Morning Notes. Domestic Market View. LKP Retail Advisory. Markets likely to open on a negative note amidst a sharp sell-off seen yesterday.

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1 Morning Notes LKP Retail Advisory Nov 12, 2010 Indices 11-Nov 10-Nov % Chg. Major Indices 11-Nov 10-Nov % Chg. FII's & IFI's in equity Rs.Crs BSE Sensex 20,589 20, % DAX 6,723 6, % 11-Nov Buy Sell Net S&P CNX Nifty 6,194 6, % FTSE 100 5,815 5, % FII's Investments BSE Midcap 8,632 8, % CAC 40 3,867 3, % IFI's Investments BSE Small Cap 11,192 11, % Dow 11,283 11, % FII's contribution to the total turnover 29% Nasdaq 2,556 2, % IFI's contribution to the total turnover 13% BSE Sectoral Indices Cons. Durables 7,227 7, % Major Asian Indices 11-Nov 10-Nov % Chg. FII's in Derivatives Rs.Crs Metal 17,596 17, % China SCI % 11-Nov Index Fut Index Opt Stock Fut Stock Opt Power 3,158 3, % HANG SENG % Net Auto 10,337 10, % NIKKEI % OI Health Care 6,649 6, % TSEC weighted % Chg.OI FMCG 3,706 3, % FTSE Bursa Malaysia % FIIs' contribution to the total Derivatives turnover 18% Capital Goods 16,352 16, % KOSPI Composite % Bankex 14,588 14, % Commodities (MCX) 11-Nov 10-Nov % Chg. Forex 11-Nov 10-Nov % Chg. IT 6,132 6, % Aluminium % Rs/$ % PSU 10,242 10, % Copper % Rs/Euro % Teck 3,745 3, % Crude Oil 3,908 3, % Rs/Pound % Oil & Gas 10,900 11, % Gold 20,371 20, % Rs/Yen (100 Yen) % Realty 3,674 3, % Silver 40,589 39, % BSE Midcap BSE 100 CNX Nifty R Power DLF Hindalco Ranbaxy Rel Infra JP Associates Tata Power Bharti Artl M&M Cipla Reliance Power DLF Hindalco Inds HDIL Lupin HPCL Financial Tech Unitech Tata Power Tata Comm Sterlite Tech Apollo Tyres Network18 Media Himadri Chem Honeywell Auto TVS Motor AIA Engineering Wockhardt CNX Nifty BSE 100 BSE Midcap Domestic Market View Markets likely to open on a negative note amidst a sharp sell-off seen yesterday. Markets are likely to open on a negative bias, amidst global cues from Asia as well as the sharp sell-off seen yesterday. There were quite a few theories behind yesterday s fall, one being the increase in inflation would lead to increase in tightening measure by the People s Bank of China as well as some reports on a last minute sell-off in Korean index of around $1.2 bn. The early morning trades today suggest that Korean markets are up 1.7%, and hence the entire sell-off yesterday looks like an error in trade execution. Sugar stocks should be looked into today, due to a fall of around 10% yesterday in the Sugar futures contracts in global markets, on the news of a bigger than expected surplus sugar production. Astrazeneca Phar Sun Pharma Adv BSE Smallcap Hitachi Home Aarti Inds Himachal Futur Sical Logistics Best & Crompton Sh Ganesh Jewel Himatsingka Seide Murli Inds HFCL Infotel Mahan Inds BSE Smallcap

2 Domestic Market Overview Nifty settles below 6,200 as bears went for kill The local equity markets tanked on Thursday on across the board intense selling pressure. Weak global cues added to the markets woes in trade today. Investors turned skeptical about sustenance of higher levels on the bourses and opted to take profit off the table during the session which left the bulls bleeding on the street. Last hour selling in Seoul Composite triggered by failure of reaching a common ground over trade deal row between the US, world s largest economy, and South Korea, Asia s fourth largest economy, also fuelled some worries among domestic investors in trade. Earnings disappointment from DLF pulled the CNX Realty index over three percent lower during the session. The NSE s 50-share broadly followed index -- Nifty -- signed off the session below the crucial 6,200-mark. The market breadth was in favour of declines; there were 39 shares on the losing side against 10 shares on the gaining side on the Nifty today while one share remained unchanged. Though food price inflation continued to show down-tick on week-on-week basis but it could not trigger any significant action on the positive side for the domestic bourses in trade.. Global Market Overview US Stocks tumbled Thursday after a disappointing outlook from Cisco Systems Inc. rattled a market already on edge as an economic summit of world leaders got under way in South Korea. However some sort of pullback was observed in the second half of the trading session. From its session low to its current point the S&P 500 has climbed about 0.8%. The Dow Jones industrial average fell 73.94, or 0.7 percent, to close at 11,283.10, after trading down as much as 126 earlier in the day. The index fell for three out of the last four sessions. Commodities were mixed today, with precious metals rallying for 1.9% while soft commodities fell 3.2%. The euro has struggled in recent days because of fresh concerns about government debt problems, particularly in Ireland. European shares however gained in the second half of their trading and managed to close on a flattish note, backed by a good recovery seen from intraday low levels. Asian markets were quite mixed yesterday, with Hang Seng closing around 200 points up. But Seoul Composite was down close to 2.5% in the last minute sell-off by FII s in their markets.

