Weekly Wrap- Equity 31 Oct 2011 to 04 Nov 2011

8/3/2019 Weekly Wrap- Equity 31 Oct 2011 to 04 Nov 2011

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Disclaimers: The article (including market views expressed herein) is for general information only and does not haveregard to specific investment objectives, financial situation and the particular needs of any specific person who mayreceive this information. Investments in mutual funds and secondary markets inherently involve risks and recipient

should consult their legal, tax and financial advisors before investing. Recipient of this article/ information shouldunderstand that statements made herein regarding future prospects may not be realized. He/ She should alsounderstand that any reference to the securities/ sectors in the document is only for illustration purpose and areNOT stock recommendations from the Author or the AMC or any of its associates. Any performance informationshown refers to the past should not be seen as an indication of future returns. The value of investments and anyincome from them can go down as well as up


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INDEX THIS WEEK CLS LAST WEEK CLS % CHANGENIFTY 5284 5361 (1.43)SENSEX 17563 17805 (1.36)NSE MIDCAP 7320 7240 1.11NSE 500 4201 4230 (0.68)NIFTY JUNIOR 10179 9998 1.81BSE SMALLCAP 6958 6960 (0.02)BSE 200 2148 2163 (0.69)*DOW JONES 12044 12209 (1.34)*NASDAQ 2698 2739 (1.48)NIKKEI 8801 9050 (2.75)HANG SENG 19843 20019 (0.88)SHANGHAI COMP 2528 2473 2.22BSE FMCG 4184 4153 0.73BSE REALTY 1925 1923 0.09BSE HEALTHCARE 6170 6171 (0.01)BSE TECH 3514 3522 (0.21)BSE CAPITAL GOODS 11003 11036 (0.30)BSE PSU 7587 7616 (0.38)BSE BANK 11302 11372 (0.62)BSE IT 5762 5830 (1.17)BSE CONSUMER DURABLES 6523 6633 (1.66)BSE OIL & GAS 9026 9179 (1.67)BSE METALS 11843 12143 (2.47)BSE AUTO 9248 9571 (3.37)* DENOTES THURSDAY CLOSE

INDEX MOVERS THIS WEEK CLS LAST WEEK CLS % CHANGE

HINDUSTAN UNILEVER LTD 379 349 8.41STATE BANK OF INDIA 1964 1907 3.00BHEL 334 327 1.97TATA POWER CO LTD 103 102 1.57BHARTI AIRTEL LTD 398 392 1.56COAL INDIA LTD 326 338 (3.46)MAHINDRA & MAHINDRA LTD 835 869 (3.85)ICICI BANK LTD 885 933 (5.12)STERLITE INDS LTD 123 133 (7.34)TATA MOTORS LTD 188 206 (8.83)

NON INDEX MOVERS THIS WEEK CLS LAST WEEK CLS % CHANGE

ALLAHABAD BANK 169 145 17.10HAVELLS INDIA LTD 418 363 14.91SUN TV NETWORK LTD 288 254 13.11BANK OF BARODA 814 739 10.21JAI CORP LTD 93 85 9.83GVK POWER & INFRA LTD 14 15 (5.02)HINDUSTAN CONSTRUCTION CO 28 29 (5.64)MCLEOD RUSSEL INDIA LTD 243 260 (6.60)JAIPRAKASH POWER VNT LTD 36 39 (7.05)JAIN IRRIGATION SYSTEMS LTD 111 126 (11.88)


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WEEKLY OVERVEIW

After gaining the previous week, Indian Equity Markets ended the trading week in the red as

uncertainty in the Euro zone continued to persist. The Sensex lost 1.36% while the Nifty lost

1.43%. The Midcap index as well as the Smallcap Index both outperformed the benchmark indicesas the Midcap Index gained 1.11% while the Smallcap Index marginally ended in the red, down

just 0.02%.

Global Equity markets were trading mostly in the red as uncertainness about a concrete solution to

the Euro Zones credit crisis persisted as Greece stated that it would go to its people to seek a

referendum about the acceptance of the EU bailout package and later withdrawing that decision.

