Daily Market Outlook

March 7th , 2012 Market Updates:

Emerging Markets Indices Close BSE SENSEX 17173.29 S&P CNX Nifty 5222.40 Shanghai 2397.53 Bovespa (Brazil) 65114.15 RTS (Russia) 1666.04 Argentina 2651.60 Asian Markets Nikkei 225 9572.70 Hang Seng 20624.14 Strait Times 2918.27
US Markets

% Chg.
-1.09% -1.10% -0.54% -2.76% -0.62% -1.45% -0.67% -0.88% -0.47% -1.57% -1.36% -1.54% -3.58% -3.40% -1.86%

Market Outlook: The Dow dropped more than 200 points on Tuesday, handing Wall Street its worst day in three months on renewed fears of a disorderly default in Greece and concerns that China's slowdown would hit global growth. In addition, Economic growth in the European Union contracted 0.3% in the fourth quarter, according to the second estimate from Eurostat, the EU statistics agency. That is compared with third-quarter growth of 0.1% in the eurozone and 0.3% in the EU. Meanwhile, investors are wary of political tension between Iran and Israel, which has driven oil and gas prices sharply higher. Oil prices retreated on Tuesday as data showing a shrinking euro zone economy fueled fears of curbed demand for petroleum, while news that major powers accepted Iran's offer for more talks on its nuclear program eased concerns about supply disruptions. Oil, global equities and the euro came under pressure from worries about a global growth slowdown and uncertainty over whether enough investors would participate in a Greek debt restructuring to enable it to avert a default. Brent crude fell $1.82 to settle at $121.98 a barrel. U.S. crude fell $2.02 to settle at $104.70 a barrel. Brent's premium to U.S. crude was little changed, ending at $17.28 a barrel based on settlements. On other hand, Gold fell 2 percent in heavy volume on Tuesday, breaching technical support as investors worried more about a possible Greek default, but some analysts said the metal looked oversold and was poised for a rebound. Silver fell 3.5 percent, and platinum and palladium posted their largest daily declines this year, as investors grew more cautious about the global economic outlook a day after China cut its growth forecast and data showed the European Union was not likely to avoid a recession. Spot gold was down 2.1 percent at $1,670.41 an ounce. U.S. gold futures for April delivery settled down $31.80 at $1,672.10. Asian shares fell for a third day in a row on Wednesday as investors grew more risk averse, with renewed uncertainty over Greece's bailout and mounting worries about slowing global economies overshadowing support provided by ample liquidity. Reflecting a sluggish demand for loans, bank credit posted a 15.6% annual growth in February 2012. The outstanding credit as of February 24, 2012, stood at Rs 44,07,524 crore. The high interest rates, economic slowdown in domestic economy and global crisis have led to dip in demand for credit from industry in the year ending March 2012. Reserve Bank of India data showed banks deposits stood at Rs 58,15,467 crore, showing a 14.3% annual growth in deposits over February 2011. Banks' investment in government bonds stood at Rs 17,41,856 crore. Banks have preferred to park funds in federal debt due to the soft credit demand. On a year-on-year basis, investment in government bonds jumped 17.5%. The governement has reduced the railway freight on iron ore meant for exports by 16 per cent effective Tuesday, an industry body official said, a move expected to help exporters who have come under pressure after an increase in export duty in January. The new freight has been set at 2,425 rupees ($48.48) per tonne of iron ore, down 475 rupees from the previous freight cost. In addition, the railways have effected major changes in freight slabs, which would result in a 20-25% rate increase over the same distance. Moreover, by abolishing the classification for fertilisers and food grains and bringing them under a higher slab, the railways have raised freight rates for these commodities. The changes, with immediate effect, are expected to fetch Indian Railways Rs 10,000 crore in additional revenue annually, according to railway officials. Strong demand for the dollar, weak equities and risk aversion among investors saw the rupee falling to levels last seen in January. On Tuesday, the rupee opened at 49.94 and closed at 50.37. The lack of dollar inflows, coupled with strong dollar demand from oil companies, is putting pressure on the rupee, said a dealer with a public sector bank. With inflation still ruling high and crude oil prices rising, the sentiment has turned negative. The fear is that India's fiscal deficit may worsen. These along with a general downtrend in global macro economic indicators have led to a risk aversion among investors, which is driving them towards the US dollar,'' the dealer said. The rupee could continue to be under pressure for some time, as foreign investors continue to pull out of domestic equity markets. The Rupee situation could worsen further as the demand for Dollars will only increase in the days ahead along with the easing of restriction on Rupee trading. Domestic markets may have negative opening along with its Asian peers, which are trading negative. Traders shall look Niftys key levels, if Nifty breaks below 5200 then may touch to 5175 - 5160 and immediate resistance seen at 5260 and strong support for Nifty is at 5160.

