Market Outlook 24th Dec

7/30/2019 Market Outlook 24th Dec

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Market OutlookDecember 24, 2012

www.angelbroking.com


Dealers Diary

The Indian market is expected to open in the green mirroring positive opening to

SGX Nifty and positive start to most Asian indices.

The U.S. markets ended on a negative note on Friday as renewed fiscal worries

lead to weakness on the Wall Street. The weakness on Wall Street came after

House Speaker scrapped the plans to hold a House vote on the Plan B legislation

due to a lack of support from members. The focus on the developments in

Washington overshadowed a batch of upbeat economic data, including a report

showing a bigger than expected increase in durable goods orders which increased

by 0.7% in November following a 1.1% increase in October. The Commerce

Department also released a separate report showing a much bigger than expected

increase in personal income in November.

While trading activity is likely to be relatively subdued during the week due to

Christmas, traders are likely to keep a close eye on developments in Washington

as the fiscal cliff deadline approaches. The budget negotiations are likely to once

again overshadow a batch of economic data, including reports on new home

sales, consumer confidence, and Chicago-area business activity.

Markets Today

The trend deciding level for the day is 19,286 / 5,859 levels. If NIFTY trades above

this level during the first half-an-hour of trade then we may witness a further rally

up to 19,351 19,459 / 5,877 5,905 levels. However, if NIFTY trades below

19,286 / 5,859 levels for the first half-an-hour of trade then it may correct up to

19,177 19,112 / 5,830 5,813 levels.

SENSEX 19,112 19,177 19,286 19,351 19,459NIFTY 5,813 5,830 5,859 5,877 5,905

News Analysis CBI charges Vodafone, Bharti in telecom case Oil ministry to allow Cairn India to further explore Rajasthan oilfields Maruti Suzuki expects sluggish growth in FY2014 Apollo Tyres issues warrants to promoters Jyothy Laboratories Management meet takeaways JKI plans expansion at the Mysore plant

Refer detailed news analysis on the following page

Net Inflows (December 20, 2012)

FII 2,877 2,286 590 16,720 121,739

MFs 571 811 (240) (2,504) (20,101)

FII Derivatives (December 21, 2012)

Index Futures 3,701 3,824 (123) 13,268

Stock Futures 6,189 6,245 (56) 36,067

Gainers / Losers

Container Corp. 937 2.9 Jet Air India 567 (7.0)

Glenmark Pharma 499 2.5 Adani Power 61 (6.7)

National Aluminum 50 2.2 HDIL 107 (5.7)

Pantaloon Retail 238 1.9 IFCI 34 (5.6)

Havells India 635 1.6 Strides Arcolabs 1,112 (4.9)

BSE Sensex (1.1) (211.9) 19,242

Nifty (1.2) (68.7) 5,848

MID CAP (1.5) (104.1) 6,998

SMALL CAP (1.5) (109.3) 7,326

BSE HC (1.7) (139.1) 8,060

BSE PSU (1.2) (89.9) 7,187

BANKEX (1.3) (192.6) 14,151

AUTO (1.4) (154.1) 11,253

METAL (1.8) (201.9) 11,039

OIL & GAS (1.5) (129.5) 8,340

BSE IT (0.3) (14.2) 5,624

Dow Jones (0.9) (120.9) 13,191NASDAQ (1.0) (29.4) 3,021

FTSE (0.3) (18.4) 5,940

Nikkei (1.0) (99.3) 9,940

Hang Seng (0.7) (153.5) 22,506

Straits Times (0.4) (12.0) 3,164

Shanghai Com (0.7) (15.0) 2,153

INFY 0.5 0.2 $42.7

WIT (1.0) (0.1) $8.8IBN (0.6) (0.3) $44.6

HDB (1.0) (0.4) $41.1

Advances 979 358

Declines 1,939 1,166

Unchanged 101 75

BSE 2,226

NSE 12,063


2/14



CBI charges Vodafone, Bharti in telecom case

The CBI on Friday filed a chargesheet against Bharti Airtel, Vodafone and former

Secretary of the Department of Telecom Shyamal Ghosh for alleged irregularities

in allocating additional 2G spectrum in 2002. No promoter of any telecom

company has been named in the chargesheet. The CBI has alleged that thedecision to allocate additional spectrum to mobile companies in 2002 was a

conspiracy to benefit the telecom companies. It has pegged the loss to the

Government at `846cr. All the accused have been booked for criminal conspiracy

and under provisions of Prevention of Corruption Act.

The case dates back to 2002 when the Telecom Ministry, under Pramod Mahajan,

introduced new spectrum allocation rules based on subscriber-linked criteria.

While the technical committee of the Department of Telecom had recommended

allotting additional spectrum beyond 6.2MHz only after the operators reached a

subscriber base of 9 lakh, the requirement was reduced by the DoT to 4 lakh.

According to the CBI, the decision to give additional spectrum without suitableincrease in revenue share caused undue advantage to various mobile companies

and loss to the national exchequer. The then private secretary to Mahajan has

disclosed that in a high-level meeting, technical officers had said that better use of

technology could avoid grant of additional spectrum. But the Minister insisted that

grant of additional spectrum was necessary for growth and, on the same day, a

decision was taken to allocate additional spectrum. This development adds to the

other regulatory overhangs going on in the Indian telecom sector.