3 Derivatives Snapshot Nifty India VIX 13-Oct 14-Oct 15-Oct 18-Oct 19-Oct 20-Oct 21-Oct 22-Oct 25-Oct 26-Oct 27-Oct 28-Oct 29-Oct 1-Nov 2-Nov 3-Nov 4-Nov 5-Nov 8-Nov 9-Nov 10-Nov 11-Nov LKP Retail Advisory The India VIX rose 1.47% to on Thursday from its previous close of The S&P CNX Nifty tumbled points or 1.30% to end the session at The Nifty current month future witnessed fresh build-up to the extent of 2.21% or 0.57 million (mn), taking the total outstanding open interest (OI) to mn units. From the Nifty calls for the month of November, 6300 strike price (SP) was the most active with an addition of 1.67 mn or 29.31%. Similarly, from the Nifty puts for the current month, 6200 SP was the most active with contraction in OI of 0.68 mn or 13.68%. The maximum Call OI outstanding was at 6300 SP (7.36 mn) and that for Puts at 6200 SP (4.32 mn). The Nifty Put Call Ratio (PCR) OI wise stood at 1.27 for November-month contracts. The top five scrips with highest PCR on OI were ABB 52, Sun Pharma 5.79, Bank of Baroda (BoB) 3.46, Dr Reddy s Laboratories 2.75 and ICICI Bank Nifty Call Options Nifty Put Options Strike Nifty Call OI Chg in OI LTP Net Chg Strike Nifty Put OI Chg in OI LTP Net Chg ,132, , ,943, , ,357,250 1,667, ,320,900-43, ,545, , ,471,850-6, ,520,350 1,212, ,717, , ,786,050 13, ,317, , ,076,800 41, ,936,050-28, ,248,650-39, ,748,500-1,578, ,158, , ,327,000 20, ,350-4, ,449,100-20, ,000-27, ,343,550-51, Expiry : 25NOV Nifty Call OI Nifty Put OI

4 Index Futures (OI in '000 Shares) Future Chg Spot Chg Prem / Total Open Interest 11-Nov (%) 11-Nov (%) Disc 11-Nov Chg (%) NIFTY CNXIT BANKNIFTY Increasing OI, Increasing Delivery Qty & Increasing Price in Stock Futures (Open Interest in '000 Shares) Symbol Total OI Del Qty Cash Market Prev Increase Spot Fut Spot Fut Prem / Events 11-Nov % Chg. 11-Nov % Del. % Del. in Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc STRTECH ,594, ,294, DCB ,803, ,896, ,461, ,966, UCOBANK ,786, , ,154, ,329, SYNDIBANK , , Nov Results ,764, ,332, BEML , , ORBITCORP , , ISPATIND ,181, ,067, Increasing OI, Increasing Delivery Qty & Decreasing Price, (Open Interest in '000 Shares) Symbol Total OI Del Qty Cash Market Prev Increase in Spot Fut Spot Fut Prem / 11-Nov % Chg. 11-Nov % Del. % Del. Del Qty (Rs.) (Rs.) Chg (%.) Chg (%.) Disc MAX ,096, , JISLJALEQS ,746, ,290, MUNDRAPORT ,593, ,317, BHEL , , APOLLOTYRE ,972, ,282, YESBANK , , ABB , , DABUR ,704, , ONGC , , VIJAYABANK ,378, ,947, Events Intraday Block Deals Open Interest Break-up (Rs. in Cr.) 11-Nov 10-Nov Change in OI % Chg Index Futures 19,808 20,828-1, Index Options 86,591 86, Total Index 106, , Stock Futures 51,736 52, Stock Options 8,919 8, Total Stocks 60,655 60, Grand Total 167, , FII's 118, , Others 48,469 48,

