2012

Systematix Morning Bulletin

Systematix Morning Bulletin | January 13, 2012

January 13, 2012

MARKETS AT A GLANCE
Index
SENSEX BSE100 BSE200 BSE500 NIFTY BSEMCAP BSESCAP CNXBANK Dollar index
Source: Bloomberg

Closing 16,038 8,321 1,950 6,097 4,831 5,520 6,084 8,930 80.82

Change (138) (31) (5) (13) (30) 14 9 91 (0.02)

% Change (0.9) (0.4) (0.3) (0.2) (0.6) 0.3 0.1 1.0 (0.02)

Commodities
Closing Index Change % Change Gold (US$/Ounce) 1,643.70 Silver (US$/Ounce) 30.10 Aluminum (US$/Tonne) 2,152.00 Copper (US$/Tonne) 7,973.00 Nymex Crude (US$/bbl) 99.52 Brent Crude (US$/bbl) 111.59 (4.00) (0.02) (11.00) (32.00) 0.42 0.55 (0.31) (0.01) (0.00) 0.00 (0.24) (0.08) (0.51) (0.40) 0.42 0.50 (0.60) (0.01) (0.03) 0.00

Currencies
INR/USD JPY/USD EUR/USD Yuan/USD
Source: Bloomberg

Global Indices
Closing Index Change % Change Dow Nasdaq FTSE DAX CAC 40 SGX Nifty Hang Seng Nikkei Kospi US 10 Year UK 10 Year JAPAN 10 Year INDIA 10 Year GERMANY 10 Year ITALY 10 Year FRANCE 10 Year
Source: Bloomberg

51.84 76.76 0.78 6.32

12,471 2,725 5,662 6,179 3,200 4,875 19,164 8,475 1,875

22 14 (8) 27 (5) 7 68 90 11

0.2 0.5 (0.1) 0.4 (0.2) 0.1 0.4 1.1 0.6 0.00 0.90 (1.14) 0.01 1.16 (5.05) (3.77)

BSE/NSE Turnover
(12.01.12) BSE Volume (INR Mn) NSE Volume (INR Mn) TOTAL (INR Mn)
Source: Bloomberg

Asian Markets @ 8.30 IST.

25412.2 123442.3 148854.5

FlI / DII Flows (Rs.Cr)

Buy Sell Net

Provisional (12.01.12) FII DII TOTAL Final (11.01.12) FII MUTUAL FUND TOTAL
Source: BSE/ SEBI

Bonds (%)
1.92 2.02 0.95 8.23 1.84 6.63 3.04

Bps
0.00 0.02 (0.01) 0.00 0.02 (0.35) (0.12)

2,539 944 3,483 2,630 482 3,112

2,032 1,941 3,973 2,132 555 2,687

507 (997) (490) 498 (73) 425

FII Derivative Trades as on 12-Jan-2012

Derivative Products INDEX FUTURES INDEX OPTIONS STOCK FUTURES STOCK OPTIONS TOTAL
Source: BSE/ SEBI

BUY Amt (Rs. cr) 1864.21 14391.45 2067.84 991.12 19,314.63

SELL Amt (Rs. cr) 1978.75 13788.19 1849.94 1019.90 18,636.79

NET Amt (Rs. cr) (114.54) 603.26 217.89 (28.78) 677.84

Open Interest at the end of the date Amt (Rs. cr) 11884.70 33850.19 26135.01 1200.40 73,070.30

Systematix Morning Bulletin | January 13, 2012

Top News
Domestic news
Infosys Q3 net up 33%, trims revenue outlook for FY 2012 (Reuters)
Infosys posted higher-than-expected 33.25% growth in net profit to Rs2,372 crore for Q3, FY'12, but a downward revision of its full-year revenue outlook due to the euro zone debt crisis overshadowed the results, with the company stock tanking by over 7%. The company had posted a net profit of Rs1,780 crore for the December quarter of the previous fiscal (201011). Consolidated revenue of the country's second-largest software exporter rose by 30.8% to Rs9,298 crore during the October-December, 2011 period, from Rs7,106 crore in the year-ago period.