Oil ministry to allow Cairn India to further exploreRajasthan oilfields

Media reports suggests that the oil ministry has decided to allow Cairn India to

further explore its Rajasthan oilfields and this would help the company raise its

output by more than 70%. Cairn was unable to raise its output because the

production-sharing contract (PSC) was interpreted as to limit exploration activities

in the first seven years of the contract. However, after several appeal to the oil

ministry the company is now being allowed to raise the production. This

development is on expected lines and therefore

Maruti Suzuki expects sluggish growth in FY2014

Maruti Suzuki (MSIL) has indicated that it expects the demandenvironment in thepassenger car industry to remain sluggish in FY2014. Accordingly, the

management expects to clock a muted volume growth of around 6% in FY2013

and 6-7% in FY2014. The management expects the domestic demand

environment to remain challenging going ahead due to macro-economic

pressures and higher fuel prices. Further, the exports growth will also remain

under pressure due to economic concerns in Europe. Nonetheless, the company

remains positive on the domestic passenger car market in the long run and is

expanding its capacity gradually. MSIL has already begun work at the new Gujarat

plant where it intends to set up a 250,000 units/year facility with an investment of

`4,000cr. Further, the company is also planning to set up a second plant in


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4/14



Overall, the company is expecting the restructuring to finish by the end of FY2013E

and is very optimistic that it will grow at much faster rate than the industry in

coming 6 months.

JKI plans expansion at the Mysore plant

JK Tyres and Industries (JKI) has announced that it plans to expand the production

capacity of its truck and bus radial (TBR) tyres at the Mysore plant with an

investment of `476.5cr. Post the expansion plan, the TBR capacity at the Mysore

plant will increase to 106,000,000 tyres/ year from the current levels of 367,000

tyres/ year. We see this as a positive announcement for the company as the

increasing capacity levels will enable the company to meet the rising demand for

the TBR tyres in the wake of radialization in the TBR industry. However, we believe

that the company will have to incur additional debt to meet the expansion plans

which would further stretch its balance sheet (net debt: equity currently at 2.5). Wewould like to seek more clarity from the management on the source of funding for

the current expansion plan.

Economic and Political News

FDI inflows jump 65% to US$1.94bn in October 2012 S&P expects India's economic growth at 6.5% in 2013 Environment clearance issue for coal blocks to be examined FIIs pour US$3.4bn in Dec, inflows cross US$23bn in 2012 Government may put 3% holding in public sector ETF India Inc's equity mop-up crosses `30,000cr in 2012

Corporate News

IL&FS awarded `168cr port contract NMDC appoints consultant to review pricing mechanism Government okays `3,004cr capital infusion for SBI GAIL to get Dabhol commissioning cargo on Dec 28, 2012Source: Economic Times, Business Standard, Business Line, Financial Express, Mint


5/14

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

December 27, 2012 8:30PM US Consumer Confidence S.A./ 1985=100 Dec 73.70 70.00

8:30PM US New home sales Thousands Nov 368.00 380.00

January 1, 2013 6:30AM China PMI Manufacturing Value Dec 50.60 51.00

January 2, 2013 2:25PM Germany PMI Manufacturing Value Dec F 46.30 --

3:00PM UK PMI Manufacturing Value Dec 49.10 49.10

January 3, 2013 2:25PM Germany Unemployment change (000's) Thousands Dec 5.00 --

January 4, 2013 2:25PM Germany PMI Services Value Dec F 52.10 --

7:00PM US Change in Nonfarm payrolls Thousands Dec 146.00 --

7:00PM US Unnemployment rate % Dec 7.70 --

January 8, 2013 3:30PM Euro Zone Euro-Zone Consumer Confidence Value Dec F (26.60) --

January 9, 2013 5:29PM China Consumer Price Index (YoY) % Change Dec 2.00 --

5:29PM China Industrial Production (YoY) % Change Dec 10.10 --

January 10, 2013 5:29PM India Imports YoY% % Change Dec 6.40 --

5:29PM India Exports YoY% % Change Dec (4.20) --

5:29PM China Exports YoY% % Change Dec 2.90 --

5:30PM UK BOE Announces rates % Ratio Jan 10 0.50 0.50

6:15PM Euro Zone ECB announces interest rates % Jan 10 0.75 0.75

January 11, 2013 3:00PM UK Industrial Production (YoY) % Change Nov (3.00) --

January 13, 2013 5:29PM China Real GDP (YoY) % Change 4Q 7.40 --

January 14, 2013 12:00PM India Monthly Wholesale Prices YoY% % Change Dec 7.24 --

11:00AM India Industrial Production YoY % Change Nov 8.20 --

January 15, 2013 3:00PM UK CPI (YoY) % Change Dec 2.70 --

7:00PM US Producer Price Index (mom) % Change Dec (0.80) --

January 16, 2013 3:30PM Euro Zone Euro-Zone CPI (YoY) % Dec 2.20 --7:00PM US Consumer price index (mom) % Change Dec (0.30) --

7:45PM US Industrial Production % Dec 1.05 --

January 17, 2013 7:00PM US Housing Starts Thousands Dec 861.00 --

7:00PM US Building permits Thousands Dec 899.00 --

January 23, 2013 3:00PM UK Jobless claims change % Change Dec (3.00) --

January 29, 2013 11:00AM India RBI Repo rate % Jan 29 8.00 --

11:00AM India RBI Cash Reserve ratio % Jan 29 4.25 --

11:00AM India RBI Reverse Repo rate % Jan 29 7.00 --

January 31, 2013 12:45AM US FOMC rate decision % Jan 30 0.25 --

Source: Bloomberg, Angel Research

December 24, 2012

Market Outlook


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Macro watch

Exhibit 1 :Q uarterly G D P trends

Source: CSO, Ang el Research

Exhibit 2 :IIP trends

Source: M O SPI, Ang el Research

Exhibit 3 :M onthly WPI inflation trends

Source: M O SPI, Ang el Research

Exhibit 4 :M a nufacturing a nd services PM I

Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion

Exhibit 5 :Expo rts an d impo rts growth trends

Source: Bloomberg, Angel Research

Exhibit 6 :Key policy rates

Source: RBI, Angel Research

3. 5

5. 7

9. 0

7. 5

11.2

8. 5

7. 68 .2

9. 2

8. 0

6. 76. 1

5. 3 5. 5 5. 3

3. 0

4. 0

5. 0

6. 0

7. 0

8. 0

9. 0

10.0

11.0

12.0

4Q

FY09

1Q

FY10

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

3Q

FY12

4Q

FY12

1Q

FY13

2Q

FY13

(%)

