LSE Securities. Major Indices Performance

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1 Weekly Report 26 July 2013 Markets witnessed full volatility in the F&O expiry week and despite snapping the series with gain of over four percent, the week remained disappointing for the markets. Reserve Bank of India s (RBI) surprising measures during the week weighed heavily on the rate sensitives and the whole markets. In its efforts to protect the rupee, the central bank made it even harder for lenders to access funds by lowering the amount banks can borrow or lend under its daily liquidity window. RBI set the overall limit for access to LAF by each individual bank at the repo rate of 7.25% daily to 0.5% of its own NDTL outstanding as on the last Friday of the second preceding fortnight. While, from July 27, 2013, banks will be required to maintain a minimum daily CRR balance of 99 per cent of the requirement against the present 70 per cent of the required CRR on a daily basis. A day before, the central bank had imposed restrictions on gold imports by banks and other authorised agencies with at least one fifth of every lot of import of gold exclusively made available for the purpose of export. The measures spooked the markets and major indices nose dived despite a positive start of the week, there was some spurt even on Tuesday, as the gold related stocks moved higher on hopes that the move by the RBI to withdraw restriction on import of gold on consignment basis and against letters of credit is a positive. But after that markets kept grinding lower and the last two sessions of the F&O July series took the markets considerably lower. However, going to the new series the sentiments of the market seemed not that weak as market wide rollover was at 81.76%, higher than 3 months average of 79.41%, while the Nifty rolls were at 75.92%, substantially higher than 3 months average of 56.99%. Sectorally, metals, capital goods and media stocks observed high rollover positions, while banking, telecom and oil & gas stocks observed relatively low rolls into the August series. IT, Pharma and FMCG all gained over 10% for the series, while Bank Nifty was the major loser down by over 5%. The last day of the week depicted the same mood of the markets and major indices after a positive start showed choppy trade, ending the week lower by around 2%. The Bombay Stock Exchange (BSE) Sensex shaved off points or 1.99% to during the week ended July 26, The BSE Mid-cap index was down by points or 3.57% to and the Small-cap index down by points or 3.33% to On the sectoral front, Capital Goods (CG) down by points or 10.16% at , Metal down by points or 6.68% at , Bankex down by points or 4.73% at , PSU down by points or 4.15% at and Power down by points or 3.58% at were major losers on the BSE sectoral space, while IT up points or 2.03% at and TECk up points or 1.76% at were the only gainers on the BSE sectoral front. The Nifty plunged by points or 2.37% to On the National Stock Exchange (NSE), Bank Nifty down by points or 4.64% to , CNX IT up by points or 2.12% to , while CNX mid-cap down by points or 3.88% to and CNX Nifty Junior down by points or 3.21% to Foreign Institutional Investors (FIIs) were net sellers in equity segment in the week with gross purchases of Rs crore and gross sales of crore, leading to a net outflow of Rs crore. They stood as net sellers in the debt segment as well with gross purchases of Rs crore against gross sales of Rs crore, resulting in a net outflow of Rs crore. In a bid to fast-track infrastructure development, the Prime Minister s Office (PMO) is targeting to award at least 17 big infrastructure projects between September 2013 and March These key projects comprise sectors like railways, highways and power. In this regard, the first meeting of the steering group appointed by Prime Minister Manmohan Singh has been held where the PMO has set deadlines to accomplish these projects to accelerate infrastructure investment. The deadlines will make sure that ministries/departments are clear about not just the overall deadline but also all the intermediate steps that need to be completed so that there are no slippages. SYMBOL Last 26 July 2013 Major Indices Performance High Low Last Week Close 19 July 2013 % BANKNIFTY CNX CNX CNXIT CNXMIDCAP MIDCAP NIFTY NIFTYJR

