market outlook, 22-08-2013

7/27/2019 Market Outlook, 22-08-2013

1/13

www.angelbroking.com

Market OutlookAugust 22, 2013

Dealers DiaryIndian markets are expected to open in the red today tracking negative opening

trades in the SGX Nifty and most of the Asian markets.

US stocks saw considerable volatility on Wednesday, before ending the day in the

red. The weakness seen at the close of trading on Wall Street came on the heels of

the release of the minutes of the Federal Reserve meeting which seemed to confirm

expectations that the Fed will begin tapering its asset purchase program at its next

meeting in mid-September. The minutes of the Fed meeting largely overshadowed

a report from the National Association of Realtors showing that existing home sales

jumped to a three-year high in the month of July. Meanwhile, European stocks fell

for a third consecutive session on Wednesday

Indian shares erased early gains to end in the red on FII selling as the rupee

continued its slide, dipping to a another record low of `64.45/dollar on the back

of dollar demand from oil companies and amid worries over Fed policy as

investors waited for hints from the July FOMC meeting minutes, due to be releasedlater in the day.

Markets Today

The trend deciding level for the day is 18,094/ 5,358 levels. If NIFTY trades above

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

up to 18,380 18,854 / 5,448 5,594 levels. However, if NIFTY trades below

18,094/ 5,358 levels for the first half-an-hour of trade then it may correct up to

17,620 17,333 / 5,213 5,123 levels.

Indices S2 S1 PIVOT R1 R2SENSEX 17,333 17,620 18,094 18,380 18,854

NIFTY 5,123 5,213 5,358 5,448 5,594

News Analysis

Fed minutes offer no clarity on timing of tapering RIL_Upgrade to Buy

Refer detailed news analysis on the following page

Net Inflows (August 20, 2013)

` cr Purch Sales Net MTD YTDFII 3,019 4,384 (1,365) (1,097) 64,300

MFs 546 476 71 82 (14,264)

FII Derivatives (August 21, 2013)

` cr Purch Sales Net Open InterestIndex Futures 4,728 4,529 199 16,285

Stock Futures 4,152 2,746 1,406 26,610

Gainers / Losers

Gainers LosersCompany Price (`) chg (%) Company Price (`) chg (%)

Apollo Hosp 879 6.7 Ranbaxy Lab 333 (12.8)

Indusind Bank 359.000 6.2 JPPOWER 13 (9.5)

Yes Bank 255.55 5.3 Hindustan Zinc 108 (9.3)

Gitanjali Gems 81 5.0 Sesa Goa 137 (8.8)

MCX 282 5.0 Financial Tech 130 (8.2)

Domestic Indices Chg (%) (Pts) (Close)BSE Sensex (1.9) (340) 17,906

Nifty (1.8) (99) 5,303

MID CAP (1.2) (66) 5,274

SMALL CAP (0.8) (42) 5,181

BSE HC (2.6) (224) 8,398

BSE PSU (1.4) (71) 5,020

BANKEX 0.5 51 10,562

AUTO (1.6) (156) 9,899

METAL (3.6) (269) 7,151

OIL & GAS (3.5) (284) 7,785

BSE IT (1.4) (105) 7,258

Global Indices Chg (%) (Pts) (Close)Dow Jones (0.7) (105) 14,898NASDAQ (0.4) (14) 3,600

FTSE (1.0) (63) 6,391

Nikkei 0.2 28 13,424

Hang Sang (0.7) (153) 21,818

Straits Times (0.6) (20) 3,109

Shanghai Com 0.0 0 2,073

Indian ADR Chg (%) (Pts) (Close)INFY (2.2) (1.1) $46.4

WIT (4.2) (0.4) $8.8IBN (4.2) (1.2) $26.7

HDB (3.4) (1.1) $29.5

Advances / Declines BSE NSEAdvances 886 427

Declines 1,372 863

Unchanged 146 75

Volumes (` cr)BSE 2,261

NSE 13,631

7/27/2019 Market Outlook, 22-08-2013

2/13



Fed minutes offer no clarity on timing of tapering

The minutes of the Federal Reserve released yesterday maintained uncertainty over

the timing of QE taper. The markets continue to expect bond purchase program of

USD85bn per month to be tapered down gradually since September at the latest

or by the year end. Economic data from the US suggests an improvement in laboroutlook but some of the other data remains mixed.

Reliance Industries Upgrade to Buy

We upgrade Reliance Industries (RIL) from Neutral to Buy. The stock price has

declined by 14% over the past one month on account of concerns on the possibility

of the government rolling back the announced gas price hike. However, these

concerns are overdone in our view.

On expectations of the Fed tapering off QE-3 and elevated domestic current

account deficit, the INR continues to weaken against the USD. This, in turn, has

resulted in tightening measures by the RBI which is not likely to support thedomestic cyclical businesses earnings growth in the near-term. RIL, on the other

hand, generates a majority of its revenue from exports while it has relatively better

pricing power in the domestic market. Moreover, cheap valuations (10.1x FY2015

PE) make it a better play than other defensives such as FMCG, Pharma and IT

stocks in our view.

Refining segment to gain due to INR depreciation: INR has depreciated against theUSD by 8% over the past one month. Since RIL exports a significant proportion of

its refined products, INR depreciation results in higher realizations and hence

higher profits for RIL. We opine that RIL is well-poised to benefit from the domestic

currency depreciation going forward.