6. 0

2 .7

1. 0

4. 3

(2.8)

(1.3)

2 .5

(2.0)

(0.1)

2. 3

(0.7)

8 .2

(4.0)

(2.0)

-

2. 0

4. 0

6. 0

8. 0

10.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

(%)

7 .7

6 .9

7 .4

7 .7

7 .5 7 .67 .6 7 .5

8 .0 8 .1

7 .5

7 .2

6 .2

6 .4

6 .6

6 .8

7 .0

7 .2

7 .4

7 .6

7 .8

8 .0

8 .2

Dec-11

Jan-12

Feb-12

M

ar-12

Apr-12

May-12

Jun-12

Jul-12

Aug-12

Sep-12

O

ct-12

Nov-12

(%)

48.0

50.0

52.0

54.0

56.0

58.0

60.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar

-12

Apr

-12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

-12

O

ct-12

Nov

-12

M fg. PM I Services PM I

(30.0)

(15.0)

0 .0

15.0

30.0

45.0

Nov

-11

Dec

-11

Jan

-12

Fe

b-1

2

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

l-12

Aug

-12

Sep

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O

ct-12

Exp orts yoy g ro wth Im ports yo y growth( %)

8.00

7.00

4.25

4.00

5.00

6.00

7.00

8.00

9.00

Nov

-11

Dec

-11

Jan

-12

Fe

b-

12

M

ar-

12

Apr-

12

M

ay

-12

Jun

-12

Ju

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O

ct-12

Nov

-12

Repo rate Reverse Repo rate C RR(%)


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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E

Agri / Agri Chemical

Rallis Neutral 149 - 2,896 1,466 1,686 14.8 14.8 7.0 8.1 21.3 18.4 4.5 3.9 22.6 22.5 2.1 1.8

United Phosphorus Buy 123 170 5,674 8,421 9,263 16.5 16.5 15.0 17.0 8.2 7.2 1.2 1.1 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 245 270 4,188 2,911 3,321 16.2 16.2 17.3 19.8 14.2 12.4 3.9 3.0 31.1 27.6 1.4 1.2

Apollo Tyres Accumulate 87 96 4,385 13,713 15,341 11.2 11.2 12.5 14.8 7.0 5.9 1.3 1.1 20.2 19.9 0.5 0.4

Ashok Leyland Buy 27 31 7,197 14,490 16,606 9.5 9.6 2.2 2.9 12.2 9.5 2.3 2.0 13.6 16.1 0.6 0.5

Automotive Axle# Neutral 359 - 543 1,103 1,240 11.0 11.3 39.1 45.0 9.2 8.0 1.7 1.6 19.5 22.8 0.5 0.4Bajaj Auto Neutral 2,087 - 60,402 21,121 23,642 18.4 18.5 108.7 122.6 19.2 17.0 8.0 6.4 46.2 41.6 2.5 2.1

Bharat Forge Buy 257 324 5,979 6,754 7,565 15.5 15.7 18.8 23.2 13.7 11.1 2.4 2.0 18.5 19.7 1.0 0.9

Bosch India* Neutral 9,167 - 28,785 8,776 10,276 16.6 18.0 331.9 417.7 27.6 22.0 5.2 4.3 18.7 19.5 2.9 2.5

CEAT Buy 107 163 367 4,989 5,634 8.2 8.5 27.1 40.8 4.0 2.6 0.5 0.4 13.2 17.2 0.3 0.2

Exide Industries Accumulate 141 155 11,955 6,229 7,200 14.8 15.8 7.2 9.0 19.6 15.7 3.4 2.9 18.5 19.9 1.6 1.3

FAG Bearings* Neutral 1,710 - 2,842 1,489 1,750 16.5 17.5 103.3 126.9 16.6 13.5 3.2 2.7 21.3 21.6 1.7 1.4

Hero Motocorp Neutral 1,897 - 37,875 24,743 27,996 14.8 15.2 118.2 130.4 16.1 14.6 6.9 5.5 48.3 41.9 1.2 1.1

JK Tyre Buy 121 165 497 7,517 8,329 6.6 6.6 37.2 41.3 3.3 2.9 0.6 0.5 18.8 17.8 0.3 0.3

Mahindra and MahindraAccumulate 938 986 57,564 40,035 46,272 11.5 11.6 54.7 62.8 17.1 14.9 3.8 3.2 24.3 23.4 1.2 1.0

Maruti Neutral 1,504 - 43,443 42,019 50,246 7.3 8.6 66.1 94.4 22.8 15.9 2.6 2.3 11.9 15.1 0.9 0.7

Motherson Sumi Neutral 199 - 11,693 24,285 27,317 6.7 7.2 8.1 10.6 24.7 18.8 5.2 4.2 22.9 24.7 0.6 0.6

Subros Buy 30 35 178 1,286 1,479 9.4 9.7 2.6 5.1 11.4 5.9 0.6 0.6 5.6 10.3 0.4 0.4

Tata Motors Accumulate 299 319 79,797 192,330 219,770 12.8 13.1 37.0 44.5 8.1 6.7 2.2 1.7 31.2 28.9 0.5 0.4

TVS Motor Accumulate 42 45 1,993 7,466 8,290 6.2 6.3 4.8 5.6 8.8 7.5 1.5 1.3 18.2 18.7 0.2 0.2

Capital Goods

ABB* Sell 689 573 14,605 7,796 9,907 4.8 7.8 9.2 22.0 74.9 31.3 5.5 4.8 7.5 16.4 1.8 1.5BGR Energy Neutral 267 - 1,929 3,605 4,542 11.8 10.7 25.1 27.9 10.7 9.6 1.6 1.4 31.1 27.1 1.0 0.9

BHEL Neutral 228 - 55,720 47,801 43,757 18.5 18.0 24.6 21.8 9.3 10.4 2.8 2.4 33.5 24.5 1.0 1.1

Blue Star Buy 185 242 1,667 2,763 2,948 3.1 5.6 2.6 8.6 70.5 21.7 4.1 3.6 5.9 17.6 0.7 0.6

