LSE Securities. Major Indices Performance

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LSE Securities Weekly Report 02nd January 2010 Domestic equity markets finished the last week of 2009 with good gains underpinned by strong indications from the world-wide markets.

Key indices witnessed modest gains on the first day of the truncated week while they snapped their four-day winning streak on Wednesday as investors resorted to profit booking.

1 LSE Securities Weekly Report 02nd January 2010 Domestic equity markets finished the last week of 2009 with good gains underpinned by strong indications from the world-wide markets. The local markets had only three trading sessions this week as they remained closed on Monday, December 28 on account of Moharram and on Friday, January 1, 2010 for New Year holiday. Key indices witnessed modest gains on the first day of the truncated week while they snapped their four-day winning streak on Wednesday as investors resorted to profit booking. Thursday s Futures & Options (F&O) expiry session brought lots of cheers to marketmen as the BSE s Sensex and NSE s Nifty touched their new 52-week highs of 17, and , respectively and the latter settled above the crucial level of Positive hint from the Finance Minister Pranab Mukherjee that there will be no early exit from expansionary policy was the biggest confidence booster for the markets during the week and helped them to shrug off rising food price inflation. Consumer durables, power and auto stocks were the major gainers in the week while shares from healthcare and fast moving consumer goods space saw some unwinding of positions from market participants. Big boy, Reliance industries (RIL) surged over one and a half percent during the week after announcing successful completion of assessment of the design capacity of the KG D6 deepwater gas production facilities. The 30-share BSE Sensex advanced points or 0.60% to 17, in the week ended December 31, while the 50-share S&P CNX Nifty gained points or 0.44% to The BSE Mid-cap index soared 1.15% to 6, and the Small-cap index climbed 2.92% to 8, On the National Stock Exchange (NSE), Bank Nifty rose 0.68% to , CNX Mid-cap added 0.54% to , CNX Nifty Junior advanced 0.24% to while CNX IT shed 0.19% to In a clear hint that the government was not looking for an immediate exit from the stimulus that it provided to Indian economy a year ago, finance minister Pranab Mukherjee on Wednesday cautioned against quick-fire exit policy which according to him could threaten the earlier than expected recovery in the economy. In the BSE sectoral space the main gainers were Consumer Durables (CD) up 3.56%, Power up 1.76%, Auto up 1.07%, Public Sector Undertaking (PSU) up 0.76% and Capital Goods (CG) up 0.71%. While Healthcare (HC) down 1.79% and Fast Moving Consumer Goods (FMCG) down 1.16% were the main losers in the BSE sectoral space. As expected, the much awaited auction of third generation (3G) radio frequency used by mobile services operators will miss the January 14 date decided earlier. It is understood that the government is looking to conduct the auction in mid-february. Food inflation in the economy rose again close to 20% after having softened slightly last week, but the increase was primarily due to low base effect from last year and the fact that prices have failed to record seasonal decline this fiscal which is usually registered in months of November-February. According to a release by the ministry of statistics and program implementation on Thursday, the WPI for the week ending December 19 in respect of food group declined 0.38% over the previous week to touch However, food inflation, calculated on point-on-point basis with respect to last year rose to 19.83% compared with 18.65% last week. Foreign Institutional Investors (FIIs) stood as net buyers in the equity segment during the week under review with gross purchases of Rs 4,788 crore and gross sales of Rs 3,238.5 crore, resulting in a net inflow of Rs 1,549.7 crore. In the debt segment they were net sellers with gross purchases of Rs 2, crore against gross sales of Rs 3, crore, leading to a net outflow of Rs crore. SYMBOL Last Week Close 24-December-09 Major Indices Performance High Low Last 31-December-09 % BANKNIFTY CNX CNX CNXDEFTY 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 31-Dec Dec Dec Dec Dec Dec Outlook for the coming week The forthcoming week will mark one of the biggest changes for the Indian equity markets as they will start trading at 9 am instead of 9:55 am. The closing timings however, are left unchanged at 3.30 p.m. The markets are likely to continue their bull run in the first week of 2010 as we enter the earnings season for the Oct-December quarter. Strong growth of 20% in advance tax collections from corporates for the December quarter suggests that the report card of India Inc will be good. Clutch Auto, Prism Cement, IFCI, Motilal Oswal Financial, Bajaj Hindusthan and Vintage Cards will report their quarterly earnings during the week. Meanwhile, the chances of profit taking can not be completely ruled out given the fact that the markets have witnessed over 70% gains last year and the valuations have become expensive. Shares from auto and cement sectors will be on investors radar in the next week as they will announce their monthly sales figures. Besides, steel-makers are likely to witness some action in the coming week as they may go for one more round of price hike. Equity shares of JSW Energy, part of the JSW Group, will be listed on the bourses on January 4, The company has fixed the issue price of its initial public offer (IPO) at Rs 100 a share, at the lower end of the price band, raising about Rs 2,700 crore. For retail investors the issue price has been fixed at Rs 95 a share, offering a discount of Rs 5 to the original issue price. Global cues will also play a key role next week. Unemployment, auto sales and retail sales data for the month of December from the US will be watched closely by investors. Top Gainers Ambuja Cement, up 4.77%, was the biggest gainer on the Nifty in the week. The company s exposure to the southern markets of the country, where prices had corrected by considerable extent recently, is very low. It mainly operates in the northern, eastern and western markets of India. Northern and eastern markets had witnessed lower price fall compared to other regions of the country. Bharat Petroleum Corporation (BPCL) was another major gainer on the Nifty during the week, surging 3.59%. The company has sold to the extent of 80,000 tonne of January-loading 380-centistoke (cst) fuel oil at steady price levels. It had sold three similar lots in November Company Name NSE TOP Gainers - Nifty Prev (Rs.) Last (Rs.) Chg (Rs.) Ambuja Cement BPCL Bharti Airtel NTPC Suzlon Energy Chg%