Exhibit 1:Sensitivity of RILs GRMs and exchange rate with EPS (FY2014) GRMs

$7.0 $8.0 $8.5 $9.5 $10.5

Exchange

rate 55 55 61 64 71 77

57 59 66 69 76 83

59 64 71 74 81 8861 68 76 79 86 94

63 73 80 84 92 99

Source: Company, Angel Research

Regulatory concerns on gas price hike overdone: During June 2013, the CabinetCommittee of Economic Affairs (CCEA) had announced to raise gas price to

~US$8.4/mmbtu effective April 1, 2014 for a period of five years. However, since

then there have been concerns on price hike by some of the political parties.

Hence, RILs stock price has declined to factor in the uncertainty on gas price hike.

However, in our opinion, the government is unlikely to rollback the gas price hike

given its focus on increasing domestic gas production and its intent to lower

energy imports going forward. Hence, we believe that the gas price hike is likely to

stay.

Outlook and Valuation: RIL is likely to be a key beneficiary of the increase in gasprice. Moreover, higher gas price will incentivize RIL to explore gas blocks which

were unviable previously. Over the medium term, the company is likely to benefit

7/27/2019 Market Outlook, 22-08-2013

3/13

7/27/2019 Market Outlook, 22-08-2013

4/13

Date Company

August 29, 2013 Mphasis

Source: Bloomberg, Angel Research

Result Calendar

Global economic events release calendar

Date Time Country Event Description Unit Period Bloomberg Data

Last Reported Estimated

August 22, 2013 1:00PM Germany PMI Services Value Aug A 51.30 --

1:00PM Germany PMI Manufacturing Value Aug A 50.70 --

August 23, 2013 7:30PM Euro ZoneEuro-Zone Consumer Confidence Value Aug A (17.40) --

7:30PM US New home sales Thousands Jul 497.00 490.00

2:00PM UK GDP (YoY) % Change 2Q P 1.40 --

August 27, 2013 7:30PM US Consumer Confidence S.A./ 1985=100 Aug 80.30 --

August 29, 2013 6:00PM US GDP Qoq (Annualised) % Change 2Q S 1.70 --

1:25PM Germany Unemployment change (000's) Thousands Aug (7.00) --

August 30, 2013 5:30PM India Qtrly GDP YoY% % Change 2Q 4.80 --September 1, 2013 6:30AM China PMI Manufacturing Value Aug 50.30 --

September 2, 2013 2:00PM UK PMI Manufacturing Value Aug 54.60 --

September 5, 2013 4:30PM UK BOE Announces rates % Ratio Sep 5 0.50 0.50

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

September 6, 2013 2:00PM UK Industrial Production (YoY) % Change Jul 1.20 --

6:00PM US Change in Nonfarm payrolls Thousands Aug 162.00 --

6:00PM US Unnemployment rate % Aug 7.40 --

September 8, 2013 4:29PM China Exports YoY% % Change Aug 5.10 --

September 9, 2013 7:00AM China Consumer Price Index (YoY) % Change Aug 2.70 --

September 10, 2013 4:29PM India Imports YoY% % Change Aug (6.20) --

4:29PM India Exports YoY% % Change Aug 11.64 --

11:00AM China Industrial Production (YoY) % Change Aug 9.70 --

September 12, 2013 5:30PM India Industrial Production YoY % Change Jul (2.20) --

September 17, 2013 2:00PM UK CPI (YoY) % Change Aug 2.80 --

September 18, 2013 11:30PM US FOMC rate decision % Sep 18 0.25 --

11:00AM India RBI Repo rate % Sep 18 7.25 --

11:00AM India RBI Cash Reserve ratio % Sep 18 4.00 --

11:00AM India RBI Reverse Repo rate % Sep 18 6.25 --

October 18, 2013 7:30AM China Real GDP (YoY) % Change 3Q 7.50 --


August 22, 2013

Market Outlook

7/27/2019 Market Outlook, 22-08-2013

5/13



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

9.3

7.7

11.4

9.5

8.69.2

9.9

7.5

6.56.0

5.1 5.4 5.24.7 4.8

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

11.0

12.0

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

(%)

(0.1)

2.0

(0.7)

8.4

(1.0) (0.6)

2.5

0.6

3.5

1.9

(2.8)(2.2)

(4.0)

(2.0)

-

2.0

4.0

6.0

8.0

10.0

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

(%)

8.17.3 7.2 7.3 7.3 7.3

5.7

4.8 4.6 4.9

5.8

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

(%)

46.0

48.0

50.0

52.0

54.0

56.0

58.0

60.0

May-1

2

Jun-1

2

Ju

l-12

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

Mfg. PMI Services PMI

(15.0)

(12.0)

(9.0)

(6.0)

(3.0)

0.0

3.0

6.0

9.0

12.0

15.0

Aug-1

2

Sep-1

2

Oc

t-12

Nov-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Mar-

13

Apr-

13

May-1

3

Jun-1

3

Ju

l-13

Exports yoy growth Imports yoy growth(%)

3.00

4.00

5.00

6.00

7.00

8.00

9.00

Aug-1

2

Sep-1

2

Oct-12

Oct-12

Nov-1

2

Dec-1

2

Dec-1

2

Jan-1

3

Fe

b-1

3

Fe

b-1

3

Mar-

13

Apr-

13

Apr-

13

May-1

3

Jun-1

3

Jun-1

3

Ju

l-13

Aug-1

3

Repo rate Reverse Repo rate CRR (%)

7/27/2019 Market Outlook, 22-08-2013

6/13

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 138 - 2,685 1,674 1,923 13.7 13.7 6.8 7.6 20.3 18.2 3.8 3.4 20.0 19.6 1.8 1.5