Crompton Greaves Buy 113 145 7,249 12,370 14,277 5.2 7.3 4.0 7.8 28.3 14.5 1.9 1.8 6.9 12.6 0.6 0.6

Jyoti Structures Buy 45 53 366 2,794 3,048 10.6 10.6 9.2 11.7 4.8 3.8 0.5 0.5 10.9 12.5 0.4 0.4

KEC International Accumulate 64 73 1,657 6,858 7,431 7.1 7.5 8.3 9.8 7.8 6.6 1.3 1.1 25.1 24.0 0.4 0.4

LMW Reduce 2,218 1,992 2,498 2,369 2,727 11.7 11.7 143.4 166.0 15.5 13.4 2.6 2.4 17.4 18.4 0.6 0.4

Thermax Neutral 596 - 7,096 5,514 5,813 9.3 10.2 28.1 31.2 21.2 19.1 3.8 3.3 19.2 18.5 1.2 1.1


Market Outlook

Stock Watch

December 24, 2012


8/14



Cement

ACC Neutral 1,396 - 26,213 11,085 12,415 21.6 21.4 79.4 83.1 17.6 16.8 3.4 3.1 20.1 19.2 2.1 1.8

Ambuja Cements Neutral 200 - 30,775 10,272 11,884 26.4 26.1 11.5 12.9 17.4 15.5 3.8 3.4 20.8 21.1 2.6 2.1

India Cements Neutral 86 - 2,640 4,293 4,666 17.7 18.1 8.6 10.8 10.0 8.0 0.7 0.7 7.5 9.0 1.0 0.9

J K Lakshmi Cements Neutral 146 - 1,786 2,082 2,423 22.9 23.1 20.8 22.5 7.0 6.5 1.3 1.1 18.4 17.4 1.0 1.2

Madras Cements Neutral 227 - 5,401 3,814 4,045 29.3 27.5 18.7 19.2 12.1 11.8 2.2 1.9 19.9 17.4 2.1 1.8

Shree Cements^ Neutral 4,481 - 15,612 5,701 6,210 29.7 28.1 240.7 260.7 18.6 17.2 4.5 3.7 27.1 23.6 2.2 1.8

UltraTech Cement Neutral 1,984 - 54,391 21,368 24,043 22.5 23.5 103.5 121.4 19.2 16.4 3.6 3.0 20.2 20.1 2.5 2.3Construction

Ashoka Buildcon Buy 204 304 1,074 2,034 2,315 22.4 22.4 27.1 31.7 7.5 6.4 0.9 0.8 13.1 13.4 1.8 2.1

Consolidated Co Neutral 13 - 246 2,262 2,522 6.7 7.5 1.5 2.7 9.0 5.0 0.4 0.4 4.4 7.5 0.4 0.4

IRB Infra Buy 126 164 4,178 3,843 4,212 43.1 43.6 16.8 17.8 7.5 7.1 1.3 1.1 18.3 17.0 3.2 3.5

ITNL Accumulate 205 225 3,988 6,564 7,054 27.2 27.4 26.3 29.0 7.8 7.1 1.2 1.1 14.0 11.8 2.7 2.8

IVRCL Infra Neutral 43 - 1,321 4,249 6,897 7.8 8.2 0.3 3.3 139.6 13.0 0.6 0.6 0.4 4.4 0.9 0.6

Jaiprakash Asso. Neutral 97 - 20,733 13,842 15,863 26.9 26.4 3.7 4.6 26.4 21.2 1.6 1.5 6.2 7.3 3.0 2.7

Larsen & Toubro Accumulate 1,589 1,748 97,696 60,556 69,167 11.2 11.6 73.8 85.5 21.5 18.6 3.4 3.0 13.5 14.1 1.8 1.6

Nagarjuna Const. Sell 54 44 1,395 5,947 6,569 8.5 8.6 3.1 4.1 17.5 13.2 0.6 0.5 3.3 4.2 0.6 0.6

Punj Lloyd Neutral 57 - 1,885 11,892 13,116 9.0 9.0 1.8 3.2 31.4 17.7 0.6 0.6 2.5 3.7 0.6 0.5

Sadbhav Engg. Buy 135 168 2,040 2,344 2,804 10.6 10.7 7.2 8.7 18.8 15.5 2.2 2.0 13.0 13.5 1.2 1.1

Simplex Infra Accumulate 220 251 1,090 6,882 8,032 9.1 9.1 23.2 31.3 9.5 7.0 0.8 0.8 9.1 11.2 0.5 0.5

Financials

Allahabad Bank Accumulate 163 181 8,155 6,392 7,238 2.7 2.8 30.3 33.3 5.4 4.9 0.8 0.7 14.8 14.5 - -

Andhra Bank Neutral 114 - 6,362 4,731 5,431 2.9 3.0 21.5 21.8 5.3 5.2 0.9 0.8 15.2 13.8 - -

Axis Bank Buy 1,320 1,550 56,387 15,686 18,687 3.1 3.2 116.8 138.0 11.3 9.6 2.1 1.8 20.0 20.2 - -Bank of Baroda Neutral 841 - 32,945 15,436 18,208 2.5 2.6 111.8 137.4 7.5 6.1 1.1 1.0 15.8 17.0 - -

Bank of India Neutral 334 - 19,138 12,491 14,883 2.2 2.4 43.8 63.7 7.6 5.2 1.0 0.9 12.1 15.8 - -

Bank of Maharashtra A ccumulate 60 64 3,517 3,563 3,876 3.1 3.1 9.7 12.0 6.2 5.0 0.8 0.7 14.6 16.1 - -

Canara Bank Accumulate 475 544 21,049 10,699 12,213 2.1 2.2 67.3 80.1 7.1 5.9 1.0 0.9 13.7 14.6 - -

Central Bank Neutral 82 - 6,007 7,171 8,236 2.5 2.6 16.4 21.5 5.0 3.8 0.9 0.7 12.7 14.9 - -

