Market Outlook 27th Dec

7/30/2019 Market Outlook 27th Dec

1/13

Market OutlookDecember 27, 2012

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Dealers Diary

The Indian market is expected to open flat tracking mixed opening of other Asian

markets and flat trading of the SGX Nifty.The U.S. markets moved mostly lower during trading on Wednesday on continued

concerns about the looming fiscal cliff. The weakness on Wall Street came as

traders expressed pessimism about the fiscal cliff negotiations, considering that

lawmakers have only a few days to reach a budget agreement before the year-end

deadline. The worries about the fiscal cliff overshadowed a report from Standard &

Poor's, showing the strongest annual rate of growth in home prices in over two

years. All of the major European markets remained closed for a second straight

day due to the Christmas holidays, while stock markets across the Asia-Pacific

region moved mostly higher on Wednesday.

Indian shares rallied on Wednesday on the back of easing liquidity concerns afterthe Reserve Bank of India said it would pump in `8,000cr in the market on 28th

December 2012 by buying government securities. The budget negotiations are

likely to once again overshadow a batch of economic data, including reports on

new home sales and consumer confidence which are due to be released today.

Markets Today

The trend deciding level for the day is 19,387 / 5,894 levels. If NIFTY trades above

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

up to 19,499 19,581 / 5,929 5,952 levels. However, if NIFTY trades below

19,387 / 5,894 levels for the first half-an-hour of trade then it may correct up to

19,305 19,192 / 5,871 5,836 levels.

SENSEX 19,192 19,305 19,387 19,499 19,581

NIFTY 5,836 5,871 5,894 5,929 5,952

News Analysis Government extends incentives to revive exports CCEA approves increase in Minimum Support Price (MSP) of wheat CCEA approves disinvestment in RCF Ashoka Buildcon emerges as lowest bidder for Chennai project

Refer detailed news analysis on the following page

Net Inflows (December 24, 2012)

FII 5,134 1,171 3,963 21,657 126,676

MFs 460 551 (91) (2,595) (20,192)

FII Derivatives (December 26, 2012)

Index Futures 2,634 2,471 163 16,456

Stock Futures 9,180 9,292 (112) 36,789

Gainers / Losers

Berger Paints 160 6.8 Bayer Crop 1,207 (2.6)

Eicher Motors 2,866 6.7 Strides Arco 1,132 (2.4)

Glenmark Pharma 541 4.1 TTK Prestige 3,339 (2.2)

Unitech 34 3.7 Suzlon Energy 18 (1.7)

Bank of India 340 3.5 Zee Entertainment 226 (1.5)

BSE Sensex 0.8 162.4 19,417

Nifty 0.9 49.8 5,906

MID CAP 0.7 46.2 7,069

SMALL CAP 0.4 26.8 7,376

BSE HC 0.6 51.6 8,177

BSE PSU 0.6 43.8 7,221

BANKEX 1.4 191.9 14,342

AUTO 0.3 31.4 11,336

METAL 0.6 65.8 11,046

OIL & GAS 0.8 66.7 8,370

BSE IT (0.2) (9.9) 5,663

Dow Jones (0.2) (24.5) 13,115NASDAQ (0.7) (22.4) 2,990

FTSE 0.2 14.2 5,954

Nikkei 1.5 150.2 10,230

Hang Seng 0.2 34.9 22,541

Straits Times 0.4 12.2 3,181

Shanghai Com 0.3 5.5 2,219

INFY 0.5 0.2 $42.1

WIT 0.2 0.0 $8.7IBN 0.2 0.1 $44.3

HDB 0.0 0.0 $40.9

Advances 1,523 819

Declines 1,416 679

Unchanged 127 91

BSE 2,411

NSE 9,024


2/13



Government extends incentives to revive exports

To tackle the declining exports in the economy, the government extended the 2%

interest subsidy on rupee-denominated loans for export-oriented labour-intensive

and small-scale industries as well as engineering sector (including hand tools,

electrical machinery and boilers) until March 2014. The Commerce Ministrystated that a sharp decline in labour-intensive sectors is adversely impacting

employment and job creation. As the external demand environment remains weak,

exports in the economy have languished with a contraction for the seventh straight

month by 4.2% in November 2012. The decline in exports along with growth in

imports, mainly as oil imports rise, has led to a deteriorating trade deficit. The

trade deficit for the month of November stood at USD$19.3bn while it widened to

about USD$130bn in the April November 2012 period.

The move is expected to have a positive impact on export growth, thereby

supporting the trade balance and the rupee, in turn having an impact on imported

inflation. Further, a meaningful improvement in exports is also likely to boostgrowth; however the impact is likely to be limited by the external demand

environment.