India's HDFC Q3 net up 10 pct, misses forecasts (Reuters)

HDFC Ltd, India's biggest mortgage lender, reported a 10 percent rise in third-quarter net profit that fell short of market estimates as income from sales of investments fell sharply from a year earlier and interest expenses rose. HDFC said net profit rose to 9.8 billion rupees ($190 million) from 8.9 billion a year earlier. Total income rose to 44.7 billion rupees from 33.2 billion. Profit from the sale of investments fell 47%, hurting net income.

SSTL gets Rs 1,280 cr loan, to utilise for scaling up operations (ET)

At a time when most telecom companies are finding it hard to raise funds, Sistema Shyam TeleServices Limited has raised a loan of Rs 1,280 crore from Deutsche Bank and the amount will be utilised to scale-up its operations and repay maturing loans. The company has raised a loan amounting to Rs 1,280 crore through Non-Convertible Debentures (NCD). They are planning to utilise the proceeds to further scale-up our telecom operations and repayment of maturing loan. We are very thankful to our banking partner. SSTL offers telecom services under the MTS brand and claims to have a subscriber base of over 15 million mobile users, besides 1.2 million data users.

HUDCO to raise up to Rs 4,685 cr through tax-free bonds (Mint) Housing and Urban Development Corporation Ltd (HUDCO) said it will raise up to Rs 4,685 crore through a public issue of tax-free bonds. The company said it had on Wednesday filed a draft prospectus for the same with the National Stock Exchange (NSE), where these bonds would be listed. These bonds would have tax benefits for subscribers under the Income Tax Act, 1961.HUDCO is a public sector firm fully owned by the government for financing of housing and urban infrastructure activities in India. LIC to enter private equity via Rs 500 cr fund (Mint) Mumbai: Mortgage lender LIC Housing Finance Ltd, a unit of Life Insurance Corp of India (LIC), will raise $96.5 million for its urban development fund, a move that will mark the state-owned groups foray into private equity. The Rs 500 crore fund, which will be managed by LIC Housing Finances asset management unit, will invest in companies developing affordable housing, industrial and IT parks, special economic zones and other allied segments through equity and equity-related instruments. IDFC plans $1.5 bn MTN programme (Mint) Infrastructure Development Finance Co. Ltd (IDFC) plans to raise $1.5 billion in foreign currency loans. It has already received approval for its medium-term note (MTN) programme from the Singapore Stock Exchange, the first such issue for a non-banking financial intermediary from India that specializes in long-term infrastructure finance. The MTN programme is another attempt to diversify the liability profile. An MTN is an umbrella instrument that allows firms to raise money in tranches after the final document filing. We cannot depend on one particular source of funds. We are creating one more opportunity for accessing markets and we will tap the opportunity when the cost of funds is low. Once I have documents and approvals in place, I can raise funds overnight from anywhere in the world in any currency.

Systematix Morning Bulletin | January 13, 2012

International news
Bank of Korea holds rates steady but may cut soon
Bank of Korea holds benchmark rate at 3.25% for seventh successive month BOK remains cautious about the impact of overseas developments on the Korean economy Many analysts forecast a rate cut, possibly in the second quarter, The Bank of Korea Friday kept its benchmark interest rate on hold for a seventh straight month but is widely expected to cut the rate later this year to underpin growth amid concerns about Europe's sovereign debt crisis and a global economic slowdown. The central bank, as expected, held its policy rate at 3.25%, where it has stood since a 25-basis-point hike in June last year. All 17 analysts surveyed this week by Dow Jones Newswires had forecast the BOK would stand pat at its first rate review of the year.

S&P upgrades Enterprise Products; outlook positive

Standard & Poor's Ratings Services upgraded Enterprise Products Partners LP's investment-grade ratings by a notch, citing the pipeline company's increased scale and diversity and its high proportion of fee-based revenue. S&P has Enterprise Products Partners at triple-B--two notches into investment grade with a positive outlook. The credit ratings company said a further one-notch upgrade is possible over the next year or two if the master limited partnership's credit trends continue and Enterprise continues to expand its scale and reduces its commodity-price risk. Enterprise has seen its results soar in recent quarters, helped in part by its $3.3 billion merger with Teppco Partners LP in late 2009, which created one of the largest pipeline companies in the U.S. The outlook could be lowered to stable if Enterprise's debt ratios rise above certain levels on a sustained basis, which S&P said could result if growth projects and acquisitions are funded with high portion of debt.

