Market Outlook, 26-06-2013

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Market OutlookJune 26, 2013

Dealers Diary

Indian markets are expected to open in the positive territory tracking positive

opening from SGX Nifty with most of Asian markets trading in positive zone in the

early trade.

US markets witnessed considerable strength on Tuesday regaining some

ground after moving sharply lower over the past few sessions. The markets

reacted positively to upbeat economic data from the Commerce Department

that the durable goods orders surged up by 3.6% in May (higher than expected

3% by economists) following a matching increase in April. A separate report

showed that the new home sales climbed 2.1% to a seasonally adjusted annual

rate of 476,000 in May from the revised April rate of 466,000. European

markets too bounced back on Tuesday, following 5 consecutive sessions of

losses owing to positive sentiments due to upbeat economic news in U.S and

statement from the People's Bank of China easing concerns over a credit

crunch in the country.

Meanwhile, Indian shares rose modestly on Tuesday with the firm global cues

supporting the positive sentiment.

Markets Today

The trend deciding level for the day is 18,640/ 5,615 levels. If NIFTY trades above

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

up to 18,792 18,955 / 5,660 5,711 levels. However, if NIFTY trades below

18,640 / 5,615 levels for the first half-an-hour of trade then it may correct up to

18,477 18,325 / 5,564 5,519 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 18,325 18,477 18,640 18,792 18,955NIFTY 5,519 5,564 5,615 5,660 5,711

News Analysis

SEBI approves new buy back norms, eases registration rules for foreigninvestors

OVL and Oil India to acquire 10% stake in Mozambique gas block Bajaj Autos Chakan plant affected by employee strike Tech Mahindra completes Mahindra Satyam merger, retains own name Crompton Greaves to consider buyback of equity shares

Refer detailed news analysis on the following page

Net Inflows (June 24, 2013)` cr Purch Sales Net MTD YTDFII 2,342 3,868 (1,526) (7,805) 74,031

MFs 501 553 (52) (532) (12,608)

FII Derivatives (June 25, 2013)` cr Purch Sales Net Open InterestIndex Futures 5,376 5,952 (577) 16,471

Stock Futures 10,049 9,635 414 30,133

Gainers / LosersGainers Losers

Company Price (`) chg (%) Company Price (`) chg (%)Crompton Greaves 82 10.8 Gitanjali Gems 324 (20.0)

Bharti Airtel 297 4.9 Muthoot Fin 91 (14.4)

Container Corp 1,094 4.4 Glaxosmithkl Cons 4,274 (14.2)

Indusind Bank 472 4.2 IRB Infra 94 (10.9)

Bajaj Holdings 790 4.1 Marico 192 (5.8)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex 0.5 88 18,629

Nifty 0.3 19 5,609

MID CAP (0.5) (27) 5,857

SMALL CAP (0.4) (23) 5,570

BSE HC (0.6) (47) 8,533

BSE PSU (0.2) (10) 5,918

BANKEX 0.1 15 12,791

AUTO 0.5 53 10,537

METAL (0.5) (39) 7,471

OIL & GAS 1.5 126 8,349

BSE IT (0.5) (29) 5,919

Global Indices Chg (%) (Pts) (Close)Dow Jones 0.7 101 14,760NASDAQ 0.8 27 3,348

FTSE 1.2 73 6,102

Nikkei (0.7) (93) 12,969

Hang Sang 0.2 42 19,856

Straits Times 0.5 16 3,090

Shanghai Com (0.2) (4) 1,960

Indian ADR Chg (%) (Pts) (Close)INFY 2.7 1.1 $40.3

WIT 2.3 0.2 $7.2IBN 1.7 0.6 $38.0

HDB 3.7 1.3 $35.2

Advances / Declines BSE NSEAdvances 953 539

Declines 1,351 809

Unchanged 140 77

Volumes (` cr)BSE 1,930

NSE 11,684

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SEBI approves new buy back norms, eases registration rules for

foreign investors

Indias Capital market regulator SEBI has approved new buy back norms for the

Indian markets. Under the new norms 50% of the amount earmarked for the

buyback must be utilized by the company for the buyback purpose and 25% ofthat amount should be kept in an escrow account. The time frame of buy back is

reduced to six months from the earlier twelve months period. SEBI would forfeit

2.5% of the amount in case 50% is not bought back. The board also approved the

Chandrasekhar committees recommendations to club various classes of foreign

investors into a new category. According to this proposal Foreign Institutional

Investors (FIIs) and qualified foreign investors (QFIs) must be merged into one

category named Foreign Portfolio Investor (FPI) and neither FIIs nor their sub-

accounts would require prior registration with the regulator and instead would

register with the designated depository participants. The regulator has also

adopted a risk-based approach to KYC for the foreign investors, dividing it into

three categories on the basis of perceived risk. The first will cover organizationsbacked by the government, such as sovereign wealth fund. The second will cover

regulated entities such as foreign mutual funds, while all other entities would fall in

the third category. It has also clearly defined foreign direct investment as any

investment exceeds 10% stake in the company. Also the Non-Resident Indians

would continue to have individual investment limit of 5% and aggregate investment

limit of 10% and High risk category investors shall not be allowed to issue offshore

derivative instruments or participatory notes. The SEBI board will now need finance

ministrys approval to implement these changes.

OVL and Oil India to acquire 10% stake in Mozambique gas

block

ONGC's fully owned subsidiary ONGC Videsh (OVL) and Oil India will acquire

10.0% stake in a Mozambique gas block (Rovuma Area 1 offshore block) from

Videocon for US$2.5bn. The block has over 50TCF of gas reserves. Videocon had

acquired 10% stake in the block during 2008 for US$100mn. The acquisition is

expected to be implemented via a newly incorporated special purpose vehicle, in

which OVL and Oil India are expected to hold 60% and 40% stake, respectively.

