Market Outlook 260612

7/31/2019 Market Outlook 260612

1/13

Market OutlookJune 26, 2012

www.angelbroking.com


Dealers Diary

The Indian markets are expected to open flat to positive taking cues from SGX

Nifty. In order to check rupee volatility,RBI hiked the limit of external commercial

borrowings by US$10bn to US$40bn and also enhanced the limit of overseas

investment in government bonds by US$5bn to US$20bn.

US markets moved sharply lower during trading yesterday after seeing

considerable volatility last week on the back of lingering concerns about the

ongoing European debt crisis amid worries about the impact on the global

economy. US Commerce department reported a higher-than-expected increase in

US new home sales at a seasonally adjusted annual rate of 369,000 in May 2012,

a 7.6% increase from the revised April rate of 343,000 (expectation of 350,000).

European stocks were hammered on Monday, after Spain formally requested

US$77bn in aid from its European Union neighbors.

Indian markets fell modestly on Monday, erasing early gains as the RBI's measures

to prop up capital inflows failed to meet heightened expectations.Europe is likely

to remain in focus throughout the week, as European leaders are due to hold a

summit to discuss the ongoing debt crisis on Thursday and Friday.

Markets Today

The trend deciding level for the day is 16,955 / 5,138 levels. If NIFTY trades above

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

up to 17,058 17,234 / 5,171 5,227 levels. However, if NIFTY trades below

16,955 / 5,138 levels for the first half-an-hour of trade then it may correct up to

16,780 16,677 / 5,082 5,049 levels.

SENSEX 16,677 16,780 16,955 17,058 17,234

NIFTY 5,049 5,082 5,138 5,171 5,227

News Analysis Shareholders approve Sesa Sterlite merger RBI hikes FII limit in G-Secs to US$20bn, allows up to US$10bn overseas

borrowingsRefer detailed news analysis on the following page

Net Inflows (June 22, 2012)

FII 1,322 1,442 (119) 284 42,223

MFs 300 455 (155) 384 (6,083)

FII Derivatives (June 25, 2012)

Index Futures 4,034 4,107 (72) 15,624

Stock Futures 4,809 5,076 (267) 24,362

Gainers / Losers

Manappuram Finance 27 10.4 Adani Enter 211 (3.6)

Educomp Sol 167 6.0 Reliance Power 100 (2.9)

Sun TV Network 292 4.2 India Infoline 62 (2.8)

JPINFRATEC 51 4.0 Hero MotoCorp 2,028 (2.7)

Wockhardt 900 3.6 Indian Bank 175 (2.6)

BSE Sensex (0.5) (90.4) 16,882

Nifty (0.6) (31.4) 5,115

MID CAP (0.0) (1.8) 6,008

SMALL CAP 0.2 15.2 6,423

BSE HC (0.4) (29.2) 6,680

BSE PSU (0.9) (60.4) 7,029

BANKEX (1.0) (118.5) 11,443

AUTO (0.6) (54.7) 9,284

METAL (0.7) (74.3) 10,271

OIL & GAS (0.2) (13.6) 7,881

BSE IT (0.7) (37.7) 5,626

Dow Jones (1.1) (138.1) 12,503NASDAQ (2.0) (56.3) 2,836

FTSE (1.1) (63.0) 5,451

Nikkei (0.7) (63.7) 8,735

Hang Seng (0.5) (97.7) 18,897

Straits Times (0.5) (12.8) 2,815

Shanghai Com (1.6) (36.8) 2,224

INFY (0.6) (0.2) $42.5

WIT (2.0) (0.2) $8.7IBN (2.5) (0.7) $29.4

HDB (0.6) (0.2) $30.7

Advances 1,420 755

Declines 1,334 675

Unchanged 125 86

BSE 1,917

NSE 8,725


2/13



During February 2012, Vedanta Resources, the promoter of Sesa Goa and Sterlite

Industries, had approved to merge the two companies in order to simplify thegroups holding structure and lower its debt. According to the proposed structure,

the merged entity (called Sesa Sterlite) will fully takeover the loss-making Vedanta

Aluminium (at an enterprise value of `32,695cr). Also, the merged entity will

takeover Vedanta Resources 38.8% stake in Cairn India at a nominal

consideration of US$1 along with the associated Cairn-acquisition debt of

US$5.9bn. Yesterday, Sesa Goa and Sterlite Industries announced that

shareholders had approved the merger. The deal is now subject to approvals by

the high courts of Madras and Goa. There are no changes in our estimates as we

had factored the impact of the merger on the valuation of both the companies.

We maintain our view that the deal is negative for minority shareholders of Sesa

Goa and Sterlite Industries mainly on account of transfer of loss-making VedantaAluminium at a high price. Nevertheless, the current price levels factor in this

negative.

The RBI has enhanced the FII limit for investment in government securities by

US$5bn to US$20bn, which would aid in attracting foreign funds. Long-term

investors like sovereign wealth funds, multilateral agencies, endowment funds,

insurance funds, pension funds and foreign central banks will also be allowed to

invest in G-Secs for the entire limit of US$20bn. These entities will have to register

themselves with SEBI. The sub-limit of US$10bn (existing US$5bn with residual

maturity of five years and additional limit of US$5bn) would have the residual

maturity of three years.

RBI has also opened up access to offshore debt to Indian companies. Indian

companies in the manufacturing and infrastructure sectors, which have foreign

exchange earnings, can avail themselves of external commercial borrowings

(ECBs) for repayment of outstanding rupee loans. These loans should have beentaken for capital expenditure and/or fresh rupee capital expenditure under the

approval route. The overall ceiling for such ECBs would be US$10bn.