CCEA approves increase in Minimum Support Price (MSP) ofwheat

The Cabinet Committee on Economic Affairs (CCEA) approved the increase in

Minimum Support Prices (MSPs) for wheat in FY2013 to `1,350 as compared to

`1,285 in the previous year. The MSP increase of `65 per quintal is lower than the

agricultural ministrys proposal of a hike of `100 per quintal. The 5.1% increase ismoderate as compared to the steeper 14.7% hike of wheat MSP in 2011. The

CCEA also approved export of an additional 25 lakh tonne of wheat from central

pool stocks of the Food Corporation of India (FCI), taking the total approval for

export of wheat to 45 lakh tonne. We believe this is due to record-high production

of wheat at 93.90 million tonne in 2011-12.

Earlier in November, the CCEA had approved an increase in the MSP of Barley to

`980 per quintal, of Gram to `3,000 per quintal, of Masur (Lentil) to `2,900 per

quintal, Rapeseed / Mustard to `3,000 per quintal and Safflower to `2,800 per

quintal. The decision on increase in MSP of wheat had been deferred mainly

because of the disagreement in MSP increase between CACP and the agricultureministry. As far as sowing of wheat in the rabi season is concerned, reports of

various states indicate that wheat sowing has declined by 1.5% to 253.17 lakh

hectare in 2012 as compared to 257.15 lakh hectare in 2011. The total sown

area for rabi has also marginally declined by 0.3% to around 517.53 lakh hectare

as compared to 518.88 lakh hectare in the previous year. Further, owing to the

high production of wheat in November 2012 the CCEA had also approved

allocation of 65 lakh tonne of wheat for sale by FCI to bulk consumers/traders and

an additional 5 lakh tonne of wheat for sale to retail consumers and continued

unrestricted export of wheat.

In June 2012, the government had hiked the MSP for kharif crops in the range of15% to 53% as compared to the moderate MSP hikes for rabi crops in the range of

5% - 20%. We believe that this moderation in MSP hikes is likely to augur positively


3/13



for food inflation which continues to stay elevated, pushing up overall headline

inflation in the economy, and is a positive trend to rein in the food subsidy.

CCEA approves disinvestment in RCF

The Cabinet Committee on Economic Affairs (CCEA) approved divestment of

12.5% equity in Rashtriya Chemicals and Fertilizers Ltd (RCF). The divestment will

bring down governments stake in the company down to 80% as against the

present 92.5% and is expected to fetch roughly`360cr to the exchequer. The paid

up equity capital of the company as on 31st March, 2012 is `551.69cr. RCF is a

listed Mini-Ratna public sector company under the administrative control of the

Ministry of Chemicals & Fertilizers, Department of Fertilizers. It is engaged in the

business of manufacturing and marketing fertilizers, industrial chemicals such as

methanol, methylamines, ammonium bicarbonate, ammonium nitrate etc.

So far, the government has divested its stake in Hindustan Copper and NMDC

and garnered proceeds amounting to about `6,900cr. For the government to meetits budgeted divestment target of `30,000cr for the fiscal, the CCEA has also

approved the sale of shares in NALCO, SAIL, NTPC, RINL, BHEL, Oil India, MMTC

and Hindustan Aeronautics. As per media reports, the stake sale in Oil India is

slated to happen in January 2013 followed by that in NTPC.

Ashoka Buildcon emerges as lowest bidder for Chennaiproject

Ashoka Buildcon and GVR Infra Projects - a consortium (50%:50%) have emerged

as the lowest bidder for a road project in Chennai. The project involves

development of Chennai outer ring road phase III from Nemilicheri in NH 205 to

Minjur road on design, build, finance, operate and transfer annuity basis. The

project has a concession period of 20 years and has an estimated project cost of

`985.4cr.

Economic and Political News

Government approves 12 FDI proposals worth over `802cr Government to announce revised norms for SEZs by January end Industrial consumers to get power cheaper by`2.50 per unit at night

Corporate News

Companies raised US$1.35bn from overseas markets in November Essar Power commissions its 600MW Mahan I power project Godrej Properties to redevelop private society in Mumbai Higher coal price forces Nalco to cut more capacity IndusInd promoter entity sells 33 lakh shares for `138cr Suzlon's promoters sell 2.11% stake Jindal Stainless to issue shares worth `200cr to promotersSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


4/13

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 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 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 (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 27, 2012

Market Outlook


5/13



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

-12

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

l-12

Aug

-12

Sep

-12

O

ct-12

Nov

-12

Repo rate Reverse Repo rate C RR(%)


6/13

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 153 - 2,971 1,466 1,686 14.8 14.8 7.0 8.1 21.8 18.9 4.6 4.0 22.6 22.5 2.1 1.8

United Phosphorus Buy 124 170 5,711 8,421 9,263 16.5 16.5 15.0 17.0 8.3 7.3 1.2 1.1 15.6 15.5 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 246 270 4,196 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 4,362 13,713 15,341 11.2 11.2 12.5 14.8 6.9 5.8 1.3 1.1 20.2 19.9 0.5 0.4

Ashok Leyland Buy 27 31 7,131 14,490 16,606 9.5 9.6 2.2 2.9 12.1 9.4 2.2 2.0 13.6 16.1 0.6 0.5