U.S. budget deficit $86 billion in December

The U.S. government ran a deficit of $86 billion in December, the Treasury Department reported, pushing the federal budget shortfall to $322 billion in the first quarter of fiscal 2012. Receipts were $240 billion in December, compared to spending of $326 billion by the government in the month. The December monthly deficit was $8 billion higher compared to the same month in 2010. The fiscal year deficit to date, however, showed an improvement, falling by $47 billion compared to the first quarter of fiscal 2011. The monthly numbers arrive in the thick of the presidential campaign, and as Congress prepares to return to Washington. Deficit reduction has been high on the White Houses and Congresss to-do list, but last year saw the implosion of the 12-member supercommittee of lawmakers, which failed to agree on a plan.

Moody's sees U.S. unemployment above 8% in 2012

Moody's Analytics said it expects the U.S. unemployment rate to remain above 8% through 2012, as the economy should continue to take tentative steps toward improvement. Job growth should accelerate, adding about 200,000 new jobs per month, and real gross domestic product should rise 2.6% this year, said Moody's Analytics Chief Economist Mark Zandi. Still, the U.S. isn't expected to return to "full employment"--an unemployment rate no higher than 6%--until after 2015, as further progress in reducing unemployment likely will be impeded by pent-up demand in the labor force, the firm said. It said about 6.4 million people aren't counted in the U.S. labor force but would like to work, and a significant number of students will be entering the work force after graduation. Additionally, economic progress may be impeded by government policy, Zandi said. "As long as the economic outlook remains tied to government policy, risks will remain decidedly to the downside," he said.

European Central Bank President Mario Draghi says weaponry working after ECB postpones Armageddon
European Central Bank President Mario Draghi says his strategy for battling Europes debt crisis is starting to work. The ECBs massive injection of cash into the financial system last month is beginning to lubricate seized credit markets and there are tentative signs of economic stabilization in the euro area, Draghi said in Frankfurt yesterday. While substantial downside risks remain, he pointed to falling yields on Italian and Spanish debt this week. That may mitigate the need for further interest rate cuts in the short term and muffle calls for the ECB to step up its government bond purchases. While the 17-nation euro region is still in danger of sliding into recession after the debt crisis spread to Italy and Spain, driving up borrowing costs and hurting the export markets of stronger economies such as Germany, recent data suggest the worst may be over.

Systematix Morning Bulletin | January 13, 2012

EUs Iran oil embargo said likely to be delayed for six months
A European Union embargo on imports of Iranian oil will probably be delayed for six months to let countries such as Greece, Italy and Spain find alternative supplies, an EU official with knowledge of the talks said. The embargo, which would need to be accepted by the 27- nation blocs foreign ministers on Jan. 23, also is likely to include an exemption for Italy, so crude can be sold to pay off debts to Rome-based Eni SpA, Italys largest oil company, according to the official, who declined to be identified because the talks are private. A ban on petrochemical products would start sooner, about three months after EU ministers agree to the measure, the official said. Crude oil prices dropped on the news, falling $1.77, or 1.8 percent, to $99.10 a barrel yesterday on the New York Mercantile Exchange, the lowest settlement since Dec. 30.

Jobless claims in U.S. climb more than forecast last week

More Americans than forecast filed applications for unemployment benefits last week, raising the possibility that a greater-than-usual increase in temporary holiday hiring boosted December payrolls. Jobless claims climbed by 24,000 to 399,000 in the week ended Jan. 7, Labor Department figures showed today in Washington. The median forecast of 46 economists in a Bloomberg News survey projected 375,000. The number of people on unemployment benefit rolls rose, while those receiving extended payments decreased. Hiring by package delivery companies and retailers during the holidays to meet demand for gifts may now be giving way to an increase in dismissals. At the same time, claims figures are subject to greater volatility during this time of year, as the government has trouble adjusting the data for the seasonal swings in employment.

Retail sales in U.S. rose less than forecast in December

Sales at U.S. retailers in December rose less than forecast, restrained by cheaper fuel prices and holiday discounting that helped hold down the value of goods sold. The 0.1 percent gain followed a 0.4 percent advance in November that was more than initially reported, Commerce Department figures showed today. Economists forecast a 0.3 percent December rise, according to the median estimate in a Bloomberg News survey. Purchases excluding automobiles fell 0.2 percent, the first decline since May 2010. Retailers like Macys Inc. resorted to discounting early in the holiday shopping season to ensure consumers shopped for gifts amid slower wage gains and lower property values. The figures show spending eased at the end of the fourth quarter, and may raise the odds purchases will cool early this year.