3/13



Economic and Political News

Defence ministry flouts offset policy, foreign arms vendors benefit India rating stable despite growth slowdown: Moody's Governments export growth target: 20% in 120 days Court extends Jagan's judicial custody till July 4Corporate News

Government asks RIL to sign gas supply pact with units of urea companies Natco Pharma tanks on adverse patent ruling Suzlon eyes US$300mn loans by month end IOC, HPCL, BPCL hold `28,000cr in oil bondsSource: Economic Times, Business Standard, Business Line, Financial Express, Mint


4/13

Global economic events release calendar

Date Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

June 26, 2012 US Consumer ConfidenceS.A./

1985=100JUN 64.90 63.50

June 28, 2012 US Initial Jobless claims Thousands JUN 23 387.00 385.00

Euro ZoneEuro-Zone ConsumerConfidence

Value JUN F (19.60) (19.60)

Germany Unemployment change (000's) Thousands JUN -- 3.00

US GDP Qoq (Annualised) % Change 1Q T 1.90 1.90

UK GDP (YoY) % Change 1Q F (0.10) (0.10)

July 01, 2012 China PMI Manufacturing Value JUN 50.40 49.80

July 02, 2012 India Imports YoY% % Change MAY 3.80 --

India Exports YoY% % Change MAY 3.20 --

UK PMI Manufacturing Value JUN 45.90 --

July 04, 2012 Germany PMI Services Value JUN F 50.30 --July 05, 2012 UK BOE Announces rates % Ratio JUL 5 0.50 0.50

Euro Zone ECB announces interest rates % JUL 5 1.00 --

July 06, 2012 US Change in Nonfarm payrolls Thousands JUN 69.00 95.50

US Unnemployment rate % JUN 8.20 8.20

July 07, 2012 Germany PMI Manufacturing Value JUN F 44.70 --

July 09, 2012 China Consumer Price Index (YoY) % Change JUN 3.00 --

July 10, 2012 UK Industrial Production (YoY) % Change MAY (1.00) --

China Exports YoY% % Change JUN 15.30 --

July 12, 2012 India Industrial Production YoY % Change MAY 0.10 --

July 13, 2012 India Monthly Wholesale PricesYoY% % Change JUN 7.55 --

US Producer Price Index (mom) % Change JUN (1.00) --

China Industrial Production (YoY) % Change JUN 9.60 --

China Real GDP (YoY) % Change 2Q 8.10 --

July 16, 2012 Euro Zone Euro-Zone CPI (YoY) % JUN 2.40 --

July 17, 2012 UK CPI (YoY) % Change JUN 2.80 --

US Industrial Production % JUN (0.09) --

US Consumer price index (mom) % Change JUN (0.30) --

July 18, 2012 US Housing Starts Thousands JUN 708.00 --

US Building permits Thousands JUN 780.00 --

UK Jobless claims change % Change JUN 8.10 --

July 19, 2012 US Existing home sales Millions JUN 4.55 --

July 31, 2012 India RBI Repo rate % JUL 31 8.00 --

Source: Bloomberg, Angel Research


June 26, 2012

Market Outlook


5/13

Market StrategyJune 26, 2012


Macro watch

Exhibit 1:Quarterly GDP trends

5.9

7.5

9.8

7.4

9.4

8.5

7.68.2

9.2

8.0

6.76.1

5.3

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

(%)

Source: CSO, Angel Research

Exhibit 2:IIP trends

6.2

9.5

3.7 3.42.5

(5.0)

6.0

2.7

1.0

4.1

(3.2)

0.1

(6.0)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

12.0

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

(%)

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

9.5 9.4 9.810.0 9.9 9.5

7.76.9

7.4 7.7 7.2 7.6

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

(%)

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

48.0

50.0

52.0

54.0

56.0

58.0

60.0

May-1

1

Jun-1

1

Ju

l-11

Aug-1

1

Sep-1

1

Oc

t-11

Nov-1

1

Dec-1

1

Jan-1

2

Fe

b-1

2

Mar-

12

Apr-

12

May-1

2

Mfg. PMI Services PMI

Source: Market, Angel Research; Note: Level above 50 indicates expansion

Exhibit 5:Exports and imports growth trends

(15)

0

15

30

45

60

75

May-1

1

Jun-1

1

Jul-11

Aug-1

1

Sep-1

1

Oct-11

Nov-1

1

Dec-

11

Jan-

12

Feb-1

2

Mar-12

Apr-1

2

Exports yoy growth Impor ts yoy growth(%)

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates

Source: RBI, Angel Research


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 140 - 2,722 1,432 1,647 14.7 14.7 7.0 8.0 20.0 17.5 4.2 3.6 22.8 22.3 1.9 1.6

United Phosphorus Buy 114 183 5,257 8,191 8,764 16.5 16.5 17.1 18.3 6.7 6.2 1.1 0.9 17.5 16.2 0.8 0.7

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 302 345 2,581 2,715 3,041 15.3 15.3 29.2 32.8 10.4 9.2 2.4 1.9 26.0 23.3 0.9 0.8

Apollo Tyres Buy 79 100 3,957 13,699 15,184 10.5 10.2 12.1 13.3 6.5 5.9 1.2 1.0 19.7 18.4 0.5 0.4

