Market Outlook

India Research
January 11, 2012

Dealers Diary
Indian markets are expected to open in green taking cues from positive opening in most of the Asian markets today and firm closing in most of the global markets on Tuesday. The Indian markets ended higher yesterday on the back of positive global cues and renewed hopes of a CRR cut later this month. A decision by global ratings agency Moody's to upgrade India's rating to investment grade and reports showing an impressive 56% rise in FDI inflows in November helped revive appetite for riskier assets. Globally, most of the US and European markets closed in green yesterday as a weaker US currency helped drive up the price of oil, other dollar-denominated commodities and resource stocks. Also, an announcement by the rating agency Fitch that a downgrade of the creditworthiness of France from the top credit rating of "AAA" within a year is not expected provided a boost to the market. The markets this week will be closely watching out from IIP numbers and Infosys results which will be released on January 12, 2012.

Domestic Indices BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT Global Indices Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com

Chg (%) 2.2 2.3 2.2 2.6 1.0 1.7 3.2 2.9 3.0 2.7 0.6 Chg (%) 0.6 1.0 1.5 0.4 0.7 1.1 2.7

(Pts) 106.8 119.7 154.0 60.6 116.5 236.5 208.9 34.7 (Pts) 69.8 25.9 84.4 31.9 28.6 59.9

(Close) 4,850 5,451 5,996 6,095 6,907 8,371 7,835 5,916 (Close) 12,463 2,703 5,697 8,422 2,720 2,286

350.4 16,165

308.3 10,028 289.6 10,083

Markets Today
The trend deciding level for the day is 16,081/4,825 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,26516,364/4,881 4,912 levels. However, if NIFTY trades below 16,081/4,825 levels for the first half-an-hour of trade then it may correct up to 15,98215,799/4,7934,737 levels.
Indices SENSEX NIFTY S2
15,799 4,737

138.6 19,004

S1
15,982 4,793

R1
16,081 4,825

R2
16,265 4,881

Indian ADRs Infosys Wipro ICICI Bank HDFC Bank

Chg (%) 1.1 0.5 6.1 2.8

(Pts) 0.6 0.1 1.7 0.8

(Close) $55.9 $10.2 $30.0 $27.9

News Analysis
FDI equity inflows up 56% in November 2011 after two slack months KPIT Cummins Infotainment platform achieves GENIVI compliance
Refer detailed news analysis on the following page

Advances / Declines Advances Declines Unchanged

BSE 2,151 695 85

NSE 1,229 238 41

Net Inflows (January 09, 2012)

` cr FII MFs Purch
1,789 253

Sales
1,777 220

Net
12 33

MTD
1,130 (122)

YTD
1,130 (122)

FII Derivatives (January 10, 2012)

` cr Index Futures Stock Futures Purch
2,746 1,908

Volumes (` cr)

Sales
1,692 1,815

Net
1,054 93

Open Interest
11,444 25,736

BSE NSE

2,555 11,011

Gainers / Losers
Gainers Company
IRB Infra JSW Steel Sintex Inds India Infoline IVRCL Ltd

Losers Company
Gujarat Fluo Coromandel Intl Hindustan Copp Cadila Health Dish TV India

Price (`)
141 629 69 50 36

chg (%)
10.2 10.0 9.7 9.5 9.1

Price (`)
391 280 304 685 58

chg (%)
(2.0) (1.9) (1.4) (1.4) (1.1)

Please refer to important disclosures at the end of this report

Sebi Registration No: INB 010996539

Market Outlook | India Research

FDI equity inflows up 56% in November 2011 after two slack months
Indicating a positive investor sentiment amidst the ongoing macroeconomic concerns, FDI equity inflows into India increased by 56% to US$2.53bn in November 2011. According to officials, cumulative flows for the April-November period stood at US$22.83bn vs. US$19.43bn for FY2011. FDI equity inflows for the past two months were sluggish, with September and October reporting a 16.5% yoy and 50% yoy decline in inflows, respectively. During FY2011, equity in India witnessed a sharp 25% dip in FDI, from US$25.6bn in FY2010 to US$19.43bn. Telecom, IT, construction, power, housing and real estate are the major sectors attracting FDI, and Mauritius, Singapore, U.S., U.K., Netherlands, Japan, Germany and UAE are the major sources of FDI in India. We believe the pick-up in FDI inflows will have a positive impact on INR in the foreign exchange market.

KPITs infotainment platform achieves GENIVI compliance

KPIT Cummins (KPIT) has announced that its In-Vehicle Infotainment (IVI) platform is now compliant with GENIVI Compliance Specification Release 1.0. The GENIVI compliance program provides a set of specifications for GENIVI member companies to measure their products and services. Those that meet the specifications may be registered as GENIVI compliant and facilitate OEMs and Tier-1 suppliers to short list compliant offerings and simplify their vendor selection process. Automotive OEMs are aggressively pursuing the adoption of consumer electronics (CE) features in infotainment. KPIT's infotainment platform speeds up this process by leveraging the critical mass of open source community, which enables broader coverage and faster support of new CE technologies. This platform features automotive grade robustness, leverages scale to reduce total cost of ownership and is supported by a mature service delivery organization to speed up development of product variants across feature sets and geographies. The platform contains core services and frameworks to enable faster, contextaware human machine interface and application development. It is optimized for the latest ARM-based application processors from multiple silicon vendors as well as for the Intel Atom processor. We maintain our Accumulate recommendation on the stock with a target price of `163.

January 11, 2012

Market Outlook | India Research

Quarterly Bloomberg Brokers Consensus Estimates

Infosys Ltd - Consolidated (12/01/2012)
Particulars (` cr) Net sales EBITDA EBITDA margin (%) Net profit 3QFY12E 9,137 3,003 32.9 2,262 3QFY11 7,106 2,363 33.3 1,780 27 y-o-y (%) 29 27 2QFY12 8,099 2,739 33.8 1,906 19 q-o-q (%) 13 10

HDFC Ltd (12/01/2012)

Particulars (` cr) 3QFY12E 3QFY11 y-o-y (%) 2QFY12 q-o-q (%)

Net profit

1,037

891

16

971

Economic and Political News

Government clears 20 FDI proposals worth `1,935cr Indirect tax kitty up 16.1% in Apr-Dec Moodys upgraded Indias short-term country ceiling on foreign currency bank deposits, in addition to the three upgrades on December 20 last year Petroleum Ministry asked to follow IMO fuel emission norms

Corporate News
MTNL to float `200 cr tender for network expansion PSL Ltd wins Rs 280-cr order from Pratibha Ind TVS to introduce three products in 2012 Wockhardt launches generic nasal spray for Rhinitis

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

Results Calendar
12/01/2012 13/01/2012 16/01/2012 17/01/2012 18/01/2012 Infosys, HDFC Sintex South Indian Bank TCS, HCL Technologies MindTree, Infotech Enterprises

January 11, 2012

Market Outlook | India Research

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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January 11, 2012