Automotive Axle# Neutral 359 - 542 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 2,144 - 62,045 21,121 23,642 18.4 18.5 108.7 122.6 19.7 17.5 8.2 6.6 46.2 41.6 2.6 2.2

Bharat Forge Buy 253 324 5,882 6,754 7,565 15.5 15.7 18.8 23.2 13.5 10.9 2.3 2.0 18.5 19.7 1.0 0.9

Bosch India* Neutral 9,103 - 28,584 8,776 10,276 16.6 18.0 331.9 417.7 27.4 21.8 5.1 4.3 18.7 19.5 2.9 2.4

CEAT Buy 109 163 373 4,989 5,634 8.2 8.5 27.1 40.8 4.0 2.7 0.5 0.4 13.2 17.2 0.3 0.2

Exide Industries Accumulate 137 155 11,671 6,229 7,200 14.8 15.8 7.2 9.0 19.1 15.3 3.3 2.8 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 1,875 - 37,437 24,743 27,996 14.8 15.2 118.2 130.4 15.9 14.4 6.8 5.4 48.3 41.9 1.2 1.1

JK Tyre Buy 120 165 494 7,517 8,329 6.6 6.6 37.2 41.3 3.2 2.9 0.6 0.5 18.8 17.8 0.3 0.3

Mahindra and Mahindra Neutral 945 - 58,012 40,035 46,272 11.5 11.6 54.7 62.8 17.3 15.1 3.9 3.2 24.3 23.4 1.2 1.0

Maruti Neutral 1,480 - 42,747 42,019 50,246 7.3 8.6 66.1 94.4 22.4 15.7 2.5 2.2 11.9 15.1 0.9 0.7

Motherson Sumi Neutral 199 - 11,707 24,285 27,317 6.7 7.2 8.1 10.6 24.8 18.8 5.2 4.2 22.9 24.7 0.6 0.6

Subros Buy 30 35 182 1,286 1,479 9.4 9.7 2.6 5.1 11.7 6.0 0.7 0.6 5.6 10.3 0.4 0.4

Tata Motors Neutral 305 - 81,396 192,330 219,770 12.8 13.1 37.0 44.5 8.3 6.9 2.3 1.8 31.2 28.9 0.5 0.4

TVS Motor Neutral 43 - 2,031 7,466 8,290 6.2 6.3 4.8 5.6 8.9 7.6 1.5 1.3 18.2 18.7 0.2 0.2

Capital Goods

ABB* Sell 695 573 14,732 7,796 9,907 4.8 7.8 9.2 22.0 75.6 31.6 5.5 4.8 7.5 16.4 1.9 1.5BGR Energy Neutral 261 - 1,887 3,605 4,542 11.8 10.7 25.1 27.9 10.4 9.4 1.5 1.4 31.1 27.1 1.0 0.8

BHEL Neutral 230 - 56,332 47,801 43,757 18.5 18.0 24.6 21.8 9.4 10.6 2.8 2.4 33.5 24.5 1.0 1.2

Blue Star Buy 183 224 1,649 2,538 2,681 4.6 5.7 7.3 11.3 25.0 16.2 3.7 3.1 15.6 20.7 0.8 0.7

Crompton Greaves Buy 114 145 7,294 12,370 14,277 5.2 7.3 4.0 7.8 28.4 14.6 1.9 1.8 6.9 12.6 0.6 0.6

Jyoti Structures Buy 44 53 363 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 67 73 1,713 6,858 7,431 7.1 7.5 8.3 9.8 8.0 6.8 1.4 1.2 25.1 24.0 0.4 0.4

LMW Reduce 2,253 1,992 2,538 2,369 2,727 11.7 11.7 143.4 166.0 15.7 13.6 2.6 2.4 17.4 18.4 0.6 0.4

Thermax Neutral 605 - 7,205 5,514 5,813 9.3 10.2 28.1 31.2 21.5 19.4 3.9 3.4 19.2 18.5 1.2 1.1


Market Outlook

Stock Watch

December 27, 2012


7/13



Cement

ACC Neutral 1,412 - 26,507 11,085 12,415 21.6 21.4 79.4 83.1 17.8 17.0 3.5 3.1 20.1 19.2 2.1 1.8

Ambuja Cements Neutral 201 - 31,014 10,272 11,884 26.4 26.1 11.5 12.9 17.6 15.6 3.9 3.4 20.8 21.1 2.6 2.2

India Cements Neutral 87 - 2,686 4,293 4,666 17.7 18.1 8.6 10.8 10.2 8.1 0.8 0.7 7.5 9.0 1.0 0.9

J K Lakshmi Cements Neutral 161 - 1,966 2,082 2,423 22.9 23.1 20.8 22.5 7.7 7.2 1.4 1.2 18.4 17.4 1.1 1.3

Madras Cements Neutral 237 - 5,629 3,814 4,045 29.3 27.5 18.7 19.2 12.6 12.3 2.3 2.0 19.9 17.4 2.1 1.9