Dow Jones 12759.15 Nasdaq 2910.32 S&P 500 1343.36 European Markets CAC 40 3362.56 DAX 6633.11 FTSE 5765.80

Indian Indices
Indices BSE SENSEX S&P CNX Nifty BSE Midcap BSE Small Cap BSE 100 BSE 200 BSE 500 CNX 100 CNX Midcap S&P CNX 500 BSE Auto BSE Bankex BSE Con. Dur. BSE Cap. Gds. BSE FMCG BSE Healthcare BSE IT BSE Metal BSE Oil & Gas BSE Power BSE PSU BSE Realty BSE Teck CNX Bank CNX IT Close
17173.29 5222.40 6201.47 6700.19 9049.72 2126.64 6661.39 5116.70 7468.00 4151.40 9780.82 11579.77 6441.66 9851.28 4170.70 6330.97 6082.91 11153.56 8335.82 2189.59 7502.13 1761.81 3569.33 10058.15 6511.70

% Chg.
-1.09% -1.10% -1.11% -1.29% -1.05% -1.06% -1.06% -2.49% -2.45% -2.46% -0.52% -1.09% 0.62% -1.94% 0.79% -0.32% 0.52% -3.88% -1.79% -2.38% -0.82% -0.97% -0.32% -3.75% -0.57%

Institutional Investors Net Position Cash F&O Total MFs -143.6 -143.6 NA FIIs -401.0 196.8 -597.8 Total -544.6 53.2 -597.8
05/03/12
Source SEBI

FII & DII Activity on BSE & NSE (Crs.) 06/03/12 Buy Sell Net DII Cash 1238.12 1058.21 179.9 FII Cash 2629.95 2871.17 -241.2 FII F&O 35155.77 35337.69 -181.9 Total 39023.8 39267.1 -243.2
* Provisional Figures, Source NSE

Daily Market Outlook

News
Market Outstanding OI in F&O Segment F&O Open Interest Index Futures Index Options Stock Futures Stock Options Total Value (Crs.)
382.21 135.17 -263.71 23.65 277.32

% Chg.
6.00 0.63 -1.87 3.41 0.65

Economic / Industry News:

Era Infra secures contract worth Rs 5.6 bn from DMRC: Era Infra Engineering (EIEL) has been awarded a contract with an estimated cost of Rs 5.6 billion by Delhi Metro Rail Corporation (DMRC) for ``Design and Construction of Tunnel by Shield TBM and Lal Qila & Kashmere Gate Stations by cut and cover method between Jama Masjid and Kashmere Gate for underground works under the Delhi MRTS project of Phase-III`` in joint venture with Metrostroy. Hero MotoCorp to invest Rs 12 bn in Gujarat plant: Hero MotoCorp is expected to announce plans to set up its fourth plant in Gujarat in March itself, even as talks speed up for a fifth facility likely at Karnataka.Apart from feeding growing local demand, additional capacity would help the two-wheeler market leader to meet its USD 1 billion export target by 2020.In a deal that has already been finalised with the Gujarat government, the company is likely to invest about Rs 12 billion for a two-million-unit capacity plant set up over two phases, sources close to the development said.Chosen because of the proximity to ports, the location is a 300-acre plot close to General Motors` car plant in Halol, Central Gujarat. After Nano, Tata eyes 100 kmpl with Megapixel: At a time when fuel conservation is becoming imperative across the world, India's Tata Motors is aiming to make a car, Tata Megapixel that can deliver up to 100 kilometre from a litre of fuel by using a unique combination of technology.The company, which surprised the world with 'Rs 1 lakh car' Nano, today unveiled the concept vehicle which is a four-seater global range extended electric vehicle (REEV) meant for city driving. The new innovation from the house of Tatas is likely to be commercially launched in around three years from now."Realistically such products take at least 3 years to develop. There are lots of electric technology to be developed, besides many other things," Tata Group Chairman Ratan Tata said after unveiling the vehicle here at the Geneva Motor Show.The vehicle combines a lithium ion phosphate battery and an on-board petrol engine generator for recharging on the move. According to the company, Tata Megapixel offers a range of up to 900 km (with a single tank of fuel) and fuel economy of 100 km/litre (under battery only power).It also said the car will have CO2 emission of "just 22 gm/km". Tata Steel hikes prices by 1,000 per tone: Tata Steel has increased prices of its long products by about Rs 1,000 per metric tonne. "Yes, we have increased the price of our long product by around Rs 1,000 per tonne from March 1," Tata Steel Managing Director HM Nerurkar said when asked about the price hike. "The demand of long product was good," he said.Referring to the Kalinganagar project in Odisha, Nerurkar said the work is going on and the progress was far better than expectations.We are targeting to commission it between January and March 2014 and working towards it, he said.The company will spend Rs 24,000 crore by 2014 while the total cost of the project was Rs 36,000 crore, he said.The project will be have the capacity of 3.5 million tonne in the first phase, he added. Oil cos push for Rs 5 per litre hike in petrol price: With electioneering in five states coming to an end, state-owned oil companies are pushing for raising petrol price by over Rs 5 per litre but the actual increase would depend on the government nod."We are losing Rs 5.10 per litre on petrol currently," a senior oil company official said. "With counting for assembly elections in five states ending today, we would be approaching the government for appropriate directions on price revision." Oil firms had last revised petrol prices on December 1 after which rates have not been changed because of Assembly elections in states like Uttar Pradesh. IndianOil, Bharat Petroleum and Hindustan Petroleum together have lost over Rs 900 crore since the last revision which was done at international gasoline price (the benchmark for deciding domestic retail rates) of $109 per barrel. Gasoline rates have since risen to $130.71 a barrel."In all probability, petrol price will be increased but by how much is for the government to decide," the official said.

Money Market Call Money Rate 7.8%21 Govt. Sec.

Close
103.64

Yield (%)
9.0 8.23

Currency* British Pound Euro Japanese Yen US Dollar * RBI Reference Rate

Close
79.32 66.02 61.39 50.03

% Chg.
0.67 0.43 0.20 0.46

Bullion / Crude

Close

% Chg.
-1.89% -3.02% -1.47% -1.89%

Gold 1674.33 Silver 32.95 Brent Crude * 121.98 WTI Crude * 104.70 * Future price @ 7.30 AM IST

ADR Prices ($) HDFC Bank ICICI Bank Infosys Tech. MTNL Patni Comp. Dr.Reddys Sterlite Tata Communication Tata Motors Wipro