3 Top Losers Sun Pharma was the biggest loser on the Nifty in the week, shedding 3.71%. The correction was witnessed in the pharma major despite Taro s minority shareholders sending a strong message of disapproval to Barrie Levitt and his continuing control of Taro. Sun Pharma is the single largest shareholder in the Israeli drug maker with 36% stake and it is trying to take control of the company. Jindal Steel & Power, down 3.15%, was another major loser on the Nifty this week. The company s subsidiary -- Jindal Power (JPL) -- has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for Rs 7,200 crore initial public offer (IPO). Company Name NSE TOP Losers - Nifty Prev (Rs.) Last (Rs.) Chg (Rs.) Sun Pharma Jindal Steel & Power Cipla DLF Wipro Chg% Technical Viewpoint - S&P CNX Nifty NSE Weekly Chart During the week, S&P CNX Nifty touched the highest level of on December 31, 2009 and the lowest point of on December 30, On the last trading day of the week, the Nifty closed at , with weekly gains of points or 0.44%. For the coming week, followed by levels are likely to be good support levels for the Nifty, whereas, on the upside resistance for the Nifty is likely to be at followed by 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 28-Jan FUTIDX MINIFTY 28-Jan FUTIDX BANKNIFTY 28-Jan OPTIDX NIFTY 28-Jan-10 PE OPTIDX NIFTY 28-Jan-10 CE OPTIDX NIFTY 28-Jan-10 CE 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 RELIANCE 28-Jan FUTSTK EDUCOMP 28-Jan FUTSTK RCOM 28-Jan OPTSTK RELIANCE 28-Jan-10 CA OPTSTK RELIANCE 28-Jan-10 CA OPTSTK UNITECH 28-Jan-10 CA US Market The US markets made a frail closing of the holiday shortened last trading week of the year and the major indices were down by about 1% for the week. The Dow Jones industrial average closed the week down by points, or 0.9%, at 10, The Standard & Poor s 500 index fell points, or 1%, to 1, while the Nasdaq composite index lost points, or 0.7%, to 2, Though the indices were unable to make a good last week of the year it was a year of splendid gains for the US as well as global markets. For the year, the Dow rose 1,651.66, or 18.8%. Powered by the recovery in high-tech stocks, the Nasdaq ended 2009 with a gain of , 43.9% while the S&P ended the year with a gain of , or 23.5%. The US markets made a good start on the optimism about the economic recovery as the figures from MasterCard Advisors SpendingPulse, which tracks all forms of payment, show retail sales rose 3.6% from November 1 through December 24, after dropping during that time last year. Investors were optimistic that the year-end holiday shopping season could prove stronger than initially expected. The Conference Board said its index of consumer confidence rose to 52.9 in December from 49.5 in November. That was slightly better than what economists had forecast, also the Standard & Poor s/case-shiller s home price index rose for a fifth straight month in October, edging up 0.4%. The index was off 7.3% from October last year, roughly in line with expectations. The Chicago Purchasing Managers Index rose to 60 in December from 56.1 in November. The report found that production and new orders increased and employment improved. On the last trading day the Labor Department said new claims for unemployment benefits fell by 22,000 to a seasonally adjusted 432,000 last week. Analysts had expected claims would rise. The number of workers continuing to seek unemployment benefits fell by 57,000 to 4.9 million. High Low % Dow Jones Nasdaq S&P