Shree Cements^ Neutral 4,484 - 15,621 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 1,976 - 54,177 21,368 24,043 22.5 23.5 103.5 121.4 19.1 16.3 3.6 3.0 20.2 20.1 2.5 2.3Construction

Ashoka Buildcon Buy 203 304 1,066 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 2.0

Consolidated Co Neutral 13 - 240 2,262 2,522 6.7 7.5 1.5 2.7 8.7 4.9 0.4 0.4 4.4 7.5 0.4 0.4

IRB Infra Buy 127 164 4,204 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 3,984 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 45 - 1,393 4,249 6,897 7.8 8.2 0.3 3.3 147.2 13.8 0.6 0.6 0.4 4.4 0.9 0.6

Jaiprakash Asso. Neutral 98 - 21,044 13,842 15,863 26.9 26.4 3.7 4.6 26.8 21.5 1.6 1.5 6.2 7.3 3.0 2.7

Larsen & Toubro Accumulate 1,620 1,748 99,615 60,556 69,167 11.2 11.6 73.8 85.5 22.0 18.9 3.5 3.1 13.5 14.1 1.8 1.6

Nagarjuna Const. Sell 54 44 1,379 5,947 6,569 8.5 8.6 3.1 4.1 17.3 13.1 0.6 0.5 3.3 4.2 0.6 0.6

Punj Lloyd Neutral 59 - 1,966 11,892 13,116 9.0 9.0 1.8 3.2 32.7 18.4 0.7 0.6 2.5 3.7 0.6 0.5

Sadbhav Engg. Buy 137 168 2,062 2,344 2,804 10.6 10.7 7.2 8.7 19.0 15.7 2.3 2.0 13.0 13.5 1.2 1.1

Simplex Infra Accumulate 221 251 1,093 6,882 8,032 9.1 9.1 23.2 31.3 9.5 7.1 0.8 0.8 9.1 11.2 0.5 0.5

Financials

Allahabad Bank Accumulate 166 181 8,298 6,392 7,238 2.7 2.8 30.3 33.3 5.5 5.0 0.8 0.7 14.8 14.5 - -

Andhra Bank Neutral 116 - 6,486 4,731 5,431 2.9 3.0 21.5 21.8 5.4 5.3 0.9 0.8 15.2 13.8 - -

Axis Bank Accumulate 1,351 1,550 57,728 15,686 18,687 3.1 3.2 116.8 138.0 11.6 9.8 2.1 1.8 20.0 20.2 - -Bank of Baroda Neutral 854 - 33,454 15,436 18,208 2.5 2.6 111.8 137.4 7.6 6.2 1.2 1.0 15.8 17.0 - -

Bank of India Neutral 340 - 19,531 12,491 14,883 2.2 2.4 43.8 63.7 7.8 5.3 1.0 0.9 12.1 15.8 - -

Bank of Maharashtra A ccumulate 60 64 3,511 3,563 3,876 3.1 3.1 9.7 12.0 6.1 5.0 0.8 0.7 14.6 16.1 - -

Canara Bank Accumulate 483 544 21,415 10,699 12,213 2.1 2.2 67.3 80.1 7.2 6.0 1.0 0.9 13.7 14.6 - -

Central Bank Neutral 83 - 6,132 7,171 8,236 2.5 2.6 16.4 21.5 5.1 3.9 0.9 0.7 12.7 14.9 - -

Corporation Bank Accumulate 450 480 6,663 4,780 5,569 2.0 2.1 101.8 99.2 4.4 4.5 0.8 0.7 17.0 14.7 - -

Dena Bank Accumulate 115 132 4,015 3,087 3,453 2.7 2.8 25.9 24.1 4.4 4.8 0.8 0.7 19.4 15.6 - -

Federal Bank Neutral 524 - 8,960 2,617 2,968 3.3 3.2 45.9 51.7 11.4 10.1 1.4 1.3 13.1 13.3 - -


Market Outlook

Stock Watch

December 27, 2012


8/13



Financials

HDFC Neutral 833 - 128,485 7,336 8,802 3.5 3.5 31.5 37.8 26.4 22.0 5.3 4.7 34.8 32.1 - -

HDFC Bank Neutral 680 - 160,945 21,696 26,811 4.4 4.5 28.7 36.0 23.7 18.9 4.6 3.8 20.7 22.0 - -

ICICI Bank Accumulate 1,148 1,296 131,979 22,271 26,690 3.0 3.0 69.2 83.1 16.6 13.8 2.0 1.9 14.2 15.7 - -

IDBI Bank Accumulate 109 119 13,973 7,684 9,264 1.8 2.1 15.6 22.0 7.0 5.0 0.8 0.7 10.9 13.9 - -

Indian Bank Buy 193 230 8,288 5,874 6,551 3.2 3.2 40.6 41.8 4.8 4.6 0.8 0.7 18.1 16.4 - -