2 FIIs Movement ( Rs. Cr.) Mutual Fund Movement ( Rs. Cr.) Gross Purchase Gross Sales Net Investment Equity Debt Equity Debt Equity Debt Gross Purchase Gross Sales Net Investment Equity Debt Equity Debt Equity Debt 23-Jul Jul Jul Jul Jul Jul Outlook for the coming week Indian equity markets, witnessed correction of over 2% during the passing week, after RBI s latest attempt to shoreup the Indian currency. Both the benchmarks ended the week below their psychological levels of (Sensex) and 5900(Nifty). For the coming week, investors would be keenly awaiting the Reserve Bank of India s (RBI) monetary policy review on July 30, 2013, an event which could dictate near term trends of market. The expectation is that RBI would keep policy rates unchanged at a six-weekly rate review on Tuesday, ending a year-long cutting cycle as it focuses on underpinning the plunging currency. Market-participants for the coming week, which also marks the start of the fresh month, would trace monthly Auto and Cement sales numbers for the month of July. Also, Markit Economics will announce HSBC India Manufacturing PMI for July 2013 on Thursday, August 1. Additionally in the earnings season, traders will be eyeing important result announcements of UltraTech Cement, Reliance Capital, NTPC, Reliance Infrastructure, Dr Reddy s Laboratories, United Spirits, ICICI Bank, Bharti Airtel, Power Grid Corp of India, Reliance Communications, Idea Cellular and Bank of Baroda along with many others in the coming week. Further, a postponed meeting of high-powered ministerial panel to consider making available natural gas to fuel starved power plants from sources other than Reliance Industries KG-D6 fields, could take place in the coming week. On the global front, investors besides eyeing US Federal Reserve s two-day meeting, which would end on July 31, would also eye few economic data from, starting from GDP on July 31, followed by Jobless Claims, ISM MFG Index, Employment situation and finally, the Personal Income and Outlays data on August 2. Weekly Top Gainers Hero MotoCorp up by 5.22% was the top gainer on Nifty for the week - Hero MotoCorp stock rose despite negative number in Q1, due to better than expected operating margins amidst the hope that company will show good performance in next quarter. The company has reported 10.86% decline in its net profit at Rs crore for the first quarter ended June 30, 2013 against Rs crore for the same quarter last year. Total income of the company has decreased by 1.26% at Rs crore for quarter under review as compared to Rs crore for the quarter ended June 30, Sun Pharmaceuticals Industries up by 3.44% was another top gainer on the Nifty - Sun Pharma has recalled certain lots of Nimodine capsules, a drug indicated to treat brain hemorrhage, in the US market due to crystal formation. As per the information available on the US Food and Drug Administration website, the company is recalling the Nimodine capsules, 30 mg due to crystallisation. Company Name NSE TOP Gainers - Nifty Last (Rs.) 26/07/13 Prev (Rs.) Chg (Rs.) Hero MotoCorp Sun Pharma Inds Bajaj Auto DLF Infosys Chg%

3 Top Losers JP Associate down by 15.93% was the top loser of the week on Nifty - Jaiprakash Associates stock fall after a Supreme Court bench, headed by Chief Justice of India P Sathasivam, rejected its plea on deferred payment of Rs 100 crore as penalty fined by the Himachal Pradesh High Court. Himachal HC had slapped a fine of Rs 100 crore on May 4, The company had to pay the fine in four instalments of Rs 25 crore each on August 31, 2012 and on 31st of March in 2013, 2014 & Ambuja Cement down by 14.11% was another major loser on the Nifty - Ambuja Cements has reported 30.86% fall in its net profit at Rs crore for the quarter as compared to Rs crore for the same quarter in the previous year. In other development Switzerland-based Holcim will increase its holding in Ambuja Cements to 61.39% from 50.55%. In turn, Ambuja Cements will acquire its holding company Holcim India s stake in ACC. NSE TOP Losers - Nifty Company Name Last (Rs.) 26/07/13 Prev (Rs.) Chg (Rs.) Chg% JP Associate Ambuja Cement Larsen & Toubro Sesa Goa Jindal Steel & Power Technical Viewpoint - CNX Nifty During the week, CNX Nifty touched the highest level of on July 23, 2013 and the lowest point of on July 26, On the last trading day, the Nifty closed at with a weekly loss of 143 points or 2.37%. For the coming week, followed by are likely to be good support levels for the Nifty, while the index may face resistance at and levels. NSE Weekly Chart /7/ /7/ /7/ /7/ /7/2013