The acquisition is subject to the approvals of the governments of Mozambique and

India, relevant regulatory authorities and other approvals. We await further clarity

on timelines of production and other operational details. Until then, we maintainour Buy view on ONGC with a target price of `372

Bajaj Autos Chakan plant affected by employee strike

According to a BSE filing, production at Bajaj Autos (BJAUT) Chakan plant has

been affected due to a labor strike. The filing states that the workers at the Chakan

plant have stopped coming to work from June 25, 2013 following managements

refusal to concede to their demand. The workers at the plant have been

demanding an option to subscribe to 500 equity shares of the company at adiscounted price of `1/ share (as against current market price of `1,800/ share).

The workers union at the Chakan plant, Vishwa Kalyan Kamgar Sanghatana had

earlier proposed for a stoppage of work from the morning shift of June 28, 2013.

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The Chakan plant has an installed capacity of 1.2mn units (~22% of the total

installed capacity) and it manufactures products like Pulsar, Avenger, Ninja and

KTM. We would like to seek more clarity from the management and remain

watchful of the future development on this front. We do not see any immediate

impact of the strike on the companys sales given that it has an inventory of

around 5-6 weeks in the system. At `1,800, the stock is trading at 13.1x FY2015Eearnings. We maintain our Accumulate rating on the stock with a target price of`2,056.

Tech Mahindra completes Mahindra Satyam merger, retains own

name

Tech Mahindra yesterday announced that it has completed the merger of associate

company Mahindra Satyam with itself to create the country's fifth-largest IT services

company, with annual revenue of ~US$2.7 billion, 84000 employees and 540

customers in 46 countries. The combined entity now has 11 locations in India and

15 overseas for BPO operations and software development. The merged entity will

be called Tech Mahindra with Anand Mahindra as chairman of the company. CP

Gurnani will be the MD and CEO of the merged entity and Milind Kulkarni will

take charge as the CFO.

Part of the US$16bn Mahindra group, Tech Mahindra purchased Satyam in a

government-backed auction in 2009 after the founder of the company admitted to

one of India's biggest accounting frauds. Currently Tech Mahindra owns ~43% of

Satyam. The board of Tech Mahindra and Mahindra Satyam had approved the

merger on March 21, 2012. After an approval from the Mumbai High Court, the

merger had been awaiting clearances from the Andhra Pradesh High Court, which

gave the nod on June 11, 2013. The share swap will take place on July 5. The

swap ratio for the merger had been fixed last year at 8.5 shares of Mahindra

Satyam for every one share of Tech Mahindra.

After the merger, ~54% of the company's revenues will come from the telecom

vertical as Tech Mahindra is focused mainly on this one. Tech Mahindra has, since

acquiring Satyam, been trying to diversify into other verticals using the latter's

existing presence in those. Management indicated that there will be no job losses

post the merger. The company will now be divided into three units - Telecom,

Enterprise and BPO. We continue to remain positive on Tech Mahindra with atarget price of `1,170.

Crompton Greaves to consider buyback of equity shares

Crompton Greaves is expected to consider buyback of equity shares at a meeting

of the Board of Directors on June 28, 2013. The restructuring at its Belgium unit

along with slowdown in investments (due to GDP slowdown) has heavily impacted

its profitability, leading to sharp fall in stock price. Hence, companys move to

consider buyback of equity shares sends a positive signal and boosts investor

sentiments. We remain positive on the stock and maintain BUY with a target priceof `117 from a medium to long term perspective.

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Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

June 26, 2013 6:00PM US GDP Qoq (Annualised) % Change 1Q T 2.40 2.40

June 27, 2013 6:00PM US Initial Jobless claims Thousands Jun 22 354.00 345.00

2:30PM Euro Zone Euro-Zone Consumer Confidence Value Jun F (18.80) (18.80)

1:25PM Germany Unemployment change (000's) Thousands Jun 21.00 8.00

2:00PM UK GDP (YoY) % Change 1Q F 0.60 0.60

July 1, 2013 1:25PM Germany PMI Manufacturing Value Jun F 48.70 --

6:30AM China PMI Manufacturing Value Jun 50.80 50.10

2:00PM UK PMI Manufacturing Value Jun 51.30 --

July 3, 2013 1:25PM Germany PMI Services Value Jun F 51.30 --

July 4, 2013 4:30PM UK BOE Announces rates % Ratio Jul 4 0.50 0.50

5:15PM Euro Zone ECB announces interest rates % Jul 4 0.50 --

July 5, 2013 6:00PM US Change in Nonfarm payrolls Thousands Jun 175.00 165.00

6:00PM US Unnemployment rate % Jun 7.60 7.50

July 9, 2013 2:00PM UK Industrial Production (YoY) % Change May (0.60) --

7:00AM China Consumer Price Index (YoY) % Change Jun 2.10 --

July 10, 2013 4:29PM India Imports YoY% % Change Jun 7.00 --

4:29PM India Exports YoY% % Change Jun (1.10) --

4:29PM China Exports YoY% % Change Jun 1.00 --

July 12, 2013 11:00AM India Industrial Production YoY % Change May 2.30 --

6:00PM US Producer Price Index (mom) % Change Jun 0.50 --

July 15, 2013 12:00PM India Monthly Wholesale Prices YoY% % Change Jun 4.70 --

7:30AM China Industrial Production (YoY) % Change Jun 9.20 --

7:30AM China Real GDP (YoY) % Change 2Q 7.70 --

July 16, 2013 2:00PM UK CPI (YoY) % Change Jun 2.70 --6:00PM US Consumer price index (mom) % Change Jun 0.10 --