Markets seemed to be unnerved about this as it could lead to an even greater crisis that could

affect the larger economies of the EU. In Asia, China was a gainer as concerns about further

monetary tightening by the government seemed to ease as economic data suggested that the non

manufacturing sector grew at a slower pace than expected. Japanese construction orders fell 9.3%

on a yearly basis, indicating that the economy was slowing even as the government upgraded the

economic assessment in 8 out of 11 regions indicating an improvement in business activity.European indices were trading in the red as the unfolding situation in the region further dented

hopes of finding a lasting solution as any escalation in the credit crisis would make financing

requirements for the other members expensive. Economic data too suggested that the euro region

was slowing down. Euro zone unemployment increased for the 2nd straight month, manufacturing

activity slowed more than expected. German factory PMI for October too fell for the first time in 25

months indicating that the credit crisis was affecting even the largest EU economy. Britain's

manufacturing sector contracted at its fastest pace in more than two years in October as new

orders plummeted, adding to signs that the country is teetering on the brink of recession. The ECB,

in a surprise move, lowered its interest rate by 25 basis points. US indices too were trading in the

red in line with global indices. US private sector employment increased more than expected. First

time unemployment claimants dropped by 9000 indicating that the labor market continued to

remain sluggish. The US Fed left interest rates unchanged and lowered growth rates even as it

acknowledged the growth of the economy.

Indian Equity markets ended the trading week in the red. Growth in Indias 8 key infrastructure

sectors slowed to 2.3% in September from 3.3% a year ago indicating that government measures

to reduce price rise were affecting growth. However, Food inflation for week ended October 22

surged to 12.21%, the highest in 9 months.

Major Sectoral Gainers were FMCG (0.73%), Realty (0.09%).

Major Sectoral Losers were Auto (3.37%), Metals (2.47%), Oil&Gas (1.67%), Cons Durables

(1.66%), IT (1.17%).

Foreign Institutional Investors were net buyers of Indian Equities of INR 31.47 billion and Domestic

Mutual Funds were net sellers to the tune of INR 7.49 billion for the week.

WEEK ENDED 04.11.2011 Rs CroresFII GROSS PUR 13622.10

FII GROSS SELL 10474.90

FII NET 3147.20

FII MTD NET 786.90

MF GROSS PUR 1786.10

MF GROSS SELL 2535.10

MF NET (749.00)

MF MTD NET (441.99)FII DATA TILL TRADE DATE MONDAY


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SENSEX WEEKLY

17705

1748 1 1746 5 1748 2

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17100 .0 0

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17500 .0 0

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1800 0.00

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DATE

KEY DEVELOPMENTS INTERNATIONAL

Consumer sentiment in the U.S. unexpectedly improved in the month of October, according toa report released by Reuters and the University of Michigan. The report showed that the

consumer sentiment index for October was upwardly revised to 60.9 from the preliminary

reading of 57.5. With the upward revision, the index is above the September reading of 59.4.

(Source: RTT News)

Japanese Construction orders received by 50 major firms in September fell 9.3% on the year to1.14 trillion yen, marking the first drop in six months, the Ministry of Land, Infrastructure,

Transport and Tourism said. Orders from the private sector saw a 14% decline to 756.1 billion

yen, down for the first time in six months, while those from the public sector increased 31.1%

to 342 billion yen, up for the third straight month. (Source: Nikkei)

Economic assessments for the quarter ended September were upgraded in eight of 11 regionsof Japan, including quake-stricken Tohoku, thanks to a recovery in output and personal

spending, the Finance Ministry said. (Source: Nikkei)

Eurozone unemployment rate increased for a second consecutive month in September, datareleased by Eurostat showed. The seasonally adjusted jobless rate climbed to 10.2 percent from

August's upwardly revised 10.1 percent. Economists had forecast the rate to remain steady at

August's original 10 percent. (Source: RTT News) Reflecting an improvement in the labor market conditions, German retail sales expanded in

September, but the pace of growth missed economists' expectations. Retail sales rose a

calendar and seasonally adjusted 0.4 percent from August, when they fell a revised 2.7

percent, data released by Destatis revealed. Economists had expected sales to increase 1

percent. Year-on-year, retail sales climbed by a less than expected 0.3 percent in September,

following a revised 2.5 percent gain in August. Sales grew annually for the second straight

month. Economists had forecast sales to rise 1.7 percent. (Source: RTT News)

