LSE Securities. Major Indices Performance

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1 Weekly Report 5 th June 2009 Market summary for week ended June 5, 2009 The Indian equities markets ended on a positive note for the thirteenth consecutive week on optimism that the United Progressive Alliance (UPA) government will do its best to revive the domestic economy. Also, global cues were supportive and foreign investors continued to show buying interest, boosting the confidence among investors. Volatility did exist in the markets, but it never generated fear as everyone believed that it was a common process of investors booking profit after such a big rally. A couple of months ago, even a short bout of selling used to create confusion, eventually resulting in further frenzied selling. The change in attitude indicates that there has been tremendous improvement in confidence among investors. Things started getting better in the market after the UPA won the election and subsequently there has been a continuous flow of good news from all corners of the globe. Positive manufacturing data from US, China and Europe raised sanguinity that global recession is abating and investors were ready to bet on quality stocks at every dip. No doubt that the key benchmarks in the domestic markets performed well, but it was quite good to see the way broader markets moved in the week. Many of the second-line stocks were at their 52- week highs and at the end most trading sessions in the week, headlines of broader markets outperforming benchmarks appeared on the screens. The 30-share BSE Sensex gained points or 3.27% to 15, in the week ended June 5, It was first time in nine months that the benchmark settled above 15,000 mark. Similarly, the S&P CNX Nifty rose points or 3.10% to in the week. The BSE Mid-cap index surged points or 6.98% to 5, and the Small-cap index added points or 7.88% to 6, Investors were in a cheerful mood after the government revealed its reforms and disinvestment plans and much-awaited Union Budget 09 date. The Rail Budget will be presented on July 1, 2009, the Economic Survey will be announced on July 2 and the General Budget on July 3, India s President Pratibha Patil, in her address to the joint parliamentary session on Thursday, said that high on the priorities of the new government were the issues relating to promoting the slowing growth of the economy and returning to a path of fiscal discipline. The President said that the government would seek to revive growth with higher investments in sectors such as infrastructure and construction while also adhering to fiscal prudence. Highlighting the reform agenda of the government, Pratibha Patil also said that the government would take all the necessary steps to encourage foreign investment inflows and will also work towards getting the public sector units listed to improve corporate governance and efficiency of such units. Raising hopes for an earlier recovery in the economy, India s infrastructure sector output has registered a growth of 4.3% in the month of April 2009, as per the data released by the government. The growth was nearly double compared with the 2.7% expansion in output witnessed in the same month of previous year. It was also substantially higher compared with the 209% growth witnessed in the previous month. India s headline inflation rate declined to 0.48% for the week ended May 23 compared with 0.61% in the previous week. Among the sectoral indices on the BSE, Consumer Durables (CD) up 9.89%, Capital Goods (CG) up 8.4%, Metal up 7.51%, Auto up 7.02% and Healthcare (HC) up 5.88% were the main gainers in the week. On the other hand, Oil & Gas down 0.92% and Bankex down 0.66% were the main losers in the sectoral space in the week. FIIs, again, stood as the net buyers in the equity segment during the week with gross purchases of Rs crore and gross sales of Rs crore, with a net inflow of Rs crore. SYMBOL Last Week Close 29-May-09 Major Indices Performance High Low Last 05-June-09 % BANKNIFTY CNX CNX CNXDEFTY CNXIT CNXMIDCAP MIDCAP NIFTY NIFTYJR