2:30PM Euro Zone Euro-Zone CPI (YoY) % Jun F 1.40 --

6:45PM US Industrial Production % Jun 0.04 --

Source: Bloomberg, Angel Research

June 26, 2013

Market Outlook

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Macro watch

Exhibit 1:Quarterly GDP trends

Source: CSO, Angel Research

Exhibit 2:IIP trends

Source: MOSPI, Angel Research

Exhibit 3:Monthly WPI inflation trends

Source: MOSPI, Angel Research

Exhibit 4:Manufacturing and services PMI

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

Exhibit 5:Exports and imports growth trends

Source: Bloomberg, Angel Research

Exhibit 6:Key policy rates

Source: RBI, Angel Research

9.3

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

2.5

(2.0)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.5

3.42.3

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

(%)

7.58.0 8.1

7.3 7.2 7.3 7.3 7.3

5.74.9 4.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

(%)

48.0

50.0

52.0

54.0

56.0

58.0

Mar-

12

Apr-

12

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Mfg. PMI Services PMI

(15.0)

0.0

15.0

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Jul-12

Aug-1

2

Sep-1

2

Oct-12

Nov-1

2

Dec-1

2

Jan-1

3

Feb-1

3

Mar-13

Apr-13

May-1

3

Jun-1

3

Repo rate Reverse Repo rate CRR (%)

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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)

( ) Price ( ) ( cr ) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E

Agri / Agri Chemical

Rallis Neutral 129 - 2,512 1,657 1,906 14.1 14.1 7.7 8.9 16.8 14.5 3.5 3.0 22.2 21.9 1.4 1.2

United Phosphorus Buy 133 232 5,867 10,298 11,310 16.5 16.5 20.5 23.2 6.5 5.7 1.1 0.9 18.0 17.4 0.6 0.5

Auto & Auto Ancillary

Amara Raja Batteries Accumulate 254 285 4,330 3,418 3,892 14.5 14.5 18.5 20.4 13.7 12.5 3.3 2.7 26.6 23.8 1.3 1.1

Apollo Tyres Neutral 56 - 2,845 13,852 15,487 11.4 11.5 12.8 14.9 4.4 3.8 0.7 0.6 17.5 17.3 0.3 0.3

Ashok Leyland Buy 21 27 5,481 14,038 16,442 7.6 8.7 1.1 2.2 19.7 9.2 1.7 1.5 6.2 12.5 0.5 0.4

Automotive Axle# Neutral 222 - 335 834 965 9.3 10.6 17.3 27.1 12.8 8.2 1.2 1.1 9.5 14.0 0.5 0.4Bajaj Auto Accumulate 1,800 2,056 52,083 22,684 25,908 18.0 18.5 117.3 137.1 15.4 13.1 5.5 4.4 39.9 37.2 1.9 1.6

Bharat Forge Neutral 215 - 5,016 6,198 6,793 14.6 14.9 14.5 17.3 14.8 12.5 1.9 1.7 13.6 14.7 0.9 0.8

Bosch India* Accumulate 8,573 9,213 26,917 9,821 11,394 17.0 17.3 373.5 438.7 23.0 19.5 4.1 3.5 18.0 17.9 2.4 2.0

CEAT Buy 108 170 370 5,325 5,974 8.4 8.3 40.8 48.5 2.7 2.2 0.4 0.4 17.3 17.6 0.2 0.2

Exide Industries Buy 122 150 10,379 7,053 8,061 14.2 14.5 7.8 9.1 15.6 13.4 2.7 2.3 18.1 18.2 1.2 1.0

FAG Bearings* Neutral 1,440 - 2,393 1,525 1,742 14.5 15.7 88.4 109.5 16.3 13.2 2.4 2.0 15.5 16.5 1.4 1.2

Hero Motocorp Accumulate 1,583 1,819 31,620 25,274 27,658 14.1 13.7 110.2 139.9 14.4 11.3 5.2 4.1 39.8 40.7 1.0 0.9

JK Tyre Buy 108 154 442 7,972 8,754 7.1 7.1 37.5 44.0 2.9 2.5 0.4 0.4 16.4 16.6 0.3 0.3

Mahindra and Mahindra Accumulate 956 1,090 58,721 45,254 51,197 11.4 11.7 61.2 70.2 15.6 13.6 3.3 2.8 22.7 21.9 1.0 0.9

Maruti Buy 1,548 1,847 46,759 48,455 55,723 11.2 10.9 107.8 123.2 14.4 12.6 2.2 1.9 16.2 16.0 0.8 0.7

Motherson Sumi Accumulate 195 222 11,437 28,442 31,493 7.5 7.8 12.5 14.8 15.6 13.2 3.8 3.1 27.5 25.8 0.5 0.5

Subros Buy 22 30 132 1,479 1,685 10.0 9.9 5.5 7.5 4.0 2.9 0.4 0.4 11.1 13.7 0.4 0.3

Tata Motors Buy 282 347 75,892 215,016 237,404 13.3 13.6 36.2 41.5 7.8 6.8 1.7 1.4 24.6 23.2 0.4 0.4

TVS Motor Buy 31 41 1,487 7,715 8,584 6.0 6.1 5.0 5.8 6.3 5.4 1.1 0.9 18.1 18.5 0.1 0.1

Capital Goods

ABB* Sell 582 461 12,328 8,073 9,052 5.5 6.9 11.5 16.9 50.5 34.3 4.6 4.4 9.3 13.1 1.5 1.3BGR Energy Neutral 126 - 910 4,114 4,886 11.4 10.7 24.9 28.0 5.1 4.5 0.7 0.6 25.2 22.6 0.5 0.5

BHEL Neutral 164 - 40,043 44,054 39,326 16.8 15.1 20.6 16.1 7.9 10.2 1.7 1.6 23.5 16.1 0.8 0.8

Blue Star Buy 155 230 1,396 2,896 3,087 5.6 6.2 9.3 11.7 16.7 13.2 2.7 2.4 17.6 19.2 0.5 0.5