United Phosphorus Buy 139 225 6,150 10,091 11,302 16.5 16.5 19.2 22.5 7.2 6.2 1.2 1.0 17.0 17.2 0.7 0.6

Auto & Auto Ancillary

Amara Raja Batteries Buy 255 305 4,357 3,474 3,952 15.5 15.5 19.0 21.0 13.4 12.1 3.3 2.7 27.2 24.2 1.3 1.1

Apollo Tyres Neutral 63 - 3,170 13,409 15,106 11.8 11.6 13.1 15.4 4.8 4.1 0.8 0.7 17.9 17.8 0.4 0.3

Ashok Leyland Buy 12 18 3,251 12,945 15,049 6.3 8.2 0.2 1.5 70.3 8.1 1.1 1.0 1.1 9.1 0.4 0.3

Automotive Axle# Neutral 207 - 313 700 890 8.7 10.7 11.1 25.8 18.6 8.0 1.2 1.1 6.2 13.9 0.5 0.4Bajaj Auto Buy 1,733 2,102 50,157 21,696 25,239 19.2 19.3 119.3 140.2 14.5 12.4 5.1 4.1 38.9 36.6 1.9 1.6

Bharat Forge Buy 220 256 5,125 5,942 6,417 15.2 15.5 15.6 19.7 14.1 11.2 2.1 1.8 15.4 17.3 1.1 0.9

Bosch India* Accumulate 8,159 9,096 25,619 9,301 10,895 16.8 18.0 339.9 423.1 24.0 19.3 4.0 3.4 16.6 17.6 2.4 2.0

CEAT Buy 116 170 419 5,159 5,628 9.3 9.0 43.5 48.6 2.7 2.4 0.5 0.4 18.4 17.5 0.2 0.2

Exide Industries Buy 123 148 10,442 6,899 7,873 14.7 14.7 7.9 9.0 15.5 13.6 2.7 2.3 18.3 18.0 1.2 1.0

FAG Bearings* Neutral 1,153 - 1,915 1,336 1,572 13.8 16.0 75.6 102.4 15.2 11.3 1.9 1.7 13.4 15.8 1.2 1.0

Hero Motocorp Accumulate 1,870 2,048 37,338 25,562 28,297 14.5 14.4 111.2 146.3 16.8 12.8 6.2 4.8 40.1 42.1 1.3 1.1

JK Tyre Buy 88 152 362 7,376 8,262 10.0 9.8 56.0 60.9 1.6 1.5 0.3 0.3 22.7 20.2 0.4 0.4

Mahindra and Mahindra Buy 784 1,011 48,277 42,318 48,067 12.0 12.2 58.5 67.1 13.4 11.7 2.7 2.3 21.6 21.1 0.9 0.7

Maruti Buy 1,285 1,648 38,820 45,862 52,647 11.2 11.1 94.6 109.9 13.6 11.7 1.8 1.6 14.4 14.6 0.7 0.6

Motherson Sumi Buy 206 242 12,107 28,442 31,914 8.4 8.7 13.0 16.1 15.9 12.8 4.2 3.3 29.4 28.6 0.5 0.5

Subros Buy 19 23 114 1,230 1,398 10.5 10.5 2.3 3.8 8.2 5.0 0.4 0.4 4.8 7.6 0.3 0.3

Tata Motors Buy 284 355 76,377 215,043 240,077 13.5 13.7 38.7 44.1 7.3 6.4 1.8 1.4 28.5 25.1 0.4 0.4

TVS Motor Buy 31 36 1,466 7,659 8,528 6.0 6.2 4.9 5.9 6.3 5.2 1.1 0.9 17.8 19.0 0.1 0.1

Capital Goods

ABB* Reduce 466 442 9,878 8,037 9,087 5.8 6.9 12.2 17.0 38.2 27.4 3.7 3.5 9.8 13.1 1.2 1.0BGR Energy Neutral 99 - 711 3,541 4,041 11.8 10.7 21.1 22.9 4.7 4.3 0.5 0.5 21.8 19.5 0.5 0.4

BHEL Neutral 105 - 25,626 43,140 39,692 16.8 15.9 20.2 17.1 5.2 6.1 1.1 1.0 23.1 17.2 0.4 0.5

Blue Star Buy 137 208 1,229 2,941 3,099 3.4 4.2 6.0 9.3 22.9 14.7 2.8 2.5 12.9 18.0 0.5 0.5

Crompton Greaves Buy 82 103 5,270 13,446 15,272 6.7 7.6 6.6 8.9 12.4 9.3 1.4 1.2 11.4 14.0 0.5 0.5

Jyoti Structures Neutral 17 - 137 3,312 3,555 9.0 9.0 4.5 6.5 3.7 2.6 0.2 0.2 5.6 7.7 0.3 0.3

KEC International Buy 24 36 626 7,709 8,399 6.2 6.9 5.1 8.1 4.8 3.0 0.5 0.4 16.6 21.5 0.3 0.2

Thermax Neutral 555 - 6,611 5,832 6,397 9.1 9.6 28.8 32.9 19.3 16.9 3.1 2.8 17.2 17.3 1.1 1.0

Cement

ACC Buy 1,010 1,361 18,971 11,581 13,009 17.6 19.3 63.9 81.5 15.8 12.4 2.4 2.2 15.6 18.2 1.4 1.1


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

7/13



Cement

Ambuja Cements Neutral 155 - 24,012 9,975 11,409 22.4 23.1 9.4 11.1 16.6 14.0 2.5 2.3 15.7 17.2 1.9 1.6