Close
33.04 33.77 55.76 1.14 18.70 32.81 9.00 8.91 26.23 10.59

% Chg.
-3.11 -5.09 -2.31 -8.06 -2.25 -2.12 -5.66 -5.21 -4.02 -2.93

Market Breadth (NSE) Advances Declines Same Total A/D Ratio

420 1061 59 1540 0.40:1

Daily Market Outlook

Institutional Activity (Rs. in Crores) FIIs Date 5-Mar-12 2-Mar-12 1-Mar-12 29-Feb-12 28-Feb-12 27-Feb-12 Total of Current Week Total of Last Week Total for Current Month Total of Last Month Year Upto Date Last Year Purchase 1871.3 2385.2 2436.9 3679.3 2955.4 3079.3 1871.3 14536.1 6693.4 80117.5 90490.2 769511.2 Sales 1674.5 1783.1 2160.9 3028.8 2099 3621.7 1674.5 12693.5 5618.5 54900.0 63547.3 642938.4 Net 196.8 602.1 276.0 650.5 856.4 -542.4 196.8 1842.6 1074.9 25217.5 26942.9 133326.4 Purchase 415.2 398 408.4 655.8 686.4 514.7 415.2 2265.3 1221.6 13031.5 15543.4 167205.6 Mutual Funds Sales 558.8 547.6 665.6 722 578 863.1 558.8 2828.7 1772.0 15643.3 18531.6 175289.4 Net -143.6 -149.6 -257.2 -66.2 108.4 -348.4 -143.6 -563.4 -550.4 -2611.8 -2988.2 -33122.9 Total Net 53.2 452.5 18.8 584.3 964.8 -890.8 53.2 1279.2 524.5 22605.7 23954.7 544168.5

FIIDailyTrendsinDerivative(Rs.inCrores)
Buy Details No. Of Contracts Index Futures Index Options Stock Futures Stock Options Total
Source: NSE 120405.0 1058193.0 100899.0 36356.0 1315853.0 3196.0 28043.2 2903.3 1013.3 35155.8

Sell Value No. Of Contracts

134664.0 1062606.0 91184.0 36482.0 1324936.0 3572.4 28149.2 2601.3 1014.8 35337.7 -376.4 -106.0 302.0 -1.5 -181.9

Current Open Interest Value NET No. Of Contracts

258589.5 832015.5 488088.5 25636.5 1604330.0 6754.1 21723.1 13812.1 717.4 43006.8

Previous Open Interest No. Of Contracts

241018.0 817756.0 489298.0 24419.5 1572491.5 6371.9 21588.0 14075.8 693.7 42729.4

NET Value
382.2 135.2 -263.7 23.6 277.3

Value

Value % Change
6.0 0.6 -1.9 3.4 0.6

Market Turnover (Rs. Crores) 06/03/12 05/03/12 BSE NSE NSE F&O Total
3037.5 15012.5 165770.9 183820.9 2456.1 10760.3 86124.1 99340.5

Volumes (Lacs Shares) % Chg.

23.67 39.52 92.48 85.04

06/03/12 BSE NSE Total

2806 8830 11636

05/03/12
2374 6659 9033

% Chg.
18.20 32.60 28.82

Volume Comparison

Value Comparison

200000 30000 25000 20000 15000

s 10000 h ) k a L n5000 i ( s e m 0 u l o V 4 1 4 3 6 2 1 6 5 8 4 2 1 8 9 9 7 8 0 8 2 9 9 5 3 8 5 2 3 2 2 6 1 3 2 3 4 9 5 2 8 6 2 4 2 5 9 3 3 2

180000 160000 140000 120000 8 2 7 1 3 1 6 2 9 9 7 1 6 1 2 0 3 1 0 1 2 9 4 8 4 1 5 1 0 1 0 7 8 2 1 1 0 3 1 8 7 3 3 7 6 0 9 1 6 2 5 9 2 1 9 9 2 0 2 6 1 3 9 3 0 8 6 7 0 1

5 8 5 3 1

6 1 7 1 1 9 5 6 6

5 4 4 1 1

4 7 3 2

) s h k a L n i ( e u l a V

100000 80000 60000 40000 20000 0 7 9 4 3 0 9 3 6 1

6 5 4 2

Prev.Mnth Avg
BSE

Curr.Mnth Avg (till date)

NSE

Last Week Avg

F&O

Prev.day

Prev.Mnth AvgCurr.Mnth Avg Last Week Avg (till date)

BSE NSE F&O

Prev.day

Open Int.