Crompton Greaves Buy 82 117 5,247 13,446 15,272 6.7 7.6 6.6 8.9 12.3 9.2 1.4 1.2 11.4 14.0 0.5 0.4

Jyoti Structures Neutral 20 - 166 3,360 3,597 9.7 9.8 7.3 10.2 2.8 2.0 0.6 0.5 8.8 11.4 0.3 0.3

KEC International Buy 28 63 712 7,709 8,399 6.7 7.2 6.1 8.5 4.6 3.3 0.6 0.5 20.2 23.0 0.3 0.2

Thermax Neutral 590 - 7,028 5,780 6,430 9.5 9.6 29.8 33.0 19.8 17.9 3.3 2.9 17.9 17.4 1.0 0.9

Cement

ACC Buy 1,174 1,361 22,047 11,979 13,254 19.7 21.3 77.1 91.4 15.2 12.9 2.7 2.4 18.7 20.0 1.6 1.3


Market Outlook

Stock Watch

June 26, 2013

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Cement

Ambuja Cements Neutral 183 - 28,320 10,232 11,762 23.5 24.5 10.3 12.2 17.8 15.1 3.0 2.7 17.2 18.6 2.3 1.9

India Cements Neutral 58 - 1,779 4,929 5,434 17.4 17.1 8.9 10.9 6.5 5.3 0.5 0.5 7.7 9.1 0.7 0.6

J K Lakshmi Cement Buy 105 143 1,230 2,247 2,742 21.0 23.1 17.8 21.8 5.9 4.8 0.9 0.7 15.5 16.4 0.4 0.9

Madras Cements Neutral 218 - 5,183 4,234 4,788 23.9 24.0 18.5 22.8 11.8 9.6 1.9 1.6 17.2 18.2 1.6 1.3

Shree Cement^ Neutral 4,389 - 15,291 6,540 7,452 27.4 26.6 319.7 369.9 13.7 11.9 3.4 2.7 27.5 25.4 1.7 1.3

UltraTech Cement Neutral 1,786 - 48,966 21,947 25,049 23.8 23.8 106.1 119.8 16.8 14.9 2.8 2.4 17.7 17.3 2.3 2.0

ConstructionAshoka Buildcon Buy 183 255 964 1,928 2,234 21.0 21.5 18.0 22.2 10.2 8.3 0.9 0.8 10.2 10.1 1.9 1.8

Consolidated Co Neutral 10 - 176 2,281 2,492 5.9 6.9 0.7 2.0 14.0 4.7 0.3 0.3 2.3 6.5 0.3 0.3

IRB Infra Buy 94 157 3,109 3,997 4,312 45.5 46.4 15.7 16.6 6.0 5.6 0.9 0.8 15.2 14.5 3.2 3.5

ITNL Buy 156 230 3,025 7,444 8,041 27.4 28.9 29.8 32.1 5.2 4.9 0.7 0.7 14.9 14.2 2.5 2.5

IVRCL Infra Buy 13 29 391 5,673 5,892 8.1 8.4 1.4 1.8 8.8 7.0 0.2 0.2 2.0 2.6 0.5 0.5

Jaiprakash Asso. Buy 51 90 11,362 14,850 15,631 24.9 25.1 2.5 2.9 20.2 18.0 0.8 0.8 4.2 4.7 2.6 2.5

Larsen & Toubro Buy 1,368 1,761 84,288 68,946 78,040 10.5 10.5 77.9 88.3 17.6 15.5 2.6 2.3 15.5 15.6 1.3 1.2

Nagarjuna Const. Buy 22 42 571 6,167 6,945 8.0 8.2 2.7 3.6 8.3 6.1 0.2 0.2 2.7 3.6 0.5 0.4

Punj Lloyd Neutral 35 - 1,147 12,954 14,740 9.9 9.9 0.5 0.9 68.1 37.1 0.4 0.4 0.6 1.1 0.5 0.5

Sadbhav Engg. Buy 94 139 1,425 2,462 2,731 10.6 10.6 5.9 6.7 16.0 14.2 1.6 1.4 10.2 10.5 0.9 0.8

Simplex Infra Buy 81 131 402 6,308 7,033 9.5 9.6 11.9 18.7 6.8 4.3 0.3 0.3 4.5 6.7 0.5 0.5

Unity Infra Buy 25 41 187 2,146 2,339 13.7 13.8 11.0 11.5 2.3 2.2 0.2 0.2 9.3 9.0 0.6 0.6

Financials

Allahabad Bank Buy 92 132 4,615 7,120 7,979 2.7 2.7 31.7 36.6 2.9 2.5 0.5 0.4 14.3 14.7 - -

Andhra Bank Accumulate 80 86 4,468 5,254 5,900 2.8 2.8 21.2 22.9 3.8 3.5 0.6 0.5 13.3 13.0 - -

Axis Bank Buy 1,232 1,684 57,739 19,079 22,765 3.3 3.2 137.8 156.8 8.9 7.9 1.5 1.3 18.1 17.9 - -Bank of Baroda Buy 568 778 23,906 16,163 18,549 2.2 2.3 116.9 137.3 4.9 4.1 0.7 0.6 14.6 15.3 - -

Bank of India Buy 223 313 13,289 14,272 16,038 2.2 2.2 56.0 64.3 4.0 3.5 0.6 0.5 13.9 14.3 - -

Bank of Maharashtra Buy 49 63 3,225 4,362 4,707 3.0 2.9 11.2 13.0 4.3 3.7 0.6 0.5 15.1 15.5 - -

Canara Bank Buy 338 451 14,993 11,928 13,467 2.1 2.2 74.8 86.0 4.5 3.9 0.6 0.6 13.7 14.2 - -

