Morning Notes

31.05.2012

R. Wadiwala

Securities Pvt Ltd Commodities Pvt Ltd

Member Broker: NSE, BSE, MCX & NSEL || DP: CDSL || PMS || Mutual Fund

Yen Rises against Major Peers on Europes Credit Crisis The yen gained against its major peers as turmoil in the Spanish banking sector added to signs Europes debt crisis is spreading to the regions larger economies, boosting demand for safer assets. The yen reached a more than three-month high versus the greenback as Japans benchmark bond yield fell to the lowest level since 2003 amid losses in global shares. The euro slid for an eighthstraight day against the yen, the longest losing streak in almost two years, before data tomorrow forecast to show the jobless rate rose to a record and manufacturing contracted across the 17 nations that share the currency. Japans Industrial Production Rises Less Than Anticipated Japans industrial production rose less than forecast in April, underscoring concern Europes sovereign-debt crisis and and a stronger yen may limit the rebound in the worlds third-largest economy. Factory output gained 0.2 percent from the previous month, when it rose 1.3 percent, the Trade Ministry said in Tokyo today. The median estimate of 26 economists surveyed by Bloomberg News was for a 0.5 percent increase. Todays report adds to signs that growth will slow in the second half of the year as reconstruction spending cools. Crude Poised for Biggest Monthly Decline since December 2008 Oil is set for its biggest monthly drop in more than three and a half years in New York on speculation that Europes spreading debt crisis is threatening global growth and demand for fuel. Futures were little changed, trading near the lowest settlement in seven months after slumping 3.2 percent yesterday. Economic confidence in the euro area declined more than economists forecast in May to the lowest since October 2009 after inconclusive Greek elections raised the specter of a euro breakup and Spain struggled to shore up its banks. U.S. gasoline supplies rose while crude stockpiles fell, a report showed.

KEY INDICES
Indian Markets
Index
S&P CNX NIFTY CNX NIFTY JUNIOR CNX 100 S&P CNX DEFTY S&P CNX 500 CNX MIDCAP NIFTY MIDCAP 50 SENSEX