Open Int.

Daily Market Outlook

Stocks Contribution to Sensex Gainers / Losers

Company ITC LTD INFOSYS LTD COAL INDIA DLF LTD BAJAJ AUTO LTD Close 210.0 2,849.1 330.2 197.5 1,720.8 % Chg. 1.4 1.4 0.7 2.7 1.1 Points 13.8 13.6 8.3 5.4 3.3 Company RELIANCE IND. BHARTI AIRTEL TATA MOTORS TATA STEEL BHEL Close 776.5 336.00 266 426.20 276 % Chg. -2.7 -3.7 -2.7 -5.4 -3.2 Points -40.2 -27.5 -14.3 -13 -12.9

Stocks Contribution to Nifty Gainers / Losers

Company ITC LTD INFOSYS LTD DLF LTD SIEMENS COAL INDIA Close 210.3 2,833.0 197.5 789.0 328.8 % Chg. 1.6 0.8 2.8 2.9 0.3 Points 3.9 2 1.4 1.2 0.9 Company RELIANCE IND. BHARTI AIRTEL TCS TATA MOTORS BHEL Close 775.5 335.4 1,190.0 264.9 272.9 % Chg. -2.8 -3.9 -1.4 -3.4 -4.3 Points -10.5 -7.5 -5 -4.5 -4.4

Comparison of Rupee Equivalent ADR Prices

ADR% chg Prev. Day BSE% chg Prev. Day Prem Disc. (ADRBSE) ADR% chg Prev. Day BSE% chg Prev. Day Prem Disc. (ADRBSE)

Company

ADR Price($) 06.03.12

ADR Converted Price

BSE price on 06.03.12

ADR Price($) 05.03.12

ADR Converted Price

BSE price 05.03.12

Dr Reddy's HDFC Bank ICICI Bank Infosys Tech MTNL Patni Comp. Ranbaxy Labs Reliance Inds. SBI Sterlite Inds. Tata Motors Wipro Dollar Rate: 50.38/$

32.8 33.0 33.8 55.8 1.1 18.7 8.2 31.1 85.7 9.0 26.2 10.6

1652.8 554.8 850.6 2809.0 28.7 471.0 414.6 782.1 2158.6 113.3 264.3 533.5

-2.1% -3.1% -5.1% -2.3% -8.1% -2.2% -2.0% -4.0% -1.9% -5.7% -4.0% -2.9%

1689.3 507.4 853.3 2852.5 30.3 469.7 413.0 776.6 2147.9 113.9 267.0 432.1

0.9% -0.7% -2.0% 1.5% -6.5% -0.5% -1.2% -2.6% -1.3% -5.5% -2.6% 0.2%

-2.2% 9.3% -0.3% -1.5% -5.2% 0.3% 0.4% 0.7% 0.5% -0.5% -1.0% 23.5%

33.5 34.1 35.6 57.1 1.2 19.1 8.4 32.4 87.4 9.5 27.3 10.9

1688.6 572.6 896.2 2875.5 31.2 481.8 423.2 814.8 2201.4 120.1 275.4 549.6

-1.9% -0.4% -2.7% -1.1% 2.5% -1.6% -4.0% -2.5% -4.5% -4.0% -0.2% -1.4%

1674.5 511.0 870.4 2809.9 32.4 472.2 418.2 797.5 2176.1 120.5 274.2 431.4

-0.6% -1.6% -3.8% -1.7% -1.7% -1.0% -1.8% -2.0% -3.3% -2.2% 2.3% 0.9%

0.8% 12.1% 3.0% 2.3% -3.6% 2.1% 1.2% 2.2% 1.2% -0.3% 0.4% 27.4%