in BFSI & Pharma

Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y Ch. Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y Ch. Company Q1FY12 Q4FY11 Q1FY11 Y-o-Y Ch.

Auto 5.3% 5.0% 6.4% -6.5% FMCG 26.3% 27.2% 19.0% -3.4% METAL & MINING 12.2% 16.8% 18.4% -27.4%

Ashok Leyland 2.3% 0.2% 0.1% 1032.5% Asian Paints 0.1% 0.1% 0.2% -1.5% Coal India 0.0% 0.0% 0.0% 0.0%

Bajaj Auto 0.2% 2.2% 2.9% -90.3% HUL 2.6% 2.7% 3.8% -3.4% Hindalco 0.1% 2.8% 3.8% -96.2%

Hero Honda 0.4% 0.1% 0.1% 337.3% Indian Hotels 0.5% 0.5% 0.6% 5.9% Jindal Steel 0.6% 0.5% 0.0% 14.2%M&M 1.5% 1.6% 2.0% -4.2% ITC 22.4% 23.2% 14.2% -3.4% JSW Steel 0.0% 0.0% 0.0% 0.0%

Maruti 0.0% 0.0% 0.0% 0.0% Nestle 0.1% 0.1% 0.1% -32.1% NALCO 1.4% 1.5% 0.5% -4.9%

TATA Motor 0.9% 0.8% 1.3% 9.5% Tata Global 0.6% 0.6% 0.1% -4.5% NMDC 1.3% 3.1% 3.7% -58.5%

BFSI 18.9% 12.4% 12.8% 52.5% United Spirits 0.0% 0.0% 0.0% 0.0% Sesa Goa 0.3% 0.3% 0.3% 14.1%

IDBI 0.0% 0.0% 0.0% 0.0% INFRA 6.2% 15.1% 16.3% -58.6% SAIL 0.3% 3.0% 4.2% -91.3%

Axis Bank 0.4% 0.4% 0.5% 0.4% DLF 0.0% 0.0% 0.0% 0.0% Sterlite 2.9% 2.4% 2.4% 21.4%

Bank Of Baroda 0.8% 0.8% 1.0% 4.9% GMR Infra 0.0% 0.0% 0.0% 0.0% Tata Steel 2.3% 3.0% 3.2% -23.8%

Bank Of India 0.3% 0.5% 0.6% -44.4% HDIL 0.0% 0.0% 0.0% 0.0% Welspun 3.0% 0.3% 0.3% 899.4%

HDFC Ltd. 1.9% 1.9% 0.5% 1.8% IVRCL Ltd. 0.0% 0.0% 0.0% 0.0% ENERGY 6.6% 12.5% 10.2% -47 .5 %

HDFC 2.7% 2.7% 3.3% -0.3% Mundra Port 1.5% 12.4% 12.8% -87.6% BPCL 0.5% 0.5% 0.7% 3.3%

ICICI 1.1% 1.0% 1.1% 6.4% JP Associate 0.4% 1.6% 1.8% -73.3% Cairn India 0.0% 0.0% 0.0% 0.0%

India Bulls 0.0% 0.0% 0.0% 0.0% L&T 0.0% 0.4% 0.5% -98.8% Essar 0.0% 0.0% 0.0% 0.0%

IDFC 2.2% 2.2% 2.6% 0.7% Unitech 0.6% 0.7% 1.1% -9.1% GAIL 0.0% 2.3% 2.8% -100.0%

KotakMahindra 0.0% 0.0% 0.2% 0.0% IT/ITES 2.6% 2.6% 2.9% 0.3% HPCL 2.7% 0.7% 1.0% 286.2%

LIC Housing 0.2% 0.2% 0.1% 6.9% Educomp 0.2% 0.0% 0.0% 0.0% IOCL 1.0% 1.1% 1.4% -5.8%

PFC 4.1% 0.2% 0.2% 1954.5% Financial Tech 0.0% 0.0% 0.0% 0.0% ONGC 0.0% 4.2% 0.0% -100.0%

PNB 2.6% 0.4% 0.7% 545.0% HCL 0.1% 0.3% 0.3% -59.6% RIL 2.3% 3.7% 4.2% -38.6%

Rcap 0.6% 0.2% 0.2% 181.6% Infosys 0.4% 0.4% 0.4% -2.7% PHARMA 5.2% 2.9% 2.6% 79.6%

RECL 0.4% 0.3% 0.3% 25.9% TCS 1.5% 1.6% 1.8% -3.5% Cipla 1.4% 1.4% 1.5% -3.2%

Shriram TransFin 0.0% 0.0% 0.0% 0.0% Wipro 0.4% 0.4% 0.4% -7.8% Divi's Lab 0.5% 0.0% 0.0% 0.0%

SBI 1.1% 1.1% 1.4% 3.1% ULITILIES 6.9% 3.4% 7.1% 101.9% Dr Reddy's 0.0% 0.2% 0.3% -86.2%

Union Bank 0.3% 0.3% 0.3% -3.7% NTPC 0.7% 1.3% 1.6% -45.9% Glaxosmithline 2.3% 0.0% 0.0% 0.0%

