The BSE 30-share Sensex closed the week that ended on 11th April, at 22,628.96 (up 269 points or 1%), while the NSEs 50-share Nifty closed at 6,776.30 (up 82 points or 1%) for the week. Last week we had suggested that indices would be weak this week. They held up and moved higher.

On Monday, the Nifty closed 6,695 (up 0.70 points or 0.01%). The highlight on Monday was Sun Pharma acquiring Ranbaxy Lab for $4 billion. This resulted in Sun Pharma being the top gainer in Sensex stocks on both Monday and Wednesday.

The stock markets were closed on

Tuesday on account of Ram Navami.On Wednesday, Nifty closed, at its new

all time high, at 6,796 (up 101 points or 1.51%). Moodys Investors Service said that the banking systems in ASEAN and India are resilient to the financial impacts of the reduction of monetary stimulus by the US Federal Reserve, or the risk of higher interest rates more generally.

On Thursday the optimism globally played on the sentiments back home. This resulted in Nifty hitting a new high again. Nifty closed at 6,796 (up 0.20 points).

The minutes of the US Fed meeting showed that they would wait for a

considerable time following the end of its bond-buying program before finally raising interest rates.

A huge fall in the US indices pulled global indices lower on Friday. Nifty closed at 6,776 (down 20 points or 0.30%). After market hours, industrial production data were released, which turned out to be weak. The market would remain closed Monday on account of Ambedkar Jayanti.

Stock: LIC Housing Finance, from its Rs530 crore real estate investment fund (that it raised in March last year), has made four investments in mid-income housing projects, putting in Rs50-Rs70 crore in each transaction. The stock rose 11%. The board of directors of Gruh Finance has approved the issue of bonus shares in the ratio of 1:1. The company has also recommended a dividend of Rs3 per share of face value of Rs2 each. The stock rose 6%. Last year, HDFC Bank had approached foreign investment promotion board for raising foreign holding in the bank to 67.55% from 49 %. However, the governments approval may get delayed. HDFC Banks share in the issued card base fell from 33% to 27% in FY14, as it lost its market share heavily in the credit card space on account of increased competition from public sector banks. The stock rose 2%.Changes: There are no changes this week.

Disclaimer: Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and the information may be incomplete or condensed. All opinions and estimates constitute our judgment as of the date of the report and are subject to change without notice. This report is for informational purposes only and none of the stock information, data and company information presented herein constitutes a legally binding recommendation or a solicitation of any offer to buy or sell any securities. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalised recommendation to you. Individual stocks presented may not be suitable for you. KensSource is a research and information company and not investment advisor. Please consult an advisor about the appropriateness of your investment decisions.

KenSource STOCK LETTER

AntelopeMedium-term Growth

Monday, 14 April 2014Volume 6, Issue 52

MARKET WATCH

Indices Change

BSE Sensex 1%

Nifty 1%

Sensex, Nifty to turn weak

Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:

Top ML sectors Worst ML sectors

Shipping 7% Sugar -3%

Industrial Intermediates 5% Media -2%

Con_EPC_Infra 5% Lifestyle & Leisure -1%

Cement 5% Oil & Gas 0%

Energy 4% Software & I T Serv 0%

The Sensex gained 1% this week. After nearly 37 days of consecutive buying, FIIs turned net sellers on Friday while after 26 days continuous selling DIIs turned net buyers on Thursday.

Money Flows

The current four quarter trailing Sensex EPS as per BSE is Rs1,224. On this basis, the current Sensex PE works out to 18.49. Unless the earnings turn worse, the market is fairly valued.

