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worries seem to have cooled down. In fact, the CNX Midcap 8,512 0.0 (7.3) 14.5
BSE Smallcap 8,951 2.4 (12.9) 7.1
otherwise warm cities like Mumbai are beginning Developed market % change
to feel the chill. Last close 1 day 3 mth YTD
Dow Jones 11,410 0.4 8.2 9.4
The start today to a truncated trading week is Nasdaq 2,638 0.8 15.4 16.2
likely to be a positive one. Most Asian markets S&P 500 1,240 0.6 10.6 11.2
are trading up. Even the Chinese market has FTSE 5,813 0.1 4.4 7.4
brushed aside concerns about a possible rate hike CAC 3,857 (0.0) 2.4 (2.0)
after inflation surged to a two-year high. DAX 7,006 0.6 11.9 17.6
Hang Seng* 23,395 1.0 8.0 7.0
And talking of interest rates, the market will Nikkei* 10,227 0.1 9.7 (3.0)
S&P/ASX200* 4,773 0.6 3.4 (2.0)
closely follow the policy meetings of the RBI (on * Markets are open
Dec 16) and the US Federal Reserve (late Emerging market % change
tomorrow). Also, the latest monthly inflation Last close 1 day 3 mth YTD
figures (Dec 14) will be closely tracked. Shanghai Comp 2,876 1.2 7.0 (12.2)
Brazil Bovespa 68,342 0.7 0.5 (0.4)
While the market could well rebound after last Mexico Bolsa 37,678 0.3 14.4 17.3
week’s carnage, one should remain on guard, as Kospi* 1,987 0.0 9.2 18.1
FIIs have been net sellers in the past few Micex 1,656 (0.3) 14.9 20.9
Taiwan* 8,758 0.5 8.2 7.0
sessions. Stick to Large Caps and “quality” mid- Straits* 3,187 0.0 3.9 10.0
caps and avoid “dodgy” counters even if prices * Markets are open
seem attractive. Complacency is the last thing Institutional activity
one needs in an uncertain market. Wait for the (Rs cr) Cash F&O MTD YTD
market to stabilise and stay up for a few sessions FIIs (1,197) (289) 1,513 130,189
Market Mantra
News
Market Mantra
Technicals
Market Mantra
Technicals…
Market Mantra
Deals
Bulk deals
Date Scrip name Client name B/S Qty ('000) Avg price (Rs) Deal size (Rs m)
10/12/2010 ACC Ambuja Cement India Private B 2,214 1075 2,378.6
10/12/2010 ABG Shipyard Limited Abg International Pvt.Ltd B 255 360 91.9
10/12/2010 Gitanjali Gems Limited Credit Suisse First Boston B 495 182 89.9
10/12/2010 Hanung Toys and Textiles Credit Suisse First Boston B 159 199 31.7
Insider trades
Transaction Qty Avg price Deal size Shares Holding after
B/S
Company name Acquirer/Seller date ('000) (Rs) ('000) transactions (%) transaction (%)
Chambal Fertilisers H S Bawa 18/11/2010 B 20.0 91 1.8 - 0.1
Eicher Motors Ltd Krishnan P Nair 9/11/2010 B 3.6 1,384 5.0 - -
Eicher Motors Ltd R Anbuselvaw - B 420.3 1,384 581.6 - -
Eicher Motors Ltd Vinod Kumar Aggarwal 9/11/2010 B 10.0 1,384 13.8 - -
*Closing price on the transaction day is assumed to be average price of the deal
Market Mantra
Derivatives
Nifty Dec 6,000 Put shed 1.11mn shares in FII's (1,197.1) (289) 1,513 130,189
Lot size: 1000 Index Future (Rs cr) 19,305 21,223 17,122 (9.0)
Stock Future (Rs cr) 19,171 20,441 16,345 (6.2)
Remarks: Net maximum profit of Rs10,000
Index Options (Rs cr) 82,539 97,109 69,664 (15.0)
and net maximum loss of Rs5,000.