Ashok Leyland Buy 25 33 6,612 14,798 16,687 9.6 9.6 2.4 3.0 10.3 8.4 2.0 1.8 14.8 16.5 0.5 0.5

Automotive Axle Accumulate 459 514 694 1,211 1,387 12.1 11.7 50.3 57.1 9.1 8.0 2.3 1.9 27.8 25.7 0.6 0.5Bajaj Auto Buy 1,550 1,835 44,853 22,118 24,889 19.0 18.6 115.7 126.5 13.4 12.3 5.4 4.3 45.0 38.9 1.6 1.3

Bharat Forge Buy 294 372 6,841 7,173 7,998 16.3 16.5 22.3 26.6 13.2 11.1 2.6 2.1 21.0 21.0 1.1 0.9

Bosch India Accumulate 8,719 9,429 27,378 9,390 10,716 19.5 19.1 420.2 471.4 20.8 18.5 4.8 4.0 23.3 21.8 2.7 2.3

CEAT Buy 97 164 333 5,067 5,631 8.0 7.6 39.4 41.0 2.5 2.4 0.4 0.4 18.8 16.5 0.3 0.3

Exide Industries Accumulate 136 146 11,526 5,787 6,595 15.5 17.0 7.1 9.0 19.1 15.2 3.4 2.9 18.6 20.3 1.7 1.4

FAG Bearings Accumulate 1,470 1,594 2,443 1,531 1,748 18.8 18.5 118.0 132.8 12.5 11.1 2.7 2.2 24.0 21.9 1.3 1.1

Hero Motocorp Accumulate 2,028 2,221 40,492 26,106 29,296 15.0 15.2 140.3 148.1 14.5 13.7 6.8 5.3 54.8 43.3 1.3 1.0

JK Tyre Buy 94 135 385 7,950 8,904 5.5 6.0 25.1 38.6 3.7 2.4 0.4 0.4 12.1 16.4 0.3 0.3

Mahindra and Mahindra Buy 689 821 42,325 36,010 40,882 10.0 10.0 47.7 53.3 14.5 12.9 2.9 2.5 21.3 20.6 0.9 0.8

Maruti Buy 1,114 1,510 32,183 42,683 48,736 7.1 7.5 86.6 100.6 12.9 11.1 1.8 1.6 15.3 15.5 0.5 0.4

Motherson Sumi Buy 163 216 6,392 23,342 26,366 7.8 8.2 13.3 18.0 12.3 9.1 2.9 2.3 26.2 28.4 0.4 0.4

Subros Accumulate 32 36 190 1,244 1,402 8.4 8.3 4.5 5.1 7.1 6.2 0.7 0.7 9.9 11.0 0.4 0.3

Tata Motors Buy 246 299 65,535 189,676 210,905 12.5 12.6 39.8 45.2 6.2 5.4 2.5 2.1 44.3 41.6 0.4 0.4

TVS Motor Buy 34 44 1,615 7,690 8,459 6.1 6.0 5.0 5.5 6.8 6.2 1.2 1.1 19.0 18.6 0.2 0.1

Capital Goods

ABB* Sell 789 498 16,728 8,760 10,023 7.6 7.5 18.2 20.7 43.3 38.1 5.8 5.2 14.4 14.6 1.9 1.7BGR Energy Neutral 296 - 2,133 4,195 4,837 11.0 11.0 30.1 32.4 9.8 9.1 1.7 1.5 18.4 17.6 1.0 1.0

BHEL Neutral 218 - 53,235 46,344 46,916 18.3 18.6 23.5 24.1 9.2 9.0 1.8 1.6 21.3 18.9 1.1 1.0

Blue Star Neutral 165 - 1,485 3,047 3,328 5.4 6.9 9.6 16.2 17.2 10.2 3.4 2.7 20.7 29.7 0.6 0.5

Crompton Greaves Buy 119 142 7,634 12,451 14,265 7.9 8.3 8.0 9.5 14.9 12.6 2.0 1.8 13.9 14.9 0.7 0.6

Jyoti Structures Buy 39 67 318 2,622 2,801 10.6 11.0 10.9 13.4 3.6 2.9 0.5 0.4 13.7 14.9 0.3 0.3

KEC International Buy 57 73 1,454 6,686 7,200 8.5 8.8 10.6 12.2 5.4 4.6 1.0 0.8 25.9 24.0 0.4 0.4

LMW Buy 1,614 1,992 1,818 2,369 2,727 11.7 11.7 143.4 166.0 11.3 9.7 1.9 1.7 17.4 18.4 0.3 0.2

Thermax Neutral 471 - 5,610 5,514 5,559 9.8 9.6 29.7 28.4 15.9 16.6 3.0 2.7 20.2 16.9 0.9 0.8


June 26, 2012

Market Outlook

Stock Watch


7/13



Cement

ACC Neutral 1,209 - 22,691 11,018 12,663 19.9 21.2 70.7 81.2 17.1 14.9 3.0 2.7 18.0 19.0 1.9 1.5

Ambuja Cements Neutral 168 - 25,795 10,035 11,504 23.5 23.8 10.1 10.6 16.6 15.9 3.3 2.9 18.5 19.4 2.2 1.8

India Cements Neutral 83 - 2,563 4,423 4,906 18.2 18.8 9.9 12.7 8.5 6.6 0.7 0.7 8.6 10.5 0.9 0.8

J K Lakshmi Cements Buy 66 79 812 1,938 2,246 19.1 20.1 14.6 16.1 4.5 4.1 0.6 0.5 13.4 13.6 0.5 0.9

