Market Outlook 19th August 2011

Market Outlook
India Research
August 19, 2011
Dealers Diary
The market edged lower in early trade on weak Asian shares. A bout of volatility was witnessed in mid-morning trade as the Sensex cut losses soon after a sudden slide. The market extended losses to hit fresh intraday low in early afternoon trade. Bank stocks declined on concerns that higher interest rates may crimp loan growth. Software pivotals were under pressure on concerns that a likely economic slowdown in the US and Europe will hit technology spending by overseas clients. A bout of volatility was witnessed as the market weakened once again after trimming losses in afternoon trade. The market extended losses in mid-afternoon trade. The market slumped in late trade. The Sensex and Nifty closed with losses of 2.2% each. The mid-cap and small-cap indices ended with losses of 2.1% and 2.6%, respectively. Among the front runners, DLF, Hero Motocorp, Hindustan Unilever and Jaiprakash Asso. gained 13%, while ICICI Bank, Wipro, SBI, Sterlite Inds and TCS lost 45%. Among mid caps, Kwality Dairy, Network18 Media, GTL, Usha Martin and India Sec gained 3 8%, while S Kumar Nation, Arvind, HCL Infosystems, Educomp Sol and Alok Inds lost 910%.
Domestic Indices BSE Sensex Nifty MID CAP SMALL CAP BSE HC BSE PSU BANKEX AUTO METAL OIL & GAS BSE IT Global Indices Dow Jones NASDAQ FTSE Nikkei Hang Seng Straits Times Shanghai Com Indian ADRs Infosys Wipro ICICI Bank HDFC Bank
Chg (%) (2.2) (2.2) (2.1) (2.6) (1.8) (1.9) (3.5) (1.4) (2.5) (1.4) (4.0) Chg (%) (3.7) (5.2) (4.5) (1.3) (1.3) (0.1) (1.6) Chg (%) (11.4) (8.3) (8.6) (4.5)
(Pts) (112.5) (130.3) (192.3) (110.9) (147.7) (114.4) (117.7) (205.9) (Pts) (419.6) (131.1) (239.4) (113.5) (272.8) (3.6) (41.8) (Pts) (6.2) (0.9) (3.5) (1.5)
(Close) 4,944 6,212 7,148 5,911 7,783 8,246 8,219 4,957 (Close) 10,991 2,380 5,092 8,944 20,016 2,825 2,559 (Close) $47.9 $9.5 $37.0 $31.4
(371.0) 16,470
(398.8) 10,972 (307.4) 11,813
Markets Today
The trend deciding level for the day is 16,607/4,985 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 16,780 17,090/5,038 5,131 levels. However, if NIFTY trades below 16,607/4,985 levels for the first half-an-hour of trade then it may correct up to 16,296 16,123/4,891 4,839 levels.
Indices SENSEX NIFTY S2 16,123 4,839 S1 16,296 4,891 R1 16,780 5,038 R2 17,090 5,131
News Analysis
ICICI bank launches new loan offering Mahindra & Mahindra plans compact Verito to get excise benefits
Refer detailed news analysis on the following page
Advances / Declines Advances Declines Unchanged
BSE 679 2,180 104
NSE 220 1,216 40
Net Inflows (August 17, 2011) ` cr Purch FII MFs 2,254 433
Sales 2,661 466
Net (408) (33)
MTD (6,233) 1,584
YTD 2,501 5,362
Volumes (` cr) BSE NSE 2,242 10,510
FII Derivatives (August 18, 2011) ` cr Index Futures Stock Futures Gainers / Losers Gainers Company Suzlon Energy DLF Bharat Electricals Ashok Leyland Jain Irrigation Price (`) 39 182 1,591 24 169 chg (%) 5.5 2.7 1.6 1.3 1.2 Company Educomp Sol. Tech Mahindra Power Finance HCL Tech IRB Infra Losers Price (`) 234 662 148 393 137 chg (%) (8.9) (7.5) (7.2) (7.0) (7.0)
1
Purch 3,048 3,402
Sales 3,375 3,395
Net (327) 7
Open Interest 14,765 28,901
Please refer to important disclosures at the end of this report
Sebi Registration No: INB 010996539
Market Outlook | India Research
ICICI bank launches new home loan offering

ICICI Bank has announced the launch of fixed interest rate product for home loans. Under this product, a customer can avail a home loan at a fixed interest rate valid for a period of one or two years, post which the loan will move to floating interest rate. We expect ICICI bank to register a loan growth of 20% and 23% for FY2012 and FY2013, respectively. We maintain a Buy recommendation on the stock.
Mahindra & Mahindra plans compact Verito to get excise benefits

Mahindra & Mahindra plans to roll out a sub-four metre compact model of Verito in an attempt to get excise benefits. The compact Verito will attract only 10% excise duty as against 22% currently. It will also be priced lower. The company expects to launch the model in next 6-8 months. We expect that Verito sales will be benefitted by the launch of the compact version and will help M&M continue its sales momentum in the passenger car segment. We recommend Accumulate on the stock with a target price of `815.
Economic and Political News

Food inflation eases to 9.03% for the week ended August 6, 2011 Delhi-NCR records highest job creation in July 2011: Assocham Oil firms losing `235cr/day on fuel sales: Petroleum Ministry Power Ministry ups pressure on Coal Ministry to reallocate five coal blocks to NTPC
Corporate News
OVL targets 20mn tonnes of oil output from overseas assets Suven Life Sciences gets approvals for our product patents for its new chemical entities Jet Airways aims to raise domestic low-fare capacity to 8085% of the total fleet
Source: Economic Times, Business Standard, Business Line, Financial Express, Mint
August 19, 2011
Market Outlook | India Research

Research Team Tel: 022-3935 7800 E-mail: [email protected] Website: www.angelbroking.com
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Ratings (Returns):
Buy (> 15%) Reduce (-5% to 15%)
Accumulate (5% to 15%) Sell (< -15%)
Neutral (-5 to 5%)
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August 19, 2011

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Market Outlook

(398.8) 10,972 (307.4) 11,813

Advances / Declines Advances Declines Unchanged

BSE 679 2,180 104

NSE 220 1,216 40

Sales 2,661 466

Net (408) (33)

MTD (6,233) 1,584

YTD 2,501 5,362

Volumes (` cr) BSE NSE 2,242 10,510

Purch 3,048 3,402

Sales 3,375 3,395

Open Interest 14,765 28,901

Please refer to important disclosures at the end of this report

Sebi Registration No: INB 010996539

Market Outlook | India Research

ICICI bank launches new home loan offering

Mahindra & Mahindra plans compact Verito to get excise benefits

Economic and Political News

August 19, 2011

Market Outlook | India Research

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

August 19, 2011

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