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 29-Aug FUTIDX BANKNIFTY 29-Aug FUTIDX NIFTY 26-Sep OPTIDX NIFTY 29-Aug-13 PE OPTIDX NIFTY 29-Aug-13 CE OPTIDX NIFTY 29-Aug-13 PE Highest In OI (Stock Futures, Stock Option) Type Symbol Expiry Type Strike LTP Vol in Vol Value (Rs. Lakhs) in Open Interest O I FUTSTK MCDOWELL-N 29-Aug FUTSTK SBIN 29-Aug FUTSTK ICICIBANK 29-Aug OPTSTK SBIN 29-Aug-13 CE OPTSTK SBIN 29-Aug-13 CE OPTSTK SBIN 29-Aug-13 CE US Market The US markets continued their consolidation mood during the passing week amid mixed earnings, economic data and rising borrowing costs. Federal Reserve Chairman Ben Bernanke last week stated that US central bank still expects to start scaling back its massive bond purchase program later this year, but he left open the option of changing that plan if the economic outlook shifted. While sticking closely to a time-line to wind down the bond buying that he first outlined last month, Bernanke went out of his way to stress that nothing was set in stone. Bernanke added that the pace of asset purchases could be reduced somewhat more quickly if economic conditions improved faster than expected. On the other hand, the current pace could be maintained for longer if the labour market outlook darkened, or inflation did not look like it was rising back toward the Fed s 2% goal. There were some encouraging reports on economic front, the US economy improved slightly in June, as the national activity index rose to negative 0.13 from negative 0.29 in May, according to the Chicago Fed. The three-month average rose to negative 0.26 from negative 0.37 in May. The index, a weighted average of 85 different economic indicators, is designed so that readings of zero indicate trend growth, and if the three-month average falls below negative 0.70, that indicates an increasing likelihood a recession has started. The US flash manufacturing purchasing managers index rose to a 53.2 reading in July from 51.9 in June. This is the highest level in four months. Details of the report were strong as new orders and employment increased. Besides, activity in the service sector softened in July. Retail sales dropped, with weaker big-ticket sales and a steep decline in shopper traffic compared to a month ago. Retail inventories fell more slowly than in June. The Commerce Department reported a bigger than expected increase in durable goods orders in June. Durable goods orders surged by 4.2% in June following an upwardly revised 5.2% jump in May. On the other hand, Federal Reserve Bank of Richmond stated that manufacturing activity in the central Atlantic region declined in July, with a seasonally adjusted composite index of manufacturing activity down 18 points in July to a reading of -11. High Low % Dow Jones Nasdaq S&P

5 European Market The European markets encountered volatile trade during the passing week after the International Monetary Fund (IMF) stated that the European Central Bank (ECB) may have to cut interest rates further and launch a fresh round of monetary easing to help boost the euro zone economy. It warned the recession in the euro zone was likely to last two years in total before returning to growth sometime in 2014 as European governments continue to following the policy of austerity. The Washington based organization added that euro zone would contract a further 0.6% before a return to 0.9% growth in The euro-area manufacturing unexpectedly expanded in July for the first time in two years, led by Germany, adding to signs the currency bloc s economy is emerging from a record-long recession. A manufacturing index based on a survey of purchasing managers rose to 50.1 from 48.8 in June. A reading above 50 indicates growth. Besides, surveys from Germany and Italy signaled that businesses and consumers are feeling more upbeat about their outlook, and business sentiment in the Netherlands also showed some improvement this month. The indicators come after euro-zone business activity expanded in July for the first time in 18 months, according to a closely watched survey released. Weak demand for credit and risk-averse banks continue to drag on the economy, dampening any prospects for a full recovery in the euro zone. Loans to euro-zone businesses fell by 13 billion ($17.2 billion) in June, following similar drops in April and May, data from the European Central Bank showed. Loans to households also fell in June, the ECB reported. High Low % DAX FTSE Asian Market Asian markets, continuing north-ward journey for fifth consecutive week, ended the weekly trade mostly in the green, as sentiments remained up-beat after the weak housing sales numbers in US eased the concerns of Fed tapering its stimulus soon. Back on regional turf, Chinese Shanghai Composite gained around a percentage point during the week following decision by the People s Bank of China to remove the floor on the discount Chinese banks can offer for commercial lending rates. However, the gains remained capped after the flash HSBC/Markit Purchasing Managers Index fell to 47.7 this month from June s final reading of 48.2, marking a third straight month below the watershed 50 line, which demarcates expansion of activities from contraction. South Korean benchmarks surged over two percent after the country s economy grew at the fastest pace in more than two years in the second quarter of this year as a turnaround in private consumption relieved the weak facility investment. Real gross domestic product (GDP), the broadest measure of economic performance, expanded 1.1% in the second quarter from three months earlier after gaining 0.8% in the previous quarter. The reading was the highest since 1.3% tallied in the first quarter of 2011, beating market consensus of 0.8%. However, Japanese Nikkei plunged to its two-week low after Japanese export growth unexpectedly eased in June from a year earlier. The 7.4% increase in exports in the year to June was less than the median estimate for a 10.3% annual increase. Selling also got accelerated on the back of a firmer yen and disappointing quarterly earnings from the likes of Canon Inc and Advantest Corp. 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