Japan manufacturing sector expanded in October, driven by strong production, survey resultsfrom Markit Economics showed. The purchasing managers' index rose to 50.6 in October from

49.3 in September. A reading above 50 indicates expansion of the sector, while a score below

50 suggests contraction. Manufacturing output grew at the steepest pace since July, the survey

report said. (Source: RTT News)

The Japan government intervened in the foreign exchange market to weaken the yen, after thecurrency climbed to post-World War II high against dollar, threatening the country's recovery

and exports. Reports quoted Japanese Finance Minister Jun Azumi as saying that the move was

"unilateral." Azumi has earlier promised strong action to counter the yen as it erased much of

the exports gains, hurting firms' profit margins. (Source: RTT News)


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Chinas official manufacturing Purchasing Managers Index (PMI) fell to 50.4 in October,slowing from the prior months reading of 51.2, but still above the 50 level that separates

expansion from contraction. However, the result was well below a median forecast of 51.7

from a Dow Jones Newswires poll of economists. A privately compiled version of the PMI,published by HSBC, printed at 51.0, rising from a mildly contractionary 49.9 reading in

September. (Source: MarketWatch)

Britain's economy is teetering on the brink of recession despite better-than-expected thirdquarter growth of 0.5pc, and the pressure on the government to boost growth is rising as fresh

turmoil in the eurozone creates new risks. Growth in Gross domestic product was helped by

the strongest quarterly increase in four years for business services and finance, the Office for

National Statistics said. (Source: Telegraph)

Britain's manufacturing sector contracted at its fastest pace in more than two years in Octoberas new orders plummeted, adding to signs that the country is teetering on the brink of

recession, a survey showed. The Markit/CIPS Manufacturing Purchasing Managers' Index (PMI)

slumped to 47.4 in October, its lowest since June 2009, from a downwardly revised 50.8 the

month before. Many companies only maintained their activity by substantially reducing

backlogs. (Source: Telegraph)

While the Institute for Supply Management - Chicago released a report showing a continuedexpansion in regional manufacturing activity in the month of October, the pace of growth

slowed compared to the previous month. The ISM - Chicago said its business barometer

dropped to 58.4 in October from 60.4 in September, although a reading above 50 indicates

continued growth. Economists had been expecting the index to drop to a reading of 58.0. The

slower pace of growth in manufacturing activity was partly due to a notable slowdown in the

pace of new orders growth, as the new orders index fell to 61.3 in October from 65.3 in

September. (Source: RTT News)

Australias central bank lowered its benchmark interest rate today for the first time since April2009 as inflation eases and weaker global growth threatens to slow the nations resource-

driven economy. Recent information suggests the subdued demand conditions and the high

exchange rate have contained inflation, Reserve Bank of Australia Governor Glenn Stevens

said in a statement after reducing the developed worlds highest borrowing costs by a quarter

of a percentage point to 4.5 percent. (Source: Bloomberg)

The Nikkei Business Index fell for the second straight month in September, dropping 0.9 pointfrom August to 92.2, according to Nikkei Digital Media Inc. Two of the index's four component

indicators worsened as post-disaster production increases petered out and the effects of the

strong yen and slowing economic activity overseas emerged. Industrial production dropped for

the first time in six months, with month-on-month declines in all 16 industry categories.Wholesale and industrial sales, a gauge of consumption, fell 2.6%. (Source: Nikkei)

Germany's factory sector shrunk less than estimated earlier in October, final results of a surveyby Markit Economics showed. The Markit/BME Germany Manufacturing Purchasing Managers'

Index (PMI) fell to 49.1 from September's 50.3. The final reading came in better than the flash

reading of 48.9. The factory sector shrunk for the first time in 25 months. The PMI fell for the

sixth month in a row to its lowest level since July 2009. A reading below 50 indicates

contraction in the sector. (Source: RTT News)

Eurozone manufacturing activity contracted more than initially estimated in October, finalreport from Markit Economics showed. The purchasing managers' index for the managers'

index for the manufacturing sector fell to 47.1 in October from 48.5 in September. This was

below the flash estimate of 47.3. Signs of weakness are becoming increasingly apparent in thecore nations, while the periphery remains mired in recession, Markit said. (Source: RTT News)