India Cements Neutral 49 - 1,501 4,796 5,357 16.4 16.1 7.3 9.5 6.7 5.2 0.4 0.4 6.4 8.0 0.7 0.6

J K Lakshmi Cement Buy 62 79 728 2,235 2,684 19.4 21.4 15.0 18.4 4.1 3.4 0.5 0.5 13.2 14.3 0.5 0.9

Madras Cements Neutral 149 - 3,548 4,010 4,524 23.5 23.4 14.9 18.3 10.0 8.2 1.3 1.2 14.0 15.2 1.5 1.3

Shree Cement^ Neutral 3,730 - 12,994 6,316 7,162 26.5 25.7 294.6 340.5 12.7 11.0 2.8 2.3 24.0 22.7 1.6 1.2

UltraTech Cement Neutral 1,623 - 44,501 22,021 25,274 22.0 21.6 99.5 113.3 16.3 14.3 2.5 2.2 16.7 16.6 2.0 1.8

ConstructionAshoka Buildcon Buy 48 60 757 1,912 2,131 21.0 21.5 5.0 5.5 9.5 8.8 0.7 0.6 8.8 7.6 1.7 1.8

Consolidated Co Neutral 6 - 120 1,715 1,824 2.4 6.2 (2.9) (0.4) (2.2) (18.0) 0.3 0.3 0.5 0.5

IRB Infra Buy 67 106 2,224 3,805 4,248 45.1 45.3 15.0 15.8 4.5 4.2 0.6 0.6 14.5 13.9 2.8 3.0

ITNL Buy 115 156 2,234 7,423 7,970 27.5 28.7 30.3 32.0 3.8 3.6 0.5 0.5 15.0 14.0 2.4 2.5

IVRCL Infra Neutral 10 - 309 5,673 5,892 7.8 7.6 (1.7) (2.0) (6.1) (5.1) 0.2 0.2 0.6 0.6

Jaiprakash Asso. Buy 30 41 6,735 12,946 14,897 24.7 25.6 1.2 2.7 24.7 11.3 0.5 0.5 2.0 4.3 2.4 2.2

Larsen & Toubro Buy 709 1,002 65,564 68,946 78,040 10.0 10.0 49.0 55.2 14.5 12.8 2.1 1.9 14.9 15.3 1.1 1.0

Nagarjuna Const. Buy 18 30 467 6,167 6,945 8.0 8.2 2.7 3.6 6.8 5.0 0.2 0.2 2.7 3.6 0.4 0.4

Punj Lloyd Neutral 22 - 724 12,726 14,226 8.2 8.2 0.9 1.0 25.4 21.3 0.3 0.3 1.0 1.2 0.6 0.6

Sadbhav Engg. Buy 59 99 897 2,462 2,731 10.6 10.6 5.3 6.0 11.3 9.9 1.0 0.9 9.2 9.6 0.7 0.6

Simplex Infra Buy 45 56 224 6,237 6,908 9.1 9.0 9.9 13.9 4.6 3.3 0.2 0.2 3.7 5.0 0.5 0.5

Unity Infra Neutral 19 - 137 2,146 2,339 12.9 13.0 9.3 9.6 2.0 1.9 0.2 0.1 8.0 7.7 0.7 0.7

Financials

Allahabad Bank Neutral 68 - 3,400 6,843 7,528 2.5 2.5 26.0 30.1 2.6 2.3 0.4 0.3 11.8 12.4 - -

Andhra Bank Neutral 53 - 2,983 4,868 5,390 2.4 2.5 12.3 16.6 4.3 3.2 0.4 0.4 7.9 10.0 - -

Axis Bank Buy 978 1,255 45,852 19,280 22,886 3.3 3.3 130.7 157.1 7.5 6.2 1.2 1.1 17.3 18.1 - -Bank of Baroda Accumulate 453 510 19,070 15,896 17,947 2.2 2.3 95.4 124.4 4.8 3.6 0.6 0.5 12.0 14.2 - -

Bank of India Buy 145 174 8,664 14,482 16,069 2.3 2.2 55.0 62.2 2.6 2.3 0.4 0.3 13.7 13.9 - -

Bank of Maharashtra Neutral 38 - 2,514 4,529 4,780 3.0 2.8 12.3 11.8 3.1 3.2 0.5 0.4 16.5 14.1 - -

Canara Bank Buy 207 241 9,163 11,454 12,378 2.0 2.0 52.4 60.5 4.0 3.4 0.4 0.4 9.8 10.4 - -

Central Bank Neutral 52 - 5,442 8,196 9,202 2.4 2.4 6.1 15.9 8.6 3.3 0.6 0.5 5.2 12.8 - -

Corporation Bank Neutral 253 - 3,873 5,641 6,083 2.0 2.0 82.7 98.1 3.1 2.6 0.4 0.4 12.6 13.5 - -

Dena Bank Neutral 45 - 1,582 3,307 3,531 2.2 2.4 17.5 21.6 2.6 2.1 0.3 0.3 11.9 13.2 - -

Federal Bank Buy 286 331 4,898 2,798 3,250 3.0 3.0 38.1 51.9 7.5 5.5 0.7 0.7 9.8 12.3 - -


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

8/13



Financials

HDFC Accumulate 747 824 116,087 8,679 10,350 3.6 3.6 37.5 44.7 19.9 16.7 4.2 3.7 30.1 30.7 - -

HDFC Bank Buy 594 724 141,844 27,392 33,264 4.6 4.6 36.3 45.1 16.4 13.2 3.3 2.8 21.9 22.8 - -

