Market & Movers RKG Q2FY12

8/3/2019 Market & Movers RKG Q2FY12

1/14

Market & MoversInstitutional flows & allocations

R K Global Shares & Securities Ltd

Aditya Vikram Jha

[email protected]

14th November, 2011


2/14

FIIs cautiously invested with trembling global market conditions.

The magnitude of FIIs flows in equities during the past two sequential quarters has been the lowest since Q4FY09 due to globalconcerns witnessed in debt trapped Euro-zone and the US. FIIs have shift their preference from high risk equity markets to low riskdebt market during the period. FIIs net flows in Indian markets declined 89% Q-o-Q to `884.7cr during Q2FY12 as compared to

`7803.4crs in Q1FY12 on account of outflows of`2962crs from equity markets in Q2FY12 as compared to inflow of`5172crs duringQ1FY12. However, its focus in debt market continued this quarter with net inflow of`3846.5crs in Q2FY12, up 46% Q-o-Q. During

Q2FY12, FIIs shown interest in sectors like Auto, Utilities and BFSI where they increased their stake to 7.3%, 10.5% & 21.9%respectively during Q2FY12 from 3.9%, 9.3% and 21.2% respectively during Q1FY12 in BSE100 companies. However, change in FIIsweight in BSE100 was also attributed to the composition change of the index and free-float adjustments done by the FIIs.

Domestic Institutional Investors hold broader market this quarter

DIIs, on the other hand, has invested `3435cr and `9829cr in Q1FY12 and Q2FY12 respectively. However, DII invested `13265crs in

Apr- Sep FY12 compared to a outflow of`19983crs same period last year from the market, with major redemption took place inQ2FY11. DIIs holding in BSE100 stocks has increased by 412bps in Q2FY12 to 10.1% as compared to 9.7% in Q1FY12. In BSE100stocks, DII favored Utilities, Auto and Industrials stocks where their holding increased from 5.1%, 5.3% and 0.9% in Q1FY12 to10.8%, 6.4% and 1.1% in Q2FY12 respectively. While, they reduced their holdings in Infra, Telecom, Cement, and Pharma stocksduring the same period. Among the DIIs, Insurance companies increased their holding in Auto and Utilities stocks, while reducedholding in Infra, FMCG, Pharma, and Energy stocks during the same period.

Fund raising stemmed as fragile global macroeconomics impacted investor sentiments

Weakening global economy has impacted investors sentiment and thus big ticket IPO/FPO like ONGC, IOC & SAIL etc has beendelayed multiple times. Fund raising activities has slowed down significantly during Jan11-Sept11 as only 41 companies raised fundsamounting to `1.3trillion through IPOs as compared to `40trillion raised by 64 companies during the same period last year. Fundraised through QIP route has also reduced to 8 issuance amounting to `4308crs during Jan-Sep 2011, compared to 33 issuanceamounting to `28339crs during the same period last year.

Current situation, a key highlight

During Oct11, FIIs net inflow stood `3078.8cr (US$ 634.3mn) of which `1677.4crs (US$ 346.5mn) in equity market and `1401.4crs(US$287.8mn) in debt market. On the other hand, DIIs were the net seller of `2295.3cr during Oct11. While, Benchmark

index, Sensex improved 7.6% M-o-M in Oct11.

Flow Analysis- Q2FY12


3/14

FII focus shifts towards debt, Sensex falls

FII pumped funds in equities during Q2-Q3FY11 taking indexfrom 17700 level at the end ofJun10 to 20500 level in Dec10.However, following the European debt crisis and fear of global

slowdown, FII activity reversed dragging the index to a low of16450 in Sep11.

FIIs cumulative net flows in equity market has worseamounting to a outflow of`2961.8cr in Q2FY12 as comparedto a net inflow of `5171.1cr in Q1FY12. While, in debtmarket, FII net inflows increased to `3846.5crs in Q2FY12 a

increase of 46% Q-o-Q, while major chunk in debt market can

be seen in Q4FY11 with net inflows of 11400crs.

FIIs Flows vs Sensex

15000

16000

17000

18000

19000

20000

21000

22000

-4500

-2500

-500

1500

3500

5500

7500

9500

Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11

`Crore

FII (LHS) SENSEX (RHS)

Source: SEBI, BSE, Ace Equity, R K Global Research

Daily flow of FII vs Sensex

-15000

-10000

-5000

0

5000

10000

15000

20000

25000

30000

35000

Jan

Mar

May

Jul

Sep

Nov

Jan

Mar

May

Jul

Sep

Nov

Jan

Mar

May

Jul

Sep

2009 2010 2011

`

Crore

M-o-M Investment flow of FIIs

Equity Debt

-1500

-1000

-500

0

500

1000

1500

2000

-3200

6800

16800

26800

36800

46800

56800

2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 Q1FY12 Q2FY12

bps

`Crore

FII Inflows (LHS) Sensex Return (RHS)

Source: SEBI, BSE, ACE EQUITY, RK GLOBAL RESEARCH

Sensex return with FII flow


4/14

BSE100 Shareholding Pattern

FIIholding increased100bps in BSE 100 stocksin Q2FY12

FII holding in BSE100 stocks has increased to 13.2% in Q2FY12as compared to 12.8% in Q1FY12. While major churning on Q-o-Q basis was witnessed in Public holding which stood at 13.6% inQ2FY12 as compared to 11.6% in Q1FY12, while Indianpromoters (17.1%), Insurance companies (5.4%) and ADR/GDRs(2.3%)has witnessed rise in their holding in BSE100 stocks.

FII performance mixed in value terms, but dismal in per unit

terms relative to BSE100

FIIs holdings market value in BSE100 stocks has declined by7.6% Q-o-Q in Q2FY12 as compared to 11.9% Q-o-Q decline inmarket cap of BSE100 during the same period. Out of the sixquarters we have analyzed, FIIs have outperformed the BSE100index in two instances (Q3FY11, Q2FY11) while underperformedin the rest. On per unit value terms, FIIs have not fared well ascompared to BSE100 index as they have underperformed theindex five outof six instanceswe have analyzed.

Share Holding Pattern in BSE100

Quarterly FII market value in BSE 100 stocks vis--vis BSE 100 index

QuartersIndex Market Cap( ` billions)

FIIQ-o-Q

VarBSE 100

Q-o-QVar

FIIQ-o-Q

VarBSE 100

Q-o-QVar

Q2FY12 337.6 -14.7% 8613.2 -12.1% 6907.6 -7.6% 42191.0 -11.9%Q1FY12 395.7 -3.2% 9803.8 -2.8% 7475.5 -2.7% 47888.7 -2.6%Q4FY11 408.8 -6.5% 10095.7 -5.4% 7689.2 -4.1% 49187.4 -4.2%

Q3FY11 437.3 -3.0% 10675.1 0.4% 8022.1 6.4% 51366.6 4.1%Q2FY11 450.8 8.8% 10627.3 12.5% 7539.1 35.5% 49369.5 13.7%Q1FY11 414.2 1.1% 9442.5 1.5% 5561.1 0.4% 43474.5 2.3%

Source: Ace Equity, BSE, R K Global Research

Computed by deriving market value of FII holding using quarter closing stock prices of BSE100

stocks, FII Index value is computed by dividing FII market value by total no. of shares held by FII in

BSE100stocks; Only 99 BSE100stocks are included in FII computation as Coal India wasnot listed & denotes FIIs market value increase & decrease relative to BSE100

29.4%

19.1%6.9%

3.1%2.0%

5.4%

13.0%

15.0%

2.2%

Q2FY11

33.8%

17.5%5.9%

3.0%1.8%

4.9%

12.8%

11.6%2.0%

Q1FY12

32.1%

17.1%5.2%3.1%

1.7%

5.4%

13.2%

13.6%

2.3%

Q2FY12


5/14

FIIs weight in BSE100

Q-o-Q changes in wt. of FII in BSE 100 Scripts - FII's maintain OW in Auto, Utilities and BFSI, while UW in Industrial, Mining and IT/ITES

Company Q2FY12 Q1FY12 Q4FY11 Var Company Q2FY12 Q1FY12 Q4FY11 Var Company Q2FY12 Q1FY12 Q4FY11 Var

BFSI 21.97% 21.24% 21.62% 3.45% CEMENT 2.25% 2.39% 2.66% -5.71% FMCG 10.61% 11.16% 10.13% -4.93%

Axis Bank 0.70% 0.77% 0.82% -9.87% ACC 0.16% 0.15% 0.15% 6.27% Asian Paints 0.09% 0.09% 0.07% 1.81%

Bank Of Baroda 0.30% 0.33% 0.34% -10.84% Ambuja 1.94% 1.93% 2.21% 1.01% Dabur 1.76% 1.73% 1.59% 1.74%

Bank Of India 0.43% 0.44% 0.41% -1.62% Grasim 0.11% 0.11% 0.11% -1.02% HUL 2.02% 2.10% 1.98% -3.68%Canara Bank 0.34% 0.36% 0.35% -6.17% Ultratech 0.22% 0.19% 0.19% 11.87% ITC 6.28% 5.96% 5.78% 5.24%

Federal Bank 0.37% 0.36% 0.33% 2.47% OTHERS 3.53% 3 .83% 3 .85% -7.94% Nestl e 0.06% 0.05% 0.05% 2.13%

HDFC Bank 3.63% 0.72% 0.71% 402.06% Adani Ent 0.94% 0.93% 0.92% 1.32% Tata Global 0.30% 0.29% 0.27% 4.53%

HDFC 4.54% 4.52% 4.57% 0.33% Tata Chem 0.18% 0.19% 0.19% -6.80% Titan 0.63% 0.59% 0.02% 6.88%

ICICI Bank 2.33% 2.35% 2.37% -1.12% United Phos 0.91% 0.89% 0.87% 2.21% United Spirits 0.37% 0.36% 0.35% 2.92%

IDBI Bank 0.16% 0.17% 0.20% -9.30% Zee Enterprise 1. 79% 1. 82% 1. 86% -1. 63% INFRA 12.18% 13.16% 13.47% -7.50%

Indiabulls 0.51% 0.51% 0.54% 0.48% ENERGY 6.97% 7.47% 7.74% -6.69% DLF 1.40% 1.34% 1.42% 4.11%

IndusInd Bank 0.87% 0.86% 0.86% 1.56% BPCL 0.14% 0.13% 0.13% 10.87% GMR Infra 2.51% 2.55% 2.60% -1.61%

IDFC 3.66% 3.62% 3.97% 0.99% Cairn India 0.67% 0.75% 1.18% -10.89% HDIL 0.89% 0.92% 0.87% -3.70%

Kotak MahBank 1.04% 1.02% 1.00% 2.47% Essar Oil 0.22% 0.24% 0.22% -7.38% JP Associates 2.09% 2.17% 2.35% -3.77%

LIC Housfin 0.95% 1.00% 1.04% -5.17% GAIL 0.90% 0.87% 0.84% 4.04% L&T 0.52% 0.53% 0.49% -2.86%

PFC 0.45% 0.42% 0.22% 7.07% HPCL 0.17% 0.17% 0.15% -0.94% Mundra Port 1.12% 1.19% 1.10% -5.81%

PNB 0.31% 0.32% 0.33% -2.71% IOC 0.10% 0.11% 0.11% -7.65% R Infra 0.21% 0.22% 0.22% -6.63%

R Capital 0.26% 0.29% 0.28% -9.72% OVGC 2.34% 2.19% 2.02% 6.76% Unitech 4.46% 4.23% 4.41% 5.37%

REC 0.97% 0.99% 1.09% -2.52% RIL 3.00% 3.01% 3.08% -0.28% PHARMA 3.03% 3.22% 3.21% -5.62%

Shriram T ranfin 0.52% 0.51% 0.49% 1.76% Auto 7.32% 3.98% 3.93% 83.74% Cipla 0.58% 0.63% 0.65% -7.84%

SBI 0.29% 0.37% 0.43% -20.48% Ashok Leylnd 2.28% 0.95% 0.93% 139.17% Divi's Lab 0.08% 0.08% 0.11% -6.21%

UBI 0.33% 0.40% 0.42% -16.66% Bajaj Auto 0.24% 0.24% 0.25% 0.77% Dr Reddy's 0.24% 0.22% 0.23% 6.10%

Yes Bank 0.84% 0.89% 0.84% -5.16% Exide Indust 0.77% 0.72% 0.68% 5.91% Glaxosmithline 0.08% 0.08% 0.08% 1.85%

Metal/Mining 9 .10% 10.56% 10.65% -13.85% Hero Moto 0.37% 0.36% 0.35% 3.38% Glenmark 0.47% 0.45% 0.44% 4.49%

Coal India 2.11% 2.13% 2.05% -0.74% M&M 0.86% 0.77% 0.75% 11.88% Lupin 0.62% 0.56% 0.52% 10.96%

Hindalco 2.86% 3.12% 3.15% -8.39% Maruti Suzuki 0.29% 0.29% 0.30% 2.80% Ranbaxy 0.20% 0.20% 0.17% 0.80%

Jindal Steel 1.08% 1.14% 1.16% -5.01% Tata Motors 3.12% 0.66% 0.68% 375.95% Sun Pharma 1.04% 1.01% 1.01% 2.78%

JSW Steel 0.25% 0.29% 0.29% -10.91% INDUSTRIAL 1.17% 1.43% 1.50% - 18.45% ULITILIES 10.47% 9.27% 9.16% 12.97%

NALCO 0.58% 0.61% 0.61% -4.34% ABB 0.04% 0.04% 0.04% -3.21% Adani Power 1.19% 1.11% 1.14% 6.67%

NMDC 0.16% 0.15% 0.14% 0.59% Bharat Forge 0.14% 0.15% 0.15% -9.32% NHPC 1.08% 1.12% 1.14% -3.62%

Sesa Goa 1.10% 1.12% 1.11% -2.50% BHEL 0.33% 0.34% 0.34% -1.54% NTPC 1.53% 1.55% 1.55% -1.08%

SAIL 0.88% 0.89% 0.93% -1.39% Crompton 0.53% 0.73% 0.74% -26.42% Power Grid 3.23% 3.30% 3.21% -2.08%

Sterlite 2.20% 2.37% 2.36% -6.96% Cummins 0.16% 0.12% 0.12% 31.95% R Power 0.65% 0.72% 0.69% -9.27%

Tata Steel 0.74% 0.87% 0.89% -14.37% Siemens 0.06% 0.05% 0.11% 10.31% Suzlon 1.15% 1.22% 1.17% -5.83%

TELECOM 5.91% 6 .25% 6 .13% -5.42% IT/ITES 3.56% 3 .92% 3 .90% -9.39% Tata Power 2.51% 0.25% 0.25% 893.82%

Bharti Airtel 3.45% 3.54% 3.48% -2.54% HCL 0.75% 0.78% 0.78% -3.79%

Idea Cellular 2.07% 1.77% 1.74% 16.73% Infosys 1.11% 1.12% 1.10% -0.61%

R Com 0.86% 0.92% 0.89% -5.86% TCS 1.33% 1.33% 1.32% 0.05%

Tata Comm 0.02% 0 .02% 0 .02% -1.17% Wipro 0.66% 0 .70% 0 .70% -5.34%


6/14

FIIs were OW on BFSI and UW on Utilities, Metals and Energy

relative to BSE100

During Q2FY12, FIIs weight-age in BSE100 stocks has declined Q-o-Qbasis in almost every sector barring FMCG and Cement, but theycontinue to hold more of BFSI (22% wt), Infra (12.2% wt.) and Auto(7.3% wt.) stocks. However, FIIs remained OW as compared toBSE100 weight in BFSI by 11.7% while they were UW on sectors like

Utilities, Metal and Energy during Q2FY12. Though, change in FIIsweight in BSE100 was also attributed to the composition change ofthe index and free-float adjustments done by the FIIs.

FIIs witnessed value appreciation in Auto, Cement and Utilities

while value declined in Metal/Mining, Industrial and Infra inQ2FY12as compared to Q1FY12

FIIs market value has appreciated in sectors like Auto(27.6%), cement (19.2%) and Utilities (7.2%) on Q-o-Q basis, while

their value declined in Metal/Mining (-29.4%), Industrial (-28.1%)andInfra (-19.6%).

FIIs sector-wise movements

Q-o-Q Sector-wise changes in wt. of BSE100 and FIIs Holding in BSE100 stocks

SectorsQ2FY12 Q1FY12 Q4FY11

BSE 100 wt FII wt OW/UW BSE 100 wt FII wt OW/UW BSE 100 wt FII wt OW/UW

Automobile 4.9% 7.3% 2.4% 2.8% 4.0% 1.2% 2.8% 3.9% 1.1%

BFSI 10.3% 22.0% 11.7% 9.5% 21.2% 11.7% 9.5% 21.6% 12.1%

Energy 12.6% 7.0% - 5.6% 13.2% 7.5% - 5.7% 13.3% 7.7% - 5.5%

Cement 1.3% 2.2% 0.9% 1.4% 2.4% 1.0% 1.4% 2.7% 1.2%

Others 1.8% 3.5% 1.7% 1.9% 3.8% 1.9% 1.9% 3.9% 1.9%

Matal/Mining 16.3% 9.1% -7.2% 17.1% 10.6% -6.5% 17.2% 10.6% -6.6%

IT/ITES 3.7% 3.6% -0.1% 3.8% 3.9% 0.1% 3.9% 3.9% 0.0%

INFRA 8.8% 12.2% 3.4% 9.2% 13.2% 3.9% 8.8% 13.5% 4.7%

Inldustrials 1.4% 1.2% - 0.2% 1.4% 1.4% 0.0% 1.4% 1.5% 0.1%

FMCG 8.7% 10.6% 1.9% 9.1% 11.2% 2.0% 8.6% 10.1% 1.5%

Telecom 6.1% 5.9% -0.2% 6.4% 6.2% -0.1% 6.4% 6.1% -0.3%

Pharma 2.2% 3.0% 0.9% 2.3% 3.2% 0.9% 2.3% 3.2% 0.9%

Utilities 22.1% 10.5% -11.6% 21.8% 9.3% -12.5% 21.9% 9.2% -12.8%

Major movement of FIIs Holding during FY10-FY11 in BSE 100 scripts

Company Q2FY12 Q1FY12 Q4FY11 Q3FY11 Q2FY11

Tata Power 2.5% 0.3% 0.3% 0.3% 0.3%HDFC Bank 3.6% 0.7% 0.7% 0.7% 0.8%Tata Motors 3.1% 0.7% 0.7% 0.7% 0.7%Ashok Leylnd 2.3% 1.0% 0.9% 1.1% 1.2%Idea Cellular 2.1% 1.8% 1.7% 1.7% 1.5%Cummins 0.2% 0.1% 0.1% 0.1% 0.1%Cairn India 0.7% 0.7% 1.2% 1.1% 1.2%Tata Steel 0.7% 0.9% 0.9% 0.8% 0.9%Crompton 0.5% 0.7% 0.7% 0.8% 0.8%SBI 0.3% 0.4% 0.4% 0.5% 0.5%UBI 0.3% 0.4% 0.4% 0.5% 0.6%JSW Steel 0.3% 0.3% 0.3% 0.3% 0.3% & denotes Q-o-Q increase/decrease in FIIs holding in BSE100

Sector-wise Q-o-Q growth in value of FII holding in BSE100*

Sectors Q2FY12 Q1FY12 Q4FY11 Q3FY11

Auto 27.6% 2.7% 82.7% 11.8%

BFSI -5.6% -6.5% -65.1% -4.4%

Energy -8.0% -13.8% 8.2% 8.7%

Cement 19.2% -16.0% 3.0% 11.8%

Others -20.5% 8.1% -2.1% 21.5%

Matal/Mining -29.4% -3.0% -2.6% 23.8%

IT/ITES -14.0% -5.3% -4.4% 18.7%

INFRA -19.6% -1.7% -20.4% -13.8%

Inldustrials -28.1% -11.3% -8.9% 1.0%

FMCG -1.7% 23.3% -6.9% -0.1%

Telecom -3.5% 12.1% -3.1% -3.2%

Pharma -2.1% 6.7% -13.0% 50.5%

Utilities 7.2% 1.9% -0.4% 51.9%


7/14

DIIs hold the broader market to sustain above 15000 level

DII pumped funds of `9829.5crs during Q2FY12 as compared to `3435.3crs during the same period last year. However, DIIwithdrawn cumulatively `17268crs during FY11 as against net buying of `24280crs during FY10. Thus, DII were the most

beneficiated among the investors by entering when markets are at their lows and exiting when they are attaining their previoushigh. On M-o-M basis DII withdraw`2295.3crs in Oct 2011 compared to a net inflow of 1747crs during Sep2011.

DIIs flows vs Sensex

15000

16000

17000

18000

19000

20000

21000

22000

-1900

-1400

-900

-400

100

600

1100

1600

2100

Sep-0 9 Dec- 09 Mar-1 0 Jun- 10 Sep- 10 Dec-1 0 Mar- 11 Jun-1 1 Sep-1 1

`Crore

DII (LHS) SENSEX (RHS)


Daily flow of DII vs Sensex

-1500.0

-1000.0

-500.0

0.0

500.0

1000.0

1500.0

2000.0

-25000.0

-20000.0

-15000.0

-10000.0

-5000.0

0.0

5000.0

10000.0

2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 Q1FY12 Q2FY12

bps

`

Crore

DII Inf lows (LHS) Sensex Return (RHS)

Source: SEBI, BSE, ACE EQUITY, RK GLOBAL RESEARCH

Sensex return with DII flow


8/14

DIIs weight in BSE100

Q-o-Q changes in wt. of DII in BSE 100 Scripts - DII's maintain OW in Auto and Utilities, while UW in Infra and Pharma

Company Q2FY12 Q1FY12 Q4FY11 Var C ompany Q2FY12 Q1FY12 Q4FY11 Var Company Q2FY12 Q1FY12 Q4FY11 Var

BFSI 12.81% 12.43% 10.20% 3.10% CEMENT 1.80% 2.02% 2.04% -10.92% FMCG 21.18% 23.62% 23.74% -10.34%

Axis Bank 0.18% 0.16% 0.15% 11.41% ACC 0.17% 0.20% 0.20% -13.26% Asian Paints 0.05% 0.06% 0.08% -11.72%

Bank Of Baroda 0.41% 0.44% 0.44% -6.66% Ambuja 1.40% 1.56% 1.57% -10.19% Dabur 0.61% 0.71% 0.86% -14.30%

Bank Of India 0.43% 0.47% 0.48% -8.56% Grasim 0.10% 0.11% 0.12% -9.22% HUL 1.65% 1.77% 1.87% -6.68%

Canara Bank 0.31% 0.32% 0.36% -3.51% Ultratech 0.12% 0.15% 0.15% -16.79% ITC 17.29% 19.30% 19.45% -10.42%

Federal Bank 0. 00% 0. 25% 0. 29% -100. 00% OTHERS 1.81% 1.90% 1.85% -5.17% Nestle 0.05% 0.05% 0.06% -11.55%

HDFC Bank 1.62% 0.36% 0.38% 348.53% Adani Ent 0.05% 0.07% 0.08% -31.79% Tata Global 1.22% 1.35% 1.41% -9.01%

HDFC 1.31% 1.46% 1.41% -10.12% Tata Chem 0.50% 0.52% 0.52% -4.85% Titan 0.31% 0.38% 0.03% -20.38%

ICICI Bank 1.83% 2.00% 1.94% -8.43% United Phos 0.45% 0.34% 0.37% 33.31% United Spirits 0.02% 0.03% 0.03% -19.17%

IDBI Bank 0. 98% 1. 07% 1. 04% -8. 05% Zee Enterprise 0.81% 0.97% 0.89% -16. 90% INFRA 6.17% 6.99% 7.06% -11.81%

Indiabulls 0.07% 0.08% 0.07% -8.06% ENERGY 10.38% 11.60% 11.86% -10.58% DLF 0.05% 0.05% 0.05% -9.68%

IndusInd Bank 0.21% 0.26% 0.27% -19.29% BPCL 0.44% 0.51% 0.51% -12.63% GMR Infra 2.00% 2.19% 2.23% -8.62%

IDFC 1.79% 1.93% 1.83% -7.22% Cairn India 0.92% 0.97% 0.96% -4.99% HDIL 0.01% 0.01% 0.02% -35.53%

Kotak MahBank 0.24% 0.28% 0.28% -13.15% Essar Oil 0.13% 0.15% 0.15% -9.11% JP Associates 1.73% 1.71% 1.60% 1.04%

LIC Housfin 0.26% 0.25% 0.19% 4.75% GAIL 1.44% 1.63% 1.67% -11.92% L&T 1.40% 1.55% 1.60% -9.89%PFC 0.84% 0.84% 0.24% 0.46% HPCL 0.61% 0.68% 0.69% -10.45% Mundra Port 0.64% 0.57% 0.61% 11.61%

PNB 0.36% 0.38% 0.39% -7.12% IOC 0.78% 0.85% 0.86% -7.85% R Infra 0.35% 0.39% 0.41% -9.47%

R Capital 0.08% 0.08% 0.08% -8.77% OVGC 3.77% 4.38% 4.57% -13.85% Unitech 0.00% 0.52% 0.54% -100.00%

REC 0.41% 0.36% 0.31% 15.86% RIL 2.27% 2.43% 2.45% -6.65% PHARMA 2.72% 3 .06% 3 .05% -11.33%

Shriram Tranfin 0.03% 0.03% 0.05% - 14.92% Auto 7.25% 4.00% 4.13% 81.32% Cipla 1.01% 1.06% 1.05% -5.40%

SBI 0.74% 0.77% 0.74% -3.44% Ashok Leylnd 2.57% 1.52% 1.57% 68.76% Divi's Lab 0.14% 0.15% 0.13% -4.06%

UBI 0.49% 0.47% 0.45% 4.52% Bajaj Auto 0.15% 0.16% 0.16% -6.55% Dr Reddy's 0.15% 0.17% 0.17% -10.79%

Yes Bank 0.22% 0.17% 0.24% 27.68% Exide Indust 0.80% 0.92% 0.95% -13.13% Glaxosmithline 0.08% 0.09% 0.09% -11.30%

Metal/Mining 10.95% 11.57% 11.75% -5.36% Hero Moto 0.05% 0.06% 0.07% -15.85% Glenmark 0.11% 0.13% 0.13% -15.24%

Coal India 0.63% 0.68% 0.75% -7.50% M&M 0.80% 0.96% 1.01% -17.13% Lupin 0.48% 0.59% 0.62% -18.29%

Hindalco 1.70% 1.70% 1.74% -0.18% Maruti Suzuki 0.32% 0.36% 0.36% -10.61% Ranbaxy 0.31% 0.35% 0.35% -11.15%Jindal Steel 0.44% 0.42% 0.40% 3.75% Tata Motors 2.55% 0.51% 0.48% 397.98% Sun Pharma 0.43% 0.51% 0.51% -17.00%

JSW Steel 0.06% 0.07% 0.08% -13.96% INDUSTRIAL 2.16% 2.04% 2.08% 5.98% ULITILIES 14.35% 11.35% 10.96% 2 6.41%

NALCO 0.84% 0.91% 0.93% -8.23% ABB 0.17% 0.18% 0.18% -6.20% Adani Power 0.13% 0.21% 0.19% -41.24%

NMDC 2.11% 2.32% 2.35% -9.08% Bharat Forge 0.29% 0.32% 0.32% -8.92% NHPC 2.47% 2.45% 2.27% 0.56%

Sesa Goa 0.28% 0.28% 0.29% 0.36% BHEL 0.41% 0.43% 0.44% -4.71% NTPC 4.25% 4.75% 4.80% -10.68%

SAIL 1.96% 2.16% 2.18% -9.26% Crompton 0.90% 0.82% 0.85% 10.87% Power Grid 2.41% 2.46% 2.47% -2.09%


Tata Steel 1.68% 1.75% 1.75% -4.23% Siemens 0.18% 0.20% 0.50% -11.60% Suzlon 0.50% 0.65% 0.42% -23.75%

TELECOM 5.28% 5.57% 5.69% -5.16% IT/ITES 2.33% 2.42% 2.40% -3.99% Tata Power 4.28% 0.47% 0.48% 810.08%


Idea Cellular 1.82% 1.83% 1.83% -0.67% Infosys 0.39% 0.39% 0.36% -0.94%

R Com 1.17% 1.27% 1.30% -8.29% TCS 1.00% 1.10% 1.11% -8.98%

Tata Comm 0.21% 0.23% 0.24% -7.75% Wipro 0.64% 0.64% 0.64% 1.04%


9/14

Insurance companies weight in BSE100

Q-o-Q changes in wt. of DII in BSE 100 Scripts - DII's maintain OW in Utilities, Auto, and Industrials, while UW in Infra and Telecom

Company Q2FY12 Q1FY12 Q4FY11 Var Company Q2FY12 Q1FY12 Q4FY11 Var Company Q2FY12 Q1FY12 Q4FY11 Var

BFSI 11.99% 11.58% 10.88% 3.55% CEMENT 2.56% 3.04% 3.06% - 15.90% FMCG 23.05% 26.76% 27.10% -13.86%

Axis Bank 0.00% 0.00% 0.00% 0.00% ACC 0.00% 0.00% 0.00% 0.00% Asian Paints 0.08% 0.10% 0.11% -12.87%

Bank Of Baroda 0.36% 0.40% 0.38% -9.77% Ambuja 2.27% 2.69% 2.70% -15.89% Dabur 1.02% 1.20% 1.41% -14.94%

Bank Of India 0.75% 0.83% 0.78% -10.13% Grasim 0.11% 0.12% 0.12% -11.03% HUL 2.26% 2.58% 2.63% -12.62%Canara Bank 0.41% 0.47% 0.47% -14.19% Ultratech 0.19% 0.23% 0.23% -18.52% ITC 19.04% 22.17% 22.33% -14.11%

Federal Bank 0.00% 0.00% 0.00% 0.00% OTHERS 1.66% 1.92% 2.00% -13.61% Nestl e 0.06% 0.07% 0.07% - 16.51%

HDFC Bank 1.83% 0.43% 0.44% 322.07% Adani Ent 0.00% 0.00% 0.00% 0.00% Tata Global 0.49% 0.57% 0.55% -13.22%

HDFC 1.70% 1.91% 1.83% -11.37% Tata Chem 0.66% 0.72% 0.73% -8.55% Titan 0.10% 0.08% 0.01% 29.78%

ICICI Bank 2. 37% 2. 66% 2. 61% -11. 03% United Phos 0.32% 0. 37% 0. 34% -13. 90% United Spirits 0. 00% 0. 00% 0.00% -12. 94%

IDBI Bank 0. 98% 1. 05% 0.98% -6.85% Zee Ente rprise 0.68% 0. 83% 0. 93% -17. 87% INFRA 2.27% 3.24% 3.27% -30.09%

Indiabulls 0.00% 0.00% 0.00% 0.00% ENERGY 10.56% 12.14% 12.04% -13.00% DLF 0.02% 0.03% 0.03% -10.08%

IndusInd Bank 0.03% 0.03% 0.03% -2.80% BPCL 0.42% 0.51% 0.53% -18.59% GMR Infra 0.00% 0.00% 0.00% 0.00%

IDFC 2.01% 2.19% 2.07% -8.24% Cairn India 0.03% 0.03% 0.02% -13.38% HDIL 0.00% 0.00% 0.00% -13.38%

Kotak MahBank 0.00% 0.00% 0.00% 0.00% Essar Oil 0.00% 0.00% 0.00% 0.00% JP Associates 1.32% 1.52% 1.51% -13.38%

LIC Housfin 0.17% 0.21% 0.22% -17.47% GAIL 1.92% 2.25% 2.21% -14.75% L&T 0.37% 0.42% 0.42% -12.90%PFC 0.46% 0.49% 0.18% -6.19% HPCL 0.56% 0.70% 0.72% -19.90% Mundra Port 0.00% 0.00% 0.00% -13.38%

PNB 0.38% 0.41% 0.43% -8.09% IOC 0.91% 1.02% 1.02% - 11.40% R Infra 0.55% 0.64% 0.63% -13.30%

R Capital 0.13% 0.15% 0.15% -13.38% OVGC 3.64% 4.06% 4.03% -10.49% Unitech 0.00% 0.63% 0.68% - 100.00%

REC 0.43% 0.34% 0.32% 27.46% RIL 3.10% 3.56% 3.51% -13.05% PHARMA 2.28% 2.74% 2.79% -16.73%

Shriram Tranfin 0.00% 0.00% 0.00% 0.00% Auto 6.39% 5.27% 5.19% 21.15% Cipla 1.16% 1.34% 1.34% -13.36%

SBI 1.00% 1.12% 1.06% -11.27% Ashok Leylnd 3.87% 2.24% 2.14% 72.56% Divi's Lab 0.00% 0.00% 0.00% 0.00%

UBI 0.50% 0.29% 0.24% 74.09% Bajaj Auto 0.18% 0.21% 0.20% -13.25% Dr Reddy's 0.16% 0.18% 0.19% -14.43%

Yes Bank 0.24% 0.22% 0.23% 9.95% Exide Indust 1.03% 1.20% 1.21% -14.48% Glaxosmithline 0.00% 0.00% 0.00% 0.00%

Metal/Mining 14.18% 16.02% 15.89% -11.45% Hero Moto 0.07% 0.10% 0.11% -28.23% Glenmark 0.00% 0.00% 0.00% 0.00%

Coal India 0.00% 0.00% 0.00% 0.00% M&M 1.24% 1.52% 1.54% -18.40% Lupin 0.51% 0.66% 0.70% -22.46%

Hindalco 2.48% 2.67% 2.67% -7.24% Maruti Suzuki 0.00% 0.00% 0.00% 0.00% Ranbaxy 0.45% 0.56% 0.55% -18.81%Jindal Steel 0.49% 0.56% 0.52% -13.95% Tata Motors 4.10% 0.87% 0.81% 372.82% Sun Pharma 0.00% 0.00% 0.00% 0.00%

JSW Steel 0.00% 0.00% 0.00% 0.00% INDUSTRIAL 1.07% 0.96% 0.91% 10.81% ULITILIES 10.80% 5.13% 5.10% 110.56%

NALCO 1.30% 1.41% 1.43% -7.97% ABB 0.00% 0.00% 0.00% 0.00% Adani Power 0.00% 0.00% 0.00% 0.00%

NMDC 2.61% 3.00% 2.98% -13.01% Bharat Forge 0.10% 0.12% 0.12% -14.92% NHPC 1.30% 1.27% 1.26% 2.20%

Sesa Goa 0.23% 0.26% 0.25% -12.31% BHEL 0.38% 0.38% 0.36% -1.70% NTPC 0.00% 0.00% 0.00% 0.00%

SAIL 2.41% 2.88% 2.88% -16.31% Crompton 0.59% 0.46% 0.44% 27.68% Power Grid 2.30% 2.55% 2.54% -10.02%


Tata Steel 2.68% 2.97% 2.89% -9.63% Siemens 0.21% 0.26% 0.77% -17.87% Suzlon 0.17% 0.15% 0.15% 10.71%

TELECOM 4.73% 5.89% 6.18% -19.58% IT/ITES 2.41% 2.55% 2.48% -5.60% Tata Power 6.72% 0.78% 0.78% 757.11%


Idea Cellular 0.41% 0.77% 0.93% -46.49% Infosys 0.37% 0.38% 0.34% -2.77%R Com 1.94% 2.25% 2.24% -13.47% TCS 1.40% 1.53% 1.52% -8.58%

Tata Comm 0.35% 0.40% 0.40% -13.32% Wipro 0.37% 0.36% 0.35% 2.15%


10/14

DIIs bought growth, discounted threat

DIIs favored BFSI, Auto, Utilities and IT sectorswhere their holding has increased in Q2FY12as compared to Q1FY11. On individualstocks, DIIs has shown its faith in TataPower, Tata Motors, and HDFC Bank, wherethey increased there holding in Q2FY12 ascompared to Q1FY12 while they reduced theirholdings in Unitech, Federal Bank and Lupinduring the same period.

DII & Insurances movements

Insurance backed BFSI, sold Infra & Energy

Insurance companies are the majorconstituents of DII, with distinguish ininvestment style and holding pattern. While

this quarter has shown some similar patternbetween Insurance and DIIs activity, LikeDIIs, Insurance companies increased theirholding in Utilities, Auto and BFSI sectors. Onindividual stocks, DII increased their holdingsin Tata Power, Tata Motors, and HDFCBank, while reduced their holding in Unitechand Siemens in Q2FY12 as compared to

Q1FY11. & denotes Q-o-Q increase & decrease in holding

Major movement of DIIs Holding during FY10-FY11 in BSE 100 scripts


Tata Power 4.3% 0.5% 0.5% 0.5% 0.5%Ashok Leyland 2.6% 1.5% 1.6% 1.6% 1.7%Tata Motors 2.5% 0.5% 0.5% 0.5% 0.7%HDFC Bank 1.6% 0.4% 0.4% 0.4% 0.4%Unitech 0.0% 0.5% 0.5% 0.4% 0.5%Federal Bank 0.0% 0.3% 0.3% 0.3% 0.3%IndusInd Bank 0.2% 0.3% 0.3% 0.2% 0.3%Titan 0.3% 0.4% 0.0% 0.0% 0.0%Lupin 0.5% 0.6% 0.6% 0.6% 0.7%M&M 0.8% 1.0% 1.0% 1.1% 1.1%

Major movement of Insurance Holding during FY10-FY11 in BSE 100 scripts


Tata Power 6.7% 0.7% 0.7% 0.8% 0.8%Tata Motors 4.1% 0.9% 0.8% 0.9% 1.0%Ashok Leylnd 3.9% 2.2% 2.1% 2.4% 2.4%HDFC Bank 1.8% 0.4% 0.4% 0.5% 0.5%UBI 0.5% 0.3% 0.2% 0.3% 0.3%REC 0.4% 0.3% 0.3% 0.3% 0.3%Unitech 0.0% 0.6% 0.7% 0.7% 0.8%Siemens 0.2% 0.3% 0.8% 0.8% 0.8%Idea Cellular 0.4% 0.8% 0.9% 0.9% 1.0%HPCL 0.6% 0.7% 0.7% 0.8% 0.7%Bharti Airtel 2.0% 2.5% 2.6% 2.9% 2.8%


11/14

Fund raising stemmed as global conditions

impacted investor sentiments

During Q2FY12, 17 companies raised a total of~`1435cr compared to ~`7951cr from 23

companies same period last year, through IPOs.However, concerns of weakening global economyhas impacted investors sentiment and thus big

ticket IPO/FPO like ONGC, IOC & SAIL etc has beendelayed multiple times. IPO activity has sloweddown significantly during Apr-Sep11 as only 26companies participated with net fund of `8418crraised through IPOs compared to `15030cr during

the same period last year.