5 European Market The major European markets snapped the last week of the year on a flat note. It was a holiday shortened week and so the volume remained low. DAX 30 closed flat while the FTSE 100 was marginally up by 0.19%. Though, the whole European nations were able to close the year with good gains. The benchmark index in Norway led the region with a rise of 70% and indexes in Germany gained 25% followed by increase of 22% in France and UK. UK stocks advanced 22% in the year and rebounded 53% from their lows in March. The government stimulus, emergency funding to the banks and the Bank of England printing cash helped liquidity in the financial system. Bank lending to industry in the euro-zone slowed in November, the European Central Bank said on Wednesday, sending a clear signal about the fragility of economic recovery in the 16-nation currency bloc. Loans to non-financial institutions shrank at an annual rate of 1.9 per cent last month after shrinking 1.2 per cent in October, the Frankfurt-based central bank said in its monthly report on monetary developments in the euro area. Cadbury has been granted three extra days to put together a trading statement which could be critical to its defence against a 10.3bn hostile bid from Kraft. The Takeover Panel extended the deadline for Cadbury to publish detailed estimated trading results for 2009 from January 12 to January 15. German inflation increased at 0.8% rate in December after rising at 0.3% in November. The acceleration in prices was led by a gain in crude oil prices according to the latest data released from the Federal Statistics Office in Wiesbaden. High Low % DAX FTSE Asian Market The Asian markets were the happiest lot of the global markets, which managed to close the last trading week of the year with gains. Chinese markets were the major gainer of the week moving up by 4%, Hang Seng was up by 1.65%, Nikkei was up by 4% and Seoul was marginally up by 0.03% while the Indian markets were up by about 0.50%. For the year, benchmark index in Shanghai surged 80% and Hong Kong advanced 53% on a large government stimulus and increased bank lending. The Australian benchmark index increased 31% in the year while the BSE Sensex was up by 80% and S&P Nifty was up by more than 75% for the year. Japan s factory output expanded for the ninth straight month in November, up 2.6% compared with the previous month, as the manufacturing sector continued to recover. The increase primarily reflected improving demand for Japan s exports from rest of the world as global economy slowly comes out of the crisis. The expansion was higher than expected and helped boost market sentiment despite chronic apprehensions of deflation eroding the gains of recovery. Japan ended its year-old recession in the second quarter of 2009 as the economy grew by an annualised rate of 1.3%. However, falling salaries and bearish prices have prompted renewed worries about deflation. A member of People s Bank of China monetary policy committee Fan Gang said the increasing inflow of speculative capital may lead to asset bubbles. Inflows rose by $37.2 billion to $2.78 trillion by the end of November. According to the report, the $37.2 billion is $16 billion more than the cumulative trade surplus and foreign direct investment in November. A data released by the Chinese ministry of commerce and the ministry of agriculture showed that agricultural products prices continued to increase in December, but lower than the previous month, with prices increasing between 0.5% and 1% in the first three weeks of December. Japan in an extraordinary Cabinet meeting approved a new government growth strategy that targets 3% nominal economic growth through The real economic expansion in the next decade is expected to 2%. The government is hoping to attract more tourists, develop new industrial zones in Asia and sell green technology and equipment around the world. The plan is based on increasing demand in environment, health and tourism, including adding 4.76 million jobs, as unemployment is projected to fall to 3% from 5%. High Low % Hang Seng KLSE Nikkei Straits Times Seoul Shanghai Disclaimer : This document has been prepared by LSE Securities and Accord Fintech Pvt. Ltd. and is being distributed in India by LSE Securities, 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 LSE Securities

LSE Securities. Major Indices Performance

LSE Securities. Major Indices Performance 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