Corporation Bank Accumulate 446 480 6,609 4,780 5,569 2.0 2.1 101.8 99.2 4.4 4.5 0.7 0.7 17.0 14.7 - -

Dena Bank Buy 113 132 3,961 3,087 3,453 2.7 2.8 25.9 24.1 4.4 4.7 0.8 0.7 19.4 15.6 - -

Federal Bank Accumulate 518 549 8,848 2,617 2,968 3.3 3.2 45.9 51.7 11.3 10.0 1.4 1.3 13.1 13.3 - -


Market Outlook

Stock Watch

December 24, 2012


9/14



Financials

HDFC Neutral 828 - 127,699 7,336 8,802 3.5 3.5 31.5 37.8 26.3 21.9 5.3 4.7 34.8 32.1 - -

HDFC Bank Neutral 676 - 159,987 21,696 26,811 4.4 4.5 28.7 36.0 23.6 18.8 4.5 3.8 20.7 22.0 - -

ICICI Bank Buy 1,123 1,296 129,074 22,271 26,690 3.0 3.0 69.2 83.1 16.2 13.5 2.0 1.8 14.2 15.7 - -

IDBI Bank Accumulate 108 119 13,845 7,684 9,264 1.8 2.1 15.6 22.0 7.0 4.9 0.8 0.7 10.9 13.9 - -

Indian Bank Buy 190 230 8,144 5,874 6,551 3.2 3.2 40.6 41.8 4.7 4.5 0.8 0.7 18.1 16.4 - -

IOB Neutral 85 - 6,743 7,050 8,313 2.3 2.5 12.3 19.9 6.9 4.2 0.6 0.6 8.8 13.1 - -

J & K Bank Neutral 1,303 - 6,314 2,762 2,885 3.6 3.6 226.7 193.0 5.7 6.8 1.3 1.1 24.4 17.7 - -LIC Housing Finance Accumulate 278 313 14,027 1,799 2,255 2.3 2.4 20.3 27.3 13.7 10.2 2.2 1.9 16.9 19.7 - -

Oriental Bank Accumulate 333 370 9,705 6,277 7,090 2.6 2.7 60.5 65.1 5.5 5.1 0.8 0.7 15.0 14.4 - -

Punjab Natl.Bank Accumulate 832 890 28,208 19,652 22,601 3.2 3.3 135.0 164.3 6.2 5.1 1.1 0.9 16.3 17.3 - -

South Ind.Bank Buy 26 31 3,427 1,556 1,750 2.8 2.7 3.5 3.9 7.4 6.7 1.2 1.1 19.1 16.9 - -

St Bk of India Accumulate 2,334 2,520 156,602 61,883 71,546 3.4 3.4 227.2 257.5 10.3 9.1 1.8 1.5 17.8 17.7 - -

Syndicate Bank Accumulate 128 139 7,693 6,756 7,783 3.0 3.0 26.3 27.1 4.9 4.7 0.8 0.7 18.3 16.6 - -

UCO Bank Neutral 77 - 5,145 5,234 6,097 2.3 2.4 11.8 14.7 6.6 5.3 1.0 0.9 11.9 13.4 - -

Union Bank Accumulate 263 285 14,474 9,912 11,536 2.8 2.9 40.4 46.7 6.5 5.6 1.1 0.9 16.1 16.4 - -

United Bank Buy 77 91 2,762 3,500 3,912 2.6 2.8 15.8 21.2 4.8 3.6 0.6 0.6 13.1 15.7 - -

Vijaya Bank Accumulate 61 66 3,008 2,354 2,754 2.0 2.2 7.4 10.2 8.2 6.0 0.8 0.7 9.3 11.9 - -

Yes Bank Buy 460 542 16,426 3,270 4,240 2.8 3.0 34.5 42.2 13.3 10.9 2.8 2.3 23.5 23.5 - -

FMCG

Asian Paints Neutral 4,346 - 41,687 11,198 13,184 16.2 16.2 123.7 146.4 35.2 29.7 12.0 9.4 38.1 35.4 3.7 3.1

Britannia Buy 491 584 5,872 5,627 6,581 4.9 5.7 18.3 24.7 26.9 19.9 9.8 7.5 39.1 42.7 1.0 0.8

Colgate Neutral 1,483 - 20,166 3,146 3,573 20.6 21.4 36.4 42.5 40.8 34.9 37.7 31.6 102.0 98.5 6.2 5.5

Dabur India Neutral 128 - 22,318 6,124 7,101 17.0 16.8 4.5 5.2 28.7 24.5 11.8 9.3 43.2 41.5 3.7 3.1

GlaxoSmith Con* Neutral 3,762 - 15,823 3,124 3 ,663 17.1 17.6 1 04.5 1 23.8 36.0 30.4 11.2 9.0 34.4 32.8 4.7 4.0

Godrej Consumer Neutral 743 - 25,283 6,355 7,548 18.4 18.6 22.8 27.6 32.6 26.9 7.5 6.1 26.4 26.1 4.2 3.5

HUL Neutral 527 - 113,849 25,350 28,974 13.3 13.5 14.7 17.1 35.7 30.9 28.3 20.0 84.5 75.8 4.3 3.7

ITC Neutral 288 - 226,529 29,409 34,060 35.7 36.1 9.3 10.9 30.9 26.3 10.2 8.5 35.8 35.3 7.4 6.3

Marico Neutral 219 - 14,142 4,840 5,643 13.1 13.1 6.2 7.8 35.6 28.2 6.8 5.5 25.4 22.6 3.0 2.5

Nestle* Neutral 4,892 - 47,164 8,529 10,079 20.8 21.1 113.1 137.8 43.3 35.5 26.0 18.2 70.5 60.2 5.6 4.6

Tata Global Neutral 161 - 9,947 7,207 7,927 9.7 10.0 6.6 7.8 24.3 20.6 2.5 2.4 8.6 9.5 1.3 1.2