Stock Options (Rs cr) 3,887 4,609 3,658 (15.7)
Index Future (Cont '000) 698 768 612 (9.1)
Long Federal Bank Dec Future in range of
Stock Future (Cont '000) 703 751 583 (6.3)
Rs407-409 for the target price of Rs419 and
Index Options (Cont '000) 2,792 3,265 2,187 (14.5)
stop loss placed at Rs401.
Stock Options (Cont '000) 134 156 206 (14.3)
Lot size: 1000
PCR (OI) 0.9 1.0 1.1 (3.8)
Remarks: Net maximum profit of Rs12,000
PCR (VOI) 0.4 0.4 0.4 (4.6)
and net maximum loss of Rs6,000
Sector-wise OI
4 % Chg
0
-4
-8
Textile
Power
Sugar
Metals
FMCG
Real Estate
IT
Logistics
Others
Total Stock
Cement
goods &
Pharma
Automobiles
Telecom
Media
Capital
Fertilizers
Banking
Future
Market Mantra
Derivatives…
Note:
Ideas given under the ‘Derivatives’ section are positional trades for the stated F&O expiry. Stocks recommended under this heading are not
necessarily part of our fundamental buy or sell list.
Market Mantra
Mutual Funds
Fund focus
IDFC Small & Midcap Fund Invest
Fund manager Kenneth Andrade Min investment Rs5,000
Latest NAV Rs18.8 Entry load Nil
NAV 52 high/low Rs21/14 Exit load 1% <1 yr
Latest AUM Rs1,012cr Benchmark CNX Midcap
Class Equity – diversified Asset allocation Equity (89%), Debt (5%), Cash (6%)
Options Growth & dividend Expense ratio 2.12%
Top recommended funds (Absolute returns (in %) are based on previous close)
Assets NAV
Equity – Diversified (Rs Cr) (Rs) 1wk 1mth 3mth 6mth 1yr 2yr 3yr 5yr
HDFC Top 200 (G) 9,425 215.7 (4.6) (8.6) (0.9) 15.4 20.5 139.0 31.2 178.0
IDFC Small & Midcap Equity –(G) 1,012 18.1 (6.6) (14.1) (7.8) 8.3 20.1 160.1 -- --
Reliance Equity Opportunities – (G) 2,694 35.9 (4.6) (9.8) (6.3) 13.9 26.0 171.9 17.7 157.2
Equity – Thematic
Reliance Pharma Fund (G) 504 54.6 (3.5) (6.1) 3.6 7.1 28.0 197.2 98.9 219.9
ICICI Pru Tech Fund (G) 114 18.8 (1.2) 1.9 10.3 29.3 42.1 200.6 23.1 88.4
Franklin FMCG Fund (G) 49 65.7 (3.4) (7.9) (3.1) 14.1 29.2 120.1 60.7 123.9
Hybrid
HDFC Prudence Fund (G) 5,738 211.8 (4.2) (7.6) (2.6) 11.1 23.1 135.2 34.7 152.7
HDFC MIP – LTP (G) 10,000 22.6 (1.4) (2.3) 1.3 5.2 9.6 48.2 32.9 75.3
Reliance RSF - Balanced (G) 725 22.7 (4.1) (9.1) (4.5) 10.2 18.9 118.9 38.6 124.2
NFO Update
#
Fund name Open date Close date Type Class
Reliance Fixed Horizon Fund XVI Series 6 10-Dec 14-Dec CE Debt - FMP
IDFC FMP Series 61 13-Dec 14-Dec CE Debt - FMP
ICICI Pru FMP Series 53 - 1 Year Plan D 09-Dec 16-Dec CE Debt - FMP
Kotak QIP Series 2 20-Dec 20-Dec CE Debt – Interval
Reliance Interval Fund - Monthly - II 29-Dec 29-Dec CE Debt – Interval
#OE: Open Ended, CE: Close Ended
Recent actions
Kotak Quarterly Interval Plan Series 1 declares dividend. The record date is December 15, 2010.
