makin97 NSETIPS @ RAKESH MAKIN: MARKET ENDED 11.07.2011 THURSDAY

WERE TODAY'S GAINERS

MARKET ENDED 14.07.2010 THURSDAY

S ENSEX 18618.20 +22.18

NIFTY 5599.80 +14.35

NASDAQ 2787.70 -09.22

UPDATEDTIME 09.28 PM 14 JULY 2011

Benchmarks ended on a positive note, paring intraday gains, as bulls ran out of steam near crucial resistance levels and as weakness in European markets weighed sentiments.

Indices opened in the red and gradually moved higher as investors picked up stocks from realty, banks and pharmaceuticals stocks. The upmove gained momentum after the June inflation data was released.

India's wholesale price index rose 9.44 per cent in June against 9.06 per cent in May. The inflation was below the median forecast of 9.70 per cent. According to experts, the inflation numbers do not fully account for the recent hike in diesel, LPG and kerosene. The Reserve Bank of India is likely to hike interest rates by 25 bps at its July end meet.

With the WPI likely to remain elevated at 9%+ levels in the coming months and the RBI re-iterating that inflation is likely to get priority over growth, we maintain our view of the RBI hiking rates by a further 50bps taking the repo rate to 8% by Dec11. Odds thus favor a 25bps hike on July 26.

While recent macro data has been soft, and the global macro scenario has deteriorated, we think tracking pricing power in the on-going corporate result season would be key to whether we could see an elongation of the tightening cycle.

Bombay Stock Exchange's Sensex closed at 18618.20, up 22.18 points or 0.12 per cent. The 30-share index hit a high of 18803.05 and low of 18449.23 intraday.

National Stock Exchange's Nifty ended at 5599.80, up 14.35 points or 0.26 per cent. The broader index touched a high of 5653.95 and low of 5541.70 in trade today.

BSE Midcap Index was up 0.38 per cent and BSE Smallcap Index moved 0.18 per cent higher.

Amongst sectoral indices BSE Realty Index was up 2.26 per cent higher, BSE Bankex moved up 1.04 per cent and BSE Healthcare Index advanced 0.80 per cent. BSE IT Index was down 1.47 per cent and BSE FMCG Index edged 0.27 per cent lower.

Shares of Tata Consultancy Services were down ahead of quarterly results.

We expect TCS to report revenues at US$ 2,383 mn (+6.2% QoQ, ~70 bps QoQ benefit from cross currency). Operation margins estimated to decline by ~180 bps QoQ to 28.4% on a/c of wage hikes and US$/INR appreciation.

Profits estimates at Rs 22.6 bn (-5.7% QoQ) impacted by lower operating profits. Key things to monitor- (1) outlook on demand across verticals and (2) pricing outlook.

The brokerage has ACCUMULATE rating on the stock with the target price of Rs 1275.

TCS (-2.23%), Infosys Technologies (-1.55%), Reliance Communications (-1.42%), Bajaj Auto (-1.25%) and ONGC (-1.18%) were amongst the top Sensex losers.

IDFC (3.53%), Ambuja Cement (2.96%), Sesa Goa (2.93%), ACC (2.73%) and DLF (2.55%) were the major Nifty gainers.

Bajaj Auto reported standalone net profit of Rs 711.06 crore for the quarter ended June 2011 against Rs 590.15 crore in the same quarter a year ago. Net sales were at Rs 4586.91 crore for June 2011 quarter against Rs 3737.29 crore in the corresponding quarter a year ago.

The much talked about Rs 11,500 crore share sale of state-run Oil and Natural Gas Corp (ONGC) has been deferred again and is unlikely to hit the market before mid-August.

Regards

RAKESH MAKIN

+91 9915684997, 9041667797(DIRECT)

OFF 0172-4657997

PANCHKULA (Haryana).

Email:makin_97@yahoo.com

Email:rakeshmakin@yahoo.com