Market Outlook

Stock Watch

December 24, 2012


10/14



IT

HCL Tech^ Neutral 629 - 43,704 24,214 26,772 19.5 18.1 44.0 48.0 14.3 13.1 3.4 2.8 24.0 22.0 1.7 1.5

Hexaware* Buy 86 123 2,561 1,924 2,116 20.7 19.8 10.7 11.2 8.1 7.7 2.0 1.7 25.3 22.8 1.0 0.9

Infosys Accumulate 2,293 2,573 131,643 39,174 41,580 29.5 30.4 159.2 171.6 14.4 13.4 3.5 3.1 24.1 23.1 2.8 2.6

Infotech Enterprises Accumulate 182 202 2,032 1,886 2,032 17.9 17.3 18.7 20.2 9.8 9.0 1.5 1.3 14.9 14.0 0.7 0.6

KPIT Cummins Buy 104 132 1,860 2,195 2,317 15.5 15.0 10.7 12.1 9.7 8.6 2.1 1.7 21.0 19.8 0.8 0.7

Mahindra Satyam Accumulate 102 115 12,058 7,597 8,141 20.0 18.8 9.7 10.4 10.6 9.8 2.9 2.3 27.5 22.9 1.2 1.0

Mindtree Accumulate 708 747 2,907 2,324 2,437 20.0 17.7 73.3 74.7 9.7 9.5 2.3 1.9 24.1 19.7 1.0 0.9Mphasis& Neutral 383 - 8,054 5,700 5,993 18.0 16.9 37.0 37.3 10.4 10.3 1.5 1.3 14.3 12.6 0.9 0.8

NIIT Buy 29 36 483 1,048 1,161 9.3 10.9 4.2 6.2 7.0 4.7 0.7 0.7 10.5 14.1 0.3 0.2

Persistent Neutral 522 - 2,088 1,261 1,352 26.4 24.7 48.2 54.0 10.8 9.7 2.1 1.7 19.0 17.9 1.3 1.1

TCS Accumulate 1,258 1,410 246,238 61,053 67,313 28.7 29.1 69.7 76.2 18.1 16.5 5.9 4.8 32.6 29.1 3.8 3.4

Tech Mahindra Buy 906 1,070 11,577 6,603 7,150 19.8 18.4 92.9 102.0 9.8 8.9 2.3 1.9 23.7 21.0 1.8 1.6

Wipro Accumulate 379 421 93,327 43,219 47,241 20.0 20.0 26.1 28.1 14.5 13.5 2.8 2.4 19.3 17.9 1.8 1.6

Media

D B Corp Buy 221 259 4,051 1,581 1,784 23.3 25.0 11.6 14.4 19.1 15.3 3.7 3.2 21.0 22.3 2.5 2.1

HT Media Accumulate 99 113 2,330 2,111 2,272 15.0 15.2 7.4 8.3 13.5 12.0 1.5 1.3 11.3 11.4 0.7 0.6

Jagran Prakashan Accumulate 102 117 3,239 1,503 1,681 23.1 23.1 6.4 7.3 16.0 14.1 4.0 3.5 25.8 26.5 2.3 2.0

PVR Neutral 293 - 848 682 786 17.3 16.9 17.6 19.7 16.6 14.9 2.0 1.7 14.9 14.5 1.6 1.3

Sun TV Network Neutral 410 - 16,138 1,942 2,237 77.2 75.5 17.6 19.1 23.3 21.4 5.8 5.2 25.8 25.2 7.8 6.7

Metals & Mining

Bhushan Steel Neutral 455 - 9,661 11,307 14,287 29.5 29.1 45.1 51.0 10.1 8.9 1.2 1.0 12.2 12.2 2.9 2.3

Coal India Neutral 353 - 222,747 66,666 70,292 25.7 27.3 24.2 26.6 14.6 13.3 4.3 3.5 33.1 29.1 2.4 2.1

Electrosteel Castings Accumulate 25 29 874 1,984 2,074 10.6 11.6 0.8 2.0 30.2 12.5 0.5 0.2 1.7 4.1 0.6 0.6Hind. Zinc Neutral 139 - 58,563 12,446 13,538 52.3 52.9 15.0 16.4 9.3 8.5 1.8 1.5 21.4 19.7 2.8 2.2

Hindalco Neutral 129 - 24,727 79,148 89,258 9.4 9.0 15.0 15.6 8.6 8.3 0.7 0.7 8.8 8.4 0.7 0.6

JSW Steel Neutral 804 - 17,930 39,586 41,459 17.6 17.0 78.7 90.1 10.2 8.9 1.0 0.9 10.2 10.7 0.9 0.8

MOIL Neutral 254 - 4,264 941 1,019 47.3 48.3 25.8 28.1 9.8 9.0 1.5 1.4 16.7 16.2 2.2 1.8

Monnet Ispat Buy 292 344 1,881 2,501 3,264 22.2 24.6 41.8 55.2 7.0 5.3 0.7 0.6 11.3 13.4 1.8 1.3

Nalco Reduce 50 44 12,809 6,898 7,841 9.9 14.7 2.0 3.2 25.1 15.6 1.1 1.0 4.3 6.8 1.4 1.3

NMDC Buy 158 198 62,742 11,209 12,525 78.4 78.3 18.5 20.6 8.5 7.7 2.1 1.7 27.0 24.6 3.7 3.1

SAIL Neutral 91 - 37,443 47,252 60,351 14.2 14.8 9.6 11.7 9.5 7.7 0.9 0.8 9.4 10.6 1.2 1.0


Market Outlook

Stock Watch

December 24, 2012


11/14



Metals & Mining

Sesa Goa Neutral 194 - 16,900 4,551 6,640 32.8 34.4 33.7 39.3 5.8 5.0 1.0 0.8 18.3 18.3 4.4 3.0

Sterlite Inds Neutral 117 - 39,303 43,185 45,442 23.3 23.7 16.8 17.9 7.0 6.5 0.8 0.7 11.6 11.2 0.9 0.8