Chinas non-manufacturing industries grew at a slower pace in October as weakness ininvestment in real estate and railways offset strength in consumer demand. A purchasing

managers index fell to 57.7 from 59.3 in September, the China Federation of Logistics and

Purchasing said. The gauge, released with the statistics bureau, includes construction. The data

added to signs of moderating inflation that may allow officials to ease monetary or fiscal policy,

with the federation reporting notable declines in price indicators. Europes debt crisis and a


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U.S. recovery that Federal Reserve Chairman Ben S. Bernanke calls frustratingly slow are

capping demand for shipments from the worlds biggest exporting nation, increasing the risk

of a slowdown. (Source: Bloomberg)

The Federal Reserve slashed its forecast for economic growth, raised projections forunemployment, and suggested Europe's debt crisis posed big downside risks to the U.S.

economy. However, it took note of a strengthening of the U.S. economy in the third quarter

and held monetary policy steady. (Source: CNBC)

Britain's dominant service sector grew at a far slower pace than expected last month despitefirms cutting prices to drum up business, adding to signs that the country may slip back into

recession. The Markit/CIPS Purchasing Managers' Index (PMI) for the service sector fell to 51.3

in October from 52.9, falling short of expectations for a dip to 52 and edging closer to the 50

mark that separates growth from contraction. (Source: Telegraph)

Employment in the U.S. private sector increased by a little more than expected in the month ofOctober, according to a report released by payroll processor Automatic Data Processing (ADP),

with the report also showing an upward revision to the pace of job growth in September. ADPsaid private sector employment increased by 110,000 jobs in October following an upwardly

revised increase of 116,000 jobs in September. (Source: RTT News)

The number of Americans who filed new applications for unemployment benefits fell to thelowest level in six weeks, government data showed, but the small decline suggested little

change in a sluggish U.S. labor market. The Labor Department said initial jobless claims

dropped 9,000 to 397,000 in the week ended Oct. 29. Initial claims from two weeks ago were

revised up to 406,000 from an original reading of 402,000. (Source: MarketWatch)

Service industries in the U.S. expanded at a slower pace and consumer confidence plunged,supporting Federal Reserve Chairman Ben S. Bernankes forecast that the economic recovery

will be frustratingly slow. A gauge of non-manufacturing industries making up about 90

percent of the economy fell to 52.9 in October from 53 in September, the Tempe, Arizona-

based Institute for Supply Management said. Source: Bloomberg)

The European Central Bank unexpectedly lowered its interest rates by 25 basis points as thedebt crisis scene increasingly turns murkier. The Governing Council led by ECB President Mario

Draghi decided to lower the main refi rate to 1.25 percent from 1.50 percent. Economists had

expected the rate to be left unchanged in the new ECB chief's inaugural rate-setting meeting.

(Source: RTT News)

Germany's service sector expanded less than previously estimated in October, final data from asurvey by BME and Markit Economics showed. The purchasing managers' index (PMI) for the

service sector showed a reading of 50.6 in October, lower than 52.1 recorded in the flash

estimates. In September, the reading was 49.7. New business in the German service sectorcontinued to decline in October, while backlogs of work fell at the fastest pace since the start

of 2010. Backlogs of work decreased for the fourth straight month, reflecting continuing

weakness in client demand. (Source: RTT News)

Eurozone's private sector contracted more than initially estimated for October on sharpdeceleration in output and new orders, final data from Markit Economics showed. The final

composite Purchasing Managers' Index fell to a 28-month low of 46.5 in October, down from

49.1 in September, and below the earlier flash estimate of 47.2. (Source: RTT News)

KEY DEVELOPMENTS DOMESTIC

India's annual food inflation rate for the week ended October 22 surged to 12.21 percent, thehighest in nine months. Annual inflation rate of food article prices, as measured by the

wholesale price index, or WPI, (with base year 2004-05) for the week ended October 22 shot

up to 12.21 percent from 11.43 in the preceding week. Annual rate of inflation for primary

articles for the week ended October 22 was 12.08 percent, up from last week's level of 11.75

percent. It was 17.09 percent for the corresponding week of the preceding year. The 52-week

average inflation for the week was 13.96 percent, the data revealed. (Source: RTT News)

