Morning Mantra

29th December 2010

BSE 20025.42, -3.51 FII's +Rs.109.03 Cr Gold USD 1404.9/t OZ

Nifty 5996.00, -2.10 DII's -Rs.265.36 Cr Oil USD 91.40/BL

1 USD = 45.1700 INR

NSE Top Gainers Nifty closes flat.

Company LTP % Change It was another quiet session for Indian equity benchmarks amid thin
Suzlon Energy 52.05 2.66 volume trade as traders' participation was low due to Christmas
Holiday; the Nifty was hovered around 6000 level throughout the day.
Ranbaxy Labs 589.95 2.63
Technology, HDFC group, select healthcare, metal, power and Anil
HDFC Bank 2,256.15 1.92
Dhirubhai Ambani Group (ADAG) companies' shares along with ITC
Tata Power 1,335.70 1.81 and BHEL supported the Sensex to stay above 20,000-mark. However,
Reliance Comm 139.4 1.75 Reliance Industries, Tata Motors, SBI, ICICI Bank, ONGC, SAIL, HUL,
L&T, Ambuja Cements, Dr Reddy's Labs and BPCL witnessing selling
NSE Top Losers pressure. The 30-share BSE Sensex closed at 20025, down 3.5 points
Company LTP % Change and the 50-share NSE Nifty fell just 2 points to settle at 5,996. Even
Tata Motors 1,267.70 -2.53 broader indices were lacklustre in trade. Market breadth was mixed;
about 1458 shares advanced on Bombay Stock Exchange whereas
ICICI Bank 1,113.70 -0.92
1450 shares declined. Both exchanges reported total traded turnover
SBI 2,727.05 -0.9 of Rs 1,06,408.6 crore. This included Rs 8,692.92 crore from NSE cash
Reliance 1,047.15 -0.75 segment, Rs 95,020.81 crore from NSE F&O and the rest of Rs
ONGC 1,291.55 -0.66 2,694.87 crore from BSE cash segment.

BSE 500 Top Gainers

Company LTP % Change Outlook
Bartronics 91.25 19.05 Market is likely to open flat with positive bias. On crossing the pivot of
United Brewerie 518.75 13.75 5996, it is likely to face resistance at 6010-6025-6039. The support for
Nifty comes at 5982-5968-5953.
Hind Oil Explor 222.95 9.45
Moser Baer 62.55 9.07
Headlines
Manappuram 152.4 8.12
 Hyundai evinces interest to set up plant in Gujarat.
 Punj Lloyd bags civil construction project in Hirco SEZ.
BSE 500 Top Losers  Gold bull run to continue, target Rs.25,000.
Company LTP % Change  HPCL, Mittal plan IPO for Bhatinda unit in Q4, 2011.
Asahi India 88.3 -7.1  Apple Sued Over Applications Giving Information to
Glodyne Techno 669.8 -5.46 Advertisers.
Arshiya Intl 270.5 -3.94  China Cuts First-Round Rare Earth Export Quotas by 11%.
Allcargo Global 145.1 -3.68  Dollar Weakens Before Housing Data; Stocks Fluctuate,
Hathway Cable 159.45 -3.63 Bonds Rise.
 Japan Production Rises, Signaling Recovery Is Intact.

Branch Office:
Shah Investor’s Home Ltd.164-C, 16th Floor, Mittal Tower, Nariman Point, Mumbai-400021
PH: 91 22 22040782/83/84 Fax: 91 22 22040722 E-Mail: research@sihl.in Web: www.sihl.in
 Morning Mantra
29th December 2010

Domestic News

Hyundai evinces interest to set up plant in Gujarat

India's second largest carmaker Hyundai Motors has evinced interest in setting up a manufacturing
facility in Gujarat, and its officials have visited a site at Dholera near here, which was suggested by
the state officials.
"A delegation from Hyundai Motors has visited a site in Dohlera 10 days ago as suggested by our
department for their new plant," a top industry department official said on the condition of
anonymity. "After the site visit they have shown interest in setting up the plant here, but nothing is
final yet," officials said.
The company officials who had visited Dholera will now be submitting its recommendations to the
company board. Its board will be taking a final decision in this regard, he said.
They might also be exploring options in other states for setting up a manufacturing plant, he further
said. Dholera, is a special investiment region (SIR) in the state spread across 80,000 hectares of land
and falls near the Delhi-Mumbai Industrial Corridore (DMIC). It is located just 90 kms from the city
where the state government has decided to set up second international airport of the state also.