Tata Steel Accumulate 430 463 41,719 145,725 154,108 8.3 9.5 22.0 44.5 19.5 9.6 0.9 0.9 4.9 9.3 0.6 0.6

Sarda Accumulate 137 153 492 1,442 1,494 17.6 17.3 27.2 28.7 5.0 4.8 0.6 0.5 11.5 11.0 0.7 0.7

Prakash Industries Buy 48 73 645 2,694 2,906 14.6 16.6 16.4 20.8 2.9 2.3 0.3 0.3 11.4 12.8 0.5 0.3

Godawari Power andIspat

Buy 117 143 373 2,342 2,470 13.7 15.3 27.7 33.8 4.2 3.5 0.4 0.4 10.9 11.4 0.6 0.6

Oil & Gas

Cairn India Buy 312 382 59,627 17,567 17,643 76.2 72.3 61.1 56.8 5.1 5.5 1.0 0.9 22.0 17.5 2.6 2.1

GAIL Neutral 348 - 44,181 46,652 54,142 15.7 15.7 34.0 35.3 10.2 9.9 1.8 1.6 18.5 16.8 0.7 0.5

ONGC Buy 261 312 223,384 147,139 154,821 33.9 33.7 30.7 32.3 8.5 8.1 1.5 1.3 18.3 17.2 1.3 1.1

Reliance Industries Neutral 823 - 269,479 362,700 380,031 7.9 8.0 60.0 63.3 13.7 13.0 1.3 1.2 11.1 10.6 0.7 0.7

Gujarat Gas* Neutral 305 - 3,916 3,128 3,707 13.2 11.7 22.8 23.5 13.4 13.0 4.0 3.6 33.2 29.2 1.1 0.9

Indraprastha Gas Neutral 248 - 3,476 3,213 3,643 23.3 23.5 24.3 25.7 10.2 9.7 2.3 2.0 25.0 22.1 1.2 1.0

Petronet LNG Accumulate 161 183 12,038 30,077 33,570 6.6 6.3 15.1 15.3 10.6 10.5 2.7 2.2 28.4 23.1 0.4 0.4

Gujarat State PetronetLtd.

Neutral 74 - 4,178 1,079 1,034 91.8 91.9 8.8 8.4 8.5 8.8 1.4 1.3 17.9 15.0 3.6 3.7

Pharmaceuticals

Alembic Pharma Buy 67 91 1,268 1,624 1,855 14.2 15.6 6.6 9.1 10.2 7.4 2.6 2.0 27.9 29.9 0.9 0.8

Aurobindo Pharma Neutral 192 - 5,601 5,243 5,767 14.6 14.6 11.8 12.6 16.3 15.3 2.0 1.7 17.9 16.4 1.6 1.4

Aventis* Neutral 2,325 - 5,354 1,482 1,682 15.5 15.5 95.1 104.4 24.5 22.3 4.3 3.4 18.6 17.0 3.4 2.9

Cadila Healthcare Neutral 889 - 18,209 6,148 7,386 18.6 19.6 32.7 44.8 27.2 19.9 6.0 4.8 23.7 26.6 3.3 2.7

Cipla Neutral 419 - 33,634 8,151 9,130 25.0 24.0 19.5 20.9 21.5 20.0 3.7 3.2 18.8 17.2 3.9 3.4

Dr Reddy's Neutral 1,820 - 30,900 10,696 11,662 20.7 21.0 83.7 92.9 21.8 19.6 4.5 3.8 22.4 20.8 3.2 2.8

Dishman Pharma Buy 115 145 930 1,280 1,536 20.2 20.2 10.4 14.5 11.1 7.9 0.9 0.8 8.7 11.0 1.4 1.2

GSK Pharma* Neutral 2,073 - 17,556 2,651 2,993 31.7 31.2 76.0 82.4 27.3 25.2 7.9 7.0 20.1 26.3 5.8 5.1

Indoco Remedies Buy 65 89 596 685 837 15.2 15.2 7.4 8.9 8.7 7.3 1.3 1.2 16.4 17.0 1.1 0.9

Ipca labs Neutral 487 - 6,147 2,850 3,474 21.0 21.0 29.9 37.3 16.3 13.1 3.9 3.1 26.7 26.4 2.4 1.9

Lupin Accumulate 599 652 26,814 8,426 10,082 19.7 20.0 26.3 31.3 22.8 19.2 5.3 4.3 26.0 24.7 3.3 2.7

Ranbaxy* Neutral 503 - 21,253 12,046 11,980 18.0 15.8 31.3 29.8 16.1 16.9 5.5 4.4 39.1 28.9 1.8 1.7

Sun Pharma Neutral 730 - 75,465 9,752 12,134 41.6 41.6 26.0 28.2 28.1 25.9 5.3 4.5 20.3 18.8 7.0 5.5

Power

CESC Neutral 309 - 3,862 5,218 5,644 24.2 23.8 44.6 47.6 6.9 6.5 0.7 0.7 11.0 10.6 1.5 1.5

GIPCL Accumulate 69 78 1,045 1,523 1,568 30.3 30.3 5.4 11.5 12.8 6.0 0.7 0.7 5.6 11.3 1.2 1.0


Market Outlook

Stock Watch

December 24, 2012


12/14



Power

NTPC Neutral 153 - 126,279 74,111 85,789 22.7 23.1 12.1 13.7 12.7 11.1 1.5 1.4 12.6 13.2 2.3 2.1

Real Estate

Anant Raj Reduce 91 78 2,694 657 875 52.0 56.1 8.4 12.7 10.9 7.2 0.7 0.6 6.3 8.9 5.4 4.0

DLF Neutral 220 - 37,293 9,878 12,033 44.7 46.1 9.6 13.4 22.9 16.4 1.5 1.4 6.4 8.7 6.3 5.2

HDIL Accumulate 107 115 4,481 2,441 3,344 55.1 48.2 22.7 26.6 4.7 4.0 0.4 0.4 8.8 9.4 3.7 2.8