India's manufacturing activity in October expanded--though modestly--indicating animprovement in business conditions from a month ago as growth in new orders accelerated, a


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survey showed. The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit,

rose to 52.0 in October from 50.4 in September. (Source: WSJ)

With rising input costs and high interest rates, growth in eight key infrastructure sectors sloweddown to 2.3 per cent in September from 3.3 per cent a year ago. Coal, natural gas andfertiliser showed decline in output raising concerns for the industry and government. The

numbers were discouraging even compared to August when these sectors grew by 3.7 per

cent. (Source: Financial Express)

Drug maker Lupin it has received final approval from the US health regulator to sell its genericversion of 'LoSeasonique' tablets, an o ral contraceptive drug, in the American market with 180

days of marketing exclusivity. The approval has been granted to Lupin Pharmaceuticals Inc, the

US arm of the company, Lupin said in a statement. The nod by the US Food and Drug

Administration (USFDA) is for Levonorgestrel and Ethinyl Estradiol tablets in strengths of 0.1 mg

and 0.02 mg and for Ethinyl Estradiol tablets of 0.01 mg, it added. (Source: Economic Times)

The state-run PowerGrid Corporation is looking at entering into joint venture agreements withvarious state governments for laying out intra-state transmission networks, a senior official hassaid. "The power distribution and generation capacity has increased since the past few years.

Therefore, we feel there is a need for intra-state grid connectivity. We are in talks with a few

states to work out a joint venture model to enable them to lay transmission networks," a

PGCIL official named said. (Source: Financial Express)

The transportation and mining divisions of IVRCL Ltd, a Hyderabad-based engineering andconstruction company, has bagged orders aggregating Rs 972.07 crore. These include a Rs

917.80-crore order for construction of a tunnel on the Dharam-Quzigund section of

Udhampur-Srinagar-Baramulla new BG railway line project awarded to IVRCL by New Delhi-

based Ircon International. The completion period of the contract is 36 months. (Source:

Business Standard)

The country's drug regulator has given conditional market approval for Ranbaxy Laboratories'anti-malaria drug, paving the way for the launch of the country's first privately-developed

medicine and ending more than a decade of failures or near misses for India's drug makers

While the domestic drug industry has been successful in making generic versions of drugs as

well as new drug delivery systems, this is the first time that a new molecule discovered and

patented by a home grown company will be sold commercially, plugging a big hole in the R&D

credentials of the country. (Source: Economic Times)

Reliance Industries ( RIL) plans to invest up to USD 2.338 billion to produce about 15 millionstandard cubic metres per day of gas from the R-Series gas field in its eastern offshore KG-D6

block. The Dhirubhai-34 discovery, known as the R-Series field, has gross in-place gas reserves

of 1.64 trillion cubic feet, which, according to Reliance, can be brought into production in 4-5years, sources privy to the development said. The proposal to declare the field commercially

viable -- a prerequisite before investments can be made to bring it to production -- is likely to

come up before the KG-D6 block oversight committee this week. (Source: Economic Times)

Drug maker Sun Pharmaceutical today said it had received approval from the US healthregulator to market generic Diltiazem HCl extended-release capsules used for treating

hypertension and angina in the American market. The company's subsidiary has been granted

approval by the United States Food and Drug Administration (USFDA) for the abbreviated new

drug application (ANDA) to market generic Diltiazem HCl extended-release capsules, Sun

Pharma said in a statement. (Source: Business Standard)

Punjab National Bank has kicked off the biggest loans restructuring exercise by Indian lendersto a sector - power - by converting Rs 2,500 crore of short-term loans into long-term ones toavoid imminent defaults. The second-biggest staterun lender, which has given about Rs 15,000

crore, or 5%, of its total loans to the power sector, had some borrowers facing short-term

repayment issues, the bank's top executive said. The bank would lend to projects to which it

has already sanctioned loans, but will be wary of new ones, he said. (Source: Economic Times)