Close
4950.75 9507.85 4841.20 3058.70 3923.85 6883.35 1976.10 16312.15

Pt. Chg.
-39.35 -124.10 -42.20 -49.60 -37.25 -112.85 -40.00 -126.43

Change %
-0.79 -1.29 -0.86 -1.60 -0.94 -1.61 -1.98 -0.77

Global Markets
Change (%) -1.43 -1.17 -1.28 -1.74 -1.81 -2.24 -1.80 -1.49 -0.67

Index S&P 500 NASDAQ DOW JONES FTSE DAX CAC 40 NIKKEI HANG SENG STRAITS TIMES

Close 1313.32 2837.36 12419.86 5297.28 6280.80 3015.58 8477.85 18411.96 2765.27

Global data recorded/updated last as on 31, May 7.30 a.m. IST

R. Wadiwala

NIFTY TOP GAINERS

Indian Markets Change (%) 3.82 2.16 2.06 2.01 Indian Markets

NIFTY TOP LOSERS

Change (%) -11.86 -4.31 -3.69 -3.19

Company GUJ AMB CEME ACC SUN PHARMA MARUTI UDYOG

Close 152.10 1,162.50 577.40 1,151.05

Company TATA MOTORS NATION ALUM RELIANCE ENR BHEL

Close 243.05 55.55 455.25 211.00

MARKET SUMMARY
Weak global cues and a falling rupee weighed heavily on the domestic benchmarks as the Sensex shed over 125 points. The rupee breached the 56 mark against the greenback on Wednesday on renewed dollar demand by oil importers. Weak cues from Asian and European markets also dampened domestic sentiment .Asian markets fell on Wednesday amid a report that China has no plans to deploy large-scale stimulus as it did during the 2008-09 global financial crises. Moreover, Spains deepening debt woes raised concerns that Europes debt turmoil was escalating. Spains sovereign credit rating was cut by Egan-Jones Ratings Co. to B from BB- amid the nations worsening economic outlook. Moreover, European stocks fell as Spain struggled to recapitalize its banking system and the cost of insuring against default on Spanish sovereign bonds rose to a record. BSE SENSEX closed at 16,312.15, down by 126.43 points or by 0.77 per cent and the NSE Nifty ended at 4,950, down by 39.35 points or by 0.79 per cent. The BSE Sensex touched intraday high of 16,428.74 and intraday low of 16,295.31 The NSE Nifty touched intraday high of 4,982.25 and intraday low of 4,944.9. Meanwhile, the BSE MIDCAP closed at 5,886.92, down by 76.58 points or by 1.28 per cent, while the BSE SMLCAP ended at 6,307.15, down by 77.22 points or by 1.21 per cent. After witnessing a gap down opening amid weak Asian cues, the domestic benchmarks continued to languish below the baseline as a falling rupee added to selling pressure. However, the benchmarks launched a brief recovery amid buying in IT and Teck stocks. The recovery was short-lived as selling pressure intensified in late trade amid weak European cues. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3535, shares advanced were 1078 while 1691 shares declined and 766 were unchanged. On the Sectoral front, Auto and Consumer Durables shed 3.97 per cent and 2.25 per cent, respectively. The top losers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 243.35,-11.80%), Bharat Heavy Electricals Ltd. (Rs. 211.15,-3.05%), ICICI Bank Ltd. (Rs. 817.00,-2.62%), DLF Ltd. (Rs. 183.35,-2.53%), Sterlite Industries (India) Ltd. (Rs. 95.25,-2.06%), among others.

R. Wadiwala

NEWS UPDATES
MACRO The Union Minister of Steel, Beni Prasad Verma has said that the Steel Industry in India which contributes over 2% to the GDP is expected to become the 2nd largest producer of crude steel in the world by 2015. Chairing the meeting of the Parliamentary Consultative Committee attached to his Ministry here yesterday, he said that Steel capacity in India has increased from 66 Mt in 2008-09 to 89 Mtpa in 2011-12. The functioning of National Mineral Development Corporation (NMDC) was the agenda of the meeting. COMPANY State-run transmission utility Power Grid Corp of India plans to invest Rs 20,000 crore in 2012-13 to expand its capacity, Chairman R.N. Nayak told reporters on Wednesday. The company aims to spend 1 lakh crore in capital expenditure in the five years to 2017, Nayak said. Mahindra Satyam, a leading global consulting, Engineering and IT services provider, has announced the setting up of an exclusive delivery centre for Aerospace and Defense in Toulouse, France. This is a part of the Companys larger strategy of expanding the European footprint with a focus to strengthen relationships with regional Aerospace and Defense businesses. Tata Consultancy Services (TCS), a leading IT services, consulting, and business solutions organization, announced that it received the 2011 Eaton Premier Supplier Award for the Indirect Supplier in Information Technology Services category. Diversified industrial manufacturer Eaton Corporation honored 33 of its best suppliers at its seventh Supplier Awards Program in April at the downtown Cleveland Marriott. Sumeet Industries Ltd has said that the "POLYESTER FILAMENT YARN (POY/FDY) PLANT" (Direct spinning unit through PTA and MEG route) and another 8.6 MW Gas based Genset Captive Power Plant has been commissioned successfully. By implementation of this Project :- Total spinning capacity of POY and FDY production will be increased from. 53000 TPA to 100000 TPA. Total capacity of the Captive Power Plant will be increased to 17 MW. Sun Pharmaceutical Industries said it is expecting sales growth of around 20% during the current financial year, 2012-13. "For the financial year 2013 consolidated sales growth guidance is 18 to 20% at constant rupee dollar exchange rate," Sun Pharma Manging Director Dilip Shanghvi said in a conference call. The company had posted net sales of Rs 8,005.66 crore for the fiscal ended March 31, 2012. Its net profit was Rs 2,587.25 crore for the year, compared to Rs 1,816.06 crore in 2010-11. Automaker Mahindra & Mahindra reported a 44% jump in net profit at Rs 874 crore for the quarter ended March 2012. It was Rs 606.5 crore for the same period a year ago. The revenue increased 38.5% to Rs 9,387 crore from Rs 6,778 crore in March 2011. Essar Ports Limited (Essar Ports), one of the largest private sector port companies of India, announced the creation of a long-term strategic alliance with Port of Antwerp International (PAI) and an investment of approx. Rs. 1.75bn by PAI in Essar Ports. PAI is the international investing arm of the Antwerp Port Authority, which is the port authority of the port of Antwerp, the 2nd largest port in Europe handling 187 MMT of cargo in 2011, and a gateway to many European economies.