Punj Lloyd bags civil construction project in Hirco SEZ

Punj Lloyd on Tuesday said it has bagged a contract for construction of two commercial buildings in a
township being developed by the Hirco Group at its Special Economic Zone at Panvel, Maharashtra.
The township, Hiranandani Palace Gardens, is a part of Hirco's Panvel SEZ in Maharashtra and is
expected to be completed within 24 months.
"The contract entails the construction of two commercial buildings and a podium, adding up to a
built-up area of about 2 million square feet. The first of the two buildings will be completed within 12
months," Punj Lloyd said in a statement.
Hiranandani Palace Gardens is a mixed-use township project, which will boast world-class residential
complexes, offices, educational institutions, healthcare facilities, etc, once complete, it said, adding
that the commercial towers will be built near residential apartments.

Gold bull run to continue, target Rs.25,000

Despite the sharp recovery of India's capital markets, appetite for gold in the world's largest
consumer of the precious yellow metal remained robust in 2010, sending prices soaring to record
highs at the retail level.
Prices had been on an upward climb throughout the year, particularly since May, when the
economies of some European countries went into a tailspin and gold was seen as a safer bet for
investors. But soon after Diwali, the festival of lights, in November, they touched an all-time high of
Rs. 20,893 per 10 grams on December 7. Analysts expect prices to remain high next year as well, with
some even predicting Rs.25,000 per 10 gms by May.

HPCL, Mittal plan IPO for Bhatinda unit in Q4, 2011

Steel tycoon Lakshmi N Mittal and Hindustan Petroleum Corp Ltd (HPCL) plan to sell a 10-per cent
stake each in the under-construction Bhatinda Refinery in a public offering in Q4 of 2011 to raise Rs.
1,000-1,500 crore.
State-owned HPCL and Singapore-based Mittal Energy Investment Pte Ltd, an L N Mittal Group firm,
own 49 per cent each in HPCL-Mittal Energy Ltd (HMEL), which is building the Rs. 18,919 crore
refinery at Bhatinda in Punjab.
"We are planning to sell about 10 per cent of our stakes each through an initial public offering
sometime in the fourth quarter of 2011 (calendar year)," a company official said.

Branch Office:
Shah Investor’s Home Ltd.164-C, 16th Floor, Mittal Tower, Nariman Point, Mumbai-400021
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 Morning Mantra
29th December 2010

Global News

Apple Sued Over Applications Giving Information to Advertisers

Apple Inc., maker of the iPhone and iPad, was accused in a lawsuit of allowing applications for
those devices to transmit users’ personal information to advertising networks without customers’
consent. The complaint, which seeks class action, or group, status, was filed on Dec. 23 in federal
court in San Jose, California. The suit claims Cupertino, California-based Apple’s iPhones and iPads
are encoded with identifying devices that allow advertising networks to track what applications
users download, how frequently they’re used and for how long. “Some apps are also selling
additional information to ad networks, including users’ location, age, gender, income, ethnicity,
sexual orientation and political views,” according to the suit.

China Cuts First-Round Rare Earth Export Quotas by 11%

China cut its rare earths export quotas by 11 percent in the first round of permits for 2011,
threatening to worsen a global shortage of the minerals needed for smartphones, hybrid cars and
guided missiles. The government allotted 14,446 metric tons of rare earth exports split among 31
companies, the Ministry of Commerce said in a statement. That compares with the first round this
year of 16,304 tons and the second round of 7,976 tons, according to previous ministry statements.
The government usually issues two rounds of export quotas every year. China, which accounts for
more than 90 percent of world supplies, slashed export quotas by 72 percent in the second half of
this year, sparking a surge in prices. Japan, the biggest user, has sought alternate supplies with
companies including Hitachi Metals Ltd. and Toyota Motor Corp. seeking cooperative
ventures at home and abroad to secure the minerals. “This is in line with government officials’
comments that we need to protect the environment and resources,” said Chen Jiazuo, an analyst at
metals researcher Beijing Antaike Information Development Co. “Controlling domestic production
capacity, output and exports will continue to be the theme.”