Central Bank Accumulate 60 69 6,309 8,124 9,075 2.4 2.4 14.0 17.3 4.3 3.5 0.6 0.5 11.8 13.2 - -

Corporation Bank Buy 350 438 5,350 5,558 6,121 2.0 2.0 98.4 107.7 3.6 3.3 0.5 0.5 14.9 14.5 - -

Dena Bank Buy 70 89 2,442 3,187 3,582 2.3 2.4 23.8 25.5 2.9 2.7 0.5 0.4 15.9 15.1 - -

Federal Bank Accumulate 410 459 7,009 2,873 3,413 3.0 3.1 52.7 62.0 7.8 6.6 1.0 0.9 13.4 14.2 - -


Market Outlook

Stock Watch

June 26, 2013

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Financials

HDFC Neutral 823 - 127,496 8,573 10,142 3.6 3.6 37.0 43.6 22.3 18.9 4.6 4.1 30.0 30.3 - -

HDFC Bank Buy 634 732 151,480 28,361 34,747 4.6 4.6 33.9 41.0 18.7 15.5 3.6 3.0 20.7 21.2 - -

ICICI Bank Buy 1,033 1,422 119,243 25,914 30,994 3.1 3.2 84.5 99.6 12.2 10.4 1.6 1.5 15.3 16.3 - -

IDBI Bank Accumulate 70 80 9,283 9,477 10,678 2.0 2.1 19.6 22.6 3.6 3.1 0.4 0.4 12.8 13.4 - -

Indian Bank Buy 113 149 4,871 6,185 6,978 3.0 3.0 37.0 42.2 3.1 2.7 0.5 0.4 14.8 15.1 - -

IOB Accumulate 48 54 4,445 8,142 8,956 2.5 2.5 16.5 20.7 2.9 2.3 0.4 0.3 11.8 13.4 - -

J & K Bank Accumulate 1,163 1,315 5,636 3,074 3,140 3.5 3.2 224.7 201.5 5.2 5.8 1.0 0.9 20.6 16.1 - -LIC Housing Finance Buy 251 298 12,642 2,113 2,525 2.3 2.3 25.4 29.2 9.9 8.6 1.7 1.5 18.4 18.3 - -

Oriental Bank Buy 201 237 5,863 6,835 7,588 2.6 2.6 56.5 63.8 3.6 3.2 0.5 0.4 13.1 13.4 - -

Punjab Natl.Bank Buy 647 904 22,868 20,632 23,646 3.3 3.3 147.2 171.8 4.4 3.8 0.7 0.6 15.6 16.1 - -

South Ind.Bank Buy 21 25 2,788 1,814 2,061 2.9 2.8 4.1 4.4 5.1 4.8 0.9 0.8 17.6 16.6 - -

St Bk of India Buy 1,915 2,536 130,975 67,431 76,831 3.1 3.0 244.1 286.7 7.8 6.7 1.2 1.1 16.5 17.0 - -

Syndicate Bank Buy 108 141 6,477 7,158 8,169 2.6 2.6 26.3 29.5 4.1 3.7 0.6 0.5 15.5 15.5 - -

UCO Bank Neutral 60 - 4,523 6,150 6,609 2.5 2.5 11.1 13.5 5.4 4.4 0.8 0.7 11.0 12.2 - -

Union Bank Buy 177 243 10,548 11,107 12,650 2.6 2.6 39.4 46.6 4.5 3.8 0.6 0.6 14.1 15.0 - -

United Bank Buy 46 58 1,722 3,443 3,998 2.4 2.6 15.1 20.4 3.1 2.3 0.4 0.3 12.1 14.8 - -

Vijaya Bank Accumulate 44 50 2,185 2,730 3,059 1.9 2.0 10.2 11.3 4.3 3.9 0.5 0.5 11.8 12.0 - -

Yes Bank Accumulate 448 500 16,089 4,429 5,502 2.8 2.9 42.3 49.5 10.6 9.0 2.3 1.9 23.5 22.8 - -

FMCG

Asian Paints Neutral 4,364 - 41,855 12,332 14,524 16.5 16.3 141.6 162.7 30.8 26.8 9.8 7.7 35.4 32.2 3.3 2.7

Britannia Neutral 646 - 7,733 6,417 7,502 6.1 6.3 23.2 27.9 27.9 23.2 9.6 7.5 38.3 36.4 1.2 1.0

Colgate Neutral 1,260 - 17,141 3,588 4,130 20.5 20.9 44.2 51.8 28.5 24.4 27.8 20.3 108.6 96.2 4.6 4.0

Dabur India Neutral 153 - 26,588 7,183 8,340 16.8 16.8 5.4 6.3 28.4 24.3 11.1 8.6 41.5 40.1 3.7 3.1

GlaxoSmith Con* Neutral 4,284 - 18,017 3,617 4,259 16.1 16.4 122.2 148.7 35.1 28.8 10.9 8.8 34.1 33.7 4.5 3.8

Godrej Consumer Neutral 769 - 26,186 7,801 9,017 16.2 15.9 25.1 29.7 30.6 25.9 6.6 5.5 24.9 24.2 3.5 3.0

HUL Neutral 588 - 127,067 29,167 33,164 13.6 13.7 17.1 18.4 34.4 31.9 33.1 23.9 113.4 87.0 4.2 3.7

ITC Neutral 320 - 253,017 34,294 39,991 36.8 37.0 11.3 13.3 28.4 24.0 9.4 7.6 36.1 34.9 7.1 6.0

Marico Neutral 191 - 12,335 5,273 6,044 14.8 14.9 7.3 8.7 26.4 22.1 5.1 4.2 21.4 21.0 2.4 2.0

Nestle* Neutral 4,922 - 47,454 9,447 10,968 22.1 22.3 127.5 154.1 38.6 31.9 19.3 14.0 57.7 50.7 5.0 4.2