ICICI Bank Buy 829 1,038 95,650 25,727 29,969 3.2 3.2 83.2 96.7 10.0 8.6 1.3 1.2 14.9 15.4 - -

IDBI Bank Accumulate 55 61 7,377 9,518 10,468 2.0 2.0 15.5 22.1 3.6 2.5 0.4 0.3 10.2 13.3 - -

Indian Bank Neutral 68 - 2,903 5,940 6,396 2.7 2.7 24.9 32.9 2.7 2.1 0.3 0.3 10.3 12.4 - -

IOB Accumulate 39 41 3,567 7,692 8,627 2.2 2.3 8.1 15.2 4.8 2.5 0.3 0.3 5.9 10.5 - -

J & K Bank Neutral 1,092 - 5,293 3,038 3,370 3.7 3.9 214.2 202.6 5.1 5.4 0.9 0.8 19.8 16.3 - -LIC Housing Finance Accumulate 159 172 8,027 2,001 2,495 2.2 2.3 23.8 28.8 6.7 5.5 1.1 1.0 17.3 18.2 - -

Oriental Bank Accumulate 129 147 3,759 6,918 7,459 2.6 2.5 46.7 52.5 2.8 2.5 0.3 0.3 10.8 11.1 - -

Punjab Natl.Bank Accumulate 479 546 16,946 20,766 23,515 3.4 3.4 135.0 164.8 3.6 2.9 0.6 0.5 14.4 15.7 - -

South Ind.Bank Neutral 20 - 2,695 1,800 2,023 2.7 2.7 3.7 4.2 5.4 4.8 0.9 0.8 16.2 16.2 - -

St Bk of India Accumulate 1,550 1,637 105,998 65,392 74,467 3.0 3.0 192.5 240.5 8.1 6.4 1.1 1.0 13.1 14.7 - -

Syndicate Bank Accumulate 63 73 3,807 6,740 7,512 2.5 2.5 21.0 23.5 3.0 2.7 0.4 0.3 12.6 12.8 - -

UCO Bank Accumulate 52 55 3,948 6,770 7,017 2.8 2.6 14.8 15.5 3.5 3.4 0.6 0.5 14.4 13.5 - -

Union Bank Accumulate 108 119 6,448 10,458 11,809 2.5 2.5 32.0 40.6 3.4 2.7 0.4 0.4 11.6 13.4 - -

United Bank Accumulate 34 37 1,257 3,386 3,884 2.3 2.5 12.4 20.0 2.7 1.7 0.3 0.3 10.0 14.7 - -

Vijaya Bank Neutral 35 - 1,729 2,718 2,941 1.8 1.9 7.0 9.0 5.0 3.9 0.4 0.4 8.2 9.8 - -

Yes Bank Buy 256 298 9,204 4,417 5,486 2.7 2.8 42.9 49.5 6.0 5.2 1.3 1.1 23.9 22.8 - -

FMCG

Asian Paints Neutral 415 - 39,778 12,332 14,524 16.3 16.1 13.9 16.0 29.9 25.9 9.5 7.5 35.2 32.5 3.1 2.6

Britannia Neutral 687 - 8,229 6,422 7,367 6.9 7.3 24.2 29.7 28.4 23.2 10.0 7.7 39.6 37.7 1.3 1.1

Colgate Neutral 1,268 - 17,242 3,588 4,130 18.9 19.4 41.2 48.4 30.8 26.2 27.3 21.2 100.0 91.0 4.6 4.0

Dabur India Neutral 149 - 26,050 7,183 8,297 16.8 16.9 5.4 6.3 27.9 23.8 9.8 7.8 39.2 36.7 3.7 3.1

GlaxoSmith Con* Neutral 4,007 - 16,854 3,617 4,259 16.1 16.4 122.2 148.7 32.8 27.0 10.2 8.2 34.1 33.7 4.2 3.5

Godrej Consumer Neutral 823 - 28,003 7,801 9,017 16.2 15.9 25.1 29.7 32.7 27.7 7.1 5.9 24.9 24.2 3.7 3.2

HUL Neutral 588 - 127,114 28,415 31,962 13.6 14.1 16.7 18.2 35.2 32.3 33.9 24.6 112.2 88.1 4.3 3.8

ITC Neutral 300 - 237,546 34,294 39,991 36.8 37.0 11.3 13.3 26.6 22.5 8.8 7.1 36.1 34.9 6.6 5.6

Marico Neutral 208 - 13,425 5,104 5,876 15.1 15.2 7.2 8.6 29.1 24.3 5.6 4.6 21.1 20.9 2.7 2.3

Nestle* Neutral 4,855 - 46,810 9,330 10,860 21.8 21.9 123.3 149.7 39.4 32.4 19.3 14.1 56.4 50.3 5.0 4.3

Tata Global Neutral 142 - 8,775 8,070 8,958 9.8 9.9 7.6 8.5 18.8 16.7 2.2 2.1 9.3 9.7 1.1 0.9


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

9/13



IT

HCL Tech^ Buy 884 1,070 61,628 32,266 35,103 23.5 22.6 69.7 74.0 12.7 12.0 3.4 2.8 26.5 23.0 1.7 1.5

Hexaware* Accumulate 116 128 3,467 2,273 2,575 22.2 21.5 12.4 13.4 9.4 8.7 2.4 2.1 25.4 23.5 1.4 1.2

Infosys Neutral 2,953 - 169,592 48,731 52,962 26.9 27.1 180.8 200.3 16.3 14.7 3.5 3.0 20.4 19.3 2.9 2.5