2 FIIs Movement ( Rs. Cr.) Gross Purchase Gross Sales Net Investment Equity Debt Equity Debt Equity Debt 03-June June June Mutual Fund Movement ( Rs. Cr.) Gross Purchase Gross Sales Net Investment Equity Debt Equity Debt Equity Debt 02-June June June Outlook for the coming week The positive trend in the local markets is still unbroken after multiple weeks. It was thirteenth week of gains, which indicates that sentiments in the markets are still on a high. There has been a sort of cheerfulness after the UPA win in the election and market participants are optimistic about presentation of a promising budget now. If one had to see the hatred of the investors towards the infrastructure, realty and finance stocks before elections and the way investors have been lapping up these stocks now after we have a stable government, it just gives a feeling that there is too much hopefulness about good work from the new government and it is something that is keeping the buying interest intact. Marketmen are hoping that the government will further initiate reforms in financial sector and will increase its spending on infrastructure to tackle the adverse affects of slowdown. So, we might see good times in the market in the coming week or even till July 3, 2009 when the General Budget would be presented. Also, there has been a good flow of positive news from most parts of the world and this has certainly weighed on the sentiments. If this flow continues and global cues remain encouraging, it would be of tremendous help to the markets in the coming week. Buying interest by FIIs also will play a role in the movement of the markets. However, the fact that the markets have seen such a big rally, chances of profit booking coming into picture cannot be ruled out. But looking at the current situation, it gives a feeling it shouldn t be a tough time for the local bourses in the coming week, unless and until something worst from either domestic or global front comes out. Top Gainers Suzlon Energy, up 33.81%, was the main gainer on the Nifty in the week. The company has announced that it has acquired final tranche of Martifer s stake in RE power representing 14.4% for 87.6 million euro. In February 2007, wind energy major had agreed to buy Mertifer s stake in RE power in three phases. The Pune-based company had acquired total 22.5% stake in RE power from the Portuguese energy company for the total consideration of around million euro. Unitech was the other top gainer on the Nifty, gaining 22.86%. Recently, Unitech Wireless, the telecom arm of real estate developer Unitech, has given a $500 million contract to Swedish firm Ericsson to supply and manage all network equipment for its rollout of mobile phone services in three telecom circles. Under the terms of the contract, Ericsson will manage the network for five years in service areas of Bihar, Eastern and Western Uttar Pradesh. Company Name Prev (Rs.) NSE TOP Gainers - Nifty Last (Rs.) Chg (Rs.) Chg% Volume in ( 000s) Suzlon Energy Unitech Grasim Industries Tata Motors Tata Steel Top Losers Axis Bank, down 5.19%, was the top loser on the Nifty in the week. The bank has announced that it is considering raising Rs 3,000 crore worth of capital through Tier I and Tier II debt instruments in the current financial year. The board of the bank has given their nod for the same. As per the board s approval, the

3 bank can raise Rs 500 crore under Tier I capital and Rs 2,500 crore under Tier II capital requirements. The said amount can be raised in Indian or foreign currency by floating of debt instruments in domestic and / or foreign markets. SBI was another major loser on the Nifty, plunging 2.74%. The bank has announced that it has acquired additional 5% stake in its joint venture (JV) Nepal SBI. SBI will receive 4,37,400 shares of the Nepal SBI from Agricultural Development Bank, as a divestment of the latter s stake in the JV, which was concluded through a competitive biding process. The bank is also looking to expand its presence in Singapore by doubling its branch count to eight in the current financial year. Company Name Prev (Rs.) NSE TOP Losers - Nifty Last (Rs.) Chg (Rs.) Chg% Volume in ( 000s) Axis Bank SBI Reliance Petroleum Reliance Inds Pun National Bank Ltd NSE Weekly Chart Technical Viewpoint - S&P CNX Nifty During the week, S&P CNX Nifty touched the highest level of on June 5, 2009 and the lowest point of on June 1, On the last trading day of the week, Nifty closed at , with a weekly gain of points or 3.1%. For the coming week, 4479 followed by 4372 levels are likely to be good support levels for the Nifty, whereas, on the upside resistance for Nifty is likely to be at 4666 followed by 4745 levels.

4 Derivatives Snapshot Highest In OI (Index Futures, Index Option) Type Symbol Expiry Type Strike LTP Volume in Volume Value (Rs. Lakhs) in Open Interest O I FUTIDX NIFTY 25-Jun FUTIDX MINIFTY 25-Jun FUTIDX BANKNIFTY 25-Jun OPTIDX NIFTY 25-Jun-09 PE OPTIDX NIFTY 25-Jun-09 PE OPTIDX NIFTY 25-Jun-09 PE Type Symbol Expiry Highest In OI (Stock Futures, Stock Option) Type Strike LTP Vol in Vol Value (Rs. Lakhs) in Open Interest O I FUTSTK RELIANCE 25-Jun FUTSTK INFOSYSTCH 25-Jun FUTSTK NTPC 25-Jun OPTSTK BHARTIARTL 25-Jun-09 CA OPTSTK HDFCBANK 25-Jun-09 PA OPTSTK RELIANCE 25-Jun-09 CA US Market The US markets began the new week with a strong rally on the back of reassuring economic data; the latest economic data suggested that the economic turmoil is finally bottoming out. Construction spending rose in April, but personal spending was down slightly and slower manufacturing activity contracted for the 16th straight month in May. The Dow Jones industrial average is up 3 percent for the week, while the S&P 500 is up 2 percent and the Nasdaq Composite is up 4 percent. It was the major indexes third straight week of gains. General Motors bankruptcy filing, the fourth-largest in US history was announced during the week but that ended the uncertainty looming over the automaker s fate. After the filing of GM s Chapter 11 bankruptcy, the Federal government is planning is to take a 60 percent majority stake in the new company, with the Canadian government, the United Auto Workers and unsecured bondholders taking remaining shares. The government reported a rise in the unemployment rate to 9.4 percent in May, the highest level in last 26 years, even as the pace of layoffs eased more than expected. The Labor Department said employers cut 345,000 jobs in May, far less than the 520,000 economists predicted a hopeful sign for the job market. But the report also showed that the unemployment rate surged to 9.4 percent from 8.9 percent in April, suggesting that companies are still reluctant to hire. Only the healthcare industry added jobs and employment in government was unchanged. Healthcare added 24,000. Manufacturing job losses were 156,000 in the month, 59,000 in construction and 51,000 and professional and business services. Retail trade lost 18,000 jobs in the month and employment in wholesale trade declined 22,000. Financial activities shed 30,000 jobs, securities industry shed 10,000 and real estate lost 9,000. High Low % Dow Jones Nasdaq S&P European Market European markets made a good start of the week on better than expected existing home sales in the US and improved credit conditions and rising mortgage approvals in the UK, supporting the market sentiment. DAX 30 was able to get a good advance of 2.75% while the FTSE 100 was up by about 0.50%. The UK services sector expanded in May, after shrinking in April, according to the latest measure the PMI