IOB Neutral 85 - 6,778 7,050 8,313 2.3 2.5 12.3 19.9 6.9 4.3 0.6 0.6 8.8 13.1 - -

J & K Bank Neutral 1,298 - 6,292 2,762 2,885 3.6 3.6 226.7 193.0 5.7 6.7 1.3 1.1 24.4 17.7 - -LIC Housing Finance Accumulate 285 313 14,393 1,799 2,255 2.3 2.4 20.3 27.3 14.0 10.5 2.2 1.9 16.9 19.7 - -

Oriental Bank Accumulate 339 370 9,892 6,277 7,090 2.6 2.7 60.5 65.1 5.6 5.2 0.8 0.7 15.0 14.4 - -

Punjab Natl.Bank Accumulate 842 890 28,554 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 3,421 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 2,371 2,520 159,118 61,883 71,546 3.4 3.4 227.2 257.5 10.4 9.2 1.8 1.5 17.8 17.7 - -

Syndicate Bank Accumulate 128 139 7,696 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 78 - 5,195 5,234 6,097 2.3 2.4 11.8 14.7 6.6 5.3 1.1 0.9 11.9 13.4 - -

Union Bank Accumulate 269 285 14,799 9,912 11,536 2.8 2.9 40.4 46.7 6.7 5.8 1.1 0.9 16.1 16.4 - -

United Bank Buy 76 91 2,733 3,500 3,912 2.6 2.8 15.8 21.2 4.8 3.6 0.6 0.5 13.1 15.7 - -

Vijaya Bank Accumulate 62 66 3,053 2,354 2,754 2.0 2.2 7.4 10.2 8.4 6.0 0.8 0.8 9.3 11.9 - -

Yes Bank Buy 464 542 16,561 3,270 4,240 2.8 3.0 34.5 42.2 13.4 11.0 2.9 2.4 23.5 23.5 - -

FMCG

Asian Paints Neutral 4,424 - 42,435 11,198 13,184 16.2 16.2 123.7 146.4 35.8 30.2 12.2 9.6 38.1 35.4 3.7 3.1

Britannia Buy 499 584 5,966 5,627 6,581 4.9 5.7 18.3 24.7 27.3 20.2 10.0 7.6 39.1 42.7 1.0 0.8

Colgate Neutral 1,511 - 20,544 3,146 3,573 20.6 21.4 36.4 42.5 41.5 35.6 38.4 32.2 102.0 98.5 6.3 5.6

Dabur India Neutral 130 - 22,588 6,124 7,101 17.0 16.8 4.5 5.2 29.0 24.8 12.0 9.4 43.2 41.5 3.7 3.1

GlaxoSmith Con* Neutral 3,815 - 16,043 3,124 3,663 17.1 17.6 104.5 123.8 36.5 30.8 11.4 9.1 34.4 32.8 4.8 4.0

Godrej Consumer Neutral 747 - 25,405 6,355 7,548 18.4 18.6 22.8 27.6 32.7 27.0 7.5 6.2 26.4 26.1 4.2 3.5

HUL Neutral 523 - 113,114 25,350 28,974 13.3 13.5 14.7 17.1 35.5 30.7 28.1 19.8 84.5 75.8 4.3 3.7

ITC Neutral 290 - 228,509 29,409 34,060 35.7 36.1 9.3 10.9 31.1 26.5 10.3 8.6 35.8 35.3 7.5 6.4

Marico Neutral 222 - 14,290 4,840 5,643 13.1 13.1 6.2 7.8 35.9 28.5 6.8 5.6 25.4 22.6 3.0 2.5

Nestle* Neutral 4,825 - 46,519 8,529 10,079 20.8 21.1 113.1 137.8 42.7 35.0 25.6 17.9 70.5 60.2 5.5 4.6

Tata Global Neutral 160 - 9,904 7,207 7,927 9.7 10.0 6.6 7.8 24.2 20.5 2.5 2.4 8.6 9.5 1.3 1.2


Market Outlook

Stock Watch

December 27, 2012


9/13



IT

HCL Tech^ Neutral 635 - 44,103 24,214 26,772 19.5 18.1 44.0 48.0 14.4 13.2 3.4 2.9 24.0 22.0 1.7 1.5

Hexaware* Buy 87 123 2,567 1,924 2,116 20.7 19.8 10.7 11.2 8.1 7.7 2.0 1.7 25.3 22.8 1.1 0.9

Infosys Accumulate 2,311 2,573 132,723 39,174 41,580 29.5 30.4 159.2 171.6 14.5 13.5 3.5 3.1 24.1 23.1 2.8 2.6

Infotech Enterprises Accumulate 179 202 1,997 1,886 2,032 17.9 17.3 18.7 20.2 9.6 8.9 1.4 1.2 14.9 14.0 0.7 0.6

KPIT Cummins Buy 111 132 1,980 2,195 2,317 15.5 15.0 10.7 12.1 10.3 9.2 2.2 1.8 21.0 19.8 0.9 0.8