Infotech Enterprises Accumulate 174 190 1,944 2,128 2,341 17.2 17.6 21.3 23.2 8.2 7.5 1.3 1.1 14.9 14.0 0.6 0.4

KPIT Cummins Buy 126 155 2,440 2,769 3,122 18.3 17.8 15.3 16.6 8.2 7.6 1.7 1.4 20.9 18.4 0.8 0.6

Mindtree Accumulate 980 1,060 4,072 2,871 3,110 20.4 20.7 102.6 111.2 9.6 8.8 2.3 1.8 24.8 20.3 1.1 0.9

Mphasis& Buy 374 450 7,868 6,827 7,342 21.0 21.2 47.0 51.3 8.0 7.3 1.4 1.2 14.3 14.2 0.7 0.5NIIT Neutral 18 - 302 1,144 1,267 9.0 9.1 4.3 5.4 4.3 3.4 0.4 0.4 10.3 12.0 0.1 -

Persistent Neutral 556 - 2,223 1,590 1,774 23.5 23.8 48.5 56.9 11.5 9.8 1.9 1.6 16.4 16.1 1.0 0.8

TCS Buy 1,717 2,015 336,055 80,353 91,576 30.0 30.0 91.0 103.2 18.9 16.6 6.1 4.9 31.5 29.2 4.0 3.4

Tech Mahindra Buy 1,236 1,485 28,715 17,749 19,406 22.5 21.0 113.6 114.2 10.9 10.8 3.2 2.5 27.9 22.1 1.3 1.1

Wipro Neutral 442 - 108,878 43,610 47,320 21.6 22.2 30.0 33.0 14.7 13.4 3.3 2.8 20.7 19.4 2.0 1.8

Media

D B Corp Accumulate 234 267 4,285 1,783 1,968 23.8 25.0 13.6 16.0 17.2 14.6 4.2 3.6 22.5 22.9 2.3 2.0

HT Media Buy 91 112 2,142 2,205 2,380 14.1 14.4 7.6 8.4 12.0 10.8 1.3 1.2 10.7 10.7 0.6 0.5

Jagran Prakashan Buy 85 104 2,806 1,683 1,845 19.7 20.8 5.9 6.9 14.4 12.3 2.7 2.5 19.4 21.2 1.7 1.6

PVR Neutral 367 - 1,455 1,359 1,540 17.3 17.4 17.2 21.6 21.3 17.0 2.1 2.0 10.3 12.0 1.5 1.3

Sun TV Network Neutral 381 - 15,028 2,287 2,551 69.7 70.5 20.0 23.3 19.1 16.4 4.7 4.1 26.4 27.3 6.2 5.5

Metals & Mining

Bhushan Steel Reduce 451 419 10,216 12,640 15,667 28.5 31.5 25.9 38.6 17.4 11.7 1.0 1.0 6.1 8.5 2.6 2.1

Coal India Neutral 261 - 164,604 68,303 69,884 32.5 30.3 27.5 25.0 9.5 10.4 3.6 2.5 40.2 33.1 1.6 1.5

Electrosteel Castings Buy 10 15 328 1,976 2,017 11.8 12.7 0.1 1.2 157.1 8.3 0.1 - 0.1 1.9 0.6 -

GMDC Buy 84 115 2,655 1,701 1,985 47.8 48.8 17.4 20.6 4.8 4.1 0.9 0.8 20.7 20.9 1.1 0.8Hind. Zinc Buy 108 143 45,528 12,389 13,093 48.5 51.7 15.2 17.0 7.1 6.3 1.2 1.1 18.5 18.0 1.5 1.0

Hindalco Neutral 93 - 17,873 95,465 102,491 8.4 9.0 13.9 17.2 6.7 5.4 0.5 0.5 7.6 8.7 0.6 0.5

JSW Steel Neutral 497 - 12,014 45,022 48,140 16.0 15.9 68.5 77.0 7.3 6.5 0.7 0.6 9.3 9.7 0.8 0.7

MOIL Accumulate 202 223 3,390 956 982 42.3 44.3 25.3 26.2 8.0 7.7 1.1 1.0 14.6 13.7 0.9 1.0

Monnet Ispat Buy 95 139 604 2,199 2,575 21.6 22.8 30.7 38.6 3.1 2.5 0.2 0.2 7.7 8.9 1.3 1.0

Nalco Neutral 27 - 7,010 7,270 7,521 13.6 13.8 2.8 2.9 9.8 9.4 0.6 0.6 5.9 6.0 0.4 0.4

NMDC Buy 109 132 43,374 10,718 11,514 66.6 64.5 15.5 16.1 7.1 6.8 1.4 1.3 21.2 20.0 2.0 1.8

SAIL Neutral 43 - 17,553 44,060 54,227 9.2 10.9 5.3 6.8 8.0 6.3 0.4 0.4 5.2 6.5 0.7 0.6


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

10/13



Metals & Mining

Sesa Goa Buy 137 164 11,946 3,817 5,781 12.1 17.7 27.0 29.6 5.1 4.6 0.6 0.6 12.9 12.5 4.0 2.6

Sterlite Inds Buy 79 99 26,616 44,493 45,599 22.4 23.9 16.8 19.2 4.7 4.1 0.5 0.4 10.5 10.9 0.5 0.5

Tata Steel Buy 248 313 24,081 153,862 167,209 9.9 10.7 39.0 56.0 6.4 4.4 0.6 0.6 10.6 13.6 0.5 0.4