Dollar Weakens Before Housing Data; Stocks Fluctuate, Bonds Rise

The dollar weakened and the Swiss franc climbed to a record before a U.S. housing report that may
indicate prices fell, while European bonds rose as France’s economy expanded less than initially
estimated. Index futures advanced and stocks fluctuated. The dollar depreciated 0.7 percent
against the euro at 6:30 a.m. in New York. The Swiss franc gained against all 16 of its major peers.
The yield on the 10-year German bund declined six basis points. The Stoxx Europe 600 Index
increased 0.1 percent, trimming yesterday’s 0.8 percent drop, the biggest in a month. Standard &
Poor’s 500 Index futures added 0.2 percent, and the Shanghai Composite Index retreated 1.7
percent. Gold rallied for a third day. U.S. home prices probably dropped in October, a sign housing
will remain a weak link as the economic recovery accelerates into 2011, economists said before
today’s report. France’s economy grew 0.3 percent in the third quarter, less than the 0.4 percent
preliminary estimate, the Paris based statistics office said. China’s stocks fell for a fifth day as Li
Daokui, a central bank adviser, said adjustments in rates and reserve requirements are “very
necessary” in 2011.

Japan Production Rises, Signaling Recovery Is Intact

Japanese Finance Minister Yoshihiko Noda renewed his warning to take “bold” action against the
yen’s advance if needed, a sign of concern among policy makers about the currency’s climb slowing
the recovery. The yen’s recent appreciation has been “one-sided,” Noda told reporters in Tokyo
today, adding that the government will take “bold action when moves are excessive.” Economy
Minister Banri Kaieda said “abrupt yen moves must be avoided.”

Branch Office:
Shah Investor’s Home Ltd.164-C, 16th Floor, Mittal Tower, Nariman Point, Mumbai-400021
PH: 91 22 22040782/83/84 Fax: 91 22 22040722 E-Mail: research@sihl.in Web: www.sihl.in
 Morning Mantra
29th December 2010

Benchmark Currency rates

USD EUR JPY GBP CHF CAD AUD HKD

HKD 7.7807 10.3207 0.095 12.0492 8.228 7.7776 7.8929 -
AUD 0.9858 1.3076 0.012 1.5266 1.0425 0.9854 - 0.1267
CAD 1.0004 1.327 0.0122 1.5492 1.0579 - 1.0148 0.1286
CHF 0.9456 1.2543 0.0116 1.4644 - 0.9453 0.9593 0.1215
GBP 0.6457 0.8565 0.0079 - 0.6829 0.6455 0.6551 0.083
JPY 81.865 108.5898 - 126.777 86.5719 81.8323 83.0455 10.5216
EUR 0.7539 - 0.0092 1.1675 0.7972 0.7536 0.7648 0.0969
USD - 1.3264 0.0122 1.5486 1.0575 0.9996 1.0144 0.1285

Major World Indexes

Americas

INDEX VALUE CHANGE % CHANGE

DOW JONES INDUS. AVG 11,575.50 20.51 0.18%
S&P 500 INDEX 1,258.51 0.97 0.08%
NASDAQ COMPOSITE INDEX 2,662.88 -4.39 -0.16%

Europe

INDEX VALUE CHANGE % CHANGE

Euro Stoxx 50 Pr 2,824.30 -2.21 -0.08%
FTSE 100 INDEX 6,008.92 12.85 0.21%
CAC 40 INDEX 3,858.72 -3.47 -0.09%
DAX INDEX 6,972.10 1.37 0.02%