Mahindra Satyam Accumulate 104 115 12,182 7,597 8,141 20.0 18.8 9.7 10.4 10.7 9.9 3.0 2.3 27.5 22.9 1.2 1.1

Mindtree Accumulate 705 747 2,898 2,324 2,437 20.0 17.7 73.3 74.7 9.6 9.5 2.3 1.8 24.1 19.7 1.0 0.9Mphasis& Neutral 377 - 7,922 5,700 5,993 18.0 16.9 37.0 37.3 10.2 10.1 1.5 1.3 14.3 12.6 0.9 0.8

NIIT Buy 29 36 479 1,048 1,161 9.3 10.9 4.2 6.2 6.9 4.7 0.7 0.7 10.5 14.1 0.3 0.2

Persistent Accumulate 512 540 2,047 1,261 1,352 26.4 24.7 48.2 54.0 10.6 9.5 2.0 1.7 19.0 17.9 1.3 1.1

TCS Accumulate 1,260 1,410 246,610 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 914 1,070 11,680 6,603 7,150 19.8 18.4 92.9 102.0 9.8 9.0 2.3 1.9 23.7 21.0 1.8 1.6

Wipro Accumulate 385 421 94,780 43,219 47,241 20.0 20.0 26.1 28.1 14.7 13.7 2.8 2.5 19.3 17.9 1.9 1.6

Media

D B Corp Buy 224 259 4,110 1,581 1,784 23.3 25.0 11.6 14.4 19.4 15.5 3.8 3.2 21.0 22.3 2.5 2.2

HT Media Accumulate 103 113 2,424 2,111 2,272 15.0 15.2 7.4 8.3 14.0 12.5 1.5 1.4 11.3 11.4 0.8 0.7

Jagran Prakashan Accumulate 104 117 3,273 1,503 1,681 23.1 23.1 6.4 7.3 16.2 14.3 4.0 3.6 25.8 26.5 2.4 2.0

PVR Neutral 284 - 822 682 786 17.3 16.9 17.6 19.7 16.1 14.5 1.9 1.7 14.9 14.5 1.5 1.3

Sun TV Network Neutral 430 - 16,952 1,942 2,237 77.2 75.5 17.6 19.1 24.4 22.5 6.1 5.5 25.8 25.2 8.3 7.1

Metals & Mining

Bhushan Steel Neutral 464 - 9,856 11,307 14,287 29.5 29.1 45.1 51.0 10.3 9.1 1.2 1.1 12.2 12.2 2.9 2.3

Coal India Neutral 355 - 224,294 66,666 70,292 25.7 27.3 24.2 26.6 14.7 13.3 4.3 3.5 33.1 29.1 2.4 2.1

Electrosteel Castings Accumulate 26 29 889 1,984 2,074 10.6 11.6 0.8 2.0 30.7 12.7 0.5 0.2 1.7 4.1 0.7 0.6Hind. Zinc Accumulate 137 145 57,929 12,446 13,538 52.3 52.9 15.0 16.4 9.2 8.4 1.8 1.5 21.4 19.7 2.8 2.1

Hindalco Neutral 129 - 24,698 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 813 - 18,136 39,586 41,459 17.6 17.0 78.7 90.1 10.3 9.0 1.0 0.9 10.2 10.7 0.9 0.9

MOIL Neutral 261 - 4,392 941 1,019 47.3 48.3 25.8 28.1 10.1 9.3 1.6 1.4 16.7 16.2 2.3 1.9

Monnet Ispat Buy 282 344 1,816 2,501 3,264 22.2 24.6 41.8 55.2 6.7 5.1 0.7 0.6 11.3 13.4 1.8 1.3

Nalco Reduce 50 44 12,796 6,898 7,841 9.9 14.7 2.0 3.2 25.0 15.6 1.1 1.0 4.3 6.8 1.4 1.3

NMDC Buy 160 198 63,495 11,209 12,525 78.4 78.3 18.5 20.6 8.7 7.8 2.1 1.8 27.0 24.6 3.7 3.1

SAIL Neutral 89 - 36,741 47,252 60,351 14.2 14.8 9.6 11.7 9.3 7.6 0.8 0.8 9.4 10.6 1.2 1.0


Market Outlook

Stock Watch

December 27, 2012


10/13



Metals & Mining

Sesa Goa Neutral 194 - 16,856 4,551 6,640 32.8 34.4 33.7 39.3 5.8 4.9 1.0 0.8 18.3 18.3 4.3 3.0

Sterlite Inds Neutral 116 - 39,017 43,185 45,442 23.3 23.7 16.8 17.9 6.9 6.5 0.8 0.7 11.6 11.2 0.9 0.8

Tata Steel Accumulate 430 463 41,738 145,725 154,108 8.3 9.5 22.0 44.5 19.5 9.7 0.9 0.9 4.9 9.3 0.6 0.6