Initial Public Offer

IPO/FPO issued in Q2FY12

Company Issue Date Size `mn Issue Price`Bharatiya Global 11-Jul-2011 551.1 82

Inventure Growth & Secutities 20-Jul-2011 819 117L&T Finance Holding 27-Jul-2011 10972.8 52Tree House 10-Aug-2011 1138 135Brook Lab 16-Aug-2011 630 100

SRS Ltd 23-Aug-2011 2030 58TD Power 24-Aug-2011 2226.5 256PG Electroplate 07-Sep-2011 1206.4 210Prakash Constrowell 19-Sep-2011 636.9 138RDB Rasayans 21-Sep-2011 355.5 79SwajasAir Charters 26-Sep-2011 401.8 90Tijaria Polypipes 27-Sep-2011 600 60Onelife Capital Advisors 28-Sep-2011 368.5 110M AND B Switchgears 28-Sep-2011 930 186Taksheel Solutions 29-Sep-2011 825 150Flexituff I nternational 29-Sep-2011 1046.3 155

Indo Thai Securities 30-Sep-2011 296 74

0

2

4

6

8

10

12

14

16

18

20

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

NoofIssuance

Source : SEBI, BSE, R K Global Research

Month -wise No. of IPO Issuance

Range 2011 2010 3 yr Avg

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000


`

Crores

Source: SEBI, BSE, RK Global Research

Month-wise fund rose through IPO

Range 2011 2010 3 yr Avg


12/14

QIP issuance decline, raised 3344crs down ~80 % Y-o-Y

Fund-raising through QIPs had slowed down this year due tovolatile global market conditions. Most investors were tentative toparticipate in QIPs since the shares of many companies that weresold through QIP in the past were trading below the issue priceresulting a negative sentiment with no support from market, as thefirst nine months of this year have seen an 83% decline in raising of

such funds. Companies raised`

4368crs through 8 QIPs transactionsbetween Jan-Sep CY11, down from `19294crs garnered through 42such deals in the same period last year. During entireCY10, companies raised `28339crs through 53 QIPs. In CY11 tillSep, QIP was the most unflavored route for Indian companiescompared to other modes such as FPO, rights issues andpreferential route. Most of the funds raised so far this year appearto be through the preferential placement. The companies raised`27361crs through preferential allotments during the Jan-Jul CY11.

Qualified Institutional Placement

QIP issued in CY11 during Jan-Sep

Company Issue Date Price in ` Value `Cr

M & M Financial Services 22-Feb-11 701 4262

Canara Bank 15-Mar-11 609 19932

Shakti Pumps (India) 20-Apr-11 139 40

Sumeet I ndustries 28-Apr-11 39 553

ING VysyaBank 22-Jun-11 320 5131

Excel Infoways 06-Jul-11 25 257

FE India 08-Jul-11 69 84

Apollo Hospitals 20-Jul-11 494 3300

SKS Microfinance 27-July-11 - 900

Source: SEBI, BSE, R K Global Research

0

2

4

6

8

10

12

14

16

18


NoofIssuanc

e

Source : SEBI, BSE, R K Global Research

Month-wise no. of QIP issued

Range 2011 2010 4 Yrs Avg


0

20

40

60

80

100

120


`

Crores

Month-wise fund rose through QIPRange 2011 2010 4 Yrs Avg


13/14

Forthcoming IPOs

Company Issue Type Issue Size (` cr.) Open Date Close Date Offer PriceEmaar MGF Land Book Building 1600 ------ ------ 0

BPTP Book Building 1500 ------ ------ 0Avantha Power & Infrastructure Book Building 1250 ------ ------ 0

Skil Infrastructure Book Building 1125 ------ ------ 0

Kalpataru Book Building 1008 ------ ------ 0

Raheja Universal Book Building 864 ------ ------ 0

You Broad Band & Cable India Book Building 360 ------ ------ 0

Jain Infraprojects Book Building 300 ------ ------ 0

NKG Infrastructure Book Building 275 ------ ------ 0

TD Power Systems Book Building 250 ------ ------ 0

Tara Jewals Book Building 200 ------ ------ 0Source: SEBI, BSE,R K Global Research

Forthcoming Issuance & Outlook

Outlook

Current domestic & global macro economic condition has impacted fund flows which in turn has impacted theequities market world wide. During October11, FIIs net inflow stood `1677.4crs (US$ 346.51mn) in equity

market and invested`

1401.4cr (US$287.82mn) in debt market. On the other hand, DIIs were the net seller of`2295.3cr. While, Benchmark index, Sensex rose of 7.6% during the same period. The global condition is still

under pressure from both the heavyweight economies - the US and Euro Zone - which will deter the globalgrowth prospect. In these condition, raising funds through the equity market will be challenging for India Inc.Many companies, over the past few months, deferred their plans to raise funds through primary markets asinvestor sentiments remained bearish given the current global conditions. However, companies with soundfundamentals might fare better but they wont be able to get the high valuation which markets has given to thecompanies during pre-2008 period.


14/14

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Market & Movers RKG Q2FY12

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