Madras Cements Neutral 148 - 3,517 3,444 3,786 25.5 24.9 14.6 17.1 10.2 8.7 1.5 1.3 15.6 16.0 1.7 1.4

Shree Cements Neutral 2,902 - 10,109 5,465 6,249 24.3 23.7 151.5 222.1 19.2 13.1 4.6 3.9 21.6 25.8 1.4 1.1

UltraTech Cement Neutral 1,469 - 40,259 20,116 22,655 21.3 22.5 82.1 97.5 17.9 15.1 2.8 2.4 16.8 17.4 1.9 1.8Construction

Ashoka Buildcon Buy 215 273 1,132 2,014 2,293 22.4 22.4 22.6 26.7 9.5 8.1 1.0 0.9 11.4 11.9 2.3 2.6

Consolidated Co Neutral 14 - 250 2,526 2,792 5.7 6.6 1.8 2.8 7.4 4.8 0.4 0.4 5.5 8.1 0.3 0.3

Hind. Const. Neutral 20 - 1,201 4,239 4,522 11.1 11.8 (1.8) (0.8) (11.0) (25.4) 1.1 1.3 (9.5) (4.7) 1.3 1.2

IRB Infra Buy 124 166 4,110 3,821 4,582 42.3 40.2 15.0 16.9 8.2 7.3 1.2 1.1 16.1 15.8 2.7 2.5

ITNL Buy 182 265 3,534 6,619 7,925 23.8 23.3 22.0 26.7 8.3 6.8 1.2 1.0 14.9 15.9 2.2 2.1

IVRCL Infra Buy 52 61 1,388 5,510 6,722 8.8 9.0 2.5 4.6 20.5 11.4 0.7 0.7 3.4 5.8 0.7 0.7

Jaiprakash Asso. Buy 70 88 14,800 15,259 17,502 25.7 24.7 4.2 5.0 16.4 13.9 1.4 1.3 8.5 9.3 2.4 2.1

Larsen & Toubro Accumulate 1,355 1,553 83,035 59,559 69,089 12.1 11.5 70.8 76.5 19.2 17.7 2.9 2.5 16.1 15.3 1.6 1.4

Madhucon Proj Buy 36 70 269 2,206 2,502 10.7 10.7 4.6 4.7 7.9 7.8 0.4 0.4 5.2 5.0 0.7 0.7

Nagarjuna Const. Neutral 40 - 1,024 5,453 6,169 8.1 8.5 1.6 1.9 24.3 20.7 0.4 0.4 1.8 2.1 0.6 0.7

Patel Engg. Neutral 91 - 634 3,609 3,836 13.1 13.1 14.0 14.6 6.5 6.2 0.4 0.4 6.3 6.1 1.0 1.1

Punj Lloyd Neutral 48 - 1,594 11,592 12,993 8.4 8.4 1.8 3.2 26.7 15.0 0.5 0.5 2.0 3.4 0.6 0.6

Sadbhav Engg. Buy 141 182 2,125 2,789 3,147 10.6 10.7 8.4 10.4 16.8 13.6 2.3 2.0 15.0 15.6 0.9 0.8

Simplex Infra Buy 211 265 1,043 6,732 7,837 8.1 8.4 23.5 29.4 9.0 7.2 0.8 0.8 9.6 11.0 0.5 0.4

FinancialsAllahabad Bank Neutral 145 - 7,268 7,392 8,542 3.1 3.1 38.3 42.1 3.8 3.5 0.7 0.6 18.4 17.6 - -

Andhra Bank Neutral 123 - 6,860 5,151 5,843 3.2 3.1 22.4 25.7 5.5 4.8 0.8 0.7 15.8 16.0 - -

Axis Bank Buy 1,011 1,476 41,877 16,157 19,557 3.2 3.2 116.4 139.1 8.7 7.3 1.6 1.4 20.0 20.3 - -

Bank of Baroda Buy 698 925 27,334 15,993 18,918 2.6 2.6 127.3 149.9 5.5 4.7 0.9 0.8 17.8 18.2 - -

Bank of India Accumulate 343 389 19,706 13,558 15,551 2.5 2.4 61.6 70.8 5.6 4.9 0.9 0.8 16.8 16.9 - -

Bank of Maharashtra Accumulate 49 53 2,892 3,580 4,050 3.2 3.2 11.5 13.1 4.3 3.7 0.7 0.6 17.4 17.2 - -

Canara Bank Buy 411 493 18,227 12,061 13,906 2.3 2.3 83.1 92.7 5.0 4.4 0.8 0.7 16.7 16.4 - -

Central Bank Neutral 78 - 5,753 6,838 7,912 2.3 2.4 13.8 20.3 5.7 3.9 0.8 0.7 10.9 14.4 - -


June 26, 2012

Market Outlook

Stock Watch


8/13



Financials

Corporation Bank Accumulate 412 468 6,098 5,203 5,880 2.2 2.1 107.5 112.7 3.8 3.7 0.7 0.6 17.9 16.5 - -

Dena Bank Accumulate 95 107 3,336 3,149 3,522 2.8 2.8 23.3 26.1 4.1 3.7 0.7 0.6 17.7 17.0 - -

Federal Bank Neutral 436 - 7,457 2,743 3,131 3.4 3.3 49.7 57.4 8.8 7.6 1.2 1.1 14.1 14.6 - -

HDFC Neutral 643 - 95,653 7,393 8,844 3.5 3.4 31.7 37.9 20.3 17.0 4.1 3.6 34.7 31.9 - -