Sarda Accumulate 136 153 488 1,442 1,494 17.6 17.3 27.2 28.7 5.0 4.7 0.6 0.5 11.5 11.0 0.7 0.7

Prakash Industries Buy 51 73 687 2,694 2,906 14.6 16.6 16.4 20.8 3.1 2.5 0.3 0.3 11.4 12.8 0.5 0.4

Godawari Power andIspat

Buy 118 143 375 2,342 2,470 13.7 15.3 27.7 33.8 4.3 3.5 0.4 0.4 10.9 11.4 0.6 0.6

Oil & Gas

Cairn India Buy 320 382 61,117 17,567 17,643 76.2 72.3 61.1 56.8 5.2 5.6 1.1 0.9 22.0 17.5 2.6 2.2

GAIL Neutral 353 - 44,828 46,652 54,142 15.7 15.7 34.0 35.3 10.4 10.0 1.8 1.6 18.5 16.8 0.7 0.5

ONGC Buy 257 312 220,047 147,139 154,821 33.9 33.7 30.7 32.3 8.4 8.0 1.5 1.3 18.3 17.2 1.2 1.1

Reliance Industries Neutral 828 - 271,133 362,700 380,031 7.9 8.0 60.0 63.3 13.8 13.1 1.3 1.2 11.1 10.6 0.7 0.7

Gujarat Gas* Neutral 305 - 3,915 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 253 - 3,548 3,213 3,643 23.3 23.5 24.3 25.7 10.4 9.9 2.4 2.0 25.0 22.1 1.2 1.0

Petronet LNG Accumulate 160 183 12,000 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 75 - 4,240 1,079 1,034 91.8 91.9 8.8 8.4 8.6 9.0 1.4 1.3 17.9 15.0 3.7 3.7

Pharmaceuticals

Alembic Pharma Buy 69 91 1,291 1,624 1,855 14.2 15.6 6.6 9.1 10.4 7.5 2.6 2.0 27.9 29.9 0.9 0.8

Aurobindo Pharma Neutral 193 - 5,619 5,243 5,767 14.6 14.6 11.8 12.6 16.4 15.3 2.0 1.8 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 24.4 22.3 4.3 3.4 18.6 17.0 3.4 2.9

Cadila Healthcare Neutral 887 - 18,162 6,148 7,386 18.6 19.6 32.7 44.8 27.1 19.8 6.0 4.8 23.7 26.6 3.3 2.7

Cipla Neutral 420 - 33,759 8,151 9,130 25.0 24.0 19.5 20.9 21.6 20.1 3.7 3.2 18.8 17.2 3.9 3.4

Dr Reddy's Neutral 1,818 - 30,868 10,696 11,662 20.7 21.0 83.7 92.9 21.7 19.6 4.5 3.8 22.4 20.8 3.2 2.8

Dishman Pharma Buy 114 145 923 1,280 1,536 20.2 20.2 10.4 14.5 11.0 7.9 0.9 0.8 8.7 11.0 1.4 1.2

GSK Pharma* Neutral 2,077 - 17,589 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 89 599 685 837 15.2 15.2 7.4 8.9 8.8 7.3 1.3 1.2 16.4 17.0 1.1 0.9

Ipca labs Reduce 526 485 6,639 2,850 3,474 21.0 21.0 29.9 37.3 17.6 14.1 4.2 3.3 26.7 26.4 2.5 2.1

Lupin Accumulate 613 652 27,424 8,426 10,082 19.7 20.0 26.3 31.3 23.3 19.6 5.5 4.4 26.0 24.7 3.4 2.8

Ranbaxy* Neutral 507 - 21,428 12,046 11,980 18.0 15.8 31.3 29.8 16.2 17.0 5.5 4.4 39.1 28.9 1.8 1.7

Sun Pharma Neutral 753 - 77,864 9,752 12,134 41.6 41.6 26.0 28.2 29.0 26.7 5.4 4.6 20.3 18.8 7.2 5.6

Power

CESC Neutral 308 - 3,851 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 1,038 1,523 1,568 30.3 30.3 5.4 11.5 12.7 6.0 0.7 0.6 5.6 11.3 1.2 1.0


Market Outlook

Stock Watch

December 27, 2012


11/13



Power

NTPC Neutral 155 - 127,763 74,111 85,789 22.7 23.1 12.1 13.7 12.8 11.3 1.6 1.4 12.6 13.2 2.4 2.2

Real Estate

Anant Raj Sell 93 78 2,758 657 875 52.0 56.1 8.4 12.7 11.1 7.4 0.7 0.6 6.3 8.9 5.5 4.1

DLF Neutral 226 - 38,321 9,878 12,033 44.7 46.1 9.6 13.4 23.6 16.8 1.5 1.4 6.4 8.7 6.4 5.2

HDIL Neutral 110 - 4,607 2,441 3,344 55.1 48.2 22.7 26.6 4.8 4.1 0.4 0.4 8.8 9.4 3.7 2.8