R. Wadiwala

TECHNICAL ANALYSIS MOST ACTIVE STOCKS PIVOTAL GUIDANCE

Company NIFTY BANK NIFTY RELIANCE RCOM RELCAPITAL REL INFRA LT STER ICICIBANK SBIN TATASTEEL RPOWER TATAPOWER INFOSYSTCH BHEL ONGC ACC Lower 2 4911.49 9326.48 697.38 61.38 298.81 445.24 1170.49 92.03 814.00 2078.51 407.75 89.83 93.28 2402.71 210.78 250.91 1155.61 Lower 1 4929.14 9432.87 702.01 62.88 302.27 450.89 1180.96 93.79 820.55 2095.23 411.03 90.55 94.03 2422.04 212.48 252.93 1164.91 Axis 4951.80 9522.26 708.64 64.19 306.73 455.55 1190.43 95.54 827.09 2111.95 414.31 91.27 94.78 2441.37 214.18 254.95 1174.20 Higher 1 4975.49 9616.11 712.57 65.64 310.88 460.74 1204.72 97.20 832.82 2126.58 417.18 91.91 95.44 2458.28 215.66 256.72 1182.34 Higher 2 4990.69 9728.04 717.45 66.72 314.27 465.31 1216.20 98.32 833.85 2129.19 417.69 92.02 95.56 2461.30 215.92 257.03 1183.79

BULLISH ON SHORT TERM

HINDUNILVR ADANIPORTS BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 425-427-429 SL 417 BUY AS QUICKDELIVERY FOR BTST/T+2 WITH TARGETS OF 122-124-125 SL 114

FII and DII Investments

FIIs Date *30 May May-2012 2012 Till Date Purchase 2192.44 40246.10 269056.30 Purchase 558.13 7805.80 50069.70 Sale 2203.18 40679.00 225997.40 Sale 740.74 7431.50 55550.10
Inv (crs)

-10.74 -432.60 +42958.90

Inv (crs)

DIIs

Date *30 May May-2012 2012 Till Date * Provisional Data

-182.61 +374.50 -5480.00

R. Wadiwala

Following the MUTUAL FUNDS

Sahara Star Value G

Latest NAV: 10.74 (29/05/12) 52-Week High: 12.21(25/07/11) 52-Week Low: 9.35 (20/12/11)

Top Holdings: As on 30 Apr.

Name of Holding
Torrent Power Tata Coffee Voltas City Union Bank Suryalakshmi Cotton

Top 5 Sectors
% Net Assets
4.61 4.17 3.87 3.87 3.48

Top 5 Sectors
Automobile Energy Engineering Chemicals Construction

% Net Assets
14.21 10.52 9.48 8.23 7.74

Top 3 Holding Company Details Torrent Power

LTP: 193.05 PB Ratio: 1.59 PE Ratio: 7.37 Year to Date Return: -1.33 Other Funds That Own Torrent Power
Fund name
IDFC Infrastructure Reliance Diversified Power Sector Retail Sahara Star Value Escorts Power & Energy

% Net Asset
5.98 5.08 4.61 4.45

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

Tata Coffee
LTP: 851.30 PB Ratio: 3.48 PE Ratio: 20.16 Year to Date Return: 12.12

Other Funds That Own Tata Coffee

Fund name
Sahara Star Value Sahara Mid-Cap Fund DSPBR Small and Mid Cap Reg Kotak Equity Arbitrage