HDFC Bank Neutral 537 - 126,456 21,831 27,477 4.3 4.3 28.3 35.5 19.0 15.1 3.7 3.1 20.8 22.1 - -

ICICI Bank Buy 847 1,174 97,393 22,209 26,512 2.8 2.8 67.9 81.1 12.5 10.5 1.5 1.4 14.7 16.0 - -

IDBI Bank Buy 91 113 11,614 8,004 9,589 1.9 2.0 19.9 23.9 4.6 3.8 0.6 0.5 13.8 14.9 - -Indian Bank Accumulate 174 190 7,484 6,312 7,119 3.4 3.3 41.1 43.7 4.2 4.0 0.7 0.6 18.2 16.9 - -

IOB Accumulate 84 92 6,659 7,354 8,283 2.5 2.4 16.3 21.7 5.1 3.9 0.6 0.5 11.5 13.9 - -

J & K Bank Neutral 947 - 4,591 2,535 2,861 3.5 3.4 176.3 184.4 5.4 5.1 1.0 0.9 19.3 17.6 - -

LIC Housing Finance Accumulate 257 286 12,993 2,108 2,607 2.6 2.6 24.5 30.6 10.5 8.4 2.0 1.7 20.1 21.4 - -

Oriental Bank Accumulate 248 262 7,227 6,431 7,315 2.7 2.6 54.4 63.8 4.6 3.9 0.6 0.5 13.6 14.3 - -

Punjab Natl.Bank Buy 776 1,041 26,317 19,893 23,653 3.1 3.2 153.4 175.2 5.1 4.4 0.9 0.8 18.3 18.1 - -

South Ind.Bank Neutral 23 - 2,644 1,440 1,635 2.7 2.5 3.8 4.1 6.2 5.7 1.2 1.1 19.9 18.6 - -

St Bk of India Accumulate 2,115 2,469 141,919 68,311 79,649 3.6 3.6 230.4 273.4 9.2 7.7 1.5 1.3 18.2 18.8 - -

Syndicate Bank Buy 103 126 6,206 7,133 8,255 3.0 3.0 25.9 30.0 4.0 3.4 0.6 0.6 16.9 17.1 - -

UCO Bank Neutral 76 - 5,055 5,623 6,380 2.4 2.4 16.9 17.9 4.5 4.3 0.8 0.8 16.5 15.4 - -

Union Bank Buy 200 261 11,030 10,215 11,854 2.9 2.8 42.7 50.3 4.7 4.0 0.8 0.7 17.0 17.5 - -

United Bank Buy 60 78 2,175 3,551 4,128 2.7 2.8 18.8 22.6 3.2 2.7 0.5 0.4 15.5 16.5 - -

Vijaya Bank Neutral 57 - 2,830 2,668 3,001 2.2 2.2 10.6 12.2 5.4 4.7 0.8 0.7 13.3 13.8 - -

Yes Bank Buy 339 450 12,003 3,209 4,144 2.7 2.8 33.9 41.5 10.0 8.2 2.1 1.7 23.1 23.3 - -

FMCG

Asian Paints Neutral 3,814 - 36,586 11,423 13,309 16.3 16.3 125.3 148.4 30.5 25.7 10.4 8.1 38.0 35.4 3.2 2.7Britannia Buy 527 633 6,295 5,835 6,824 6.3 6.7 20.7 27.5 25.4 19.2 9.9 7.4 42.7 44.3 1.0 0.9

Colgate Neutral 1,120 - 15,233 3,007 3,417 21.1 22.1 38.2 43.8 29.3 25.6 34.9 27.4 130.2 119.9 4.9 4.3

Dabur India Reduce 111 106 19,407 5,878 6,799 16.8 17.0 4.2 4.9 26.9 22.7 9.7 8.0 39.3 42.0 3.4 2.9

GlaxoSmith Con* Neutral 2,620 - 11,019 3,124 3,663 17.1 11.6 103.0 123.3 25.5 21.3 7.8 6.3 34.0 32.9 3.2 2.7

Godrej Consumer Neutral 560 - 19,058 5,973 7,000 18.4 18.6 22.8 27.2 24.6 20.6 6.7 5.4 31.3 38.4 3.3 2.8

HUL Neutral 460 - 99,516 25,350 29,309 14.3 14.4 14.1 16.4 32.6 28.1 24.4 19.1 82.7 76.2 3.7 3.2

ITC Neutral 250 - 195,500 29,638 34,159 35.4 35.8 9.3 10.9 26.8 22.9 8.6 7.0 35.3 33.8 6.4 5.5


June 26, 2012

Market Outlook

Stock Watch


9/13



FMCG

Marico Neutral 172 - 11,085 4,667 5,427 12.8 12.9 6.6 8.1 25.9 21.2 6.9 5.4 30.0 28.8 2.4 2.0

Nestle* Neutral 4,500 - 43,383 8,731 10,539 21.0 21.4 119.3 147.9 37.7 30.4 23.1 15.7 73.0 61.6 5.0 4.0

Tata Global Buy 109 136 6,768 7,011 7,711 9.7 10.0 6.3 7.5 17.5 14.7 1.7 1.6 9.5 10.9 0.9 0.8

IT

HCL Tech Buy 465 560 32,195 22,792 25,743 17.4 17.4 37.8 43.0 12.3 10.8 2.7 2.3 22.3 21.3 1.4 1.2