ICICI Prudential Quarterly Interval Plan II declares 1.522% and 1.642% dividend under Retail and
Institutional. The record date is December 15, 2010.
DSP BlackRock FMP - 3M - Series 20 declares dividend. The record date is December 14, 2010.
Canara Robeco Interval Series 2 – QIP 2 declares dividend. The record date is December 13, 2010.
SBI Debt Fund Series - 90 Days – 34 declares dividend. The record date is December 13, 2010.
Disclaimer: Mutual Fund is subject to market risk, please read the offer document carefully before investing.
Market Mantra
House Recommendations
House Recommendations
The large cap Buys and Sells are relative outperformer and underperformer bets vis-à-vis the Nifty
respectively. Reduce portfolio weight in stocks with Sell rating. Midcap Buys are based on absolute
return expectations.
Mar-07
Mar-08
Mar-09
Mar-10
Sep-05
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
Apr-08
Jun-08
Aug-08
Oct-08
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
G-Secs yield M3 growth
10 Yr Gsecs 5 Yr Gsecs M3 (LHS) M3 yoy % (RHS)
8.5 60,000 40.0
(%) 1 Yr Gsecs (Rs bn) (%)
55,000 35.0
7.5
30.0
50,000
6.5 25.0
45,000
20.0
5.5 40,000
` 15.0
35,000
10.0
4.5
30,000 5.0
3.5 25,000 0.0
May-10
May-09
Nov-09
Mar-10
Nov-08
Mar-09
Nov-10
Dec-08
Feb-09
Apr-09
Jun-09
Aug-09
Sep-09
Jan-10
Jun-10
Aug-10
Oct-10
Dec-10
Jan-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Sep-10
Jul-09
Jul-10
Feb-09
Apr-09
Jun-09
Aug-09
Oct-09
Dec-09
Jan-10
Aug-10
Oct-10
Jul-10
Dec-10
Oct-08
Feb-09
Jun-09
Oct-09
Feb-10
Jun-10
Oct-10
Market Mantra
0
5
10
15
20
25
30
35
40
45
FDI
0
200
400
600
800
(400)
(200)
0
1,000
2,000
3,000
4,000
5,000
6,000
Jun-05
Oct-08
Jan-09
Dec-05
Dec-08
(US$ bn)
Mar-09
(Rs bn)
Market Mantra
Economy…
Fiscal deficit
Trade deficit
(US$ mn)
Feb-09 Jun-06
May-09
Apr-09 Dec-06
Jul-09
Jun-09
Jun-07
Sep-09
Aug-09
Dec-07
Oct-09 Nov-09
Jun-08
Dec-09 Jan-10
Apr-10 Jun-09
May-10
Jun-10
Jul-10 Dec-09
Aug-10
Sep-10 Jun-10
Oct-10
0
5
10
15
150
200
250
300
350
(10)
(5)
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
Dec-08
Jun-05
Oct-08
Jan-09
Dec-08 Dec-05
Mar-09
(US$ bn)
(US$ bn)
Feb-09
May-09 Jun-06
Mar-09
Jun-09
May-09 Dec-06
Aug-09
RBI forex reserves
Jul-09
Currency movement
Sep-09 Jun-07
INR/USD
INR/GBP
Sep-09
Current account deficit
Nov-09
Nov-09 Dec-07
Jan-10
Dec-09
Feb-10 Jun-08
Feb-10
Apr-10
Apr-10 Dec-08
May-10
INR/EURO
Jun-10 Jun-09
Jul-10
INR/100 Yen
Aug-10
Sep-10
Dec-09
Sep-10
Oct-10
Nov-10 Jun-10
Event Calendar
Market Mantra
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