5 News Round-up Elecon Engineering Company has been awarded a prestigious order of Rs 36 crore from Essar Projects (India) for design, engineering, manufacturing, testing, inspection and supply, of equipment with all the auxiliaries / accessories for complete installation and commissioning of Material Handling Equipments for Paradeep Coal Berth Terminal Project. Shipping Corporation of India (SCI) is planning to add 1.7 Deadweight Tonnage (DWT) to its existing fleets by acquiring 29 vessels by March For this acquisition the company will be investing around Rs 6,000 crore. Of the new order, 26 vessels will be delivered to SCI during the next 2 years while it has received the possession of three. The vessels ordered include product tanker, crude oil carrier, bulk carrier, supply carrier, anchor handling vessels. Confidence Petroleum India has taken over 'Vedant LPG Venture' - a cylinder manufacturing plant at Raipur (Chattisgarh). Vedant LPG Venture is a newly constructed plant aimed to cater the LPG cylinder requirement for PSU Oil companies. Mahindra Satyam, the brand identity of Satyam Computer Services, a leading global consulting firm, has established a Windows Azure Center of Excellence (CoE) in partnership with Microsoft, the worldwide leader in software for personal and business computing. Tata Motors has a strategy, as it is planning to build upgraded versions of the Nano with larger engines and higher price tags, as it feels that company would not be doing the Nano justice if it remains just the 'world's cheapest car' and, hence, will look at all the 'natural evolutions' of the Nano, including upgrades. State-run lender, Power Finance Corporations is planning to raise Rs 1,153 crore of external commercial debt and also raise Rs 1,200-1,500 crore through tax-free infrastructure bonds by March. However, the company is awaiting government approval for the infrastructure bond issue. The fund raising is part of the company's plan to raise a total of Rs 27,700 crore this fiscal to meet its annual loan disbursal target. In the first half of this fiscal, the company raised Rs 15,000 crore. Himatsingka Seide has decided to raise fresh funds of up to Rs 150 crore through further issue of securities. The board of the company has approved the proposal for the same during its meeting held today. The said proposal is now due for approval of the shareholders of the company. Hyderabad-based Infronics Systems has bagged Aadhar (Unique ID) Project worth Rs 10 crore. A letter of intent has been issued by Civil Supplies Department, Government of Andhra Pradesh to the company to undertake UIDAI (Aadhar) enrollment of 40 lakh estimated population in Hyderabad and Srikakulam Districts together. Empee Sugars and Chemicals is looking to raise fresh funds of up to Rs 350 crore through issue of Global Depository Receipts (GDRs). The board of the company has approved the proposal for the same. India's food inflation continued to decline for a fourth consecutive week even though the pace of deceleration came down in the latest week. According to the data released by the minister of commerce and industry, inflation in India's food commodities space declined marginally to 12.30% compared with 12.85% during the week ended Oct 30. The Government said on Wednesday that although it was obvious that the much awaited goods and services tax (GST) cannot be implemented by start of the next fiscal, as was announced in the Budget for FY2011, it had not yet decided on any revised schedule as constitutional amendments to facilitate the same were yet to happen. As the Indian economy recovers rapidly from the global slowdown, government's tax revenue collections are also improving swiftly. With buoyancy seen in tax collections coupled with the strong nontax revenue performance, the government has now said that it would beat the budgeted revenue target. In a signal of robust recovery in the Indian economy, the earnings of Indian Railways, the largest transporter in the country, has registered a growth of over 7% during the first seven months of the current fiscal. The total approximate earnings of the Railways on originating basis increased to Rs 52, crore during the Apr- Oct 2010 period compared to Rs 48, crore during the same period last year. The much awaited and long delayed Companies Bill is not going to be tabled on the floor of the parliament in the ongoing winter session, the government accepted on Wednesday, but added that it may be tabled in the next session by which the work on the revised draft is expected to be finished. The Reserve Bank of India (RBI) may once again start tightening its monetary policy after a pause in the next mid-quarterly review scheduled for December, said a research note by the Deutsche Bank. The research department of the bank sees a further tightening of 75 basis points (bps) within FY11. The chairman of Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan said on Thursday that capital inflows were not a big issue for the country for now and the level of inflows so far was well below the absorptive capacity of the economy. If the involvement of Telecom minister A Raja in Rs 1.7 lakh crore 2G spectrum scam was not enough, the minister has reportedly refused to resign from his post despite the growing pressure on the Congress to take action against him. Source :ACE Equity, Reuters

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