Systematix Morning Bulletin | January 13, 2012

Parliament Updates / Govt. Initiatives

Trend of rate of inflation for some important items during last six weeks
Commodities/Major Groups/Groups/SubGroups Primary Articles Food Articles Cereals Rice Wheat Pulses Vegetables Potato Onion Fruits Milk Egg, Meat & Fish Non-Food Articles Fibres Oil Seeds Minerals Fuel & Power Liquefied Gas Petrol Petroleum Weight (%) 20.12 14.34 3.37 1.79 1.12 0.72 1.74 0.20 0.18 2.11 3.24 2.41 4.26 0.88 1.78 1.52 14.91 0.92 1.09 4.67 Rate of Inflation for the week ending 31-Dec-11 0.51 -2.90 2.03 1.70 -3.35 14.72 -49.03 -31.97 -74.77 9.00 10.79 15.22 1.29 -10.21 12.65 23.52 14.45 14.27 17.14 9.24 24-Dec-11 0.10 -3.36 1.97 1.46 -3.41 13.85 -50.22 -34.01 -73.74 10.87 9.49 13.82 0.85 -8.45 11.57 23.00 14.60 14.27 17.14 9.24 17-Dec-11 2.70 0.42 2.15 1.82 -3.30 14.07 -36.02 -33.76 -59.04 8.46 11.30 11.56 0.28 -8.74 9.55 23.00 14.37 14.27 17.14 9.24 10-Dec-11 3.78 1.81 1.68 1.46 -4.21 14.22 -26.37 -34.39 -49.38 8.89 11.19 9.25 1.37 -6.82 9.60 21.35 15.24 14.27 23.83 9.24 03-Dec-11 5.48 4.35 1.85 2.04 -4.43 11.76 -12.28 -33.28 -46.03 9.37 11.08 9.26 2.12 -6.11 9.82 19.06 15.24 14.27 23.83 9.24 26-Nov-11 6.92 6.60 1.68 2.34 -4.70 13.00 -1.25 -15.75 -39.20 10.72 11.02 10.04 1.37 -6.83 11.60 19.06 15.53 14.27 25.37 9.24

High Speed Diesel Oil

Systematix Morning Bulletin | January 13, 2012

151 Lakh tonnes additional food grain storage to be created in 19 states To create additional of food grains and to reduce the storage under Cover and Plinth (CAP), the Government formulated a Scheme for construction of storage godowns through private entrepreneurs, Central Warehousing Corporation (CWC) and State Warehousing Corporations (SWCs). Under the scheme, the Food Corporation of India would now give a guarantee of ten years for assured hiring to the private entrepreneurs. A capacity of about 151 lakh tonnes is to be created under the scheme in 19 states. Out of this as on 15.10.2011 tenders have been finalized for creation of storage capacity of 69 lakh tonnes by the private entrepreneurs. Details of the storage capacities allotted to the states is as under:
Sl. No. Agency Total capacity approved(MT)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Andhra Pradesh Bihar Chhattisgarh (DCP) Gujarat Haryana H.P. J&K Jharkhand Karnataka M.P.(DCP) Kerala Maharashtra Odisha (DCP) Punjab Rajasthan Tamil Nadu Uttarakhand Uttar Pradesh West Bengal(DCP) Total

451,000 300,000 222,000 80,000 3,880,000 142,550 361,690 175,000 416,500 360,000 15,000 655,500 300,000 5,125,000 250,000 345,000 25,000 1,860,000 156,600 15,120,840