% Net Asset
4.17 2.21 1.58 1.27

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

Voltas
LTP: 102.70 PB Ratio: 2.49 PE Ratio: 22.38 Year to Date Return: 39.73

Other Funds That Own Voltas

Fund name
Sahara Star Value Quantum Long Term Equity Quantum Tax Saving Sahara Infrastructure Fixed

% Net Asset
3.87 3.60 3.02 2.66

Date
Apr 30, 2012 Apr 30, 2012 Apr 30, 2012 Apr 30, 2012

R. Wadiwala

DERIVATIVES NOTES
Nifty June 2012 futures were at 4927, at a discount of 23.75 points compared to the spot closing of 4950.75. Nifty May 2012 futures were at 4929.90, at a discount of 20.85 points compared to spot closing. Turnover on NSE`s futures & options (F&O) segment rose to Rs 148077.46 crore from Rs 147429.87 crore on Tuesday, 29 May 2012. Tata Motors May 2012 futures were at 242.60, near spot closing of 241.90. State Bank of India (SBI) May 2012 futures were at 2098.30, at a premium compared to spot closing of 2095. ICICI Bank May 2012 futures were at 798.60, at a discount compared to spot closing of 815.50. In the cash market, the S&P CNX Nifty lost 39.35 points or 0.79% to settle at 4,950.75, its lowest closing level since 25 May 2012. Put Call Ratio Symbol NIFTY NIFTY NIFTY TATAMOTORS BAJAJ-AUTO FTSE100 ADANIPOWER TATACOMM SIEMENS JINDALSTEL SIEMENS BOMDYEING NIFTY Expiry Date 25-Jun-15 27-Jun-13 30-Jun-16 26-Jul-12 28-Jun-12 15-Jun-12 28-Jun-12 31-May-12 28-Jun-12 28-Jun-12 31-May-12 31-May-12 27-Sep-12 Put 82300 244400 1400 7000 5250 16450 24000 2000 1500 38000 15250 2500 725100 Call 50 23550 350 2000 2125 6700 12000 1000 750 21500 9000 1500 442450 Ratio 1646.00 10.38 4.00 3.50 2.47 2.46 2.00 2.00 2.00 1.77 1.69 1.67 1.64

Institutional Investment Trends

(in Crores) MAY 30, 2012
% Change OI
5.82

BUY
3942.45

SELL
4197.02

Net Buy/Sell
-254.57

OIEoD
15180.98

INDEX FUTURES

STOCK FUTURES

5519.14

5235.29

283.85

23814.75

-0.70

R. Wadiwala

DIVIDEND AND OTHER INFORMATION

Havells India Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 30, 2012 has recommended dividend @ Rs.6.50 per equity share of Rs.5/- each i.e. 130% for the financial year 2011-12. The Dividend, if declared by the shareholders, shall be paid/ dispatched to the shareholders on or before August 14, 2012. Motherson Sumi Systems Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 28, 2012 have recommended a dividend of Rs. 2.25 per share for the year 2011-2012 subject to the approval of the Shareholders in the ensuing Annual General Meeting. The dividend, if declared at the Annual General Meeting will be paid on or after September 10, 2012. V-Guard Industries Limited has informed the Exchange that the Board of Directors of the Company at its meeting held on May 30, 2012 has recommended a Final Dividend of 35% i.e. Rs. 3.50 per equity share of the Company subject to the approval of the shareholders at the ensuing Annual General meeting of the Company.

DISCLAIMER
This material is for your private information, and we are not soliciting any action based upon it. Transactions involving stocks and derivatives give rise to substantial risk and are not suitable for all investors. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. Opinions expressed are our current opinions as of the date appearing on this material only.

Our Corporate Office 9/2003-4, Vishnu Priya Limda Chowk, Main Road, Surat 395 003. Phone: +91-261-6673500, +91-261-2436536, Fax No: +91-261-6673537

Email: contact@rwadiwala.com Website: www.rwsec.com

R. Wadiwala