Tata Global Accumulate 134 145 8,280 8,069 8,957 9.8 9.7 7.8 8.6 17.1 15.6 2.1 2.0 9.5 9.7 1.0 0.9


Market Outlook

Stock Watch

June 26, 2013

7/28/2019 Market Outlook, 26-06-2013

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IT

HCL Tech^ Accumulate 751 863 52,343 28,633 32,216 21.5 20.7 57.3 61.7 13.1 12.2 3.1 2.6 24.0 21.5 1.7 1.4

Hexaware* Buy 77 96 2,301 2,091 2,289 19.0 18.8 10.6 11.3 7.3 6.8 1.6 1.4 22.8 21.7 0.9 0.8

Infosys Neutral 2,378 - 136,553 43,338 47,244 27.5 27.7 169.4 182.6 14.0 13.0 2.9 2.5 20.8 19.3 2.5 2.2

Infotech Enterprises Neutral 178 - 1,985 1,956 2,174 17.9 17.7 20.4 21.9 8.7 8.1 1.3 1.1 14.7 13.7 0.6 0.5

KPIT Cummins Accumulate 118 135 2,278 2,513 2,819 16.1 15.5 12.6 14.0 9.4 8.4 1.6 1.4 17.9 16.6 0.9 0.7

Mahindra Satyam Accumulate 116 126 13,659 8,278 9,062 20.3 20.1 10.5 11.4 11.0 10.2 2.5 2.0 23.1 20.0 1.2 1.0

Mindtree Accumulate 826 920 3,431 2,599 2,871 19.4 19.2 85.2 92.3 9.7 9.0 2.0 1.7 21.4 18.9 1.0 0.8Mphasis& Neutral 382 - 8,018 6,096 6,646 17.6 17.4 38.1 41.6 10.0 9.2 1.4 1.3 14.2 13.7 0.8 0.6

NIIT Buy 20 30 323 1,144 1,267 9.0 9.1 4.3 5.4 4.6 3.6 0.5 0.4 10.3 12.0 0.1 -

Persistent Buy 498 593 1,991 1,445 1,617 25.2 25.0 55.3 59.3 9.0 8.4 1.6 1.4 18.2 16.5 1.0 0.7

TCS Accumulate 1,394 1,585 272,846 71,833 81,893 28.4 28.0 78.5 88.0 17.8 15.8 5.4 4.4 30.2 27.9 3.6 3.1

Tech Mahindra Buy 1,010 1,170 12,973 7,779 8,398 19.7 19.3 107.4 117.8 9.4 8.6 2.0 1.6 21.2 19.0 1.7 1.5

Wipro Accumulate 344 385 84,804 40,173 43,697 20.4 20.6 26.2 28.5 13.1 12.1 2.6 2.2 19.7 18.4 1.6 1.3

Media

D B Corp Buy 230 290 4,224 1,750 1,925 25.1 26.6 14.2 16.8 16.2 13.7 3.5 3.0 23.4 23.4 2.3 2.0

HT Media Buy 95 117 2,235 2,205 2,380 15.1 15.6 8.3 9.1 11.5 10.5 1.3 1.1 11.5 11.4 0.7 0.6

Jagran Prakashan Buy 83 119 2,765 1,664 1,825 20.9 23.0 6.4 7.8 13.0 10.7 2.6 2.4 21.0 23.1 1.8 1.6

PVR Neutral 321 - 1,272 1,359 1,540 17.3 17.4 17.2 21.6 18.6 14.9 1.9 1.7 10.3 12.0 1.4 1.2

Sun TV Network Neutral 362 - 14,250 2,287 2,551 69.7 70.5 20.0 23.3 18.1 15.5 4.5 3.9 26.4 27.3 5.9 5.2

Metals & Mining

Bhushan Steel Neutral 463 - 10,497 13,794 17,088 30.9 33.5 49.3 66.6 9.4 7.0 1.0 0.9 11.3 13.5 2.4 1.9

Coal India Buy 293 345 185,322 72,174 76,311 33.3 28.4 28.4 30.9 10.3 9.5 2.8 2.4 37.6 36.2 1.7 1.6

Electrosteel Castings Buy 13 24 431 1,976 2,017 11.8 12.7 1.3 2.6 10.5 5.1 0.1 0.1 2.6 5.2 0.5 0.1GMDC Buy 128 193 4,061 1,920 2,239 53.2 52.9 21.6 25.0 5.9 5.1 1.4 1.1 25.1 23.8 1.6 1.2

Hind. Zinc Buy 100 145 42,443 12,358 13,659 51.4 51.6 16.0 17.6 6.3 5.7 1.1 1.0 19.4 18.4 1.2 0.7

Hindalco Neutral 97 - 18,533 89,352 93,672 8.8 9.2 13.4 15.0 7.2 6.5 0.5 0.5 7.3 7.6 0.6 0.5

JSW Steel Neutral 658 - 14,674 39,973 40,926 17.2 17.0 71.9 82.8 9.2 7.9 0.8 0.7 9.0 9.6 0.7 0.6

MOIL Buy 192 248 3,224 1,010 1,046 46.5 47.6 26.8 28.8 7.2 6.7 1.0 0.9 15.4 14.7 0.8 0.5

Monnet Ispat Buy 131 193 833 2,326 2,709 21.4 23.1 33.3 43.1 3.9 3.0 0.3 0.3 8.3 9.9 1.4 1.1

Nalco Neutral 29 - 7,422 7,656 7,988 13.1 13.5 2.6 2.6 11.3 11.0 0.6 0.6 5.5 5.5 0.4 0.4

NMDC Buy 101 156 39,945 10,461 11,892 71.6 72.6 16.3 17.6 6.2 5.7 1.3 1.2 22.1 21.4 2.0 1.8