Hexaware Neutral 125 - 3,688 1,821 2,105 19.0 18.6 9.8 10.7 12.7 11.6 2.9 2.6 23.7 22.5 1.8 1.5

Infosys Accumulate 2,468 2,792 141,740 37,615 42,491 31.1 30.6 158.5 174.5 15.6 14.1 3.5 3.0 22.5 20.8 3.1 2.6Infotech Enterprises Accumulate 152 177 1,694 1,758 1,972 17.0 16.6 16.8 18.6 9.0 8.2 1.2 1.1 13.6 13.2 0.6 0.5

KPIT Cummins Neutral 115 - 2,050 2,028 2,239 15.0 14.8 9.0 11.4 12.8 10.1 2.3 1.9 19.3 18.7 1.0 0.8

Mahindra Satyam Accumulate 76 86 8,979 7,097 7,812 16.2 16.0 7.5 8.0 10.2 9.6 1.3 1.2 13.2 12.3 0.9 0.7

Mindtree Accumulate 610 643 2,480 2,172 2,450 16.1 15.5 53.9 58.5 11.3 10.4 2.1 1.8 18.9 17.0 0.9 0.8

Mphasis Accumulate 355 373 7,464 5,608 5,964 17.7 17.3 35.5 36.8 10.0 9.7 1.4 1.2 13.9 12.6 0.8 0.7

NIIT Buy 42 52 695 1,162 1,304 14.8 15.1 7.1 8.8 5.9 4.8 1.0 0.9 16.7 18.4 0.4 0.3

Persistent Reduce 392 361 1,566 1,109 1,224 23.3 22.4 37.2 40.1 10.5 9.8 1.6 1.4 15.4 14.5 1.1 0.9

TCS Neutral 1,216 - 237,930 57,189 66,329 29.3 28.7 63.2 70.9 19.3 17.2 5.9 4.8 30.5 27.7 4.0 3.3

Tech Mahindra Accumulate 688 725 8,768 5,880 6,314 15.6 15.2 75.9 82.2 9.1 8.4 1.8 1.5 20.1 18.1 1.4 1.3

Wipro Accumulate 400 452 98,386 43,150 48,541 20.0 20.5 25.9 30.1 15.4 13.3 3.0 2.5 19.1 19.0 2.0 1.6

Media

D B Corp Buy 192 269 3,511 1,652 1,863 25.7 26.3 13.5 16.1 14.2 11.9 3.2 2.7 24.1 24.4 2.0 1.7

HT Media Buy 98 148 2,300 2,255 2,555 16.3 16.7 9.0 10.6 10.9 9.2 1.4 1.2 13.4 13.8 0.6 0.5

Jagran Prakashan Buy 90 137 2,859 1,499 1,642 27.4 28.8 7.6 9.1 11.8 10.0 4.0 3.6 34.6 37.7 1.8 1.6

PVR Neutral 149 - 387 625 732 17.4 16.9 12.4 15.8 12.0 9.5 1.9 2.0 8.5 9.9 0.8 0.7

Sun TV Network Neutral 292 - 11,517 2,135 2,458 75.2 74.4 20.9 24.0 14.0 12.2 3.3 2.8 26.0 25.1 4.1 3.3Metals & Mining

Bhushan Steel Reduce 459 436 9,751 9,232 13,557 30.8 31.1 48.0 58.6 9.6 7.8 1.2 1.1 14.5 7.5 3.2 2.2

Coal India Neutral 337 - 212,735 68,841 74,509 25.3 25.3 24.1 26.1 14.0 12.9 3.8 3.2 30.4 26.8 2.2 1.9

Electrosteel Castings Buy 17 22 583 1,984 2,074 11.2 12.6 2.0 2.7 8.3 6.2 0.3 0.1 4.2 5.5 0.5 0.4

Hind. Zinc Buy 118 139 49,964 13,043 14,223 51.8 52.8 14.8 16.6 8.0 7.1 1.6 1.3 21.2 19.9 2.2 1.6

Hindalco Neutral 115 - 21,922 83,463 91,313 9.0 9.9 13.7 18.1 8.4 6.3 0.6 0.6 7.9 9.6 0.5 0.5

JSW Steel Neutral 647 - 14,442 39,592 44,910 18.0 17.7 74.7 88.9 8.7 7.3 0.8 0.7 10.7 11.6 0.7 0.7

MOIL Accumulate 273 296 4,589 1,007 1,091 56.6 56.9 29.4 31.9 9.3 8.6 1.7 1.5 19.0 18.2 2.3 1.9

Monnet Ispat Buy 360 447 2,315 3,115 3,748 22.1 25.1 59.1 66.8 6.1 5.4 0.9 0.7 15.6 15.3 1.5 1.1


June 26, 2012

Market Outlook

Stock Watch


10/13



Metals & Mining

Nalco Reduce 59 54 15,103 8,474 9,024 12.6 16.2 2.6 3.6 22.9 16.4 1.3 1.2 5.6 7.5 1.4 1.3

NMDC Accumulate 176 187 69,739 11,959 13,062 78.2 78.6 19.1 20.9 9.2 8.4 2.3 1.9 27.1 24.4 3.7 3.2

SAIL Neutral 90 - 37,092 50,914 60,785 14.6 15.1 9.4 10.5 9.6 8.5 0.9 0.8 9.2 9.6 1.2 1.1

Sesa Goa Accumulate 187 206 16,283 9,067 9,316 35.7 35.5 44.5 44.3 4.2 4.2 0.9 0.8 23.5 19.5 0.4 0.1