5 services index. The services sector has been shedding jobs faster than manufacturing and the latest read surprised many economists. UK mortgage approvals increased in April to 43,201 from 40,038 in March according to the Bank of England. Gross lending dropped to 10.9 billion, the lowest in last nine years. The euro region unemployment increased in April with Spain and Baltic nations leading the region. French producer price index declined in April at a faster rate in the last three months. Volkswagen surged on potential merger with Porsche. Bouygues SA operating profit plunged 55%. The seasonally adjusted unemployment in the 16 region EU increased to 9.2% in April compared to 8.9% in March. Unemployment increased from 7.3% in the year ago period. The Netherlands reported lowest unemployment of 3.0% and Austria of 4.2% and the highest rates in Spain of 18.1%, Latvia of 17.4% and Lithuania of 16.8%. Bank of England (BoE) left its key benchmark rate unchanged at the historic low of 0.5% on Thursday. The nine-member Monetary Policy Committee (MPC) of the bank, led by Governor Mervyn King, also reiterated its plan to buy 125 billion pounds ($205 billion) of government and corporate bonds. In a related development, the European Central bank (ECB) also kept its benchmark rate unchanged at 1%. The decision by the ECB to hold the refinancing rate for the 16 nations that share the euro-zone was also in line with expectations as the bank had already indicated last month that it did not intend to make further cuts in the near term. High Low % DAX FTSE Asian Market It was, again, a good week for the whole Asian pack where most of the indices were up by an average 3%. The good cues from the US economy kept the momentum of the markets up during the whole week while the hopes of recession bottoming out increased the demand. Hang Seng was up by 2.8%, KLSE was up by 3%, Nikkei was up by 2.57% while the Shanghai market was up by a good 4.59%. Investors in Japan were seen counting on a global economic recovery and willing to add stocks to their holdings. The talk of economy bottoming out in the first quarter of this year and stimulus package of 15.4 trillion yen has sustained investor enthusiasm. The Australian Bureau of Statistics reported that first quarter GDP increased at 0.4% from the last quarter of 2008 when the economy declined 0.6%. The news on the GDP lifted the Aussie to U.S. cents. The Reserve Bank of Australia left its key lending rate unchanged ahead of the GDP report and has lowered the rate by 425 basis points over the last three quarters to 3%. A surprise surge in the US pending homes sales to 6.7 per cent in April, a largest monthly gain in seven and a half years, also encouraged buying in a broad range of Tokyo shares, especially makers of semiconductors and chip-making equipment. Japanese, Korean and European auto makers are expected to benefit from the GM and Chrysler bankruptcy. Three large auto makers in Japan rose soon after GM filed for bankruptcy and said it may close down as many as 20 plants and lay-off 21,000 people and eliminate several brands including Pontiac, Saab, Hummer and sell Opel and Vauxhall. High Low % Hang Seng KLSE Nikkei Straits Times Seoul Shanghai Disclaimer : This document has been prepared by and Accord Fintech Pvt. Ltd. and is being distributed in India by, a registered broker dealer. This information in the document has been complied by the research department. Due care has been taken in preparing the above document. However, this document is not, and should not be construed, as an offer to sell or solicitation to buy any securities. Any act of buying, selling or otherwise dealing in any securities referred to in this document shall be at investor s sole risk and responsibility. This document may not be reproduced, distributed or published, in whole or in part, without prior permission from the company. Copyright Accord Fintech Pvt. Ltd. and