Yes Bank 0.2% 0.2% 0.2% 12.2% Power Grid 3.0% 0.0% 0.0% 0.0% Glenmark 0.0% 0.0% 0.0% 0.0%

CEMENT 3.0% 3.2% 4.3% -7.6% Reliance Infra 0.5% 0.0% 2.9% 50.0% Lupin 0.7% 0.7% 0.2% -4.9%

ACC 0.0% 0.0% 0.0% 0.0% R Power 0.6% 0.2% 0.3% 221.1% Ranbaxy 0.4% 0.6% 0.6% -30.1%

Ambuja 2.7% 2.8% 3.9% -2.8% Suzlon 0.2% 0.8% 0.2% -81.1% Sun Pharma 0.0% 0.0% 0.0% 0.0%Grasim 0.0% 0.1% 0.2% -100.0% Tata Power 0.8% 1.1% 0.9% -28.0% OTHERS 2.0% 2.1% 2.2% -5.8%

Ultratech 0.2% 0.2% 0.2% 16.5% Torrent Power 1.1% 0.0% 1.3% 0.0% Adani Ent 0.0% 0.0% 0.2% 0.0%

INDUSTRIAL 0.8% 1.7% 2.0% -55.1% TELECOM 3.8% 6.4% 7.7% -40.2% Aditya Birla Nuvo 0.0% 0.0% 0.0% 0.0%

ABB 0.0% 0.0% 0.0% 0.0% Bharti Airtel 2.5% 2.7% 3.2% -7.9% MMTC 0.0% 0.0% 0.0% 0.0%

Bharat Forge 0.1% 0.1% 0.2% 17.7% Idea 0.8% 1.0% 1.3% -21.7% Tata Chem 0.7% 0.8% 0.9% -8.9%

BHEL 0.4% 0.4% 0.3% -3.0% Rcom 0.2% 2.3% 2.7% -93.4% United Phosp. 0.4% 0.4% 0.4% -6.4%

Crompton Greaves 0.0% 0.5% 0.5% -100.0% Tata Comm 0.4% 0.4% 0.5% 1.9% BPCL 0.8% 1.0% 0.6% -15.8%

Siemens 0.3% 0.8% 1.0% -67.7%

Insurance companies weight in BSE100


10/14

Major movement of Insurance Holding during FY10-FY11 in BSE 100 scripts


PFC 4.1% 0.2% 0.2% 0.1% 0.2%Ashok Leyland 2.3% 0.2% 0.2% 0.1% 0.1%Welspun 3.0% 0.3% 0.3% 03% 0.3%PNB 2.6% 0.4% 0.5% 0.5% 0.7%GAIL 0.0% 2.3% 2.3% 2.4% 2.8%Grasim 0.0% 0.1% 0.2% 0.2% 0.2%ONGC 0.0% 4.2% 0.0% 0.0% 0.0%SAIL 0.3% 3.0% 3.0% 3.0% 4.2%Bajaj Auto 0.2% 2.2% 2.4% 2.4% 2.9%Mundra Port 1.5% 12.4% 12.2% 12.2% 12.8%

Major movement of DIIs Holding during FY10-FY11 in BSE 100 scripts


IVRCL 1.4% 0.1% 0.1% 0.2% 0.3%IDFC 16.3% 1.7% 1.8% 2.0% 1.9%Kotak Mahindra 1.3% 0.3% 0.4% 0.4% 0.2%Infosys 1.6% 0.4% 0.4% 0.4% 0.4%JSW Steel 0.2% 0.1% 0.1% 0.1% 0.1%Power Grid 2.1% 1.0% 1.1% 5.8% 6.6%Idea 0.1% 1.0% 0.7% 0.9% 2.3%JP Associate 0.2% 1.8% 1.7% 1.6% 1.8%Siemens 0.2% 0.6% 0.7% 0.6% 0.7%RIL 1.1% 2.9% 2.9% 2.7% 3.1%

DIIs bought growth, discounted threat.

DIIs favored BFSI, Infra, Utilities and ITsectors where their holding has increasedin Q1FY12 as compared to Q4FY11. Onindividual stocks, DIIs has shown its faith inIVRCL, IDFC and Kotak Mahindra Bank, wherethey increased there holding in Q1FY12 ascompared to Q4FY11 while they reduced theirholdings in Idea, JP Associates and RIL duringthe same period.

DII & Insurances movements

Insurance backed BFSI, sold Infra & Energy

Insurance companies are the majorconstituents of DII, with distinguish ininvestment style & holding pattern. UnlikeDIIs, Insurance companies reduced theirholding in Infra companies but remainedstrong in BFSI, Utilities and Pharma. Onindividual stocks, DII increased their holdingsin PFC, Ashok Leyland, Welspun and PNBwhile cleaned off their holding in GAIL, Grasimand ONGC in Q1FY12 as compared to Q4FY11.