Sterlite Inds Buy 99 123 33,321 45,805 49,029 21.2 23.5 16.5 19.1 6.0 5.2 0.7 0.6 11.5 12.0 0.3 0.2

Tata Steel Buy 415 499 40,262 143,088 148,011 10.9 12.1 53.9 66.0 7.7 6.3 0.9 0.8 12.2 13.4 0.6 0.6

Oil & GasCairn India Accumulate 330 372 62,959 15,513 16,074 74.0 69.7 51.1 48.6 6.5 6.8 1.1 0.9 18.3 14.8 2.9 2.1

GAIL Accumulate 343 389 43,566 50,472 55,502 15.3 15.6 35.4 37.0 9.7 9.3 1.7 1.5 19.0 17.2 0.1 -

ONGC Buy 273 321 233,522 156,331 159,043 37.7 36.3 31.3 32.6 8.7 8.4 1.5 1.4 18.7 17.3 1.2 1.1

Reliance Industries Buy 716 897 234,523 316,404 319,119 11.2 12.0 63.5 68.7 11.3 10.4 1.1 1.0 11.7 11.4 0.7 0.7

Pharmaceuticals

Alembic Pharma Buy 55 91 1,035 1,624 1,855 14.2 15.6 6.6 9.1 8.3 6.0 2.0 1.6 27.5 29.2 0.9 0.7

Aurobindo Pharma Buy 108 156 3,150 5,243 5,767 14.6 14.6 13.8 14.7 7.8 7.4 0.9 0.4 11.4 10.9 0.8 0.6

Aventis* Neutral 2,145 - 4,939 1,482 1,682 15.5 15.5 95.0 104.0 22.6 20.6 4.0 3.1 18.6 17.0 3.2 2.7

Cadila Healthcare Buy 779 953 15,955 6,196 7,443 18.5 19.5 43.3 50.8 18.0 15.3 4.6 3.7 25.4 24.8 2.5 2.0

Cipla Buy 307 379 24,618 7,687 8,804 21.4 21.4 16.5 18.9 18.6 16.2 2.9 2.5 16.7 16.8 3.2 2.7

Dr Reddy's Neutral 1,587 - 26,920 10,696 11,662 20.7 21.0 83.7 92.9 19.0 17.1 3.9 3.3 22.4 21.0 2.6 2.4

Dishman Pharma Buy 64 92 517 1,280 1,536 17.8 17.8 9.2 11.3 7.0 5.7 0.5 0.5 7.7 8.5 1.1 0.9

GSK Pharma* Neutral 2,009 - 17,019 2,651 2,993 31.7 31.2 76.0 82.4 26.4 24.4 7.6 6.6 30.8 29.0 5.5 4.8

Indoco Remedies Buy 54 82 500 685 837 15.2 15.2 7.4 8.9 7.3 6.1 1.1 0.9 15.9 16.3 0.9 0.7

Ipca labs Buy 349 435 4,385 2,850 3,474 20.3 20.3 26.6 32.7 13.1 10.7 3.4 2.7 28.2 27.9 1.7 1.4

Lupin Buy 522 647 23,317 8,426 10,082 19.7 20.0 29.7 32.4 17.6 16.1 4.6 3.7 27.0 25.2 2.7 2.2Orchid Chemicals Buy 111 178 783 2,117 2,434 17.7 17.7 16.7 22.2 6.7 5.0 0.6 0.6 9.5 11.5 1.0 0.8

Ranbaxy* Neutral 483 - 20,403 12,046 11,980 18.0 15.8 35.7 29.8 13.5 16.2 5.1 4.1 43.1 28.1 1.7 1.7

Sun Pharma Reduce 609 569 62,757 9,272 11,080 38.6 38.0 22.7 22.6 26.8 27.0 4.5 4.0 17.9 15.6 5.0 3.9

Power

CESC Buy 286 342 3,571 5,084 5,512 24.2 23.8 45.2 48.5 6.3 5.9 0.7 0.6 11.2 10.9 1.1 1.2

GIPCL Buy 63 77 956 1,557 1,573 28.8 28.5 10.4 10.9 6.1 5.8 0.6 0.6 10.4 10.2 1.1 0.9

NTPC Neutral 152 - 125,578 74,766 86,549 23.1 23.4 12.4 14.1 12.3 10.8 1.5 1.4 13.0 13.5 2.4 2.2

Real Estate

Anant Raj Buy 46 78 1,356 657 875 52.0 56.1 8.4 12.7 5.5 3.6 0.3 0.3 6.3 8.9 3.3 2.5

DLF Neutral 191 - 32,397 9,878 12,033 44.7 46.1 9.6 13.4 19.9 14.2 1.3 1.2 6.4 8.7 5.8 4.8


June 26, 2012

Market Outlook

Stock Watch


11/13



Real Estate

HDIL Buy 83 115 3,484 2,441 3,344 53.0 46.7 21.4 25.4 3.9 3.3 0.3 0.3 8.4 9.1 3.2 2.4

MLIFE Buy 313 376 1,276 814 897 26.9 27.0 31.3 33.9 10.0 9.2 1.0 0.9 10.2 10.1 1.9 1.7

Telecom

Bharti Airtel Neutral 309 - 117,230 80,961 86,705 33.5 34.0 17.2 20.8 18.0 14.9 2.1 1.8 11.5 12.3 2.1 1.9

Idea Cellular Neutral 75 - 24,772 22,558 25,326 26.4 27.5 3.2 4.7 23.2 15.8 1.8 1.6 7.5 10.0 1.6 1.4