Systematix Morning Bulletin | January 13, 2012

FROM THE RESEARCH DESK

Company Specific Comments
Hindalco Industries Ltd (Update Note)
While concerns remain on the continuous delay in commissioning of Greenfield projects, we believe upside in aluminium prices from current levels and stable EBIDTA earned by Novelis offer value in the stock. Due to the high operating cost of majority of global smelters at approximately USD2,000/MT, we expect aluminium prices to move up by about 5-10% to average at USD2,200-2,300/MT during FY13E. The volatility in consolidated earnings is quite less, as Novelis contributes about 65% to consolidated EBIDTA (being a pure converter Novelis earnings are not impacted by volatility in aluminium prices). On the projects side, excess alumina produced from the existing operations could feed the Mahan Aluminium smelter during FY13E, till the time Utkal Alumina is commissioned. Even after factoring a 20% discount to the investment in Greenfield projects due to significant delays in commissioning, we find value in the stock and attribute a fair value of Rs 182, an upside of 40%. Our present target price of Rs 182 is a reduction of 23% from the previous, mainly due to a 20% discount on project investments and a reduction of aluminium price assumption by 6% to USD2,200/MT for FY13E. Expect aluminium prices to increase by 5-10% to USD2,200-2,300/MT during FY13E To meet global aluminium demand during CY2012, atleast 76% of worldwide smelters have to be operational and the operating cash cost of the least efficient smelter at 76% capacity utilization is about USD2,000/MT. Energy costs at Chinese smelters are about USD1,000/MT of aluminum produced, the highest in the world China accounts for 45% of worldwide aluminium production (for Hindalcos Indian operations, the energy cost is approximately USD880/MT). Due to the high cost push and recent closure of some smelters globally, we expect aluminium prices to increase by 5-10% to average at USD2,200 2,300/MT during FY13E. Alumina production from existing operations could feed the Mahan smelter during FY13E Hindalcos present Indian operations produce excess alumina (some being specialized grade), which are sold externally. During FY10 and FY11, alumina production was 13lakh MT and 13.5lakh MT, respectively, of which 2.4lakh MT and 3.1lakh MT, respectively, was sold to third parties. About 50% of the third party alumina sales are of special grade, while the remaining alumina could be routed to the Mahan smelter. We expect Mahan Aluminium to be operational by mid CY2012 and operate at 25% utilization during FY13E (it normally takes about 12 - 18 months time for aluminium smelters to attain 100% utilization). Hence, aluminium production at Mahan Aluminium during FY13E is estimated at 0.7lakh MT, implying alumina requirement of 1.4lakh MT, which can be supplied from the existing operations. From FY14E, Utkal Alumina needs to be operational to supply the entire alumina requirement of Mahan Aluminium. About 65% of consolidated EBIDTA is contributed by Novelis, which is stable in nature Novelis is a 100% subsidiary of Hindalco and is a converter (i.e. it buys aluminium ingots and produces aluminium rolled products). Novelis EBIDTA is not impacted by any upside or downside in aluminium prices as it a pure converter. Novelis has turned around and is generating EBIDTA of USD1.1bn per year. Stable demand is expected in the beverage can segment (key product segment) in the main market i.e. North America. We expect further project delays, which is the key concern Most of the Greenfield projects have been delayed by ~9 months - the new commissioning dates of the projects are as follows: Utkal Alumina in Q3FY13; Mahan Aluminium in Q4FY12; and Aditya Aluminium in Q4FY13. We remain skeptical on these dates and expect that there could be a further delay of 4 - 6 months in the commissioning of these projects. To account for the same, we have factored a 20% discount to the investments in these projects in our valuation.

For Detailed Report Refer Hindalco (Company Update)

Systematix Morning Bulletin | January 13, 2012

Infosys Ltd (Result Update)