Market Outlook

Stock Watch

June 26, 2013

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Metals & Mining

SAIL Neutral 50 - 20,630 44,060 54,786 9.4 11.5 5.2 7.2 9.6 7.0 0.5 0.5 5.2 6.8 0.7 0.6

Sesa Goa Buy 134 166 11,650 3,742 4,426 32.9 32.8 30.0 29.8 4.5 4.5 0.6 0.5 14.3 12.5 3.9 3.2

Sterlite Inds Buy 77 100 25,894 44,462 45,568 23.2 24.7 18.1 20.2 4.3 3.8 0.5 0.4 11.3 11.4 0.5 0.5

Tata Steel Buy 267 378 25,888 140,917 151,537 9.7 10.8 30.9 47.6 8.6 5.6 0.8 0.7 9.6 13.4 0.6 0.5

Sarda Buy 95 153 341 1,494 1,568 19.1 20.3 31.3 36.5 3.0 2.6 0.3 0.3 11.8 12.4 0.6 0.5

Prakash Industries Buy 30 45 401 2,615 2,776 12.1 12.0 9.8 10.4 3.0 2.9 0.2 0.2 6.5 6.5 0.4 0.4

Godawari Power andIspat Buy 74 102 241 2,344 2,509 14.9 15.4 38.7 47.0 1.9 1.6 0.2 0.2 12.3 12.9 0.5 0.4

Oil & Gas

Cairn India Buy 276 345 52,743 16,482 16,228 69.4 53.3 53.3 49.6 5.2 5.6 0.8 0.7 16.5 13.6 1.8 1.5

GAIL Neutral 287 - 36,412 52,102 52,876 15.7 16.1 34.1 35.7 8.4 8.0 1.3 1.2 16.4 15.3 0.3 0.2

ONGC Buy 310 372 265,391 170,063 193,024 36.3 36.9 34.7 38.3 9.0 8.1 1.5 1.4 18.3 17.9 1.3 1.0

Reliance Industries Neutral 804 - 259,582 380,031 407,721 9.9 69.3 69.3 78.0 11.6 10.3 1.2 1.0 11.5 11.7 0.6 0.6

Gujarat Gas* Neutral 196 - 2,516 3,707 3,850 11.7 12.4 23.7 25.7 8.3 7.6 2.3 2.0 29.6 28.2 0.6 0.5

Indraprastha Gas Neutral 265 - 3,712 3,700 4,218 23.4 22.8 26.7 30.4 10.0 8.7 2.1 1.7 22.7 21.8 1.1 0.9

Petronet LNG Buy 120 167 9,026 40,356 40,872 5.8 6.4 15.0 16.7 8.0 7.2 1.7 1.4 23.0 21.5 0.3 0.3

Gujarat State PetronetLtd.

Neutral 53 - 2,982 1,171 1,287 91.9 91.9 10.1 11.3 5.3 4.7 0.9 0.7 17.3 16.8 - -

Pharmaceuticals

Alembic Pharma Accumulate 125 139 2,350 1,736 2,008 17.1 18.9 10.7 13.9 11.7 9.0 3.7 2.7 35.0 34.7 1.4 1.2

Aurobindo Pharma Buy 175 271 5,109 6,641 7,637 15.9 15.9 17.3 20.6 10.1 8.5 1.6 1.4 19.5 18.9 1.2 1.0

Aventis* Neutral 2,487 - 5,728 1,682 1,917 16.6 16.6 92.4 99.1 26.9 25.1 3.8 3.8 15.7 14.8 3.0 2.5

Cadila Healthcare Buy 756 929 15,487 7,280 8,640 15.5 15.7 38.3 46.5 19.8 16.3 4.2 3.5 23.5 23.5 2.4 2.1

Cipla Buy 380 477 30,531 9,274 10,796 23.1 23.1 21.0 23.8 18.1 16.0 2.9 2.5 17.2 16.8 3.0 2.5Dr Reddy's Buy 2,100 2,535 35,682 13,377 15,350 20.4 20.1 112.3 126.8 18.7 16.6 4.0 3.3 23.5 21.8 2.8 2.4

Dishman Pharma Buy 57 168 458 1,394 1,534 22.5 22.4 15.0 16.8 3.8 3.4 0.4 0.4 11.0 11.2 1.0 0.8

GSK Pharma* Neutral 2,386 - 20,211 2,854 3,145 28.6 28.6 76.6 83.3 31.2 28.6 9.3 8.5 31.1 31.0 6.2 5.6

Indoco Remedies Buy 64 78 591 760 922 15.3 15.3 6.1 7.8 10.5 8.2 1.3 1.1 12.9 14.7 1.0 0.8

Ipca labs Neutral 639 - 8,061 3,243 3,826 20.5 21.5 36.0 44.4 17.8 14.4 4.1 3.3 26.0 25.4 2.6 2.2

Lupin Accumulate 776 877 34,752 11,641 13,933 21.3 21.3 34.8 41.8 22.3 18.6 5.2 4.1 26.2 24.8 3.0 2.5

Ranbaxy* Neutral 325 - 13,736 11,400 12,060 10.5 12.5 17.5 22.5 18.6 14.4 3.0 2.6 17.0 19.1 1.2 1.0

Sun Pharma Neutral 949 - 98,084 13,509 15,846 41.0 41.0 33.0 39.8 28.8 23.8 5.8 4.8 22.0 22.0 6.7 5.5

Power

GIPCL Accumulate 68 78 1,035 1,444 1,482 33.4 33.0 13.7 14.8 5.0 4.6 0.6 0.5 12.3 12.0 0.8 0.5


Market Outlook

Stock Watch

June 26, 2013

7/28/2019 Market Outlook, 26-06-2013

12/14



Power

NTPC Buy 138 163 113,994 76,734 86,680 24.5 24.3 13.4 14.5 10.3 9.5 1.3 1.2 12.8 12.7 2.2 2.1