Sarda Buy 80 98 288 1,323 1,398 17.2 17.9 25.3 27.8 3.2 2.9 0.3 0.3 9.5 9.6 0.6 0.5

Prakash Industries Buy 28 37 374 2,486 2,637 15.2 15.0 13.7 14.2 2.0 2.0 0.2 0.2 9.1 8.7 0.4 0.3

Godawari Power andIspat

Accumulate 69 78 227 2,171 2,317 14.9 15.8 36.4 46.6 1.9 1.5 0.2 0.2 11.6 13.0 0.5 0.4

Oil & Gas

Cairn India Buy 301 364 57,457 18,403 17,925 71.9 62.1 62.1 57.4 4.8 5.2 1.0 0.9 22.6 17.8 1.9 1.7

GAIL Neutral 300 - 37,997 49,700 48,822 16.0 16.6 32.9 33.4 9.1 9.0 1.4 1.2 15.9 14.4 0.3 0.2

ONGC Buy 251 352 214,486 169,963 196,050 35.3 36.6 33.4 38.7 7.5 6.5 1.3 1.1 17.7 18.2 1.0 0.7

Reliance Industries Buy 784 959 253,226 417,856 442,434 8.6 8.4 74.2 77.7 10.6 10.1 1.1 1.0 12.6 11.9 0.6 0.5

Gujarat Gas* Neutral 199 - 2,557 3,270 3,414 12.8 12.6 22.6 23.1 8.8 8.6 2.4 2.1 28.2 25.6 0.6 0.5

Indraprastha Gas Neutral 262 - 3,666 3,656 4,456 21.5 18.6 25.7 26.8 10.2 9.8 2.1 1.8 22.1 19.6 1.0 0.8

Petronet LNG Accumulate 124 135 9,304 39,449 43,315 5.3 5.9 14.1 16.9 8.8 7.4 1.8 1.5 21.7 21.9 0.3 0.3

Gujarat State PetronetLtd.

Buy 52 67 2,898 1,002 1,021 91.4 91.5 8.2 8.4 6.3 6.2 0.9 0.8 14.3 13.0 2.4 2.2

Pharmaceuticals

Alembic Pharma Buy 129 165 2,437 1,736 2,008 17.1 18.9 10.7 13.9 12.1 9.3 3.8 2.8 35.0 34.7 1.5 1.2

Aurobindo Pharma Buy 172 259 5,019 6,641 7,637 15.9 15.9 17.3 20.6 10.0 8.4 1.6 1.3 19.5 18.9 1.2 1.0

Aventis* Neutral 2,400 - 5,528 1,682 1,917 15.6 15.6 91.9 101.7 26.1 23.6 3.7 3.6 15.6 17.1 2.8 2.3

Cadila Healthcare Buy 658 894 13,481 7,123 8,367 15.5 15.7 37.3 44.7 17.7 14.7 3.7 3.1 22.9 22.9 2.2 1.9

Cipla Buy 392 477 31,499 9,274 10,796 23.1 23.1 21.0 23.8 18.7 16.5 3.0 2.6 17.2 16.8 3.1 2.6

Dr Reddy's Buy 2,045 2,535 34,768 13,377 15,350 20.4 20.1 112.1 126.6 18.2 16.2 3.9 3.2 23.5 21.8 2.7 2.3

Dishman Pharma Buy 46 73 368 1,394 1,534 22.5 22.4 14.8 16.6 3.1 2.7 0.3 0.3 10.8 11.0 0.9 0.8

GSK Pharma* Neutral 2,247 - 19,033 2,744 2,964 22.0 23.4 59.2 66.6 38.0 33.7 9.4 9.1 24.9 27.5 6.1 5.6

Indoco Remedies Buy 61 78 560 747 906 15.3 15.3 5.9 7.6 10.3 8.0 1.2 1.1 12.5 14.4 1.0 0.8

Ipca labs Accumulate 622 674 7,853 3,246 3,830 20.5 21.7 36.2 44.9 17.2 13.9 4.0 3.2 26.1 25.7 2.6 2.2

Lupin Buy 767 904 34,354 11,576 13,855 22.0 22.0 35.8 43.0 21.4 17.8 5.2 4.1 27.1 25.8 3.0 2.5

Ranbaxy* Buy 333 426 14,078 10,400 11,331 6.6 8.4 11.4 15.2 29.2 21.9 3.1 2.7 11.1 13.1 1.4 1.3

Sun Pharma Neutral 483 - 99,931 13,509 15,846 41.0 41.0 16.5 19.9 29.2 24.3 5.9 4.9 22.0 22.0 6.8 5.6

Power

GIPCL Accumulate 57 65 856 1,444 1,482 33.4 33.0 13.7 14.8 4.1 3.8 0.5 0.4 12.3 12.0 0.7 0.4

NTPC Buy 130 163 107,438 75,046 81,780 23.5 23.9 12.7 13.6 10.3 9.6 1.2 1.1 12.2 12.0 2.1 2.1


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

11/13



Real Estate

DLF Buy 151 179 26,858 8,293 9,622 36.5 36.1 5.7 6.7 26.4 22.4 0.9 0.9 3.7 4.1 5.3 4.4

MLIFE Accumulate 436 483 1,779 888 1,002 27.0 29.9 33.9 42.1 12.9 10.4 1.3 1.2 9.9 11.2 2.6 2.3

Telecom

Bharti Airtel Buy 299 350 119,362 83,535 92,173 32.0 33.1 9.2 12.9 32.5 23.1 2.1 2.0 6.8 8.9 2.1 1.8