Market Valuation

Sensex

19,550

27,050

23,300

12,050

15,800

8,300

Jan-08 Feb-11 Mar-14

FII Net Inflow

13 Feb-14 11 Apr-1413 Mar-14

(Rs crore)

2,360

4,240

3,300

480

-460

1,420

Grossly Overvalued

PE

Overvalued

Fairly valued

22x

20x

17x

15xGrossly Undervalued

Undervalued

DII Net Inflow(Rs crore)

-680

1,590

455

-2,950

-4,085

-1,815

13 Feb-14 13 Mar-14 11 Apr-14

Financial* Valuation** Return# Entered

Av. Sales Av. OP MC/Sales MC/OP RoE Date PriceCurrent

Price Performance

Continuing Portfolio

1. HDFC Bank @ 11,642.17 3,332.97 3.48 11.39 22% 18-Feb-11 435 738 70%

2. Bajaj Finance @ 923.44 256.09 2.06 7.63 21% 27-Jan-12 731 1762 141%

3. Amara Raja Batteries @ 825.65 134.28 2.01 11.52 33% 13-Apr-12 146 405 177%

4. Supreme Industries @ 893.02 137.63 1.61 10.73 35% 27-Apr-12 208 493 137%

5. Cera Sanitaryware @ 146.30 20.21 1.69 13.16 26% 04-May-12 265 857 224%

6. Gruh Finance @ 194.22 54.88 6.48 24.98 34% 04-May-12 135 313 131%

7. City Union Bank @ 684.06 143.60 1.04 5.50 21% 18-May-12 48 55 15%

8. Motherson Sumi Systems @ 1,119.44 201.82 5.18 27.27 31% 01-Jun-12 71 260 265%

9. Suprajit Engineering @ 115.66 19.82 1.47 8.02 28% 13-Jul-12 25 70 184%

10. MRF @ 3,066.31 437.06 0.76 5.78 22% 01-Mar-13 11,573 22,837 97%

11. Lupin @ 2,011.76 583.80 4.38 13.28 39% 15-Mar-13 610 949 56%

12. Asian Paints @ 2,492.19 431.75 4.59 27.29 38% 26-Apr-13 471 544 16%

13. Cipla @ 2,227.79 506.72 3.54 20.03 16% 26-Apr-13 410 402 -2%

14. Tata Consultancy Services @ 14,457.03 4,589.58 6.35 18.34 51% 03-May-13 1,419 2,164 53%

15. RS Software @ 81.23 15.52 0.67 2.99 38% 10-May-13 121 183 52%

16. Bajaj Auto @ 5,075.28 1,004.44 2.83 12.79 41% 10-May-13 1,859 2,008 8%

17. Dabur India @ 1,181.87 199.45 5.84 35.56 41% 14-Jun-13 153 180 18%

18. LIC Housing Finance @ 2,145.50 377.60 1.45 8.00 19% 14-Jun-13 262 269 3%

19. ITC @ 7,993.64 2,963.21 7.83 20.82 38% 14-Jun-13 332 344 4%

20. Indag Rubber @ 57.98 9.26 0.78 5.09 34% 19-Jul-13 199 337 69%

21. Atul Auto @ 103.67 11.50 0.80 6.61 39% 06-Sep-13 170 360 112%

22. Alembic Pharmaceuticals @ 427.13 80.86 2.73 12.59 48% 25-Oct-13 181 276 52%

23. Gujarat Gas Co @ 778.08 131.41 1.54 8.98 39% 20-Dec-13 265 374 41%

24. Orient Refractories @ 95.31 18.54 1.85 9.08 50% 28-Feb-14 49 65 33%

* 5 quarter average(Rs crore) ** Based on latest quarter (annualised), MC- Market Cap # Return on Equity (based on net profit of previous 4 quarters)

AntelopeMedium-term GrowthMonday, 14 April 2014 Volume 6, Issue 52

KenSourceSTOCK LETTER

How to Use the Stockletter1. At any point, we intend to maintain a maximum portfolio of 30 shares in our Antelope stockletter. 2. Our suggestion is to invest an equal amount in each stock we recommend. 3. However, any new subscriber may take a position in any of the two kinds of recommendations a. When a completely new stock is added b. Any existing stock which we may recommend to enter at the current price (such stock will be marked with @ sign). 4. For instance, in case if you have Rs510,000 to invest and are a subscriber to the Antelope stockletter, you would put Rs17,000 in each stock.

If we have recommended five stocks as per 3a and 3b above, you have to invest then you may invest Rs17,000 in each of the five stocks and wait for further recommendations. If you have subscribed to both Antelope and lion stockletters, you would invest Rs8,500 in each stock recommended

5. As for exits, please follow the recommendation mentioned at the end of the Market Watch text

Happy investing!