& denotes Q-o-Q increase & decrease in holding


11/14

Fund raising stemmed as global conditions

impacted investor sentiments

In 2010, 74 companies raised a total of`1629trillion from the primary market in the form

of IPOs. However, concerns of weakening globaleconomy has impacted investors sentiment andthus big ticket IPO/FPO like ONGC, IOC & SAIL etchas been delayed multiple times. Fund raisingactivities has slowed down significantly in 2011 asonly 26 companies raised fund of `338trillionthrough IPOs during Jan-Jul 2011 period ascompared to `870trillion raised by 39 companies

during the same period last year.

0

1000

2000

3000

4000

5000

6000

7000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

`billions

Month-wise fund raise through IPO

Range 2011 2010 3 yr Avg

Initial Public Offer

IPO/FPO issued in Q1FY12

Company Issue Date Size `Cr Price `

Muthoot Finance 18-Apr-2011 901 175

Paramount Printpackaging 20-Apr-2011 46 35

Future Ventures India 25-Apr-2011 750 10

Servalakshmi P aper 27-Apr-2011 64 29

Innoventive Industries 26-Apr-2011 220 117Vaswani Industries 29-Apr-2011 49 49

SanghviForging & Engineering 04-May-2011 39 85

Aanjaneya Lifecare 09-May-2011 117 234

Power Finance Corpn 10-May-2011 4660 203

Galaxy Surfactants 13-May-2011 193 325

VMS Industries 30-May-2011 26 40

Timbor Home 30-May-2011 23 63

Rushil Dcor 20-Jun-2011 41 72

Birla Pacific Medspa 20-Jun-2011 65 10

Readymade Steel India 27-Jun-2011 35 108

0

2

4

6

8

10

12

14

16

18

20


No.ofissuance

Month-wise No. of IPO issuance

Range1 2011 2010 3 yr Avg

Source: SEBI, BSE, R K Global Research


12/14

0

2

4

6

8

10

12

14

16

18


No.ofIssues

Month-wise No. of QIP issued

Range 2011 2010 4 Yrs Avg

0

20

40

60

80

100

120


`in

billion

Month-wise fund raised through QIP

Range 2011 2010 4 Yrs Avg

QIP issuance decline with negative

sentiment

RBIs liquidity tightening and deterioratingworld economic condition has dampenedinvestors sentiments. Fund raising throughQIP route has also reduced to 8 issuanceamounting to `3.4trillion during Jan-Jul2011, compared to 33 issuance amounting to`14.1trillion during the same period lastyear.

Qualified Institutional Placement

QIP issued in CY11 during January- July

Company Issue Date Price in ` Value `Cr

M & M Financial Services 22-Feb-11 701 4262

Canara Bank 15-Mar-11 609 19932

Shakti Pumps (India) 20-Apr-11 139 40

Sumeet Industries 28-Apr-11 39 553

ING Vysya B ank 22-Jun-11 320 5131

Excel Infoways 06-Jul-11 25 257

FE India 08-Jul-11 69 84

Apollo Hospitals 20-Jul-11 494 3300

Source: SEBI, BSE, R K Global Research


13/14

Forthcoming IPOs

Company Issue Type Issue Size (` cr.) Open Date Close Date Offer PriceEmaar MGF Land Book Building 1600 ------ ------ 0

BPTP Book Building 1500 ------ ------ 0Avantha Power & Infrastructure Book Building 1250 ------ ------ 0

Skil Infrastructure Book Building 1125 ------ ------ 0

Kalpataru Book Building 1008 ------ ------ 0

Raheja Universal Book Building 864 ------ ------ 0

You Broad Band & Cable India Book Building 360 ------ ------ 0

Jain Infraprojects Book Building 300 ------ ------ 0

NKG Infrastructure Book Building 275 ------ ------ 0

TD Power Systems Book Building 250 ------ ------ 0

Tara Jewals Book Building 200 ------ ------ 0Source: SEBI, BSE,R K Global Research

Forthcoming Issuance & Outlook

Outlook

Current domestic & global macro economic condition has impacted fund flows which in turn has impacted theequities market world wide. During August11, FIIs withdrawn `10833.6cr (US$ 2394.4mn) from equity market

and invested`

2931.1cr (US$628.5mn) in debt market. On the other hand, DIIs were the net buyer of`

8281.1cr.While, Benchmark index, Sensex witnessed a decline of 8.9% during the same period. The global condition isstill under pressure from both the heavyweight economies - the US and Euro Zone - which will deter the globalgrowth prospect. In these condition, raising funds through the equity market will be challenging for India Inc.Many companies, over the past few months, deferred their plans to raise funds through primary markets asinvestor sentiments remained bearish given the current global conditions. However, companies with soundfundamentals might fare better but they wont be able to get the high valuation which markets has given to thecompanies during pre-2008 period.


14/14

Contact Us.

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413, Narsi Natha StreetMasjid Bunder (W)

Mumbai 400 009

Phone: +91 22 4347-0070/71/72/73

Fax: +91 22 4023-7707

Email: [email protected]

Documents

Market & Movers RKG Q1FY12