Idea Cellular Neutral 160 - 53,191 26,717 29,443 30.6 29.8 5.5 6.7 29.5 23.9 3.3 2.9 11.1 12.0 2.4 2.1

Rcom Neutral 115 - 23,664 22,050 23,647 30.6 30.8 3.2 5.2 35.9 22.0 0.7 0.7 1.9 3.1 2.7 2.4

OthersAbbott India* Buy 1,319 1,628 2,803 1,788 1,996 12.5 12.7 71.7 81.4 18.4 16.2 3.7 3.2 21.7 21.2 1.3 1.2

Bajaj Electricals Sell 160 184 1,596 3,885 4,472 4.0 5.8 6.8 15.4 23.7 10.4 2.1 1.8 8.8 17.3 0.4 0.4

Cera Sanitaryware Buy 505 613 639 631 797 14.5 13.7 42.6 51.1 11.9 9.9 2.8 2.3 26.5 25.3 1.0 0.8

Cravatex Buy 260 307 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 Buy 52 68 788 2,563 2,899 9.8 9.8 10.1 11.3 5.1 4.6 0.7 0.6 14.3 13.8 0.2 0.2

Force Motors Buy 289 349 376 2,304 2,649 3.1 3.6 28.0 43.7 10.3 6.6 0.3 0.3 3.1 4.7 0.1 0.1

Goodyear India* Accumulate 310 345 715 1,458 1,542 8.3 9.0 32.3 37.0 9.6 8.4 1.8 1.5 19.5 19.3 0.3 0.3

Hitachi Buy 102 153 276 1,080 1,199 8.9 9.1 18.3 19.1 5.6 5.3 1.0 0.8 19.2 17.0 0.4 0.3

Honeywell Automation* Neutral 2,317 - 2,049 1,842 2,131 7.7 7.8 111.1 130.9 20.9 17.7 2.6 2.3 13.3 13.9 1.0 0.9

IFB Agro Buy 134 156 121 491 642 12.3 13.8 35.0 50.9 3.8 2.6 0.6 0.5 18.2 21.6 0.2 0.1

ITD Cementation Buy 155 194 178 1,365 1,502 10.9 11.2 18.2 28.0 8.5 5.5 0.4 0.4 5.1 7.4 0.6 0.5

Jyothy Laboratories Buy 162 199 2,681 1,244 1,523 14.1 14.2 5.9 10.0 27.3 16.2 3.3 2.9 12.7 18.8 2.5 2.0

MRF Buy 13,005 16,218 5,515 11,799 12,587 14.1 13.5 1,792.0 1,802.0 7.3 7.2 1.5 1.3 23.5 19.2 0.6 0.5

Page Industries Accumulate 4,174 4,669 4,656 1,059 1,296 19.5 19.8 125.0 155.6 33.4 26.8 16.5 12.1 56.3 52.2 4.5 3.7

Relaxo Footwears Buy 738 981 885 1,196 1,401 11.9 12.6 55.6 75.4 13.3 9.8 3.2 2.4 27.1 28.1 0.9 0.7

Siyaram Silk Mills Accumulate 198 228 186 1,158 1,322 10.6 11.0 60.5 75.9 3.3 2.6 0.5 0.4 16.8 18.1 0.4 0.3Styrolution ABS India* Buy 347 492 611 1,007 1,108 8.4 8.7 30.3 35.1 11.5 9.9 1.3 1.1 11.7 12.2 0.6 0.5

TAJ GVK Buy 55 108 345 300 319 35.8 36.2 7.9 9.1 7.0 6.0 0.9 0.8 13.9 14.4 1.5 1.2

Tata Sponge Iron Buy 256 371 395 814 849 17.0 17.6 64.6 69.2 4.0 3.7 0.5 0.5 14.5 13.8 0.1 (0.1)

TTK Healthcare Buy 500 632 388 416 481 4.5 6.1 16.2 25.3 30.9 19.7 3.8 3.4 12.6 18.1 0.8 0.7

Tree House Buy 233 297 837 153 194 53.0 52.8 12.4 15.6 18.8 14.9 2.2 2.0 11.8 13.1 5.7 4.3

TVS Srichakra Buy 170 230 130 1,591 1,720 6.1 6.4 30.5 38.3 5.6 4.4 0.7 0.7 13.5 15.5 0.3 0.2

United Spirits Neutral 2,110 - 30,661 12,294 14,162 12.0 12.0 42.1 67.7 50.1 31.2 3.5 3.2 9.1 10.7 2.8 2.4

Vesuvius India* Buy 356 439 723 600 638 20.1 19.4 35.7 36.6 10.0 9.7 1.8 1.6 19.4 17.1 1.0 0.9


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

12/13



Others

HSIL Buy 84 117 556 2,042 2,363 14.6 14.8 12.3 16.5 6.8 5.1 0.5 0.5 7.6 9.4 0.7 0.6

Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on August 21, 2013


Market Outlook

Stock Watch

August 22, 2013

7/27/2019 Market Outlook, 22-08-2013

13/13

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

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment

decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should makesuch investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companiesreferred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits andrisks of such an investment.

Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, makeinvestment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in thisdocument are those of the analyst, and the company may or may not subscribe to all the views expressed within.Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable sourcesbelieved to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is forgeneral guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any way responsible for anyloss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Pvt.Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make anyrepresentation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel BrokingPvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance,or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,redistributed or passed on, directly or indirectly.

Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking orother advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or inthe past.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from orin connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates may haveinvestment positions in the stocks recommended in this report.


market outlook, 22-08-2013

Documents