MLIFE Neutral 414 - 1,691 813 901 26.2 26.6 32.0 37.1 12.9 11.2 1.3 1.2 10.4 11.0 2.5 2.1

TelecomBharti Airtel Accumulate 307 352 116,641 81,984 90,718 32.1 33.8 10.9 16.9 28.1 18.2 2.2 1.9 7.6 10.6 2.1 1.8

Idea Cellular Neutral 97 - 32,269 22,234 24,161 26.9 27.7 3.3 4.9 29.5 19.8 2.3 2.0 7.7 10.3 1.9 1.7

Rcom Neutral 73 - 14,975 21,090 22,308 31.8 29.9 3.0 3.8 23.9 19.1 0.4 0.4 1.7 2.1 2.4 2.1

zOthers

Abbott India Accumulate 1,469 1,590 3,121 1,629 1,886 11.8 13.3 60.8 79.5 24.2 18.5 5.0 4.1 22.0 24.4 1.7 1.4

Bajaj Electricals Accumulate 206 217 2,056 3,497 3,968 6.6 7.6 9.8 15.5 21.1 13.3 2.7 2.3 12.7 17.4 0.6 0.5

Cera Sanitaryware Neutral 403 - 509 427 528 15.7 14.6 30.0 34.0 13.4 11.8 2.9 2.4 24.6 22.5 1.3 1.1

Cravatex Buy 435 545 113 272 308 7.2 7.3 37.5 45.4 11.6 9.6 2.8 2.2 23.7 22.7 0.5 0.5

CRISIL Neutral 1,032 - 7,246 982 1,136 34.3 34.3 34.3 40.0 30.0 25.8 13.6 10.9 50.9 46.9 7.0 5.9

Finolex Cables Accumulate 57 61 870 2,304 2,552 9.9 9.1 8.2 10.1 7.0 5.7 1.0 0.8 13.7 14.7 0.3 0.3

Force Motors Accumulate 485 537 632 2,318 2,700 5.0 5.7 45.0 67.0 10.8 7.2 0.5 0.5 5.0 7.0 0.2 0.2

Goodyear India Neutral 344 - 792 1,494 1,607 6.4 7.8 23.9 33.0 14.4 10.4 2.3 2.0 16.5 20.1 0.3 0.3

Greenply Industries Neutral 321 - 775 1,925 2,235 10.6 10.9 29.6 44.1 10.9 7.3 1.8 1.4 16.8 21.0 0.7 0.6

Hitachi Neutral 153 - 351 873 989 4.4 6.5 6.4 12.2 24.1 12.6 1.9 1.7 8.3 14.4 0.5 0.4

Honeywell Automation* Accumulate 2,689 2,842 2,377 1,745 1,993 4.0 5.3 59.5 90.4 45.2 29.7 3.4 3.0 8.1 11.3 1.3 1.1

Styrolution ABS India* Neutral 746 - 1,313 1,059 1,116 8.5 9.5 36.0 42.0 20.7 17.8 3.0 2.6 15.4 16.0 1.3 1.2ITD Cementation Neutral 235 - 271 1,323 1,455 12.4 12.4 23.2 27.7 10.1 8.5 0.7 0.6 6.8 7.6 0.7 0.6

Jyothy Laboratories Neutral 157 - 2,532 1,228 1,443 9.0 10.9 3.9 6.4 40.4 24.6 4.0 3.7 10.1 15.6 2.6 2.1

MCX Neutral 1,500 - 7,648 553 624 65.3 66.3 62.5 72.0 24.0 20.8 6.6 5.7 27.5 27.4 10.8 9.1

MRF Neutral 12,452 - 5,281 11,804 12,727 10.4 10.5 1,289.9 1,431.3 9.7 8.7 1.9 1.5 21.3 19.4 0.6 0.5

Page Industries Accumulate 3,305 3,602 3,686 836 1,023 20.2 20.6 105.6 133.4 31.3 24.8 15.9 11.2 59.3 53.2 4.5 3.6

Relaxo Footwears Buy 761 933 913 1,019 1,208 11.0 12.5 47.0 66.7 16.2 11.4 4.0 3.0 28.2 30.1 1.0 0.9

Sintex Industries Buy 65 79 1,951 4,751 5,189 16.3 16.6 13.6 15.8 4.8 4.1 0.6 0.6 12.9 13.2 0.8 0.6

Siyaram Silk Mills Buy 296 366 277 1,043 1,149 12.3 12.9 65.7 73.3 4.5 4.0 0.9 0.7 21.0 19.6 0.5 0.5

S. Kumars Nationwide Neutral 14 - 404 7,134 7,985 19.7 19.4 12.2 14.1 1.1 1.0 0.1 0.1 11.3 11.5 0.6 0.6


Market Outlook

Stock Watch

December 24, 2012


13/14



zOthers

SpiceJet Neutral 43 - 2,083 5,720 6,599 5.3 6.8 3.6 5.4 11.9 8.0 17.3 5.5 - - 0.5 0.4

TAJ GVK Buy 72 108 448 300 319 35.8 36.2 7.9 9.1 9.1 7.9 1.2 1.1 13.9 14.4 1.8 1.5

Tata Sponge Iron Buy 312 384 480 750 803 18.6 18.4 65.4 69.1 4.8 4.5 0.7 0.7 16.5 15.3 0.3 0.2

TVS Srichakra Buy 273 335 209 1,476 1,643 7.0 8.2 32.6 55.9 8.4 4.9 1.3 1.1 16.8 24.8 0.4 0.3

United Spirits Neutral 1,932 - 25,275 10,289 11,421 12.8 12.8 26.0 45.3 74.3 42.7 3.4 3.1 5.8 7.6 2.8 2.5

Vesuvius India Neutral 336 - 682 560 611 16.1 17.0 24.7 28.8 13.6 11.7 2.0 1.8 15.8 16.2 1.1 1.0

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 21, 2012


Market Outlook

Stock Watch

December 24, 2012


14/14


Documents

Market Outlook 24th Dec