Real Estate

DLF Buy 167 236 29,633 8,293 9,622 36.5 36.1 5.7 6.7 29.2 24.7 1.0 1.0 3.7 4.1 5.7 4.7

MLIFE Buy 384 476 1,570 888 1,002 30.6 30.6 38.8 43.4 9.9 8.9 1.1 1.0 11.2 11.4 2.3 2.1

Telecom

Bharti Airtel Accumulate 295 328 118,083 86,592 95,860 31.4 31.8 10.9 14.5 27.1 20.3 2.1 1.9 7.7 9.3 2.0 1.7

Idea Cellular Neutral 143 - 47,375 25,122 27,663 27.0 27.2 4.0 4.8 36.0 30.0 3.0 2.7 8.3 9.1 2.3 2.0Rcom Neutral 117 - 24,232 22,801 24,628 31.0 31.3 3.6 5.3 33.0 22.3 0.7 0.7 2.2 3.1 2.6 2.3

Others

Abbott India* Buy 1,432 1,659 3,042 1,863 2,081 11.8 12.4 71.2 83.0 20.1 17.3 4.0 3.4 21.6 21.5 1.4 1.1

Bajaj Electricals Buy 174 237 1,740 3,885 4,472 5.4 7.2 11.0 19.7 15.9 8.8 2.2 1.8 13.5 20.3 0.5 0.4

Cera Sanitaryware Accumulate 492 562 623 630 795 14.4 13.6 42.8 51.1 11.5 9.6 2.7 2.2 26.6 25.2 1.0 0.8

Cravatex Buy 310 459 80 248 284 6.5 7.3 27.2 38.2 11.4 8.1 1.8 1.5 15.7 18.5 0.5 0.4

Finolex Cables Buy 48 68 728 2,563 2,899 9.8 9.8 10.1 11.3 4.7 4.2 0.7 0.6 14.3 13.8 0.2 0.2

Force Motors Buy 270 437 352 2,304 2,649 3.1 3.6 28.0 43.7 9.7 6.2 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Buy 297 345 685 1,458 1,542 8.3 9.0 32.3 37.0 9.2 8.0 1.7 1.4 19.5 19.3 0.3 0.2

Hitachi Buy 124 177 336 1,053 1,169 6.3 7.1 13.8 17.7 9.0 7.0 1.3 1.1 15.0 16.7 0.4 0.3

Honeywell Automation* Neutral 2,364 - 2,090 1,842 2,131 7.7 7.8 112.4 132.4 21.0 17.9 2.6 2.3 13.3 13.8 1.0 0.9

IFB Agro Buy 141 198 127 495 651 12.7 12.9 29.3 39.5 4.8 3.6 0.7 0.6 15.4 17.6 0.4 0.3

ITD Cementation Buy 154 234 177 1,430 1,573 11.1 11.0 19.1 26.9 8.1 5.7 0.4 0.4 4.9 6.3 0.5 0.5

Jyothy Laboratories Accumulate 184 199 3,059 1,220 1,476 13.3 13.6 5.5 9.0 33.4 20.4 3.8 3.4 12.1 17.7 2.8 2.2

MRF Accumulate 12,657 14,416 5,368 11,799 12,587 14.1 13.5 1,792.4 1,802.0 7.1 7.0 1.5 1.2 23.5 19.2 0.5 0.5

Page Industries Accumulate 4,030 4,611 4,496 1,057 1,282 19.4 19.6 124.8 153.7 32.3 26.2 16.0 11.8 56.3 51.8 4.3 3.6Relaxo Footwears Neutral 762 - 915 1,146 1,333 10.9 11.4 45.9 60.9 16.6 12.5 3.5 2.8 23.0 24.6 1.0 0.8

Siyaram Silk Mills Buy 229 343 215 1,158 1,322 11.9 11.9 72.9 85.7 3.1 2.7 0.6 0.5 19.9 19.6 0.4 0.4

Styrolution ABS India* Buy 391 617 688 1,068 1,223 9.6 9.6 38.1 44.1 10.3 8.9 1.4 1.2 14.5 14.7 0.6 0.5

TAJ GVK Buy 60 108 376 300 319 35.8 36.2 7.9 9.1 7.6 6.6 1.0 0.9 13.9 14.4 1.6 1.3

Tata Sponge Iron Buy 283 371 436 814 849 17.0 17.6 64.6 69.2 4.4 4.1 0.6 0.5 14.5 13.8 0.1 -

TTK Healthcare Buy 506 686 393 435 516 6.2 7.1 24.3 33.3 20.9 15.2 3.4 2.9 17.6 20.8 0.8 0.6

Tree House Buy 245 297 881 153 194 53.0 52.8 12.4 15.6 19.8 15.7 2.3 2.1 11.8 13.1 5.9 4.5

TVS Srichakra Buy 175 252 134 1,591 1,739 6.1 6.6 24.5 41.9 7.2 4.2 0.8 0.7 10.9 17.2 0.3 0.3

United Spirits Neutral 2,294 - 33,337 12,294 14,162 12.0 12.0 42.1 67.7 54.5 33.9 3.8 3.5 9.1 10.7 3.1 2.6


Market Outlook

Stock Watch

June 26, 2013

7/28/2019 Market Outlook, 26-06-2013

13/14



Others

Vesuvius India* Buy 360 439 731 600 638 20.1 19.4 35.7 36.6 10.1 9.9 1.8 1.6 19.4 17.1 1.0 0.9

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on June 25, 2013


Market Outlook

Stock Watch

June 26, 2013

7/28/2019 Market Outlook, 26-06-2013

14/14


Market Outlook, 26-06-2013

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Transcript of Market Outlook, 26-06-2013