Though Infosys Q3FY12 performance was in-line with our estimates, volume growth in the quarter and Q4FY12 guidance were clear disappointments. Volumes grew 3% QoQ compared to our expectation of 4.7% and confirmed our view that the sector runs higher probability of negative surprises on volume front. Guidance of US$ revenues remaining flat in Q4FY12 suggests that revenue pressures are expected to continue in the near future. We are reducing our FY12 and FY13 US$ revenue expectations by 1.7% and 3.2%, respectively. However, we are increasing our FY12 and FY13 rupee EPS estimates by 3.8% and 6.7%, respectively because of change in our currency assumption. Considering the muted outlook, we expect the stock to remain under pressure in the near term. We maintain our Neutral view on the sector. We maintain Accumulate rating with a Target Price of Rs2,920. In-line Q3FY12 performance Revenues for the quarter stood at US$1,806mn (our estimate: US$1,810mn), a QoQ growth 3.4% QoQ. In constant currency terms, revenues grew 4.4% QoQ. Volumes in IT services and consulting grew below expectations at 3.1% QoQ. The revenue growth was boosted by 0.8% improvement in realization in constant currency terms. This we attribute to higher share of fixed price projects (40.9% vs 37.7% in Q2FY12). EBIT margin expanded by 300bps to 31.2% aided by the rupee depreciation and SG&A leverage. Net income at Rs 23.7bn was 3.4% ahead of our estimate of Rs22.9bn aided by lower forex losses and higher other income. Guiding a flat Q4FY12 Though we were expecting the management to be conservative while guiding for Q4FY12, a flat US$ revenue guidance was certainly disappointing. On the positive side, a lower spread in guidance (US$1,806-1,810mn) indicates the managements confidence in achieving it. For FY12, US$ revneues are now expected to grow ~16.4% compared to earlier guidance of 17-19%. We were expecting a 1% cut in upper-end of guidance. The guidance for EPS in rupee terms has been raised by 1.3% to ~Rs147 assuming an exchange rate of Rs52/US$ for Q4FY12. Europe surprises positively; growth in top-clients muted Europe grew 14% and 17% QoQ in reported and constant currency terms driven by deal flows. Growth in the US and RoW was muted at 0.9% and 0.4%, respectively. Amongst verticals, BFSI/MFG/RCL/ECS grew 3.1%/4.8%/4.5%/1.4% respectively. Growth in important services like consulting and package implementation was muted at 1.4% QoQ whereas IMS and products grew 8.8% and 18.2% QoQ, respectively. Revenues from top client and top 2-5 clients declined 7.8% and 0.2% QoQ; however, client addition was strong at 49. Employee additions were lower-than-expectation at 9,655 and 3,266 gross and net additions. Reducing US$ revenue estimates, maintain Accumulate We expect revenue pressures to remain for Infosys in the near term considering the flux on budget decisions and actual IT spending. Pressure on discretionary spending will further add to woes to consulting and package implementation, which has been growth booster for Infosys in the last two years. We are reducing our FY12 and FY13 US$ revenue estimates by 1.7% and 3.2%, respectively. Our EPS estimates for these years are raised by 3.8% and 6.7%, respectively because of change in currency assumption. We keep our target price unchanged at Rs2,920 and Accumulate rating.

For Detailed Report Refer Infosys Q3FY12

Systematix Morning Bulletin | January 13, 2012

SECTORAL NEWS SNAPSHOT

Real Estate
HDIL close to sell 2 acre plot in Mumbai suburb HDIL is close to selling nearly two acres land parcel in Andheri suburb of Mumbai for over Rs 3bn including development rights. This plot is part of a large parcel on which HDIL is constructing a residential project Metropolis with saleable area of 0.65msf. The company was also planning to construct ~1msf of commercial space as part of this mixed-use project. Out of the commercial projects, the company had already pre-leased ~10% of the space that was earmarked for retail development. This plot is part of a large parcel on which HDIL is constructing a residential project Metropolis with saleable area of 0.65msf. The company was also planning to construct ~1msf of commercial space as part of this mixeduse project. Out of the commercial projects, the company had already pre-leased ~10% of the space that was earmarked for retail development. Ansal API sold total area of ~5.2msf for Rs 6.05bn in Q3FY12 Ansal API sold total area of ~5.2msf in Q3FY12, up by 19% on y-o-y basis and 96.5% on q-o-q basis. Total sales value increased by 15.2% on y-o-y basis and 73.1% on q-o-q basis to Rs 6.05bn in Q3FY12. Blended sales realization declined by 2.7% on y-o-y basis and 11.9% on q-o-q basis to Rs 1,166psf. Major contributors to the sales were Esencia (Gurgaon), Fernhill (Gurgaon), Golf Links II (Mohali) and Sushant Golf City (Lucknow). In 9MFY12, the company sold ~16.4msf of total area with total sales value of Rs 19.5bn, implying blended sales realization of Rs 1,192psf. During Q3FY12, the company collected Rs 4.5bn from its customers, up by 1.1% on y-o-y basis and 12.7% on qo-q basis. In 9MFY12, the company collected Rs 13.2bn from its customers. Oberoi Realty in talks with Om Metals for Rs 1bn land deal in Mumbai Oberoi Realty is close to signing a deal to acquire 0.85msf land in Bandra Reclamation area, Mumbai. The deal could be worth Rs 1bn. The company is planning to launch a new project worth Rs 2.55bn. The land in Bandra currently has slum tenants. OM Metals will retain 50% ownership rights in the project. Oberoi Realty has not given any comments, while news reports suggest that Om Metals told that they are in talks with the developer and would be looking at a higher valuation. Sobha Developers witnessed strong sales in Q3FY12 In spite of continuing challenging economic environment, Sobha has continued to perform credibly in Q3FY12. The company has sold ~0.82msf in Q3FY12, up by 16.2% on y-o-y basis but down by 12.5% on q-o-q basis. Average selling prices increased by 26.5% and 5.4% on y-o-y and q-o-q basis respectively to Rs 5,475 psf in Q3FY12. In 9MFY12, total area sold increased by 14.2% on y-o-y basis to 2.4msf. Average selling price rose by ~29% on y-o-y basis to Rs 5,110psf in 9MFY12. Total sales value grew by ~48% on y-o-y basis to Rs 12,371mn in 9MFY12. Puravankara Projects launched new project Provident Harmony in Bangalore in the affordable segment Provident Housing Ltd., wholly owned subsidiary of Puravankara Projects, launched their project, Provident Harmony, in Bangalore in the affordable segment. This property is located in Chokkanahalli, off Thanisandra Road, Bangalore and spread over 7 acres of land area. There are 548 apartments on offer with sizes in the range of 662 sq.ft. to 1262 sq.ft. The total project value is ~Rs. 1.5bn.