MLIFE Neutral 413 - 1,687 813 901 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 317 352 120,553 81,984 90,718 32.1 33.8 10.9 16.9 29.1 18.8 2.2 2.0 7.6 10.6 2.2 1.8

Idea Cellular Neutral 102 - 33,776 22,234 24,161 26.9 27.7 3.3 4.9 30.8 20.7 2.4 2.1 7.7 10.3 2.0 1.8

Rcom Neutral 74 - 15,315 21,090 22,308 31.8 29.9 3.0 3.8 24.4 19.5 0.4 0.4 1.7 2.1 2.4 2.2

zOthers

Abbott India Accumulate 1,485 1,590 3,156 1,629 1,886 11.8 13.3 60.8 79.5 24.5 18.7 5.0 4.2 22.0 24.4 1.7 1.4

Bajaj Electricals Accumulate 206 217 2,054 3,497 3,968 6.6 7.6 9.8 15.5 21.0 13.3 2.7 2.3 12.7 17.4 0.6 0.5

Cera Sanitaryware Neutral 400 - 507 427 528 15.7 14.6 30.0 34.0 13.3 11.8 2.9 2.4 24.6 22.5 1.3 1.1

Cravatex Buy 442 545 114 272 308 7.2 7.3 37.5 45.4 11.8 9.7 2.8 2.2 23.7 22.7 0.5 0.5

CRISIL Neutral 1,038 - 7,292 982 1,136 34.3 34.3 34.3 40.0 30.2 26.0 13.7 11.0 50.9 46.9 7.0 5.9

Finolex Cables Neutral 58 - 892 2,304 2,552 9.9 9.1 8.2 10.1 7.1 5.8 1.0 0.9 13.7 14.7 0.3 0.3

Force Motors Buy 456 537 594 2,318 2,700 5.0 5.7 45.0 67.0 10.1 6.8 0.5 0.5 5.0 7.0 0.1 0.1

Goodyear India Neutral 349 - 806 1,494 1,607 6.4 7.8 23.9 33.0 14.6 10.6 2.3 2.0 16.5 20.1 0.3 0.3

Greenply Industries Neutral 316 - 762 1,925 2,235 10.6 10.9 29.6 44.1 10.7 7.2 1.7 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* Neutral 2,719 - 2,404 1,745 1,993 4.0 5.3 59.5 90.4 45.7 30.1 3.5 3.0 8.1 11.3 1.3 1.1

Styrolution ABS India* Neutral 742 - 1,305 1,059 1,116 8.5 9.5 36.0 42.0 20.6 17.7 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 156 - 2,523 1,228 1,443 9.0 10.9 3.9 6.4 40.2 24.5 4.0 3.7 10.1 15.6 2.6 2.1

MCX Neutral 1,475 - 7,524 553 624 65.3 66.3 62.5 72.0 23.6 20.5 6.5 5.6 27.5 27.4 10.6 8.9

MRF Accumulate 12,724 13,416 5,396 13,030 14,405 10.3 10.6 1,418.1 1,677.1 9.0 7.6 1.6 1.3 19.1 18.7 0.5 0.5

Page Industries Accumulate 3,306 3,602 3,688 836 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 765 933 918 1,019 1,208 11.0 12.5 47.0 66.7 16.3 11.5 4.0 3.0 28.2 30.1 1.1 0.9

Sintex Industries Buy 65 79 1,935 4,751 5,189 16.3 16.6 13.6 15.8 4.7 4.1 0.6 0.6 12.9 13.2 0.8 0.6

Siyaram Silk Mills Buy 302 366 283 1,043 1,149 12.3 12.9 65.7 73.3 4.6 4.1 0.9 0.7 21.0 19.6 0.5 0.5

S. Kumars Nationwide Neutral 14 - 419 6,765 7,393 18.1 18.0 6.4 7.5 2.2 1.9 0.1 0.1 6.1 6.7 0.7 0.6


Market Outlook

Stock Watch

December 27, 2012


12/13



zOthers

SpiceJet Neutral 44 - 2,107 5,720 6,599 5.3 6.8 3.6 5.4 12.1 8.1 17.5 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 311 384 479 750 803 18.6 18.4 65.4 69.1 4.8 4.5 0.7 0.7 16.5 15.3 0.3 0.2

TTK Healthcare Buy 524 643 407 374 425 7.9 9.5 24.1 32.7 21.8 16.0 19.7 22.5 0.9 0.8

TVS Srichakra Buy 269 335 206 1,476 1,643 7.0 8.2 32.6 55.9 8.2 4.8 1.3 1.1 16.8 24.8 0.4 0.3

United Spirits Neutral 1,932 - 25,271 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 326 - 662 560 611 16.1 17.0 24.7 28.8 13.2 11.3 2.0 1.7 15.8 16.2 1.1 1.0Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on December 26, 2012


Market Outlook

Stock Watch

December 27, 2012


13/13


Documents

Market Outlook 27th Dec