Rcom Neutral 63 - 12,962 22,288 23,871 32.1 32.7 4.4 6.0 14.2 10.5 0.4 0.3 2.4 3.2 2.0 1.7

zOthersBajaj Electricals Buy 190 246 1,889 3,569 4,172 8.6 9.2 17.3 22.3 11.0 8.5 2.4 2.0 22.9 25.3 0.5 0.5

Abbott India Accumulate 1,441 1,628 3,063 1,661 1,918 9.7 12.0 60.7 90.4 23.8 15.9 4.9 3.9 22.0 27.3 1.6 1.3

CRISIL Neutral 1,075 - 7,543 982 1,136 34.3 34.3 34.3 40.0 31.3 26.9 14.2 11.3 50.9 46.9 7.3 6.1

Cera Sanitaryware Accumulate 291 288 368 385 444 17.2 17.4 28.9 32.0 10.1 9.1 2.1 1.7 23.4 21.1 1.0 0.9

Force Motors Buy 456 680 594 2,346 2,753 6.7 7.0 50.9 61.9 9.0 7.4 0.5 0.5 5.5 6.3 0.2 0.2

Finolex Cables Buy 41 61 634 2,334 2,687 8.8 9.3 7.6 10.2 5.4 4.1 0.7 0.6 13.7 16.1 0.2 0.1

Goodyear India Buy 313 374 722 1,511 1,692 7.9 9.0 31.5 41.3 9.9 7.6 2.0 1.6 21.2 23.5 0.3 0.2

Graphite India Buy 88 124 1,710 2,158 2,406 18.1 18.9 12.4 14.0 7.1 6.2 0.9 0.9 14.0 14.3 0.9 0.8

HEG Buy 202 242 807 1,746 1,946 16.5 17.7 22.5 32.9 9.0 6.1 0.9 0.8 10.4 14.2 1.1 1.0

Hitachi Buy 114 160 261 857 968 6.9 8.4 10.2 16.0 11.2 7.1 1.4 1.2 12.9 17.8 0.4 0.3

Honeywell Automation Neutral 2,604 - 2,302 1,542 1,739 9.4 10.0 116.1 140.8 22.4 18.5 3.2 2.7 15.5 15.9 1.3 1.2

INEOS ABS India Accumulate 720 777 1,267 900 1,011 10.2 11.5 35.6 45.7 20.2 15.8 2.9 2.5 15.4 17.2 1.2 1.0

ITD Cementation Accumulate 228 236 262 1,535 1,842 11.1 11.1 27.3 38.3 8.4 6.0 0.6 0.6 7.9 10.2 0.6 0.6

Jyothy Laboratories Buy 230 268 1,851 1,315 1,568 8.6 11.1 6.4 10.9 36.0 21.1 3.0 2.9 8.4 13.9 1.7 1.4

MCX Buy 1,044 1,598 5,323 610 702 65.5 67.0 67.9 79.9 15.4 13.1 4.5 3.8 29.1 28.9 5.6 4.3

MRF Buy 10,023 13,106 4,251 12,390 14,400 10.4 11.3 1,334.6 1,638.2 7.5 6.1 1.5 1.2 16.5 17.4 0.5 0.5Greenply Industries Buy 198 309 478 1,925 2,235 10.6 10.9 29.6 44.1 6.7 4.5 1.1 0.9 16.8 21.0 0.5 0.4

Page Industries Neutral 2,876 - 3,208 887 1,108 18.3 18.6 95.0 120.9 30.3 23.8 15.8 12.8 57.4 59.5 3.6 2.9

Relaxo Footwears Neutral 517 - 620 1,019 1,208 11.0 10.8 44.9 53.1 11.5 9.7 2.8 2.2 27.2 25.0 0.7 0.6

Sintex Industries Buy 60 79 1,635 4,751 5,189 16.3 16.6 13.6 15.8 4.4 3.8 0.6 0.5 12.9 13.2 0.7 0.6

Siyaram Silk Mills Buy 265 392 248 1,042 1,173 12.4 12.5 66.3 78.5 4.0 3.4 0.8 0.6 21.1 20.8 0.5 0.4

SpiceJet Buy 33 40 1,586 5,647 6,513 3.5 6.5 1.9 4.9 16.9 6.7 39.6 5.7 - - 0.4 0.4

TVS Srichakra Buy 322 462 247 1,612 1,827 9.5 9.8 72.3 92.5 4.5 3.5 1.3 1.0 33.1 32.1 0.4 0.3

TAJ GVK Buy 63 108 392 300 319 35.8 36.2 7.9 9.1 7.9 6.9 1.1 0.9 13.9 14.4 1.6 1.3


June 26, 2012

Market Outlook

Stock Watch


12/13



zOthers

Tata Sponge Iron Buy 342 420 527 757 875 19.0 19.1 63.5 72.9 5.4 4.7 0.8 0.7 16.1 16.1 0.3 0.1

United Spirits Accumulate 659 730 8,621 10,289 11,421 13.5 14.3 31.0 42.9 21.2 15.4 1.7 1.5 8.1 10.3 1.6 1.4

Vesuvius India Accumulate 375 413 761 628 716 16.4 16.5 29.8 34.4 12.6 10.9 2.2 1.9 18.8 18.6 1.0 0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 25, 2012


June 26, 2012

Market Outlook

Stock Watch


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June 26, 2012Market Outlook

Documents

Market Outlook 260612