Reliance Industries has seen natural gas output from its eastern offshore KG-D6 field drop to42 million standard cubic meters per day. The Dhirubhai-1 and 3 gas fields and MA oil field in

the KG-DWN-98/3 or KG-D6 block are currently producing about 42 million metric standard


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cubic meter per day (mmscmd) of gas, according to the status report filed by the company with

the oil ministry here. The current output is a far cry from 61.5 mmscmd achieved in March last

year and is almost at the 2009 production levels. (Source: Economic Times)

Pratibha Industries has bagged three orders worth Rs 571 crore in building and watersegments. Of this, Rs 362 crore order is from Runwal Homes Pvt Ltd for civil and structural

work of residential building 'Runwal Greens' located at Mulund-Goregaon Link Road, in

Mumbai, a company statement said. The other order in the building segment is from Lodha

Group valued at Rs 179 crore for its project 'Casa Rio', which involves construction of 58

buildings for the integrated township to be set up at Dombivali in Maharashtra. (Source:

Economic Times)

Making a foray into the international operations & maintenance business, the country's largestpower producer NTPC today said it has bagged a Rs 43 crore contract in Bangladesh for

providing O&M services. NTPC Consultancy, a part of the state-run power major, has secured a

six-year contract to provide O&M services at the Siddhirganj Peaking Power Plant in

Bangladesh. In a statement, NTPC said the contract, which was won through internationalcompetitive bidding, would also mark the entity's foray into the international O&M services

space. (Source: Business Standard)

Diversified Aditya Birla Group is considering bidding for Australia's New Hope Corp, a $5 billioncoal miner that put itself up for auction last month, sources with direct knowledge said. The

group, a telecoms-to-cement conglomerate, requires thermal coal for group companies

Hindalco Industries, India's top aluminium producer, and UltraTech Cement, the country's

largest cement producer. (Source: Economic Times)

Mining company Coal India Ltd (CIL) has got the Finance Ministry's nod for acquiring stake inoverseas unlisted firms. "We have received Union Finance Ministry's clarifications sought for

overseas acquisitions. The ministry permitted (us) to go ahead with acquisition of unlisted

firms," CIL chairman N C Jha said on the sidelines of the company's Foundation Day

celebrations attended by Coal minister Sriprakash Jaiswal.However, the Finance Ministry hasnot given complete relaxation to the norm of minimum 12% internal rate of return (IRR) from

such acquisitions. (Source: Business Standard)

Strides Arcolab said it has received approval from the US health regulator to market its genericDoxorubicin Hydrochloride injection, used for treating cancer, in the American market. Onco

Therapies, a wholly-owned subsidiary of the company has received approval from the United

States Food and Drug Administration (USFDA) for Doxorubicin Hydrochloride injection, Strides

Arcolab said in a statement. (Business Line)

Ahmedabad-based Arvind Ltd has sold off its 40 per cent stake in the joint venture that sellsLee and Wrangler apparel brands to partner VF Mauritius for Rs 257 crore. In a filing to theBombay Stock Exchange (BSE), the company said the stake sale is as per the joint venture

agreement under which VF Arvind Brands Pvt Ltd (VFABPL) was formed in September 2006.

(Source: Financial Express)

NCC Urban Infrastructure Limited, a subsidiary of Hyderabad-based construction major NCCLimited, is lining up over 10 residential and commercial projects, together with a built-up area

of 2.5 million sft, in Bangalore, Chennai, Hyderabad and Kochi. While we recently launched

six projects in Bangalore, both apartments and villas, which are expected to generate a

turnover of Rs 250 crore per year, ventures in Hyderabad, Kochi and Chennai are to be

launched in the next two to three months, said Narayana Raju Alluri, managing director of

NCC Urban. (Source: Business Standard)

Vedanta group firm Sesa Goa will acquire 100 per cent stake in Goa Energy from VideoconIndustries and other shareholders for Rs 53.72 crore. In a regulatory filing, the private sector

iron ore miner said it has signed a definitive share purchase agreement with the shareholders

for the "all cash deal". The agreement includes taking over an existing debt of Rs 47.28 crore

of Goa Energy, which owns and operates a 30 MW waste heat recovery power plant in Goa.

(Source: Economic Times)

Documents

Weekly Wrap- Equity 31 Oct 2011 to 04 Nov 2011