Systematix Morning Bulletin | January 13, 2012

10

FROM THE TRADING DESK

Derivative Desk
Nifty January series closed flat at 4,852 down by 0.41%. Nifty Total Futures Open Interest reduced by 2.56 lakhs shares. Cost of carry increased to 21 points premium from 12 points positive a day earlier. Nifty Jan Call Series witnessed Addition in Open Interest at strike 4800 & 5000. OI reduced for strikes 4600 & 4700. Nifty Jan Put Series witnessed Reduction in Open Interest at strikes 4800 & 4400. Maximum Call OI for Dec month stands at the levels of 5000 with 6.67 million shares. Maximum Put OI for Dec month stands at the levels of 4500 with 7.18 million shares. Implied volatility closed at 24.03% v/s. 24.54% of the previous days close. Put-Call Ratio decreased to 1.23 times. Long Build Up: Voltas; OIL India; Sun TV; NALCO; PATNI Short Build Up: HPCL; Biocon; On Mobile; Infy; LT Stocks in Ban: ABAN; ABGSHIP; GITANJALI; PUNJLLOYD; RUCHISOYA.

Market Movers
Company TOP GAINERS : United Brew-$ Shree Renuka Sug Manappuram Finance United Spirits Sun TV Network TOP LOSERS : Infosys Coromandel Intl Biocon Bata India TCS
Source: BSE/NSE

Closing

Change

% Change

472 32 55 576 298

54 2 4 35 18

13 7 7 7 6

2,589 262 264 562 1,093

(237) (12) (13) (24) (44)

(8) (5) (5) (4) (4)

ADRs ADR ICICI Bank Dr. Reddys Satyam Tata Comunication Patni Computers
Source: Bloomberg

Op Price (USD) 30 32 3 9 18

Last Price (USD) 30 32 3 9 18

% Change -1.6 -0.1 -0.4 0.1 2.3

Last Price (INR) 781 1,658 70 223 468

Premium / (Discount) 9 4 2 2 (5)

Systematix Morning Bulletin | January 13, 2012

11

US Mkt Commentary
Stocks sputtered Thursday, but managed to close the day slightly higher. Investors grew concerned about the health of the U.S. economy following the release of weak reports on retail sales and initial jobless claims.

Asian Mkt Commentary

Asian stocks rose to a one-month high and South Koreas won strengthened as signs Europes debt crisis is easing spurred risk-taking, helping emerging markets draw funds. Oil rebounded from the biggest loss in two weeks.

Systematix Morning Bulletin | January 13, 2012

12

Events Calendar

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Systematix Morning Bulletin | January 13, 2012

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