Asia-Pacific

INDEX VALUE CHANGE % CHANGE

NIKKEI 225 10,309.90 17.31 0.17%
HANG SENG INDEX 22,722.60 100.82 0.45%
S&P/ASX 200 INDEX 4,763.90 -13.4 -0.28%

Branch Office:
Shah Investor’s Home Ltd.164-C, 16th Floor, Mittal Tower, Nariman Point, Mumbai-400021
PH: 91 22 22040782/83/84 Fax: 91 22 22040722 E-Mail: research@sihl.in Web: www.sihl.in
 Morning Mantra
29th December 2010

BSE Sectoral Index

BSE Sectoral Indices

Current Previous
Index Open High Low Value Close Change(Pts) Change(%)
FMCG 3,583.76 3,605.70 3,573.24 3,597.09 3,574.42 22.67 0.63
HC 6,623.18 6,664.42 6,612.91 6,651.71 6,620.51 31.2 0.47
TECk 3,954.90 3,976.31 3,952.15 3,965.62 3,952.29 13.33 0.34
IT 6,712.74 6,745.17 6,703.27 6,730.62 6,711.10 19.52 0.29
POWER 2,926.55 2,934.15 2,917.07 2,928.64 2,922.97 5.67 0.19
REALTY 2,743.36 2,766.96 2,742.30 2,747.25 2,742.16 5.09 0.19
METAL 17,062.82 17,184.42 17,053.85 17,086.89 17,059.88 27.01 0.16
CD 6,119.42 6,155.52 6,107.13 6,110.96 6,119.42 -8.46 -0.14
BANKEX 13,020.36 13,036.30 12,937.89 12,977.69 13,005.47 -27.78 -0.21
CG 15,209.96 15,225.56 15,101.12 15,142.69 15,184.74 -42.05 -0.28
AUTO 10,017.77 10,035.63 9,948.04 9,971.74 10,007.14 -35.4 -0.35
PSU 9,287.47 9,288.47 9,224.06 9,235.83 9,278.19 -42.36 -0.46
OIL&GAS 10,613.40 10,619.37 10,498.28 10,529.67 10,607.88 -78.21 -0.74

Bulk Deals as on 28th Dec. 2010:

Symbol Client Name Buy/Sell Quantity Traded Price
ASIANHOTNR RADHE SHYAM SARAF BUY 395249 220
BEDMUTHA TOUCHSTONE FINVEST SERVICES PRIVATE LIMITED BUY 56833 78.79
BFUTILITIE CROSSEAS CAPITAL SERVICES PVT. LTD. BUY 200807 921.95
EDSERV CROSSEAS CAPITAL SERVICES PVT. LTD. BUY 118108 175.8
JINDALPHOT CROSSEAS CAPITAL SERVICES PVT. LTD. BUY 146392 255.07
JINDALPHOT SUNEET LAL BUY 63858 253.56
NUTEK TRANS FINANCIAL RESOURCES LTD BUY 270518 19.08
PRITHVI BP FINTRADE PRIVATE LIMITED BUY 97125 43.15
RKDL ADROIT FINANCIAL SERVICES PRIVATE LIMITED BUY 194241 79.76
RKDL AJAY BUY 197406 80.1
RKDL ALIVE CONSULTANTS ALIVE BUY 178103 80.28
RKDL BHANUMATI DHARAMRAJ GIRI BUY 3300661 80.23
RKDL CPR CAPITAL SERVICES LTD. BUY 215024 80.2
RKDL CROSSEAS CAPITAL SERVICES PVT. LTD. BUY 1233450 79.88
RKDL DEEPAK SHANTILAL CHHEDA BUY 175862 79.79
RKDL GENUINE STOCK BROKERS PVT LTD BUY 323633 80
RKDL M. SRINIVAS BUY 125959 80.83
RKDL MARWADI SHARES AND FINANCE LIMITED BUY 447454 80.09

Branch Office:
Shah Investor’s Home Ltd.164-C, 16th Floor, Mittal Tower, Nariman Point, Mumbai-400021
PH: 91 22 22040782/83/84 Fax: 91 22 22040722 E-Mail: research@sihl.in Web: www.sihl.in
 Morning Mantra
29th December 2010

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