For private circulation only

01 March 2008

A weekly publication of SMI

Market settles higher in event dominated week

The market posted gains last week amid volatile trade ahead of expiry of February 2008

derivatives contracts. The BSE Sensex posted gains for 3 out of 5 days, whereas the

S&P CNX Nifty advanced for 4 out of 5 trading sessions. Small-Cap and Mid-Cap indices

underperformed the Sensex.

The Finance Minister P Chidambaram proposed to hike the short term capital gains tax

from 10% to 15% in Union Budget 2008-09 which he presented to the parliament on

Friday, 29 February 2008. However there was no change in corporate tax and the rate of

Securities Transaction Tax (STT), too, was kept unchanged. The finance minister said

STT paid by the taxpayer will be treated like any other deductible expenditure against

business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs

duty was kept unchanged at 10%.

The Finance Minister (FM) announced changes in personal income tax slabs that will

bring down tax liability of individual tax payers substantially. With an eye on parliamentary

elections in 2009, FM also announced a package of a massive Rs 60000 crore of waivers

of loans of farmers.

The 30-share BSE Sensex gained 229.65 points or 1.32% to 17,578.72, in the week

ended Friday, 29 February 2008. The S&P CNX Nifty advanced 112.75 points or 2.20%

to 5223.50, in the week.

The BSE Mid-Cap index rose 85.94 points or 1.13% to 7,680.39 in the week. The BSE

Small-Cap index rose 32.72 points or 0.34% to 9,628.13 in the week. Both these indices

underperfomed the Sensex.

Trading for the week started on an upbeat note with 30-share BSE Sensex gaining

301.50 points or 1.74% at 17,650.57 on Monday, 25 February 2008. The broader based

S&P CNX Nifty was up 89.95 points or 1.76% at 5,200.70 on that day. Oil & gas and

information technology stocks were in demand.

The 30-share BSE Sensex rose 155.62 points or 0.88% at 17,806.19 on Tuesday, 26 February

2008 after Railway Minister Lalu Prasad Yadav provided thrust on modernising rail

infrastructure in Railway Budget 2008-09 which he presented to parliament on that day. The

broader based S&P CNX Nifty was up 69.35 points or 1.33% at 5,270.05 on that day.

The key benchmark indices came off higher levels in late trade on Wednesday, 27

February 2008, to settle almost flat due to selling in IT and banking counters. The 30-

share BSE Sensex rose 19.80 points or 0.11% at 17,825.99. The broader CNX S&P Nifty

ended down 1.65 points or 0.03% at 5,268.40 on that day.

On Thursday, 28 February 2008, the barometer index BSE Sensex ended almost unchanged

in volatile trade as derivative contracts for February 2008 series expired. The 30-share

BSE Sensex ended down 1.51 points or 0.01% at 17,824.48. However, the broader CNX

S&P Nifty was up 16.7 points or 0.32% at 5,285.1 on that day.

Market slipped in volatile trade on 29 February 2008 after finance minister announced a

hike in short term capital gains tax to 15% from 10%, in Union Budget 2008-09. The 30-

share BSE Sensex slipped 245.76 points or 1.38% at 17,578.72. S&P CNX Nifty declined

61.60 points or 1.17% to 5,223.50 on that day.

India’s largest private sector firm by market capitalization and oil refiner Reliance

Industries rose 1.17% at Rs 2458.25 in the week. The company said on Tuesday, 26

January 2008 it had discovered more gas in an exploration block off India’s east coast.

This is the company’s eight discovery in the block.

Maruti Suzuki surged 13.12% to Rs 867.20 and Tata Motors rose 0.80% to Rs 700.25 in

the week. The government reduced excise duty on small cars to 12% from 16% and cut

excise duty on hybrid cars to 14%, from 24%, in the Budget.

DATE PURCHASES SALES NET

(RS CR) (RS CR) (RS CR)

FII (Equity)

Week Ended (02/28) 12787 12096 691

This Month (Feb 28) 73777 72043 1733

Jan ’99 to Till Date 1799616 1604289 186789

MF (Equity)

Week Ended (02/28) 4607 3428 1179

This Month (Feb 28) 15112 14891 221

Feb ’00 to Till Date 466835 432210 34627

INDEX SUMMARY

29-FEB-08 22-FEB-08 VARI(%)

SENSEX 17579 17349 1

NIFTY 5224 5111 2

BSE TECH 3265 3316 -2

BSE - 100 9405 9241 2

BSE -200 2217 2183 2

BSE -500 7108 6997 2

DOLLEX - 30 3611 3566 1

DOLLEX - 200 924 910 2

BSE - PSU 8484 8209 3

BSE AUTO 4887 4708 4

BSE BANKEX 10114 10150 0

BSE CAP. GOODS 16120 15656 3

BSE CONS DURA 4699 4890 -4

BSE FMCG 2274 2231 2

BSE HEALTHCARE 3929 3745 5

BSE IT 3862 3918 -1

BSE METAL 16740 16369 2

BSE OIL & GAS 11032 10673 3

2

SHAREMASTERINDIA

TOP GAINERS - Weekly

29-FEB-08 22-FEB-08 VARI (%)

GLAXOSMITH 1109.40 953.45 16.4

GODREJ CONS 134.85 116.30 16.0

PUNJAB TRACT 282.65 244.45 15.6

GUJ.IND.POW. 110.75 97.40 13.7

MARUTISUZUK 867.20 766.65 13.1

LANCO INFRA 475.20 421.50 12.7

CMC LTD. 924.85 829.00 11.6

NAT.ALUM 463.40 415.45 11.5

SUN PHARMA. 1225.90 1102.25 11.2

ING VYSYA BN 353.10 318.40 10.9

BHEL 2282.00 2058.85 10.8

TVS MOTOR L 43.70 39.50 10.6

CAIRN IND 228.20 206.35 10.6

MAH & MAH 692.80 628.80 10.2

UNITED PHOSH 334.85 305.15 9.7

TOP LOSERS - