Wisemoney 225 ISSUE

8/8/2019 Wisemoney 225 ISSUE

1/20

2010: Issue 225, Week: 2nd - 6th AugustA Weekly Update from S

(For private circulation o

WISE M NEY


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Contents

Equity 4-7

Derivatives 8-9

Commodity 10-13

IPO 14-16

Mutual Fund 17-18

EDITORIAL STAFF

Editor Saurabh Jain

Executive Editor Rajesh Jain

+ Edit orial Team

Dr. R.P. Singh Nitin Murarka

Kunal Sharma Vandana Bharti

Tejas Seth Sandeep Joon

Dinesh Joshi Vineet Sood

Bhaskar Mandal Shitij Gandhi

Dhirender Singh Bisht Subhranil Dey

Ajit Mishra Parminder Chauhan

Shilpi Agarwal Asmita Satyendra

Content Edito r Kamla Devi

Graphic Designer Pramod Chhimwal

Research Executive Simmi Chibber

CORPORATE OFFICE:

11 / 6B, Shanti Chamber, Pusa Road, New Delhi 110005.

Tel: 91-11-30111000, Fax: 91-11-25754365DELHI OFFICE:

17, 8B & 9B, Netaji Subhash Marg, Darya Ganj, New Delhi 110002

Tel: 91-11-30111333, Fax: 91-11-23263297

MUMBAI OFFICE:

Dheeraj Sagar, 1st Floor, Opp. Goregaon sports Club, Link Road

Malad (West), Mumbai 400064

Tel: 91-22-67341600, Fax: 91-22-28805606

COCHIN OFFICE:

212, D.D. Vyapar Bhawan, K P Valom Road, Kadavanthra,

Erunakulam (Cochin), Kerala-682020

Tel: 91-484-2312282 -83, 3928894-95, Fax: 91-484- 2312281

CHENNAI OFFICE:

2nd Floor, Mookambika Complex, 4, Lady Desi, Kachari Road,

Mylapore, Chennai-600004

Tel: 91- 44 - 42957600, Fax: 91- 44 - 24661798

SECUNDERABAD OFFICE:

206, 3rd Floor, above CMR Exclusive, Bhuvana Towers, S.D.Road,

Secunderabad - 500003

Tel: 91-40-66179805-08

AHMEDABAD OFFICE :

303, R K House, Behind Shilp Building, C G Road,

Ahmedabad-380009, Gujarat

Tel : 91-79-30074881-88, 26424222-33

10/A, 4th Floor, Kalapurnam Building, Near Municipal Market,

C G Road, Ahm edabad-380009, Gujarat

Tel : 91-79-26424801 - 05, 40049801 - 03

KOLKATA OFFICE:

18, Rabindra Sarani, Poddar Court , Gate No. 4, 4t h Floor,

Kolkata - 700001

Tel : 91-33-39847000, Fax No : 91-33-39847004

DUBAI OFFICE:

312, Belshalat Building, Al Karama, Dubai , P.O. Box 117210, U.A.E.

Tel: 97143963120, Mobile : 971502612483

Fax : 9714 3963122

Email ID : [email protected]

[email protected]

Printed and Published on behalf of

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Printed at: KOZMIC STYLE OFFSET

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Ph.: +91-11-46251190, Email: [email protected]

sian markets saw buying as more than half of the companies that announ

results in the MSCI Asia Pacific Index have exceeded the analyst's estimatAboosting confidence about the strength of the recovery. U.S. econoexpanded at a 2.4 percent annual pace in the second quarter less than foreca

indicating that the world largest economy will see a moderate recovery.The jobl

recovery is curbing household purchases as consumer spending that accounts

about 70 percent of the economy rose 1.6 percent in last quarter, compared wit

1.9 percent rate in the previous three months. U.S. financial system recovery

fragile and as per IMF stress tests banks may need as much as $76 billion in capital

India, as per expectations RBI hiked the policy rates and indicated that monet

steps will continue in order to moderate inflationary pressures. RBI chief said t

despite of the monetary measures, monsoon rains would play a critical role

moderating food prices. Now RBI will release eight monetary policy statements i

year that will cut short the time of monetary policy adjustments. The central Ba

also revised its estimates for inflation and economic growth to 6 percent and

percent from earlier estimates of 5 percent and 8 percent respectively.

The annual monsoon rains bounced back from a 17-percent deficit in the previ

week to 38 percent above normal in the week to 28 July 2010.Heavy, w

distributed showers in the past week helped total rainfall rise to normal during J

have raised the farm sector prospects thereby indicating a pickup in rural demand

Till now the results announced so far have shown a mixed picture with so

disappointment coming from the large caps.The combined net profit of a tota

1,085 companies declined 12.6 percent to `47280 crore on 23.1 percent increase

sales to 609368 crore in Q1 June 2010 over Q1 June 2009. Going next week some

the top companies like SBI, Bharti Airtel, Tata Motors, Tata steel, etc will announ

their quarterly numbers and would help in setting the undertone of the market.

Indian Stock Markets are holding on to the gains though the momentum for rise

lacking. But the world stock markets are slowly inching up with base met

commodities also showing strength. The rise in Rupee and the midcap stocks rally

the week gone by gives a hope of further rally. It seems the market would tak

clearer direction in the coming week. Nifty has support between 5315-5250 lev

and Sensex between 17700-17500 levels.

It is quite visible that good corporate earnings have propped up the sentiments

financial market and commodity is not an exception. Hence we have seen th

capital inflow switched to riskier asset from safe asset like gold and dollar ind

Base metals are the major beneficiary and they are trading at multi months h

whereas crude is reacting on stocks pile up in US and ignoring other positive cues

positive outcome of economic indicators and earnings continue to come in n

future then all base metals will trade in a range with upside bias and vice a ver

Even in crude oil some lower level buying may occur this week. Expect further fal

gold and if it breaches the mark of 17500 then we may see some spurt in physi

buying. In agro commodities, spices may trade in a range on mix fundamentals.

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(Saurabh Jain)

From The Desk Of Edi t or


4/20

NOTES:

1) These levels should not be confused with the daily trend sheet, which is sent every evening by e-mail in the nof evening buzzer equity.

2) S1 & S2 indicates first support & second support respectively & R1 & R2 indicates first resistance and seresistance respectively.

3) Sometimes you will find the stop loss to be too far but if we change the stop loss once, we will find more strecoming into the stock. At the moment, the stop loss will be far as we are seeing the graphs on weekly basistaking a long-term view and not a short-term view.

TREND SHEET

STOCKS CLOSING TREND DATE RATE S1 R1 S2 R2 CL

PRICE TREND TREND S/

CHANGED CHANGED

SENSEX 17868 UP 18.06.10 17571 17700 17500 172

S&P NIFTY 5368 UP 18.06.10 5263 5315 5250 515

CNX IT 6087 UP 09.07.10 6108 6000 5900 580

CNX BANK 11564 UP 09.07.10 9714 9800 9600 945

ACC 831 Down 07.05.10 861 835 855 88

BHARTIAIRTEL 307 UP 23.07.10 314 300 290 27

BHEL 2438 UP 23.07.10 2460 2410 2390 235

CIPLA 326 Sideways

DLF 301 UP 16.07.10 320 300 290 28

HINDALCO 160 UP 30.07.10 160 159 154 14

ICICI BANK 905 UP 23.07.10 913 900 880 85

INFOSYS 2788 UP 18.06.10 2786 2770 2720 264

ITC 309 UP 21.05.10 270 295 290 28L&T 1794 UP 18.06.10 1799 1780 1750 170

MARUTI 1199 Down 30.07.10 1199 1290 1330 138

NTPC 199 Sideways

ONGC 1241 UP 28.05.10 1129 1220 1190 115

RELIANCE 1010 Down 30.07.10 1010 1030 1050 108

SAIL 204 Sideways

NEWS

DOMESTIC NEWSEconomy

Reserve Bank of India (RBI) in its quarterly review of the policyincreased the short-term lending rate (repo) by 0.25 per cent to5.75 per cent and short-term borrowing rate (reverse repo) by 0.50

per cent to 4.50 per cent though it kept cash reserve ratio (CRR), theportion of funds that banks keep with central bank, and bank (long-term) rate unchanged.

India's Food inflation rose an annual 9.67 per cent in the week to July 17,compared with the previous week's increase of 12.47 per cent, withprices of cereals, rice and vegetables falling on the week.

Pharmaceutical

Sun Pharma claimed victory over Eli Lily and Co in a patent litigationover Gemzar, a drug used in cancer treatment, with a US federalcourt ruling in its favour. Eli Lily had contended that an abbreviatednew drug application (ANDA) by Sun infringed its patent on theactive ingredient used in Gemzar.

Telecommunication

XL Telecom & Energy (XL Energy) has received orders worth ` 657million for the supply of export of solar photovoltaic panels toEurope. One of the customers is a large EPC company in Italy and thesecond order is from a company in Czech Republic and both theseare existing customers and repetitive orders.

FMCG

Dabur has acquired Turkish personal care firm Hobi Kozmetik Groupfor $69 million (about 324 crore) as part of its strategy tostrengthen its presence in the Middle East and North Africa.

INTERNATIONAL NEWS US New home sales in June rebounded 23.6 percent after plunging a

revised 36.7 percent in May. The June pace recovered to anannualized 330,000 from a revised 267,000 for May and revised422,000 for April While the comeback is welcome, the bad news isthat May's record drop was revised down notably from the initialestimate of a 33.0 percent decline. The latest figure is down 16.7

percent on a year-ago basis. US jobless claims dropped to 457,000 from the previous week's

revised figure of 468,000. Economists had been expecting joblessclaims to edge down to 460,000 from the 464,000 originallyreported for the previous week.

US gross domestic product (GDP) increased at an annual rate of 2.4percent in the second quarter compared to the revised 3.7 percentjump seen in the first quarter. Economists had expected GDP toincrease by 2.5 percent compared to the 2.7 percent growth thathad been reported for the first quarter.

Eurozone annual inflation rose to 1.7% in July, logging the highestrate since November 2008. In June, the inflation rate was 1.4%. TheEuropean Central Bank targets inflation rates of 'below, but closeto, 2%' over the medium term.

The eurozone's unemployment rate was unchanged at 10% in June.

This was in line with analyst expectations. The number ofunemployed increased by 6,000 in June compared to May, totaling15.77 million. The male unemployment rate was at 9.8% while thefemale unemployment rate was at 10.2%.

An index measuring industrial output in Japan was down aseasonally adjusted 1.5 percent in June compared to the previousmonth, posting a score of 94.7. That was sharply lower than analystexpectations for a 0.2 percent increase following the 0.1 percentmonthly gain in May.

Retail sales in Japan climbed 3.2 percent on year in June, standingat 11.004 trillion yen. The sales from large retailers were down 2.4percent on year to 1.564 trillion yen after shedding 3.2 percent inthe previous month.

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FORTHCOMING EVENTS

Ex DATE SYMBOL PURPOSE

03/08/2010 DABUR AGM AND FINAL DIVIDEND `1.25 PER SH

03/08/2010 ITC BONUS 1:1

04/08/2010 HOTELEELA AGM AND DIVIDEND 0.20 PER SH

05/08/2010 AMBUJACEM INTERIM DIVIDEND- 1.20 PER SH

05/08/2010 CUMMINSIND AGM AND DIVIDEND 6/- PER SH

05/08/2010 ICRA DIVIDEND- 17/- PER SH

05/08/2010 SHREECEM AGM AND FINAL DIVIDEND 8/- PER SH

09/08/2010 BEML AGM AND DIVIDEND 10/- PER SH

MEETING DATE SYMBOL PURPOSE

02/08/2010 GAIL UN-AUDITED FINANCIAL RESULTS

03/08/2010 HINDALCO UN-AUDITED FINANCIAL RESULTS

03/08/2010 PUNJLLOYD FINANCIAL RESULTS

04/08/2010 IDFC UN-AUDITED FINANCIAL RESULTS

05/08/2010 ANSALHSG UN-AUDITED FINANCIAL RESULTS

06/08/2010 NATIONALUM RESULTS/DIVIDEND

06/08/2010 POWERGRID RESULTS/OTHERS

06/08/2010 PETRONENGG RESULTS/OTHERS

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5/20

INDIAN INDICES (% Change)

BSE SENSEX GAINERS & LOSERSTOP (% Change)

GLOBAL INDICES (% Change)

NSE NIFTY GAINERSTOP & LOSERS (% Change)

SECTORIAL INDICES (% Change)

SMC Trend

SMC Trend

Nifty BSE Midcap Nifty JuniorSensex BSE Smallcap S&P CNX 500

SMC Trend

FMCGHealthcare

FTSE 100CAC 40

AutoBank

Realty

Cap GoodsCons Durable

Oil & GasPower

NasdaqDow jonesS&P 500

NikkeiStrait times

Hang SengShanghai

-UP -DOWN -SIDE

INSTITUTIONAL ACTIVITY (EQUITY) (RS. IN CRORE)

ITMetal


6/20

Above calls are recommended with a time horizon of 1 year.

Beat the street - Fundamental Analysis

VALUE PARAMETERS

Current Mkt.Price (` ) 175

Face Value ( ) 5.00

52 Week High/Low 215.00 / 107.30M.Cap ( in Cr.) 1736.03

EPS ( ) 17.71

P/E Ratio (times) 9.88

P/B Ratio (times) 2.22

Dividend Yield (%) 2.00

Stock Exchange BSE

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Business Profile

Polaris Software lab that began its journey over 25years ago when it partnered with Citibank to createIndia's first ATM system has now become a leading

Financial Technology company, with itscomprehensive portfolio of products, services andconsulting. The company owns the largest set ofIntellectual Properties in the form of acomprehensive product suite, IntellectTM GlobalUniversal Banking (GUB) 10.0. Polaris isheadquartered in Chennai and has offices in allglobal financial hubs including Tokyo, Sydney, HongKong, Singapore, India, Dubai, Bahrain, Riyadh,London, Belfast, Zurich, Frankfurt, Toronto, NewYork, Chicago, Fremont, Pittsburgh and Chile.

Investment Rationale

The company plans to add 300-400 people perquarter on net basis during the ongoing fiscalindicate optimism in the business environment

going ahead. During the quarter ended June 2010polaris added 207 employees taking the totalemployee strength to 9719.

IntellectTM (Banking Software) which meets theneed of retail, corporate and investmentbanking needs is gradually gaining market sharein advanced markets like US, Europe andAustralia besides the emerging markets in APACand India. The Intellect products has helped

polaris to tap market potential in 60 countries inthe world contributing 23% of the company'srevenue which is expected to go up to 26% in thecurrent fiscal. During the quarter ended june

2010 its revenue grew by 4% to `82.92 crore.During the said quarter Polaris added 23 newclients of which 16 were Intellect wins.

Company has a liquid assets of close to `510crore providing scope for inorganic growth. Inthe last few quarters it has acquired twocompanies Indigo TX and Laser Soft infosystems.These acquisitions were in line with thecompany's vision of achieving market leadershipin Financial Technology.

Indigo TX is a Chennai-based IT boutique thatprovides end-to-end software solutions tobrokerage houses. Polaris expects to take thisplatform to other emerging markets in Asia andAfrica using its sales teams. The acquisition ofLaser Soft has helped polaris to add 40 newfinancial institutions to its customer portfolio.

Laser Soft is a leading banking software productscompany, specializing in serving the unique

needs of India & emerging markets.

Business Profile

NHPC Ltd is a Mini-Ratna Category-I Enterprise of theGovernment of India. The company is a hydroelectricpower generating company dedicated to the

planning, development and implementation of anintegrated and efficient network of hydroelectricprojects in India. It execute all aspects of thedevelopment of hydroelectric projects, fromconcept to commissioning of the projects.

Investment Rationale

NHPC has an established track record inimplementing hydroelectric projects, so far ithas successfully completed 13 hydroelectricprojects, including two through its subsidiary,NHDC. The company's reputation as a successfuland efficient project manager is a key advantagefor securing projects.

The company has successfully commissioned allthe three units of the 120 MW (40 MW x 3) Sewa-II

Hydroelectric Project in Jammu and KashmirWith this the installed capacity of the companyhas gone up to 5295 MW. The project willgenerate 534 Million Units energy annually fromthese three projects which will be supplied tostate like Jammu & Kashmir, Punjab, Haryana,Uttar Pradesh, Uttarakhand, Delhi, Rajasthanand Union Territory of Chandigarh. Four otherprojects of NHPC including the 330 MW

Kishanganga, 240 MW Uri-II, 45 MW Nimoo-Bazgoand 44 MW Chutak Projects are under activeconstruction, once completed they will increasethe overall capacity of the company and thus

contribute to the sustainable topline growth. NHPC in joint venture with Government of

Manipur and SJVN Limited is working on 1500MWtipaimukh Hydroelectric (Multipurpose) Projectlocated in Churachandpur district of Manipur.NHPC holds majority stake in the projectestimated to generate 3800 Million Units ofelectricity per annum

Country's giant hydro power company hasdiversified into thermal power generationbusiness through its 51% subsidiary companyNHDC, which has 2640MW of thermal plants inMadhya Pradesh. The remaining stake of NHDC isheld by Madhya Pradesh government.

NHPC LIMITED

VALUE PARAMETERS

Current Mkt.Price ( ) 31.8Face Value ( ) 10.0052 Week High/Low 39.75 / 27.60M.Cap ( in Cr.) 2125.82EPS ( ) 1.73P/E Ratio (times) 18.38P/B Ratio (times) 1.68Dividend Yield (%) 0.83Stock Exchange BSE

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Stock Chart

Stock Chart

% OF SHARE HOLDING

Particular QE Mar10 QE Mar09 Var.(%) TT

Total Income 374.88 316.52 18.4 1417

Net Sales 360.57 325.53 10.8 138

Expenditure 312.37 270.30 15.6 1187

PBDIT 62.51 46.22 35.2 230

PBDT 62.27 46.05 35.2 229

PAT 46.60 31.84 46.4 167

Particular QE Jun10 QE Jun09 Var.(%) TT

Total I ncome 1238.74 1159.67 6.8 4970

Net Sales 1019.71 1060.26 -3.8 4178

Expenditure 204.67 179.04 14.3 1024

PBDIT 1034.07 980.63 5.4 3945

PBDT 929.87 858.64 8.3 3506

PAT 537.42 502.10 7.0 2125

POLARIS SOFTWARE LAB

% OF SHARE HOLDING

A ug us t S ep te mb er Oc to be r N ov em be r De ce mb er 2 01 0 F eb ru ar y M ar ch A pr il M ay J un e J ul y A ug us t

50 50Volume (91,314)

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20 09 O ct ob er N ov em be r D ec em be r 20 10 F eb ru ar y M ar ch A pr il M ay J un e J ul y A ug us t

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7/20

EQUITY

Charts by Spider Software India Ltd

Above calls are recommended with a time horizon of 1-2 months

The stock closed at 164.90 on 30th July 2010. It made a 52-week low at`

92on 21st May 2010 and 52-week high of 169.40 on 16th July 2010. The 200 d

Exponential Moving Average (EMA) of the stock on the weekly chart is curren

at 156.

After the V shaped reversal from the bottom, it rose quite strongly from the

time low zone and tested monthly resistance area around 140 levels (not sho

here). It retested the neckline area of the breakout zone and rebound ag

From the past one year, 90-140 levels remained the range of consolidation w

trading below the 200 EMA on the weekly chart. In the recent past, it manage

overcome the resistance zone and now sustaining above the 200 EMA as wel

we expect further upside in the near term as the volume strongly supporting

move. One can accumulate in a range of 157-163 levels with closing below s

loss of 150 levels for the targets of 185-200 levels.

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GITANJALI GEMS LIMITED

The stock closed at 46.55 on 30th July 2010. It made a 52-week low at 29.65

30th October 2009 and 52-week high of 49.40 on 28th June 2010. The 200 d

Exponential Moving Average (EMA) of the stock on the weekly chart is curre

at 38.

In line with decline in broader index, it retraced quite strongly from the high

lost almost seventy percent from the top. From the later half of 2008 to till n

it's trading in consolidation zone of 28-48 levels but now witnessing posit

volume pattern while the price chart indicating pause prior to breakout.

confirming the above mentioned facts, positive readings from RSI oscilla

enforces possibility of upside break in near term so one can accumulate i

range of 44-45 levels with closing below stop loss of 42 levels for the target

52-55 levels.

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GTL INFRASTRUCTURE LIMITED

The stock closed at 336.80 on 30th July 2010. It made a 52-week low at 232

on 30th July 2009 and 52-week high of 356.50 on 30th April 2010. The 200 d

Exponential Moving Average (EMA) of the stock on the weekly chart is curren

at 255.

It was sustaining above the 200 EMA on the weekly basis till the later half of 2

but resumed the overall declining trend afterward and fell dramatic

thereafter. In the last stage of selloff from 175-95 levels, it witnessed lack

volume and positive divergence as well that resultant speedy V shaped recov

It's forming higher highs and higher lows on the weekly chart since th

Currently, it has formed the fresh buying pivot and on verge of breakout from

same as well so one can accumulate in a range of 326-333 levels with clos

below stop loss of 318 levels for the targets of 360-375 levels.

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TATA CHEMICALS LIMITED


8/20

DERIVATIVES

NIFTY TOTAL OPEN INTEREST (in share)

FII'S ACTIVITY IN F&O IN LAST WEEK

(DERIVATIVE SEGMENT)

FII'S ACTIVITY IN F&O IN LAST TEN SESSIONS

(DERIVATIVE SEGMENT) ` (Cr)

DERIVATIVE STRATEGIES

RELIANCEBuy Aug. 1020. CA 24.10Buy Aug. 1000. PA 17.50

Lot size: 250Upside BEP: ` 1061.60Downside BEP: 958.40Max. Profit: UnlimitedMax. Loss: 10400.00(41.60*250)

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HINDUNILVRBuy Aug. 260. CA 3.05Buy Aug. 250. PA 5.30

Lot size: 1000Upside BEP: 268.35Downside BEP: 241.65Max. Profit: UnlimitedMax. Loss: 8350.00(8.35*1000)

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TATACHEM (AUG Future)

Buy: Around 339

Target: 349

Stop loss: 336

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RELINFRA

Buy Aug. 1100. PA 29.50

Sell Aug. 1050. PA 11.95

Lot size: 250

BEP: 1082.45

Max. Profit: 8112.50(32.45*250

Max. Loss: 4387.50(17.55*250)

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VOLATILITY BASED STRATEGIES

SCI (AUG Future)

Buy: Above 164

Target: 170

Stop loss: 162

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OPTIONSTRATEGY

FUTURESTRATEGY

BEARISH STRATEGIES

BASIS GAP IN NIFTY

EDUCOMP(AUG Future)

Sell: Below 594

Target: 580

Stop loss: 599

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Nifty ended at two weeks low due to profit booking in all sectors. August expiry started with rollover of 76% in nifty and with premium of 12 points to spotother hand Most of the heavy weights stocks have seen good rollover with positive cost of carry indicating long rollover. Options concentration during the whas shifted to the 5300-strike put option with an open interest of above 74 lakh shares closely followed by the 5600-strike call option with above 68 lakh shaThis option concentration suggests the August range of 5300 to 5600. Implied volatility (IV) of index options is giving early signal of going up. Differenbetween the IVs of puts and calls has fallen sharply. This indicates no clear directional expectation in Nifty. The implied volatility (IV) of call options close16.04% while the average IV of put options ended at 18.45%. August put-call ratio of open interest decreased and closed at 1.42 levels. The options actisuggests, Nifty has good support around 5300 levels but any instability on the global front will bring selling pressure from current levels.

WEEKLY VIEW OF THE MARKET


9/20

IMPORTANT INDICATORS OF NIFTY AND OTHER ACTIVE FUTURE CONTRACTS

OPEN INTEREST PCR RATIO IMPLIED VOLATILITY

SCRIPTS PREV. CURRENT % PREV. CURRENT PREV. CURRENTWEEK WEEK CHANGE WEEK WEEK CHANGE WEEK WEEK CHANG

BHARTI 13181000 20840000 58.11 0.59 0.31 -0.28 27.42 25.38 -2.04

DLF 11338000 13617000 20.10 1.04 0.35 -0.69 37.09 38.56 1.47

HINDALCO 21120000 19954000 -5.52 0.61 0.77 0.16 35.70 34.49 -1.2

HINDUNILVR 10233000 10570000 3.29 0.74 0.52 -0.22 23.37 19.22 -4.15

ICICIBANK 13298250 16388750 23.24 0.55 0.62 0.07 27.20 27.65 0.45

IDEA 28420000 30848000 8.54 0.75 0.72 -0.03 37.78 27.13 -10.65

INFOSYSTCH 2567625 2647750 3.12 0.46 0.28 -0.18 17.39 20.22 2.83

ITC 11624000 13021000 12.02 0.44 0.65 0.21 17.84 20.86 3.02

JPASSOCIAT 26112000 33096000 26.75 0.23 0.31 0.08 38.49 38.52 0.03

NTPC 9010000 18718000 107.75 0.53 0.30 -0.23 17.06 20.30 3.24

ONGC 2792250 1524250 -45.41 0.90 0.74 -0.16 23.03 25.71 2.68

RANBAXY 2668000 3014000 12.97 0.16 0.16 0.00 34.59 27.69 -6.90

RCOM 25836000 29062000 12.49 0.25 0.28 0.03 40.95 38.58 -2.37

RELIANCE 6523500 7853750 20.39 0.17 0.28 0.11 32.69 29.61 -3.08RNRL 32584000 28000000 -14.07 0.17 0.06 -0.11 58.61 44.81 -13.80

S&P CNX NIFTY 30398900 27728650 -8.78 1.63 1.42 -0.21 19.25 16.04 -3.21

SAIL 6048000 5552000 -8.20 0.72 0.40 -0.32 27.97 31.38 3.4

SBIN 3600375 4872500 35.33 1.24 0.30 -0.94 18.74 18.28 -0.46

SUZLON 74804000 80040000 7.00 0.21 0.50 0.29 43.44 38.94 -4.50

TATASTEEL 16268000 20379000 25.27 1.06 0.48 -0.58 30.70 34.16 3.46

UNITECH 40884000 43136000 5.51 0.98 0.86 -0.12 39.96 38.16 -1.80

DERIVATIVES

NIFTY ANALYSIS

Put Call Ratio Analysis :The Put-Call open interest ratio of Nifty has decrea

to 1.42 from 1.63. At the end of week, the maximum stocks had a negative tr

of change in put call ( open interest) ratio.

Implied Volatility Analysis :The Implied Volatility (IV) for Nifty futures this whas decreased to 16.04% from 19.25%. The IV of the stock futures has chan

this week ranging from -13.80% to 3.46%.

Open Interest Analysis :The open interest for the index at the end of this w

has decreased by 8.78% as compared to the previous week. All future stocks s

changes in their open interest ranging from -45.41 to 107.75. NTPC has

maximum increase in open interest as compared to other stocks.

Statistical Analysis

Open 5460.00 High

Low Close 5374.30

5463.55

5369.10 (Aug. Expiry) (Aug. Expiry)

NIFTY & IV CHART

0

5

10

15

20

25

5340.00

5350.00

5360.00

5370.00

5380.00

5390.00

5400.00

5410.00

5420.00

5430.00

5440.00

26-Jul 27-Jul 28-Jul 29-Jul 30-Jul

Nifty Close IV


10/20

Lower crushing margin & poor demand for rapeseed meal in

Ganganagar may keep shaking the mustard futures. The prices m

face a resistance near 570 levels & struggle to remain in a sidew

range. Soybean prices are likely to retain it's position within t

range of 2030-2100 levels. Given the current monsoon situation

the major growing areas of soybean, there is likelihood of a 2

decline in crop. The industry expects 85 lakh tonnes (lt) of soybe

production in the country, which is far below last year's 95 lt. T

strength of U.S soybean futures may send bullish waves as invest

are adding premium to prices despite favorable near-term cr

conditions. The market is taking into account the risks associat

with a long growing season, particularly with U.S. soybeans head

into their key development stage. Lower imports may remain

fundamentally supportive feature for the soy oil futures. India's

oil imports may slowdown in the coming months due to a rise in t

premium over palm oil and higher supplies of local crops.

OIL AND OILSEEDS

ENERGY COMPLEX

Crude oil may trade on volatile path. Crude futures face resistan

at $80 in NYMEX and `3800 in MCX. U.S. crude oil imports in M

soared by 9.4 percent from a year earlier to 9.622 million barrels

day. U.S. demand for crude oil and petroleum products climbed

percent in June from a year ago, as rising use of distillates and

fuels bolstered overall consumption. Meanwhile forecast seve

Atlantic hurricane season could bring further disruptions to oil a

gas operations in the U.S. Gulf of Mexico can give support to t

crude oil prices. Meanwhile China has now overtaken the US in ter

of energy use and is now officially the world's biggest combined

and energy user. Natural gas may also remain in range of 210-240near term. Recently natural gas prices are backed by firmer ca

prices in US and inventory report showing another light wee

inventory build despite ongoing concerns about too much supply.

FERROUS AND NON-FERROUS METALS

Upside movement remained intact in base metal pack last we

with copper along with zinc and lead gaining on international as w

as on domestic bourses. Bullishness remained intact due to stro

equities and continuing decline in inventories. Japan's shipments

rolled aluminium for the month of June came in at 179,941 tonnesagainst 158,605 tonnes a year earlier. This is the seve

consecutive rise. In this week some profit booking enquiries c

keep the metal pack under pressure but any down side in prices c

considered to be buying opportunity. However, some bounce bac

also expected in dollar index which again can pressurize the pri

up to some extent. The dollar hit an 11-week low versus the eu

making dollar-priced metals cheaper for European investors.

other news China Iron & Steel Association (CISA) reported that Ch

produced an average 1.65 million tonnes of steel per day in t

middle of July, 2.4 percent lower than the first 10 days of the mon

Indian parity of pepper at the international market is being the keydriver for the future market on the national bourse. The prices maymove in lockstep with the other origins, keeping the trade in rangeof 19,600-20,600. Poor sales of turmeric at the regulated co-operative markets as to the international pockets, suggest more

fragility in turmeric futures towards downside levels of 14000. Asper Spices Board data, exports in April-June 2010 has decreased by11% in volume term but increased by 106% in value term ascompared to same period last year. A higher rupee can take a toll onjeera futures & the markets may remain dominated in tight range of14000-15000. In international market now Syria prices are quotingat $3450-3550 while Indian prices are hovering at $3250-3300/tonne. Going by the daily chart, chilli futures is at theoversold phase, and flattened open interest signals that the trend iswaning and is probably near its end. Therefore, any fresh buyingmay pull back the market from its lower price range, taking asupport at 4320 levels.

SPICES

Chana futures dwindling between a topsy-turvy futures market maytrade in range 2290-2350. Considering the arrival of new moong inthe market, prices of other pulses may decline. Moreover, investorsare being more interested in profit-booking due to absence ofbuying activities. Guar complex may continue to sail sideways withweak sentiments in anticipation of good crop prospects because ofgood rains. Weakness in by-products of churi & korma may instillbearishness on the counter. Churi prices at Jodhpur quoting @`1107/qtl have reduced by `66/qtl. while korma prices @ ` 1220have reduced by `47/qtl. The merits of govt. approving exporting atotal of 300,000 metric tonnes of rice and wheat to neighboringBangladesh and Nepal may help offset the declines in wheatfutures, taking a lower level support at 1230 levels. Dull trading

activities and concerns of mounting arrivals would continue to wanesentiments of mentha oil futures. The prices may remain quitevolatile in range of 700-740. A decline in price, volume & openinterest indicates liquidation by discouraged traders with longpositions. As long as this trend continues, it is a bearish sign.

OTHER COMMODITIES

Gold may remain on volatile path in near term and some shortcovering will be seen at current levels. On last Friday the weak GDPnumbers in US supported gold as they created safe haveninvestment demand in the market. Gold can take support at currentlevels of 17700-17800 in MCX. Recently both the dollar index andgold are moving southwards as the risk aversion demand seems to be

cooling off. Technically both dollar index and gold are moving inoversold zone and dollar index has key support of 80. Dollar indexhas fell more than 8% from its high hit in mid June 2010 while goldhas declined more than 5%. Last week sharp drop of bullion holdingsin the world's biggest gold-backed exchange traded fund combinedwith a loss of COMEX open interest indicated investors are movingout of the precious metal into other assets such as the equitymarkets. Silver is expected to take support at 28000 in MCX. Goldsilver ratio was more or less unchanged at 62.7 compared last week.This week key data like US ISM manufacturing, nonfarm payroll andunemployment data along with ECB interest rate meeting will beclosely watched.

BULLIONS


11/20

NOTES : 1) Buy / Sell 25% of Commodity at S1/R1 respectively & rest 75% at S2/R2 respectively.2) S1 & S2 indicates first support & second support & R1 & R 2 indicates first resistance & second resistance.3) Sometimes you will find the stop loss to be too far but if we change the stop loss once, we will find more strength coming into the commodity. At the moment, the stop loss will be far as we are seeing the graphs on weekly

basis and taking a long-term view and not a short-term view.4) These levels should not be confused with the daily trend sheet, which is sent every evening by e-mail in the name of evening buzzer commodity.

ALUMINIUM MCX (AUGUST) contract closed at ` 99 on 30th July '10. The contract made its high

99.40 on 30th July '10 and a low of 88.40 on 7th June '10.The 18-day Exponential Moving Average

the commodity is currently at 95.57

On the daily chart, the commodity has Relative Strength Index (14-day) value of 77.84.One can bu

near 97 with the stop loss of 94.20 for a target of 105.

` `

`

` `

TECHNICAL RECOMMENDATIONS

ZINC MCX (AUG) contract closed at 92.05 on 30th July '10.The contract made its high of 93.00

29th July '10 and a low of 76.50 on 7th June '10.The 18-day Exponential Moving Average of t

Commodity is currently at 89.45

On the daily chart, the commodity has Relative Strength Index (14-day) value of 66.28. One can buy

the range 91.50-91 with the stop loss of 88 for a target of 100 .

` `

`

`

` `

USD/INR (AUGUST): USD/INR (AUGUST) contract closed at 46.63 on 30th July '10.The contract made

high of 47.75 on 26th May '10 and a low of 44.24 on 15th April '10.The 18-day Exponential Mov

Average of the Commodity is currently at 46.85

On the daily chart, the commodity has Relative Strength Index (14-day) value of 45.79. One can bu

the range 46.50-46.70 with the stop loss of Rs 46.20 for a target of 47.50.

`

` `

`

`

*Closing price as on 30.0

CLOSINGSTOP LO

ZINC MCX (AUG)*

NCDEX GUAR SEED (AUG) 2341.00 SIDEWAYS

NCDEX SOYABEAN (AUG) 2038.50 UP 16.07.10 2006.50 2010.00 - 1980.00 - 1940.00

NCDEX TURMERIC (AUG) 14460.00 UP 05.03.10 8527.00 14200.00 - 14000.00 - 13700.00

NCDEX JEERA (AUG) 14614.00 UP 25.06.10 12626.00 13600.00 - 13200.00 - 12700.00

NCDEX PEPPER(AUG) 20131.00 UP 25.06.10 17442.00 18500.00 - 18000.00 - 17300.00

NCDEX CHILLI (AUG) 4377.00 SIDEWAYS

NCDEX RM SEED(AUG) 554.05 UP 21.05.10 512.75 530.00 - 520.00 - 510.00

MCX MENTHA OIL (AUG) 717.60 SIDEWAYS

MCX CARDAMOM (AUG) 1415.70 DOWN 30.07.10 1415.70 - 1550.00 - 1600.00 1740.00

MCX SILVER (SEPT) 28649.00 SIDEWAYS

MCX GOLD (OCT) 17964.00 SIDEWAYS

MCX COPPER (AUG) 338.20 UP 23.07.10 330.65 325.00 - 320.00 - 310.00

MCX ZINC (AUG) 92.75 SIDEWAYS

MCX CRUDE OIL (AUG) 3624.00 UP 23.07.10 3717.00 3610.00 - 3560.00 - 3450.00MCX DOLLAR (AUG) 46.63 UP 07.05.10 45.58 46.40 - 46.20 - 46.00

ALUMINIUM MCX (AUGUST)*

TREND SHEET

COMMODITY

USD/INR (JULY)*

*Closing price as on 30.07.10 5 .0


12/20

NEWS DIGEST

Bullion counter hammered down last week as prices fell like nine pins after investors wind up thlong positions in gold and silver. Gold slid nearly $100.0 from the historic record highs, recordJune 21 at $1265.30 an ounce, affected by traders reducing their stakes and investments in tSPDR Gold Trust, the world's largest exchange-trade fund. The absence of fundamentals froEurope, led traders to turn to the US for signs of global recovery, but the disappointment cam

from US durable goods report which slumped in the month of June by 1.0 percent, compared witrevised -0.8%. Base metal pack extended their previous week gains as global inventory draw doand gains in the euro boosted the metals despite a surprise decline in U.S. orders for long-lastigoods. Western world unwrought aluminium stocks fell to 1.192 million tonnes in June fromrevised 1.306 million tonnes in May, industry data showed. Moreover, gains in equity market asupported the prices as investors anticipate robust demand in near future. In energy counter cruoil prices wiped out its previous week gains and just fell from the level of $80 after the U.S Enerdepartment reported a surge in inventories in the US. However, crude oil prices managed conquer some part of the lost territory mainly on the back of the softer US dollar index. Howevnatural gas futures ended higher last week, backed by firmer cash prices and a government reposhowing another light weekly inventory build despite ongoing concerns about too much supply.

As regards agro commodity, the week gone by majorly known for profit booking at higher levelsmany commodities. Traders preferred profit booking in most of the spices as they becamoverbought in the market. Cardamom futures caught the attention of traders as they tradedlower circuits throughout the week, supported by weak spot market. After trading in positi

territory for many weeks, finally jeera, turmeric and pepper saw pause in the rally as stockiereleased some stocks at higher levels. Good monsoon and improved sowing in producing ardragged down guar counter in both spot and future market. What surprised the market was tupside move oil seeds. R M seed, refined soya oil and crude palm oil witnessed nonstop four werally on confident move in CBOT amid fall in dollar index. Maize futures ignored the positisentiments of CBOT and moved down on profit booking. Additionally, soyabean saw good shcovering. Good export demand supported mentha futures to recover from its week low. Wesentiments in spot market continuously hammered the potato futures.

India's food ministry proposes to sell 2.74 million metric

tonnes of food grain over the next six months from

federal stocks in a bid to free-up warehouse space.

The government has allowed export of 3,00,000 tonnes

of rice and wheat through diplomatic channels to

Bangladesh and Nepal. Soyabean Processors Association of India expects

soybean production in the country at 85 lakh tonnes (lt),

which is far below last year's 95 lt.

Turmeric area in Andhra Pradesh stood at 0.53 lakh

hectare against 0.41 lakh hectare, nearly 101 % of the

normal area covered.

Water level in India's main reservoirs was at 19 per cent of

capacity on July 22, 2 per cent higher than the previous

week's level, government data showed.

Wholesale Price Index For food articles 9.67% on week

ending 17 July against 12.47% previous week.

Commodity futures market regulator FMC may consider

the creation of an appellate tribunal akin to that in stock

markets for the resolution of disputes between clientsand brokers.

Supply from the OPEC (except Iraq) has averaged 26.95

million barrels per day (bpd) this month, up from 26.75

million bpd in June, according to the survey of oil firms,

OPEC officials and analysts.

NCDEX TOP GAINERS & LOSERS (% Change)

WEEKLY STOCK POSITIONS IN WAREHOUSE (NCDEX)

WEEKLY COMMENTARY

MCX TOP GAINERS & LOSERS (% Change)

COMMODITY

COMMODITY UNIT 22.07.10 29.07.10 DIFFERENCE

QTY. QTY.

CHANA MT 59072.00 57853.00 -1219.00

CHILLI MT 3968.00 3912.00 -56.00

GOLD 100 GMS TOTAL GMS 1600.00 1600.00 0.00

GOLD KGS 7.00 7.00 0.00

GUAR SEED MT 16625.00 19377.00 2752.00

GUAR GUM MT 18701.00 19078.00 377.00

JEERA MT 6201.00 5546.00 -655.00

MAIZE MT 188.00 188.00 0.00

PEPPER MT 4262.00 4249.00 -13.00

SILVER KGS 1537.00 1538.00 1.00

COMMODITY UNIT 22.07.10 29.07.10 DIFFEREN

QTY. QTY.CARDAMOM MT 58.80 53.10 -5

MENTHA OIL KGS 2384204.53 2423790.43 39585

CHANA MT 32558.79 32558.79 0

GOLD KGS 99.00 99.00 0

SILVER KGS 8734.00 11653.15 2919

GOLD MINI KGS 135.50 131.00 -4

WEEKLY STOCK POSITIONS IN WAREHOUSE (MCX)


13/20

Soybean oil.. Prices sail along with the winds over harbor

Soya bean oil is the second leading vegetable oil traded in the international markafter palm. Palm and Soya bean oils together constitute around 68% global edibletrade volume, & Soya bean oil alone constitutes of 22.85% of the whole.

Soybean Oil World Scenario A SNAP SHOT World Production: U.S. (38%) is the biggest producer of soybeans followed by Br

(13-18%) and Argentina (27-37%). World Imports: China, Japan, Mexico, Taiwan and South East Asia are ma

importers of soybeans while India, China, Pakistan, Bangladesh, South & CenAmerican countries (Peru, Venezuela, Bolivia, Dominican Republic) and Af(Egypt, Morocco) are major buyers of soya oil in world market.

World Exports: U.S. is the largest exporter of soybeans while Argentina is biggest exporter of soy oil followed by Brazil.

Hot talks.. China, the world's biggest user of cooking oils, and Argentina remaitalks about China's embargo on imports of soybean oil from the South American natChina imports all its soybean oil almost from Argentina and Brazil. India imports nearmillion tonnes of soya oil yearly from Argentina, Brazil and US. India imported 192tons of Crude Soya oil during June 2010. According to USDA, the country is estimateimport 1.19 million tonnes of soy oil for 2010-11, while China is estimated to import 2million tonnes during the same period.China has frozen all Argentine soybean oil imports in retaliation for Buenos Aires decito restrict imports of Chinese products. The Chinese blocking of Argentine soybeanthreatens a key hard currency earner for the South American nation, estimated a

billion US dollars for the current year.

Domestic scenario: India is the sixth largest producer of soya oil with account of 4world production. In India, Madhya Pradesh produces estimated 53% of the countsoybean followed by Maharashtra (34%) and Rajasthan (8%). It is sown during Juneperiod and harvested by October in India. The domestic production soyabeen is aro1.4 million ton in 2009-10. Almost 70 to 80% of total oilseed production is crushed fowhile the balance quantity goes for food, feed and seed use in the country. So total soil production is around 0.7-0-8 million ton in 2009-10, While annual consumptioaround 2.0-2.2 million ton with a market value of `9000 crore.The above chart shows that during January-June2010, imports of soya oil totalled almost 7.36 ltagainst 5.99 lt a year ago. According to the SolventExtractors Association, the increased imports haveresulted in inventories building up at the ports.Imports getting surge in December 2009 primarily inview of the kharif oilseeds crop hit by the erraticweather and the rupee's rise against the dollar.

Kharif production has been estimated at 161 ltagainst 178 lt last year. Rabi output, however, isseen marginally up at 101.31 lt against 99.11 lt ayear ago.Spot markets of Indore and Mumbai serve as the 'reference' market for Soya oil priThe prices in Indore reflects the domestically crushed soybean oil (refined and solvextracted) while Mumbai price indicates the imported soy oil price.

In exchanges.. Futures trading in soya oil essentially serve as the right tool for hedgagainst market-linked risk by all those in the value chain of the commodity- soyabean producing farmers, processors, brokers, speculators, soyabean and mtraders, traders of other oilseeds and oils, etc.CBOT is the biggest exchange for soybean oil. In India, NCDEX and NBOT are the maexchanges for these commodities. Its contracts are traded with high liquidity. domestic future prices of soya oil are largely influenced by the international edible pmovements (especially Malaysian palm oil and soybean oil at CBOT), soybean availabiin domestic markets, demand for meal and other associated supply-demand factorsoybean and its derivatives.

Current scenario: Refined soyaoil futures is trading up with August and Septemcontracts moving up by 0.45% and 0.54% respectively. August soyoil futures traded`484.70 while September futures were at `487.50 per 10kg. Crude Soya oil import pis US$ 880 per ton at Mumbai port whereas Crude Palm oil import price is US$ 805 windicates the difference of less than 10 percent between the two. There is zero impduty on crude soybean oil in India while it is 7.5% for refined oil.

PRICES OF METALS IN LME/ COMEX/ NYMEX (in US $)COMMODITY EXCHANGE CONTRACT 23.07.10 30.07.10 CHANGE%

COPPER LME 3 MONTHS 7021.00 7217.50 2.80

ZINC LME 3 MONTHS 1921.00 1996.50 3.93

ALUMINIUM LME 3 MONTHS 2024.00 2138.00 5.63

NICKEL LME 3 MONTHS 20500.00 20640.00 0.68

TIN LME 3 MONTHS 18700.00 19675.00 5.21

LEAD LME 3 MONTHS 1953.50 2060.00 5.45

GOLD COMEX AUG 1187.80 1168.40 -1.63

SILVER COMEX SEPT 18.10 17.62 -2.67

LIGHT CRUDE OIL NYMEX SEPT 78.98 78.36 -0.79

NATURAL GAS NYMEX SEPT 4.56 4.83 5.79

WEEKLY STOCK POSITIONS IN LME (IN TONNES)

COMMODITY STOCK POSITION STOCK POSITION DIFFERENCE

ON 23.07.10 ON 30.07.10

ALUMINIUM 4409975 4385300 -24675

COPPER 419650 413500 -6150

ZINC 620775 620350 -425

NICKEL 116814 117498 684

LEAD 183225 184150 925

TIN 15620 15000 -620

SPOT PRICES (% change)

COMMODITY

INTERNATIONAL COMMODITY PRICES

Commodity Exchange Contract Unit 23.07.10 30.07.10 Change

Soya CBOT Aug Cent per Bushel 1017.00 1026.60 0.94

Maize CBOT Sept Cent per Bushel 371.20 379.20 2.16

CPO BMD Oct MYR per MT 2498.00 2517.00 0.76

Sugar LIFFE Oct 10 cents per MT 559.20 585.70 4.74


14/20

IPOIPOIPOIPO

PRAKASH STEELAGE LIMITED IPO NOT


15/20

IPOIPOIPOIPO

Book Running Lead ManagerKotak Mahindra Capital Company Ltd.

Name of the registrarKarvy Computershare Pvt Ltd.

Shareholding Pattern (%)

Particulars Pre-issue Post issue

Promotors & promoters group 100 84.75

QIB - 9.15

NIB - 1.53

Retail - 4.58

Total 100 100

Issue Composition

Total Issue 4,500,000

QIB 2,700,000

NIB 450,000

Retail 1,350,000

In shares

Issue Highlights

Industry FMCG

Issue Size in Cr. 284-297

Price Band in (`) 630-660

Offer Date 2-Aug-10

Close Date 5-Aug-10

Face Value 5

Lot Size 10

IPO Grade CRISIL IPO Grade 4

Indicating above

average fundamentals

BAJAJ CORP LTD.

Objects of the Issue

Particulars Amt.(in Cr.

Promote Future Products 220

Acquisitions & other Strategic Initiatives 50

General Corporate purpose []

Total []

SMC RANKING

Business OverviewBajaj Corp Ltd (BCL) is one of the India's leading producers of hair oils. It is a part of the Shishir Bajaj Group of companies (the "Bajaj Group"). The history of BCorps dates back when Mr. Kamal Nayan Bajaj established Bajaj Sevahram ("BSL") in 1953 to market and sell hair oils and other beauty products. In 2001, business was demerged to Bajaj Consumer Care Limited ("BCCL"). BSL assigned the trademarks for all of the brands BCL currently sell to BCCL. SubsequenBCCL licensed these brands to Bajaj Corp. Limited pursuant to the Trademark License Agreement valid for a term of 99 years from March 12, 2008 anextendable for an additional ten years. Bajaj Corp Ltd. began its operation in April 2008.BCL manufactures hair oil and markets them under the brand names Bajaj Almond Drop, Brahmi Amla, Amla Shikakai and Jasmine Hair Oil. It also produoral care products under the brand name Bajaj Black Tooth Powder. Its products are manufactured at three company-operated facilities in Parwanoo, Dehraand Ponta Sahib. It commenced commercial operations at Ponta Sahib in March 2010. In addition, it also engages third-party manufacturers at ParwanHimachal Pradesh for hair oils and Udaipur, Rajasthan to produce its oral care products. As of March 31, 2010, the combined production capacity formanufacturing units and third-party operated production facilities was 83 million litres per annum.

RisksPrice Volatility: The main raw materials used for the manufacturing of process are stainless steel bars, Stainless steel sheets and seamless hollow pipes.also import raw material in the form of stainless steel coils mainly from South Africa, Spain, Middle East and Singapore. Since Indian Steel prices are drivenInternational steel prices, raw material price fluctuations could affect the company's operations.

Foreign currency volatility:PSL is exposed to foreign currency fluctuations in respect of proceeds received in various foreign currencies. Major customerthe Company are located in Europe and USA.The fluctuation in the exchange rate between the rupee and other currencies, including the U.S.Dollar, the BriPound Sterling, the Euro etc. may impact the financials of the Company.

Competition: PSL faces competition from organized as well as unorganized players. It has stiff competition from some companies like Ratnamani Me

Limited, Suraj Stainless Limited, Rajendra Engineering and Mechanical Industries Limited in the Domestic market and companies like TPS, Tubacex , SpeciaSteel etc. in the overseas market.

Industry OverviewIndia has become the 5th largest producer of steel globally. Producing about 53 million tonnes (MT) of steel a year, today India accounts for a little over 7 per cof the world's total production. Stainless steels are iron-based alloys usually containing at least 11.5% chromium. Other elements, nickeI being the mimportant, may be added in combination with chromium to obtain special properties. Stainless steels are highly resistant to corrosive attack and to oxidatiohigh temperatures. In general, resistance to corrosion and oxidation increases progressively, though not proportionately, with the increase in chromicontent.Stainless steel pipe and tubing are used for a variety of reasons: to resist corrosion and oxidation, to resist high temperatures, for cleanliness and maintenance costs, and to maintain the purity of materials which come in contact with stainless. The inherent characteristics of stainless steel permit the deof thin wall piping systems without fear of early failure due to corrosion. The use of fusion welding to join such piping eliminates the need for threading. Apfrom good demand in existing industrial use, there is a shift from using MS steel pipe and copper pipe to using Stainless steel. Many new areas are also addindemand for example, in plumbing also builder has started using stainless steel pipe.Projections for 2010 to 2015 suggest a 4.2% annual growth in worldwide stainless steel demand, with growth reaching 7.7% per year for India and 6.2% per yearChina during the same period. For the last few years, Stainless Steel industry has been witnessing a boom period. Global demand for Stainless Steel has beco

very strong. In India too because of so many infrastructural projects and vast expansion of construction activities coming up, demand for Stainless Steel Wel& Seamless Pipes & tubes is very strong. The growth in infrastructure segment by the Government/Public/Private not only in India but across the world is major demand driver for this segment.

ValuationConsidering the P/E valuation, the company is trading at pre issue P/E of 6.31x on the lower side of the band and 6.94x on the higher side of the band of its FEPS of ` 15.84.Looking at the post issue valuation,the company trades at P/E of 9.82x on the lower side and 10.82x on the higher side of its post issue FY10 EP` 10.18.At its P/B ratio it trades at 2.21 and 2.43 multiples of the lower and higher band of its pre issue book value of` 45.23 and 1.46x and 1.61x on the lower higher side of its post issue book value of ` 68.50 respectively.


16/20

IPOIPOIPOIPO

StrengthsStrong Brand Position: Almond Drops is the leading product brand of the company. Currently it comprises approximately 92.4 percent of its net sales. AlmDrops sells at the premium end of the hair oil market, and is among the highest priced hair oils in India. Moreover, unlike most hair oils which are packageplastic PET bottles, Almond Drops is packaged in glass bottles, which retains the product's aroma, otherwise lost due to high temperatures experiencthroughout India. Strong brand positioning has allowed it to maintain premium pricing.

Wide Distribution Network: BCL manages a distribution network that includes 4,600 distributors, or "stockists", that sell to more than 1.56 million reoutlets located throughout India. The company's distribution network is supported by a comprehensive management information system ("MIS") whereby sreports are generated by on-the-ground sales force.

Brand Heritage:The "Bajaj" name is a well-recognized Indian brand that consumers associate with quality products at competitive prices. Brahmi Amla manufactured in 1953. Almond Drops, manufactured since 1990, is BCL's the most successful product and currently captures more than 50.3 percent of market in the light hair oil segment in terms of both volume and value. 'Bajaj' enjoys a strong recall both in rural and urban markets that would provide leverwhile launching new products.

Manufacturing units in Tax free Zone:BCL's manufacturing facilities are located in tax-free zones and it currently enjoys exemptions from excise duty foyears from the FY09 and income taxes for the first five years followed by a concessional income tax rate for the following five years. Importantly, the capautilisation at these facilities is less than 30 percent and is more than sufficient to service the expected growth over the next three-five years.

StrategiesTo grow hair oil business: BCL's primary focus is to increase its share of the hair oil market. It intends to achieve this by differentiating light hair oil prodfrom those of its competitors, as well as by taking market share of coconut oil market. Coconut oils accounts for 60 percent of hair oil market by volumecompared to 16 percent of light hair oils market. It plans to pursue a strategy of converting coconut oil users into consumers of light hair oil products throsampling, targeted advertising campaigns and product innovation.

To increase focus on rural markets:The market for hair oils in rural India is growing due to the rural population increase in disposable income which is relato farmers shifting to cash crops, rural employment generation schemes, general economic growth as well as a general monetary trickle-down effect f

increased urbanization. As a key component to growth in the rural market, it intends in shifting rural consumers to branded and packaged products frunbranded products, by providing rural consumers with an appropriate value proposition including price, positioning, and packaging.To enter new product line and segments: BCL intends to continuously evaluate changing tastes and preferences with the goal of creating a pipeline of nproducts in FMCG space such as soaps, shampoos, creams and other hair care products. It intends to penetrate rapidly growing cooling hair oil market that ofrelatively high margins. Competition in the cooling oil market is less intense than in other FMCG markets in India.

To pursue inorganic growth:As a key enabler for its business to grow, the company foresees for acquiring suitable companies and form strategic relationshthat could bring significant synergies and form strategic combinations in FMCG and Hair oil markets.

RisksOne product as a major source of revenue:BCL depends on Almonds Drops for a significant portion of sales. For the fiscal year ended March 31, 2010, AlmDrops hair oil contributed 92.4 percent and 93.0 percent of its total sales and gross profit, respectively. Contribution from Almond Drops represensubstantially all of its operating profit for the year ended March 31, 2010. Any drop in the sales of Almond Drops or any other factor that negatively affectsproduct of the brand would adversely affect the business and financial performance of the company.Intense Competition:BCL operates in a highly competitive FMCG market with players having stronger financial and other resources. Such players therefhave the ability to spend more aggressively on advertising and marketing and more flexibility to respond to changing business and economic conditions. Any nproduct launch in the hair oils segment by established players could impede the increasing market share of the company. Moreover lack of switching cost pla

major constraint to brand loyalty in this industry.Lack of long term contract with suppliers:Hair oil's principal raw materials comprise light liquid paraffin ("LLP") a derivative of crude oil, refined mustardand ground nut oil, other active ingredients and perfumes. The price for LLP is impacted by changes in the international price of crude oil. Vegetable oil prcould also fluctuate on account of agricultural produce, demand supply situation and inflationary trends. It does not use any hedging techniques to minimizeimpacts of changes in raw material prices and also lacks any exclusive supply arrangements with its suppliers. Being the player in the highly competitive natof the industry any shortfall or increase in raw material cost, it may not be able to effectively pass on the increased cost to the consumers.

Industry OverviewThe FMCG industry represents consumer goods required for daily or frequent use. It can be broadly classified into personal care, health care, household care packaged food and beverages. In the past decade, this industry has witnessed significant growth. This has primarily been due to liberalization, urbanizationincrease in disposable income, altered lifestyles as well as a heightened level of awareness among India's rural community consequent to the introductiosatellite televisions. Of the estimated ` 1,611 billion FMCG market in India, hair care products make up approximately ` 91.5 billion. The 14% growth rate in hair care industry is also slightly higher than the overall industry average of 13.4%. Shampoo and hair oils, including coconut oils, continue to be the kcomponents of this segment. Rural distribution campaigns by hair oil manufacturers and dealers have helped to expand the geographic coverage of hairproducts into the rural parts of the country. Light hair oil is an urban dominated segment primarily due to its comparatively high cost. Light hair oil sales tend to be more geographically concentrated, particularly in the northern regions of the country, namely Punjab, Delhi, UP and Rajasthan, due to hig

disposable incomes and the propensity of consumers to try new products.

ValuationConsidering the P/E valuation, the company is trading at pre issue P/E of 18.77x on the lower side of the band and 19.66x on the higher side of the band oFY10 EPS of ` 33.56.Looking at the post issue valuation,the company trades at P/E of 22.15 on the lower side and 23.20x on the higher side of its post issue FEPS of ` 28.44.At its P/B ratio it trades at 61.50 and 64.43 multiples of the lower and higher band of its pre issue book value of ` 10.24 and 6.76x and 6.04x on lower and higher side of its post issue book value of ` 109.36 respectively.

OutlookHaving been driven from one of the strongest business house, BCL would definitely leverage the brand heritage image of Bajaj group. The company has strmanagement team with requisite domain expertise who are well aware of business opportunities, threats and weakness. The issue is priced at a significdiscount as compared to peer FMCG players. But one has to keep in mind that the major chunk of its revenues is sourced from a single product. Company is yeestablish its presence in the different product verticals within FMCG domain as per its strategy in an environment where some of the prominent players already competing to retain and enhance their market share. Investors with long term horizon can subscribe to the issue.


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COMPARISON AMONG ITS PEER (%)

Scheme Name 6 Mon 1 Y 2 Y 5

HDFC Equity Fund 18.92 43.18 33.83 26.

Canara Equity Div 15.02 35.80 29.04 22.

Fidelity Equity 18.90 38.23 26.77 23.

HDFC Cap Builder 17.18 41.09 27.13 20.

ICICI Pru Discovery 16.34 51.94 39.58 22.

Reliance Eq.Oppo 22.46 59.81 33.50 24.

Reliance RSF - Eq. 11.79 34.79 26.20 24.

S&P Nifty 10.79 19.84 13.62 18.

BSE200 11.01 23.15 16.57 18.

CNX500 8.04 21.83 15.77 17.

BSE100 10.45 20.81 15.56 18.

TOP SECTOR ALLOCATION

Date June-10 May-10 Apr-

Banks 17.78 18.52 18.9

Petroleum 15.32 13.08 10.9

Pharma 9.91 10.00 9.9

IT 7.34 6.52 6.7

Auto 6.18 6.00 7.8

Media 6.02 5.94 6.1

Engineering 5.06 4.71 5.2

FMCG 4.88 4.71 4.3

Housing Finance 3.83 3.82 3.9

CD 3.79 3.77 3.7

TOP HOLDINGS

Top Holdings June-10 May-10 Apr-10

State Bank 7.52 7.49 7.8

ONGC 6.67 5.84 5.11

Titan Industries 3.79 3.76 3.7

Bank of Baroda 3.75 4.02 4.02

ICICI Bank Ltd. 3.21 3.42 3.86

Infosys 2.90 2.3 2.43

NTPC Limited. 2.89 2.27 2.03

L&T 2.88 2.49 2.53

GAIL 2.79 3.35 3.25

ZEEL 2.76 2.71 3

QUARTERLY RETURNS (%)

Years Q4 Q3 Q2 Q1

2010 -- -- 7.20 2.28

2009 9.06 22.53 58.81 -3.14

2008 -22.88 1.78 -13.64 -25.76

2007 22.14 10.60 15.93 -1.91

FUND OBJECTIVE

FUND MANAGER

FUND REVIEW

ASSET ALLOCATION

PERFORMANCE

The investment objective of the Scheme is to achieve capital appreciation.

Mr. Prashant Jain Executive Director & Chief Investment Officer

CFA - AIMR, USA, PGDM-IIM Bangalore, B.Tech. - IIT, Kanpur

Mr Jain has over 19 years of experience in fund management and research in Mutual Fund IndusMr. Prashant Jain has worked with Zurich Asset Management as Chief Investment Officer. Bef

Zurich he has worked with SBI Mutual Fund.

HDFC Equity Fund is over a decade old diversified fund with assets under management (AUM

` 6,734 crore. The fund is benchmarked against the CNX 500 index. The Scheme maintains a focuportfolio predominantly of large cap stocks, though there is controlled exposure to mid caps. Scheme however always remains diversified across sectors. Its compounded annualised return15.90 per cent over a three-years time frame has outpaced the benchmark CNX 500 by npercentage points.

This fund's flexicap approach involves taking higher risks in comparison to large cap funds and tasome exposure to mid caps. The Fund did not adopt a very aggressive investment style during last bearish phase by plunging into large caps or resorting to aggressive cash calls. The fund alwfocuses on value and not on direction of market movement.The fund has predominantly investstocks that are involved in Banking sector, Petroleum, Pharma and IT sector. For the past six montit has invested around 60 per cent of its assets in Large cap stocks. The fund has a well- diversifportfolio of 62 stocks. HDFC Equity Fund has invested over 73 per cent of its assets in the BSE 2The top five sectors and stocks accounted for around 56.53% and 24.94% of the assets respectivMahindra & Mahindra, HPCL and IOC are the new holding in the Latest portfolio. As per the secallocation, the fund is diversified across the 21 sectors.

HDFC Equity Fund has managed to beat its benchmark index CNX 500 returns on a consistent baThis fund has performed well against its peer's as well as its benchmark index CNX 500 returns oconsistent basis. The fund has managed to give CAGR of 26.54 per cent in the 5-year period wCNX 500 has appreciated by 17.23% and in the last one-year period, fund has generated an absoreturn of 43.18%, where as the benchmark of the fund reported a return of 21.83%.

Investors can invest in units of HDFC Equity Fund, considering its impressive scorecard in delivesteady returns over the long run.

HDFC Equity Fund

MUTUAL FUND

Type Open ended

Fund Category Equity Diversified Fund

NAV (29/07/2010) ` 263.03/-

Min Investment ` 5000/-

Options Growth/Dividend

Inception Date 01st Jan 1995

AUM (June 2010) ` 6734.63/-Benchmark CNX 500

SNAPSHOT

MARKET CAPITALISATION

Market Cap % Composition %

Small Cap 4.88 Equity 99.46

Mid Cap 25.51 Debt 0.00

Large Cap 68.62 Cash 0.53

RISK STATISTICS REVIEW

Beta 0.87 R-Squared 0.92

Sortino 0.57 Correlation 0.96

Sharpe 0.31 Expense Ratio 1.81

SD 2.54 Portfolio Turnover ratio 60.3

CONCENTRATION ANALYSIS

Company Wise (% ) J un-1 0 May-10 Apr-1 0

Top 5 Holdings 24.94 24.57 24.52

Top 10 Holdings 39.17 38.58 38.53

Top 15 Holdings 51.78 49.42 49.6

FUND STYLE

Relative Performance

INDEX EXPOSURE COMPOSITE (%)

BSE 500 95.61 BSE Bankex 17.34

BSE MID CAP 27.56 BSE PSU 27.73

BSE Sensex 39.01 BSE SMALL CAP 1.08

BSE100 62.22 BSE200 73.22

Pick of the mon

Large Cap

Mid Cap

Small Cap

Growth Blend Value

May -2010 Apr-2010

Mar - 2010(JUNE-2010)

Sector Wise (%) Jun-10 May-10 Apr-10

Top 5 Sector Holdings 56.53 54.12 54.59



(% of portfolio ) (% of portfo

HDFC EQUITYCNX500

TRAILING P2P RETURNS (%)

Scheme 3 M 6M 1Y 2Y 3Y

HDFC Eq. 8.46 18.92 43.18 33.83 15.90

CNX 500 3.51 8.04 21.83 15.77 6.54

Category Avg 4.46 12.81 31.03 20.11 8.72


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MUTUAL FUND

Note: Indicative corpus are including Growth & Dividend option. The above mentioned data is on the basis of 30 /0Beta, Sharpe and Standard Deviation are calculated on the basis of period: 1 y ear, frequency: weekly Monday,

Performance Char

Scheme Name

3M 6M 1Y 3Y Since Beta Jensen Std. Small Mid Large Other DLaunch Dev. Cap Cap Cap & C

Launch AUM NAVDate (Rs. in cr.) (Rs.)

Reliance Equity Opportunities Fund - Gr. 34.42 31-Mar-05 2191.04 6.87 22.52 57.24 13.73 26.08 0.85 0.61 2.66 7.45 44.40 33.66 8.93 5.

DSP BlackRock Small and Midcap Fund - Gr. 17.29 14-Nov-06 893.41 6.34 18.95 56.60 14.29 15.91 0.79 0.62 2.62 14.57 74.77 7.03 0.38 3.

UTI Master Value Fund - Gr. 50.86 1-Jun-98 497.92 5.47 18.03 55.82 16.83 23.71 0.88 0.60 2.94 28.00 39.94 26.14 2.04 3.

ING Dividend Yield Fund - Gr. 22.64 24-Oct-05 42.42 6.59 20.17 53.60 20.51 18.70 0.67 0.61 2.24 9.43 39.46 42.81 0.00 8.

UTI Thematic Mid Cap Fund - Gr. 32.22 9-Apr-04 345.74 5.78 16.65 53.21 11.88 22.15 0.86 0.58 2.82 22.92 61.34 13.9 1.72 0.

Birla S L L T Advantage Fund - Series 1 - Gr. 12.68 31-May-07 229.64 3.28 19.67 53.15 7.34 7.77 0.85 0.56 2.85 33.78 54.59 7.78 0.44 3.

SBI Sector Umbrella - Emerg. Businesses - Gr. 39.28 17-Sep-04 252.87 5.39 20.75 51.89 5.20 26.25 0.83 0.50 2.70 38.32 46.71 9.04 0.00 5.

EQUITY (Diversified)

NAV(` )

LaunchDate

AUM(` . in cr.)

RiskReturns (%) Market Cap (%)

BALANCED

Scheme Name

3M 6M 1Y 2Y 3Y Since Jensen Std. Small Mid Large Other DLaunch Dev. Cap Cap Cap & C

Launch AUM NAVDate (Rs. in cr.) (Rs.)

HDFC Prudence Fund - Gr. 202.38 1-Feb-94 4397.88 7.39 18.26 40.61 32.21 16.49 21.91 0.63 1.81 7.16 31.18 35.84 0.45 25

HDFC Balanced Fund - Gr. 52.07 11-Sep-00 167.02 7.56 15.66 37.20 25.47 16.28 18.16 0.61 1.44 8.43 25.15 33.29 0.00 33

Tata Balanced Fund - Gr. 79.97 8-Oct-95 280.59 3.42 10.76 29.07 21.48 12.20 17.49 0.46 2.10 1.82 22.73 50.61 0.00 24

Reliance RSF - Balanced - Gr. 21.81 8-Jun-05 562.9 3.38 16.57 28.47 29.41 19.80 16.37 0.45 1.88 0.00 13.47 50.24 4.22 32

Birla Sun Life 95 - Gr. 299.71 10-Feb-95 302.58 5.11 14.59 27.67 26.63 13.32 24.57 0.45 1.76 2.93 27.88 35.61 2.99 30

Canara Robeco Balance - Gr. 59.13 1-Feb-93 173.71 3.59 12.97 27.60 23.04 12.97 10.92 0.45 1.77 4.19 20.91 44.65 0.00 30

DSP BlackRock Balanced Fund - Gr. 63.62 27-May-99 704.65 3.27 10.46 26.01 19.03 13.45 17.99 0.44 1.80 3.52 32.47 37.09 0.17 26

NAV(` )

LaunchDate

AUM(` . in cr.)

RiskReturns (%) Market Cap (%)

INCOME FUND

Returns(%) RiskScheme Name

1 W 2 W 1 M 6 M 1 Y 3 Y

IDFC SSIF - MTP - Plan A - Gr. 16.07 8-Jul-03 229.9 1142.00 N.A. -10.78 -4.20 -1.35 7.13 9.11 9.19 6.94 0.85 0.2

Fortis Bond Fund - Regular - Gr. 11.87 8-Nov-08 36.75 164.00 N.A. 3.87 3.36 3.59 5.75 6.95 -- 10.48 0.60 0.2

Reliance RSF - Debt - Gr. 12.84 9-Jun-05 3252.22 485.00 7.11 -1.70 0.30 1.53 5.26 6.77 6.26 4.93 1.16 0.

Birla SL Dynamic Bond Fund - Ret - DAP 10.89 8-Apr-09 8894.18 460.00 7.2 -0.62 0.43 0.66 5.86 5.92 -- 6.75 1.34 0.0

DWS Premier Bond Fund - Regular Plan - Gr. 15.93 21-Jan-03 24.29 1091.00 N.A. -18.21 -10.05 -5.14 6.00 5.73 8.61 6.38 0.35 0.3

ICICI Pru. L T P - Regular - Cumulative 19.97 28-Mar-02 170.39 752.00 7.64 -16.40 -6.88 -5.24 3.90 5.25 7.53 8.64 0.75 0.

Sahara Income Fund - Gr. 17.90 22-Feb-02 155.08 73.00 N.A. 5.16 5.17 5.18 4.64 5.13 10.03 7.18 3.77 0.0

NAV(` )

LaunchDate

AUM(` . in cr.) Annualised

Average

Maturity

(Days)

Yield

Till

MaturitySincelaunch

Sharpe Std . D

LIQUID/ULTRA SHORT TERM


1 W 2 W 1 M 6 M 1 Y 3 Y

LIC MF Savings Plus Fund - Gr. 14.89 29-May-03 6325.84 212.00 N.A. 5.01 5.11 5.43 5.20 5.14 7.21 5.70 10.35 0.0

Edelweiss Short Term Bond Fund - Ret - Gr. 11.22 9-Sep-08 200.62 124.00 N.A. 5.21 5.19 5.16 4.93 5.10 -- 6.28 9.50 0.0

LIC MF Income Plus Fund - Gr. 12.58 30-May-07 7742.58 200.00 N.A. 5.48 5.30 5.44 5.18 5.10 7.51 7.50 8.01 0.0

Kotak Floater - LT - Gr. 14.87 13-Aug-04 6089.54 139.00 5.85 5.37 5.34 5.30 5.05 5.02 7.26 6.87 12.06 0.0

Reliance Medium Term Fund - Gr. 19.41 14-Sep-00 6173.14 110.00 6.54 5.59 5.54 5.48 5.08 4.93 6.44 6.95 10.45 0.0

Baroda Pioneer Treasury Adv. Fund- Reg- Gr. 10.54 24-Jun-09 2637.3 111.00 N.A. 5.94 5.87 5.89 5.19 4.91 -- 4.95 7.78 0.0

IDFC Money Manager -Invest Plan-Plan A -Gr. 14.29 9-Aug-04 5394.97 128.00 N.A. 2.55 3.60 4.31 4.84 4.89 6.51 6.16 13.45 0.0

NAV(` )

LaunchDate


Average

Maturity

(Days)

Yield

Till

MaturitySincelaunch

Sharpe Std . D

SHORT TERM FUND


1 W 2 W 1 M 6 M 1 Y 3 Y

Templeton India STIP - Gr. 1881.54 31-Jan-02 7051.71 427.00 7.33 -5.25 -2.34 2.11 5.86 7.23 9.40 7.72 1.17 0.

HDFC HIF - S T P - Gr. 18.73 6-Feb-02 3981.18 533.00 N.A. -4.87 0.22 0.84 5.60 6.37 9.86 7.68 0.93 0.

Birla SL ST Opportunities Fund - Ret - Gr. 14.56 24-Apr-03 1472.29 128.00 N.A. 7.17 6.61 6.06 5.43 6.11 6.85 5.30 1.40 0.0

HDFC Short Term Plan - Gr. 18.30 28-Feb-02 2468.68 380.00 N.A. -1.82 1.73 2.52 5.35 5.77 9.55 7.44 0.99 0.

DWS Short Maturity Fund - Gr. 16.91 21-Jan-03 307.19 277.00 N.A. 1.14 2.33 2.96 5.79 5.50 9.17 7.23 1.31 0.0

UTI Short Term Income Fund - Ret - Gr. 15.96 23-Jun-03 584.88 405.00 N.A. -1.05 0.38 1.36 4.70 5.42 8.22 6.80 0.80 0.

Kotak Bond Short Term Plan - Gr. 18.06 2-May-02 1107.91 493.00 6.75 -3.06 -2.21 -0.04 5.39 5.31 8.82 7.43 1.34 0.0

NAV(` )

LaunchDate


Average

Maturity

(Days)

Yield

Till

MaturitySincelaunch

Sharpe Std . D


19/20Prize distribut ion ceremony held at Mumbai

Franchisee India and Retail Show held at Ahemdabad on 24 - 25 July 2010

Mr Subhash C Aggarwal

CMD , SMC Group

awarded by Dr. Farooq Abdullah at

Business Sphere Award 2010 for

"Fastest grow ing retail network

of Financial Services "


20/20

Wisemoney 225 ISSUE

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