Market Outlook 28-03-2014

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Market OutlookMarch 28, 2014

Dealers Diary The Indian Markets are expected to open flat to positive tracking marginally positive opening in most of the Asian markets.

US markets extended losses for the second day and finished lower Thursday, amid concerns that improving economic indicators might force the Fed to start raising rates sooner than anticipated. The Labor Department released a report showing that initial jobless claims unexpectedly fell to a nearly four-month low to 311,000 in the week ended March 22nd, from the previous week's revised figure of 321,000. Meanwhile, the National Association of Realtors released a report showing that its pending home sales index dropped by 0.8% to 93.9 in February after edging down by 0.2% to a downwardly revised 94.7 in January. The Commerce Department also released a report showing an upward revision to fourth quarter GDP growth.

Indian markets saw further upside to close at fresh record highs on the back of robust capital inflows from FIIs on expectations about the likely outcome of general elections. Data shows that FIIs purchased shares worth nearly `11,700cr thus far in 2014.

Markets Today The trend deciding level for the day is 22,205 / 6,638 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 22,317 22,419 / 6,677 6,713 levels. However, if NIFTY trades below 22,205 / 6,638 levels for the first half-an-hour of trade then it may correct 22,103 21,992 / 6,603 6,564 levels.

Indices S2 S1 PIVOT R1 R2

SENSEX 21,992 22,103 22,205 22,317 22,419

NIFTY 6,564 6,603 6,638 6,677 6,713

News Analysis RBI extends the transitional period for full implementation of Basel III norms to

March 31, 2019 Supreme Court proposes barring CSK from IPL Season 7 Lupin- Acquires a company in Mexico Pharmaceutical

Refer detailed news analysis on the following page

Net Inflows (March 26, 2014) ` cr Purch Sales Net MTD YTD

FII 3,959 2,930 1,029 17,212 21,048

MFs 700 831 (131) (3,601) (7,462)

FII Derivatives (March 27, 2014) ` cr Purch Sales Net Open Interest

Index Futures 6,967 6,227 740 11,483

Stock Futures 12,724 12,439 284 35,070

Gainers / Losers Gainer Loser

Company Price (`) chg (%) Company Price (`) chg (%)

HDIL 54 8.4 Divis Lab 1,340 (3.2)

JPINFRATEC 19 6.0 MRF 21,140 (3.2)

National Alum 39 5.3 Zee Entert 271 (3.0)

IDFC 121 5.3 JSW ENERGY 57 (2.6)

IOB 50 4.9 Ranbaxy Lab 347 (2.3)

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex 0.5 119 22,214

Nifty 0.6 40 6,642

MID CAP 0.6 42 6,910

SMALL CAP 1.0 68 6,917

BSE HC (0.8) (82) 9,989

BSE PSU 1.5 91 6,229

BANKEX 0.7 106 14,414

AUTO 0.5 68 13,111

METAL (0.0) (2) 9,539

OIL & GAS 1.3 118 9,389

BSE IT (0.1) (9) 8,714

Global Indices Chg (%) (Pts) (Close)

Dow Jones (0.0) (5) 16,264

NASDAQ (0.5) (22) 4,151

FTSE (0.3) (17) 6,588

Nikkei 1.0 146 14,623

Hang Sang (0.2) (53) 21,834

Straits Times 0.6 19 3,162

Shanghai Com (0.8) (17) 2,047

Indian ADR Chg (%) (Pts) (Close)

INFY 0.0 0.0 $53.6

WIT (1.0) (0.1) $12.9

IBN 0.6 0.3 $44.0

HDB 0.8 0.3 $40.4

Advances / Declines BSE NSE

Advances 1,669 891

Declines 1,137 590

Unchanged 155 92

Volumes (` cr)

BSE 2,586

NSE 20,420


Market Outlook March 28, 2014

RBI extends the transitional period for full implementation of Basel III norms to March 31, 2019

RBI has extended the transitional period for full implementation of Basel III norms upto March 31, 2019 instead of as on March 31, 2018. As a result the full implementation of Basel III in India is now closer to internationally agreed date of January 1, 2019. Also the capital conservation buffer (CCB) scheduled to be implemented from March 31, 2015 would now begin from March 31, 2016 and be fully implemented as on March 31, 2019.The Basel III compliant AT1 instruments issued before March 31, 2019 will now have two pre-specified triggers a lower trigger at CET1 of 5.5% before March 31, 2019, after which this trigger would be raised to CET1 of 6.125% of RWAs. On the distributable items front RBI has prescribed that the dividend on common shares and perpetual non-cumulative preference shares (PNCPS) to be paid out of the current years profit only. The move to extend Basel III implementation deadline is positive for Banks (especially PSU banks) as it provides a leeway for Banks already grappled with asset quality stress.

Revised transitional arrangements Minimum Capital Ratios ( as a % of RWA)

April 1, 2013

March 31,2014

March 31,2015

March 31,2016

March 31,2017

March 31,2018

March 31,2019

Minimum Common Equity Tier 1 (CET1) 4.5 5 5.5 5.5 5.5 5.5 5.5

Capital conservation buffer (CCB) - - - 0.625 1.25 1.875 2.5

Minimum CET1+ CCB 4.5 5 5.5 6.125 6.75 7.375 8

Minimum Tier 1 capital 6 6.5 7 7 7 7 7

Minimum Total Capital 9 9 9 9 9 9 9

Minimum Total Capital +CCB 9 9 9 9.625 10.25 10.875 11.5Phase-in of all deductions from CET 1 (in %) 20 40 60 80 100 100 100

Source: RBI

Supreme Court proposes barring CSK from IPL Season 7

Supreme Court (SC) has made a proposal to Board of Control of Cricket in India (BCCI) to bar India Cements IPL franchisee Chennai Super Kings (CSK) from participating in the IPLs season 7 expected to begin on April 16th. The court made this proposal yesterday while hearing a case on match fixing and betting which have taken place during the past IPL seasons. The court had in its proposal to BCCI asked whether CSK and another franchisee of IPL Rajasthan Royals could be barred from taking part in IPL till this case on match fixing is over. The SC also proposed to pass an order barring India Cements officials from getting involved with the functioning of BCCI. SC is expected to pass an interim order on the case today after getting the reply from BCCI. We maintain a Neutral Rating on India Cements.



Lupin- Acquires a company in Mexico Pharmaceutical

Lupin announced the acquisition of 100 % equity stake in Laboratorios Grin, S.A. De C.V. (Grin), Mexico. The acquisition marks Lupins foray into the high growth Mexican and the larger Latin American pharmaceuticals market. Mexico is one of the fastest growing pharmaceutical markets in the world valued at over US $13.5bn and growing at 9 10% annually. Incorporated in 1955, Grin is a specialty pharmaceutical company engaged in the development, manufacturing & commercialization of branded ophthalmic products. Grin is a leading ophthalmic player and a trusted brand in Mexico. Laboratorios Grin recorded revenues of approximately $28mn in CY2013 and has over 275 employees. The acquisition will provide a lot of synergies to the company and add to its ophthalmic pipeline. We remain neutral on the stock.

Economic and Political News RBI rate hike to push cos over default cliff: India Ratings Coal scam: Court fixes May 2 for consideration on charge sheet Maharashtra remittances grow 12% from last year, cross US$1bn 'Chindia' still vibrant idea: Jairam Ramesh Corporate News Coal India sees production growing 6.7% next fiscal Fortis gets into aggresive expansion mode Infotech Enterprises to change name to Cyient Ltd Reliance MediaWorks delisting exit price fixed at `61 per share L&T wins housing contracts worth `1,981cr NTPC plans to import 15mn tonnes of coal in FY2015 ONGC non-tax dole to govt touching `50,000cr this year Sadbhav Eng bags `212cr highways project in Rajasthan Shriram City's `200cr NCD to open on April 16 Wipro expands footprint in Scotland

Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

March 28, 2014 3:30PM Euro Zone Euro-Zone Consumer Confidence Value Mar F (9.30) --

3:00PM UK GDP (YoY) % Change 4Q F 2.70 2.70

April 1, 2014 1:25PM Germany PMI Manufacturing Value Mar F 53.80 --

6:30AM China PMI Manufacturing Value Mar 50.20 50.10

11:00AM India RBI Repo rate % Apr 1 8.00 8.00

11:00AM India RBI Cash Reserve ratio % Apr 1 4.00 4.00

11:00AM India RBI Reverse Repo rate % Apr 1 7.00 7.00

1:25PM Germany Unemployment change (000's) Thousands Mar (14.00) --

2:00PM UK PMI Manufacturing Value Mar 56.90 --

April 3, 2014 1:25PM Germany PMI Services Value Mar F 54.00 --

5:15PM Euro Zone ECB announces interest rates % Apr 3 0.25 --

April 4, 2014 6:00PM US Change in Nonfarm payrolls Thousands Mar 175.00 190.00

6:00PM US Unnemployment rate % Mar 6.70 6.60

April 8, 2014 2:00PM UK Industrial Production (YoY) % Change Feb 2.90 --

April 10, 2014 India Imports YoY% % Change Mar (17.10) --

India Exports YoY% % Change Mar (3.70) --

China Exports YoY% % Change Mar (18.10) --

4:30PM UK BOE Announces rates % Ratio Apr 10 0.50 0.50

April 11, 2014 7:00AM China Consumer Price Index (YoY) % Change Mar 2.00 --

5:30PM India Industrial Production YoY % Change Feb 0.10 --

April 15, 2014 2:00PM UK CPI (YoY) % Change Mar 1.70 --

6:00PM US Consumer price index (mom) % Change Mar 0.10 --

12:00PM India Monthly Wholesale Prices YoY% % Change Mar 4.68 --

April 16, 2014 2:00PM UK Jobless claims change % Change Mar (34.60) --

6:00PM US Building permits Thousands Mar 1,018.00 --

6:00PM US Housing Starts Thousands Mar 907.00 --

2:30PM Euro Zone Euro-Zone CPI (YoY) % Mar F 0.70 --

6:45PM US Industrial Production % Mar 0.62 --

7:30AM China Industrial Production (YoY) % Change Mar 9.70 --

7:30AM China Real GDP (YoY) % Change 1Q 7.70 --

April 22, 2014 7:30PM US Existing home sales Million Mar 4.60 --

April 23, 2014 7:30PM US New home sales Thousands Mar 440.00 --

April 29, 2014 7:30PM US Consumer Confidence S.A./ 1985=100 Apr 82.30 --

April 30, 2014 11:30PM US FOMC rate decision % Apr 30 0.25 --

May 15, 2014 11:30AM Germany GDP nsa (YoY) % Change 1Q P 1.30 --

2:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 1Q A 0.30 --

May 30, 2014 5:30PM India Qtrly GDP YoY% % Change 1Q 4.70 --

Source: Bloomberg, Angel Research

March 28, 2014

Market Outlook



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


Exhibit 6: Key policy rates

Source: RBI, Angel Research

9.1 8.2

8.7 9.6

7.6 7.0

6.5 5.8

4.5 4.6 4.4 4.4 4.4 4.8 4.7

3.0 4.0 5.0 6.0 7.0 8.0 9.0

10.0 11.0 12.0

1QFY

11

2QFY

11

3QFY

11

4QFY

11

1QFY

12

2QFY

12

3QFY

12

4QFY

12

1QFY

13

2QFY

13

3QFY

13

4QFY

13

1QFY

14

2QFY

14

3QFY

14

(%)

0.6

3.5

1.5

(2.5)(1.8)

2.6

0.4

2.7

(1.2) (1.3)

(0.2)

0.1

(3.0)

(2.0)

(1.0)

-

1.0

2.0

3.0

4.0

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

(%)

4.8 4.65.2

5.9

7.0 7.1 7.27.5

6.4

5.14.7

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

(%)

44.0

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0 N

ov-1

2

Dec

-12

Jan-

13

Feb-

13

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Mfg. PMI Services PMI

(21.0)(18.0)(15.0)(12.0)

(9.0)(6.0)(3.0)0.0 3.0 6.0 9.0

12.0 15.0 18.0

Mar

-13

Apr

-13

May

-13

Jun-

13

Jul-1

3

Aug

-13

Sep-

13

Oct

-13

Nov

-13

Dec

-13

Jan-

14

Feb-

14

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Apr

-13

Apr

-13

May

-13

Jun-

13

Jun-

13

Jul-1

3

Aug

-13

Aug

-13

Sep-

13

Oct

-13

Oct

-13

Nov

-13

Dec

-13

Dec

-13

Jan-

14

Jan-

14

Feb-

14

Mar

-14

Repo rate Reverse Repo rate CRR (%)


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Global watch

Exhibit 1: Latest quarterly GDP Growth (%, yoy) across select developing and developed countries


Exhibit 2: 2014 GDP Growth projection by IMF (%, yoy) across select developing and developed countries

Source: IMF, Angel Research

Exhibit 3: One year forward P-E ratio across select developing and developed countries


1.9

1.2 4

.7

7.7

2.0

5.7

5.1 0.6

2.7

2.6

1.3

0.8

2.6

-

1.0

2.0

3.0

4.0

5.0 6.0

7.0

8.0

9.0

Braz

il

Russ

ia

Indi

a

Chi

na

Sout

h A

fric

a

Indo

nesi

a

Mal

aysi

a

Thai

land UK

USA

Ger

man

y

Fran

ce

Japa

n

(%)

2.5

3.0

5.1

7.3

2.9

5.5

4.9

5.2

1.9

2.6

1.4 1.0

1.2

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Braz

il

Russ

ia

Indi

a

Chi

na

Sout

h A

fric

a

Indo

nesi

a

Mal

aysi

a

Thai

land UK

USA

Ger

man

y

Fran

ce

Japa

n

(%)

10

.1

1.8

14

.5

7.9

12

.8

15

.0

16

.4

12

.5

13

.0

15

.7

13

.1

13

.7

13

.7

-2.0 4.0 6.0 8.0

10.0 12.0 14.0 16.0 18.0

Braz

il

Russ

ia

Indi

a

Chi

na

Sout

h A

fric

a

Indo

nesi

a

Mal

aysi

a

Thai

land UK

USA

Ger

man

y

Fran

ce

Japa

n

(x)

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 165 - 3,207 1,696 1,983 14.9 14.9 7.7 8.8 21.4 18.7 4.4 3.8 22.4 21.9 2.0 1.7

United Phosphorus Buy 184 250 7,891 10,091 11,302 16.5 16.5 19.2 22.5 9.6 8.2 1.5 1.3 17.0 17.2 0.9 0.8

Auto & Auto Ancillary

Amara Raja Batteries Buy 386 440 6,598 3,445 3,945 16.6 16.4 22.3 24.1 17.3 16.0 4.8 3.8 31.1 26.3 1.8 1.5

Apollo Tyres Neutral 155 - 7,835 13,395 14,352 13.3 13.0 17.0 17.9 9.2 8.7 1.9 1.6 22.7 19.8 0.7 0.7

Ashok Leyland Accumulate 23 22 6,000 10,007 11,873 1.0 5.0 (2.0) (0.5) 2.3 2.4 (12.9) (3.4) 0.7 0.6

Automotive Axle# Neutral 361 - 545 739 984 9.4 10.4 15.5 29.8 23.3 12.1 1.9 1.7 8.3 15.0 0.8 0.6

Bajaj Auto Buy 2,039 2,450 58,992 20,418 23,659 20.8 20.3 116.3 135.8 17.5 15.0 6.1 4.9 38.1 35.9 2.4 2.0

Bharat Forge Accumulate 401 470 9,327 6,339 6,593 17.0 17.3 17.6 20.9 22.7 19.2 3.7 3.2 17.2 18.0 1.7 1.6

Bosch India* Neutral 10,465 - 32,859 9,933 11,582 16.1 16.7 339.9 416.6 30.8 25.1 4.6 4.0 15.0 16.0 2.9 2.4

CEAT Neutral 438 - 1,576 5,391 6,019 11.7 11.5 72.0 81.1 6.1 5.4 1.6 1.2 29.7 25.7 0.4 0.4

Exide Industries Accumulate 117 131 9,958 5,730 6,508 13.6 14.3 5.6 6.8 20.8 17.3 2.7 2.4 13.4 14.5 1.4 1.2

FAG Bearings* Accumulate 1,831 2,000 3,043 1,646 1,967 14.2 15.2 95.1 122.1 19.3 15.0 2.7 2.3 14.9 16.5 1.6 1.3

Hero Motocorp Accumulate 2,177 2,400 43,467 25,494 27,912 13.9 14.4 104.4 145.4 20.9 15.0 7.6 6.1 39.0 45.1 1.5 1.4

JK Tyre Neutral 177 - 725 7,128 7,852 11.3 11.2 62.4 67.6 2.8 2.6 0.6 0.5 25.0 21.8 0.4 0.4

Mahindra and Mahindra Buy 959 1,210 59,070 38,927 43,784 12.9 12.6 61.8 66.7 15.5 14.4 3.3 2.8 22.7 20.7 1.3 1.1

Maruti Accumulate 1,938 2,080 58,530 44,203 51,105 12.1 11.6 96.9 108.6 20.0 17.8 2.8 2.4 14.7 14.4 1.1 0.9

Motherson Sumi Buy 236 274 20,846 30,650 35,181 9.4 9.7 10.0 13.6 23.7 17.5 6.7 5.1 32.6 33.2 0.8 0.6

Subros Accumulate 28 28 165 1,139 1,296 10.3 10.3 1.6 2.5 17.2 10.8 0.6 0.6 3.3 5.2 0.4 0.4

Tata Motors Buy 401 460 108,100 237,145 270,911 15.0 14.7 48.7 52.8 8.2 7.6 2.5 1.9 34.8 28.0 0.5 0.5

TVS Motor Neutral 95 - 4,523 7,814 8,882 5.8 6.2 5.0 6.7 19.2 14.2 3.2 2.7 18.0 21.0 0.5 0.4

Capital Goods

BGR Energy Accumulate 112 120 806 3,883 3,987 11.5 10.7 23.1 22.6 4.8 4.9 0.6 0.6 23.6 18.9 0.5 0.4

BHEL Neutral 195 - 47,765 41,082 36,844 12.2 10.8 15.2 11.6 12.9 16.9 2.2 2.0 17.8 12.4 1.0 1.2

Blue Star Neutral 198 - 1,776 2,941 3,099 3.4 4.2 6.0 9.3 33.0 21.3 4.1 3.6 12.9 18.0 0.7 0.7

Crompton Greaves Accumulate 160 180 10,015 13,246 14,863 5.2 6.6 4.6 7.7 35.0 20.7 2.7 2.5 8.0 12.5 0.9 0.8

KEC International Buy 66 78 1,706 7,709 8,507 6.2 7.0 4.7 7.3 14.1 9.1 1.4 1.2 15.3 15.3 0.4 0.4

Thermax Accumulate 751 820 8,951 5,284 6,241 9.1 9.8 25.1 31.8 29.9 23.6 4.3 3.8 15.2 17.2 1.6 1.4

Cement

ACC Buy 1,294 1,485 24,292 11,169 12,303 14.9 15.2 46.5 58.1 27.8 22.3 3.1 2.9 11.5 13.5 1.9 1.7

Ambuja Cements Neutral 186 - 28,815 9,176 10,067 18.3 21.5 6.6 8.3 28.2 22.4 3.0 2.8 11.2 13.1 2.6 2.3

India Cements Neutral 54 - 1,650 4,480 5,235 10.5 11.7 0.4 4.1 124.2 13.1 0.5 0.5 0.4 3.6 0.9 0.7


March 28, 2014

Market Outlook

Stock Watch



Cement

J K Lakshmi Cement Buy 108 127 1,273 1,968 2,353 14.0 15.2 7.1 9.1 15.2 11.9 1.0 0.9 6.5 7.8 0.8 1.3

Ramco Cements Buy 202 229 4,811 3,699 4,378 16.4 18.4 6.0 11.6 33.5 17.4 1.9 1.8 5.9 10.6 2.0 1.7

Shree Cement^ Neutral 5,354 - 18,653 5,741 6,648 23.7 23.9 208.0 270.3 25.7 19.8 4.2 3.5 17.4 19.3 2.9 2.4

UltraTech Cement Neutral 1,987 - 54,481 19,983 23,360 18.2 18.1 67.3 75.8 29.5 26.2 3.3 2.9 11.5 11.8 2.7 2.6

Construction

ITNL Buy 114 156 2,810 7,273 7,970 30.4 30.4 24.3 28.4 4.7 4.0 0.6 0.5 12.2 12.9 2.6 2.6

Jaiprakash Asso. Neutral 48 - 10,663 13,509 15,701 25.8 26.9 0.1 2.1 480.5 22.9 0.8 0.8 0.2 3.5 2.7 2.4

Larsen & Toubro Accumulate 1,275 1,435 118,200 66,667 74,669 10.0 10.0 46.9 52.0 27.2 24.5 3.7 3.4 14.2 14.5 1.9 1.7

Nagarjuna Const. Buy 34 38 872 6,032 6,520 7.5 7.6 1.4 1.9 24.3 17.9 0.4 0.3 1.4 2.0 0.5 0.5

Sadbhav Engg. Buy 91 105 1,377 2,465 2,827 10.6 10.6 5.7 6.8 15.9 13.4 1.5 1.4 9.9 10.8 0.9 0.8

Simplex Infra Buy 107 125 530 5,924 6,457 10.1 10.4 13.1 19.1 8.2 5.6 0.4 0.4 4.9 6.7 0.5 0.5

Financials

Axis Bank Buy 1,430 1,827 67,163 18,955 21,663 3.4 3.4 128.0 148.2 11.2 9.7 1.8 1.6 16.9 17.2 - -

Bank of Baroda Accumulate 679 706 29,157 16,255 18,016 2.1 2.2 105.8 121.9 6.4 5.6 0.9 0.8 13.4 13.8 - -

Bank of India Buy 209 251 13,404 15,082 16,656 2.2 2.1 45.8 56.2 4.6 3.7 0.6 0.5 12.1 13.2 - -

Canara Bank Buy 246 285 11,359 12,414 13,429 2.0 2.0 49.7 53.6 5.0 4.6 0.5 0.5 9.6 9.5 - -

Dena Bank Buy 57 66 2,688 3,402 3,591 2.3 2.4 9.4 14.5 6.1 4.0 0.5 0.4 8.1 10.9 - -

Federal Bank Accumulate 92 103 7,874 2,838 3,135 3.0 3.0 8.9 10.1 10.4 9.1 1.1 1.0 11.4 11.9 - -

HDFC Accumulate 867 938 135,234 8,153 9,631 3.4 3.4 35.2 41.5 24.6 20.9 4.8 4.4 28.3 28.6 - -

HDFC Bank Accumulate 746 859 178,969 26,614 32,019 4.4 4.4 35.8 45.3 20.9 16.5 4.2 3.5 21.6 22.9 - -

ICICI Bank Buy 1,257 1,574 145,144 26,609 30,636 3.2 3.3 84.1 96.9 15.0 13.0 2.0 1.8 15.0 15.4 - -

IDBI Bank Accumulate 62 66 9,864 8,924 9,735 1.9 1.9 6.4 13.7 9.6 4.5 0.5 0.4 5.0 9.6 - -

J & K Bank Accumulate 1,494 1,636 7,241 3,086 3,481 3.7 3.9 245.9 232.9 6.1 6.4 1.3 1.1 22.4 18.2 - -

LIC Housing Finance Buy 227 286 11,448 2,166 2,567 2.4 2.4 26.4 30.3 8.6 7.5 1.6 1.4 19.0 18.9 - -

Punjab Natl.Bank Accumulate 680 758 24,621 20,760 23,179 3.4 3.4 99.1 145.6 6.9 4.7 0.8 0.7 10.9 14.4 - -

South Ind.Bank Buy 22 27 3,010 1,773 1,954 2.7 2.6 3.9 4.0 5.7 5.6 1.0 0.9 17.0 15.3 - -

St Bk of India Buy 1,768 2,035 132,009 67,630 76,248 3.1 3.1 138.8 221.5 12.7 8.0 1.3 1.1 9.8 13.8 - -

UCO Bank Buy 69 80 6,996 7,241 8,008 3.0 3.0 18.6 20.6 3.7 3.4 0.8 0.6 17.8 17.2 - -

Union Bank Buy 120 139 7,532 10,669 11,798 2.4 2.3 24.3 35.1 4.9 3.4 0.5 0.4 9.3 12.1 - -

Yes Bank Buy 402 457 14,487 4,405 5,222 2.7 2.9 44.9 50.0 9.0 8.0 2.0 1.7 24.9 22.7 - -

FMCG

Asian Paints Neutral 528 - 50,641 12,473 14,581 15.8 16.0 13.2 15.7 40.0 33.7 12.3 9.8 33.7 32.4 3.9 3.3


March 28, 2014

Market Outlook

Stock Watch



FMCG

Britannia Accumulate 834 945 10,000 6,470 7,339 8.9 9.2 33.7 40.1 24.8 20.8 10.8 7.8 51.5 43.4 1.5 1.3

Colgate Neutral 1,363 - 18,538 3,588 4,165 17.6 17.7 37.2 43.5 36.6 31.4 32.1 26.7 94.9 92.9 4.9 4.2

Dabur India Neutral 177 - 30,927 7,074 8,135 16.8 17.1 5.3 6.3 33.4 28.2 11.7 9.3 39.0 36.8 4.3 3.7

GlaxoSmith Con* Neutral 4,298 - 18,074 3,603 4,259 13.8 16.6 119.6 149.8 35.9 28.7 11.1 8.9 33.8 34.3 4.6 3.8

Godrej Consumer Neutral 760 - 25,862 7,801 9,094 15.0 15.5 23.0 28.4 33.0 26.8 6.6 5.5 23.1 23.7 3.5 2.9

HUL Neutral 590 - 127,696 27,612 30,844 13.9 13.7 16.9 18.2 34.9 32.5 32.0 23.6 109.8 83.7 4.5 4.0

ITC Accumulate 359 382 285,260 32,945 38,295 36.3 36.9 11.0 12.8 32.6 28.0 10.6 8.6 35.4 34.0 8.5 7.2

Marico Buy 207 254 13,330 4,738 5,406 15.8 15.6 7.4 8.6 28.1 24.1 5.5 4.6 21.6 20.8 2.8 2.4

Nestle* Neutral 4,758 - 45,876 9,190 10,590 21.9 22.5 119.1 146.4 40.0 32.5 19.3 14.1 55.0 50.2 5.0 4.3

Tata Global Neutral 143 - 8,828 7,761 8,615 9.6 10.5 6.8 9.2 21.1 15.5 2.2 2.1 10.4 10.3 1.1 1.0

IT

HCL Tech^ Accumulate 1,397 1,510 97,699 33,340 37,907 25.8 24.8 86.0 95.8 16.2 14.6 5.0 3.8 31.1 26.8 2.7 2.2

Hexaware* Neutral 145 - 4,342 2,297 2,727 22.7 22.8 12.6 14.2 11.5 10.2 2.9 2.4 25.6 24.5 1.8 1.5

Infosys Accumulate 3,245 3,570 186,320 50,545 57,612 27.2 26.4 184.8 213.3 17.6 15.2 3.7 3.1 21.7 20.5 3.1 2.6

Infotech Enterprises Neutral 320 - 3,581 2,203 2,559 19.3 19.1 26.0 29.4 12.3 10.9 2.3 2.0 18.6 17.9 1.3 1.0

KPIT Cummins Neutral 160 - 3,105 2,692 3,050 15.7 16.6 12.8 16.3 12.5 9.8 2.2 1.8 19.5 19.7 1.1 0.9

Mindtree Buy 1,332 1,620 5,545 3,020 3,513 19.8 19.9 109.2 125.2 12.2 10.6 3.1 2.4 26.1 23.2 1.6 1.3

Mphasis& Accumulate 400 455 8,412 6,666 7,134 18.0 18.4 39.7 45.3 10.1 8.8 1.5 1.3 14.8 14.6 0.9 0.7

NIIT Neutral 26 - 434 984 1,066 7.1 7.0 2.0 4.0 13.0 6.6 0.7 0.6 5.1 9.4 0.2 0.1

Persistent Neutral 1,076 - 4,302 1,674 1,971 25.8 26.2 63.8 79.7 16.9 13.5 3.4 2.8 20.3 20.5 2.2 1.7

TCS Buy 2,098 2,470 411,010 82,169 97,331 30.8 30.2 96.6 114.6 21.7 18.3 8.9 7.3 41.2 40.1 5.0 4.1

Tech Mahindra Accumulate 1,816 1,955 42,405 18,775 21,671 22.3 22.5 126.8 134.8 14.3 13.5 4.6 3.5 29.5 25.7 2.1 1.7

Wipro Buy 545 660 134,484 43,764 50,307 22.7 23.7 31.4 37.8 17.4 14.5 4.0 3.2 22.5 22.2 2.7 2.2

Media

D B Corp Accumulate 309 350 5,666 1,876 2,086 27.1 27.7 16.8 19.2 18.4 16.1 5.5 4.6 27.1 25.8 3.0 2.6

HT Media Buy 90 105 2,097 2,174 2,353 14.3 14.9 8.9 9.6 10.2 9.4 1.3 1.2 12.3 11.8 0.6 0.4

Jagran Prakashan Buy 101 120 3,341 1,692 1,867 21.9 23.7 7.7 8.1 13.0 12.5 3.0 2.7 24.8 23.0 2.0 1.8

Sun TV Network Accumulate 391 420 15,426 2,287 2,580 68.3 69.7 19.5 23.2 20.1 16.9 4.9 4.3 25.8 27.4 6.4 5.5

Metals & Mining

Coal India Accumulate 280 313 177,079 67,779 74,606 28.2 30.0 23.7 26.4 11.8 10.6 4.6 4.0 34.4 40.1 1.7 1.5

Electrosteel Castings Buy 15 18 516 1,976 2,017 14.4 15.3 1.2 2.1 12.1 7.1 0.1 0.1 0.7 3.2 0.8 0.6

GMDC Buy 127 150 4,042 1,332 1,681 46.5 50.7 13.2 18.0 9.6 7.1 1.5 1.3 16.1 19.2 2.7 2.0


March 28, 2014

Market Outlook

Stock Watch



Metals & Mining

Hind. Zinc Buy 121 163 51,063 12,863 13,835 54.3 52.4 16.3 17.2 7.4 7.0 1.4 1.2 19.7 17.9 1.8 1.3

Hindalco Neutral 125 - 25,849 89,198 101,309 8.6 8.9 10.8 13.5 11.6 9.2 0.7 0.6 5.8 6.9 0.8 0.7

JSW Steel Neutral 996 - 24,074 46,117 48,969 19.5 19.5 86.6 98.0 11.5 10.2 1.4 1.3 12.2 13.0 1.0 0.9

MOIL Neutral 244 - 4,095 1,036 1,064 44.8 44.0 26.0 28.4 9.4 8.6 1.3 1.2 16.4 14.6 1.6 1.6

Nalco Accumulate 37 41 9,446 6,655 7,094 13.2 14.3 2.5 2.8 14.9 13.1 0.8 0.7 5.2 5.8 0.6 0.6

NMDC Buy 135 165 53,484 11,372 12,198 67.4 66.8 16.3 17.2 8.3 7.9 1.8 1.7 21.9 22.1 2.8 2.6

SAIL Reduce 63 56 26,185 45,080 52,477 9.0 11.5 3.9 6.3 16.2 10.0 0.6 0.6 6.1 6.1 1.1 1.1

Sesa Sterlite Buy 182 204 54,090 66,982 72,995 34.1 33.8 18.1 20.5 10.1 8.9 0.5 0.5 7.0 5.8 1.2 1.0

Tata Steel Buy 374 455 36,353 157,382 169,140 9.9 10.2 37.5 45.4 10.0 8.2 1.0 0.9 10.3 11.4 0.6 0.6

Oil & Gas

Cairn India Buy 332 384 63,335 19,470 19,621 73.0 63.4 63.4 61.9 5.2 5.4 1.1 0.9 23.1 19.0 2.1 1.7

GAIL Neutral 373 - 47,365 60,768 66,123 12.5 11.4 34.9 34.7 10.7 10.8 1.7 1.5 17.1 15.0 0.8 0.7

ONGC Accumulate 325 365 278,182 183,197 199,862 31.2 34.7 31.2 36.8 10.4 8.8 1.6 1.5 16.6 17.5 1.3 1.1

Petronet LNG Neutral 134 - 10,054 37,312 43,463 4.2 4.4 9.7 10.7 13.9 12.5 2.0 1.8 15.3 15.0 0.4 0.3

Reliance Industries Buy 890 1,017 287,704 448,345 494,295 7.3 7.0 74.0 79.5 12.0 11.2 1.3 1.2 11.5 11.2 0.6 0.6

Pharmaceuticals

Alembic Pharma Neutral 289 - 5,443 1,736 2,008 17.1 18.9 10.5 13.8 27.5 20.9 8.4 6.4 34.4 34.7 3.2 2.7

Aurobindo Pharma Accumulate 532 581 15,506 7,718 11,296 26.0 14.0 46.7 32.3 11.4 16.5 3.9 3.2 41.5 21.3 2.4 1.8

Aventis* Neutral 2,886 - 6,647 1,682 1,917 15.6 15.6 94.8 104.7 30.5 27.6 4.4 3.6 16.1 17.6 3.3 2.7

Cadila Healthcare Neutral 989 - 20,249 7,123 8,367 15.5 15.7 37.3 44.7 26.5 22.1 5.6 4.6 22.9 22.9 3.1 2.7

Cipla Buy 387 496 31,073 9,706 11,400 20.6 21.0 18.5 23.6 20.9 16.4 3.0 2.6 15.4 17.0 3.0 2.5

Dr Reddy's Accumulate 2,636 3,008 44,823 13,617 15,590 24.8 24.3 144.4 161.6 18.3 16.3 4.7 3.8 29.2 25.7 3.5 2.9

Dishman Pharma Buy 83 117 668 1,331 1,464 22.5 22.4 12.9 14.6 6.4 5.7 0.6 0.5 9.5 9.9 1.2 1.0

GSK Pharma* Neutral 2,547 - 21,577 2,538 2,640 19.9 19.7 59.0 54.5 43.2 46.7 10.8 11.0 25.0 23.4 7.8 7.5

Indoco Remedies Neutral 132 - 1,219 747 906 15.3 16.0 5.9 8.1 22.4 16.3 2.7 2.4 12.5 15.4 1.9 1.6

Ipca labs Accumulate 821 886 10,363 3,296 4,087 23.5 23.5 42.8 52.7 19.2 15.6 5.1 3.9 30.1 28.4 3.3 2.7

Lupin Neutral 937 - 41,995 11,813 14,377 23.8 23.8 39.9 48.8 23.5 19.2 6.2 4.8 29.8 28.1 3.7 3.0

Ranbaxy* Neutral 355 - 15,036 13,261 10,651 6.6 8.4 14.3 15.2 24.8 23.3 3.2 2.8 13.8 12.8 1.2 1.4

Sun Pharma Neutral 566 - 117,307 14,510 16,450 44.0 42.0 26.6 25.2 21.3 22.5 7.3 5.7 36.4 28.4 7.9 6.7

Power

GIPCL Neutral 65 - 976 1,339 1,402 31.2 29.8 10.2 11.1 6.3 5.8 0.6 0.5 9.2 9.4 0.9 0.6

NTPC Neutral 115 - 94,823 73,564 78,676 24.7 23.7 13.1 12.8 8.8 9.0 1.1 1.0 12.7 11.6 2.0 2.0


March 28, 2014

Market Outlook

Stock Watch



Real Estate

MLIFE Buy 364 478 1,487 888 1,002 27.0 29.9 33.9 42.1 10.7 8.7 1.1 1.0 9.9 11.2 2.3 2.0

Telecom

Bharti Airtel Neutral 299 - 119,422 86,199 94,347 32.1 32.5 7.2 14.1 41.3 21.2 2.2 2.0 5.4 9.7 2.1 1.8

Idea Cellular Neutral 135 - 44,927 26,232 28,312 31.3 31.6 5.6 6.9 24.0 19.7 2.8 2.4 11.4 12.2 2.1 1.9

Rcom Neutral 122 - 25,150 21,818 24,183 33.0 33.7 3.6 5.9 33.7 20.7 0.7 0.7 2.2 3.4 2.9 2.5

zOthers

Abbott India* Accumulate 1,725 1,779 3,666 1,996 2,184 12.3 11.9 80.1 84.7 21.6 20.4 4.2 3.6 20.2 19.0 1.5 1.4

Bajaj Electricals Neutral 283 - 2,825 3,991 4,713 3.7 6.6 3.9 16.1 73.4 17.6 3.8 3.3 5.2 18.6 0.7 0.6

Cera Sanitaryware Neutral 879 - 1,113 647 836 13.5 11.6 40.4 51.1 21.8 17.2 5.0 4.0 25.4 25.6 1.7 1.3

Cravatex Neutral 259 - 67 248 284 6.5 7.3 27.2 38.2 9.6 6.8 1.5 1.3 15.7 18.5 0.4 0.4

Finolex Cables Neutral 113 - 1,735 2,439 2,756 9.5 10.1 11.4 12.1 10.0 9.4 1.6 1.4 16.1 14.7 0.6 0.5

Goodyear India* Accumulate 422 472 973 1,667 1,777 9.5 10.1 45.2 51.1 9.3 8.3 1.9 1.6 22.5 21.4 0.4 0.3

Hitachi Sell 175 142 476 1,080 1,199 8.9 9.1 8.5 14.2 20.6 12.3 1.9 1.6 9.4 14.2 0.6 0.5

Honeywell Automation* Neutral 2,867 - 2,535 1,805 1,927 7.0 7.1 106.0 114.6 27.1 25.0 2.9 2.7 11.4 11.1 1.3 1.2

IFB Agro Buy 171 249 154 504 580 10.6 11.2 32.6 39.9 5.2 4.3 0.8 0.7 17.3 17.8 0.2 0.1

Jyothy Laboratories Accumulate 197 213 3,558 1,244 1,523 13.6 13.9 5.6 9.3 35.3 21.2 3.3 2.9 11.2 14.4 3.0 2.3

MRF Neutral 21,827 - 9,257 13,240 14,229 13.9 13.8 2,061.1 2,269.5 10.6 9.6 2.1 1.7 21.4 19.3 0.7 0.7

Page Industries Neutral 6,473 - 7,220 1,162 1,428 19.8 19.8 137.2 168.7 47.2 38.4 24.5 17.5 60.2 53.2 6.3 5.1

Relaxo Footwears Neutral 292 - 1,754 1,125 1,300 11.3 12.0 9.5 12.8 30.6 22.8 6.8 5.5 24.3 26.6 1.7 1.5

Siyaram Silk Mills Accumulate 280 315 262 1,216 1,396 10.7 10.9 63.9 78.7 4.4 3.6 0.7 0.6 17.6 18.5 0.4 0.4

Styrolution ABS India* Neutral 475 - 835 1,172 1,290 7.2 7.2 32.0 35.1 14.8 13.5 1.6 1.4 11.2 11.2 0.7 0.7

TAJ GVK Buy 61 108 382 300 319 35.8 36.2 7.9 9.1 7.7 6.7 1.0 0.9 13.9 14.4 1.6 1.3

Tata Sponge Iron Neutral 470 - 724 735 836 14.7 16.2 50.1 63.5 9.4 7.4 1.0 0.9 11.5 13.2 0.5 0.4

Tree House Buy 248 313 922 154 206 54.1 54.0 12.1 16.3 20.5 15.3 2.5 2.2 12.0 14.3 5.7 4.1

TVS Srichakra Neutral 299 - 229 1,628 1,781 6.6 6.6 44.1 51.5 6.8 5.8 1.2 1.0 18.3 18.4 0.2 0.2

Vesuvius India* Neutral 463 - 940 600 638 20.1 19.4 35.7 36.6 13.0 12.7 2.3 2.0 19.4 17.1 1.4 1.2

HSIL Neutral 127 - 840 1,638 1,814 14.9 15.0 8.5 10.6 15.0 12.0 0.8 0.7 5.0 6.1 1.0 0.9

M M Forgings Buy 107 131 129 412 469 18.1 18.1 22.9 26.8 4.7 4.0 0.7 0.6 15.2 15.8 0.6 0.5

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on March 27, 2014


March 28, 2014

Market Outlook

Stock Watch

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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Market OutlookMarch 28, 2014

Market Outlook 28-03-2014

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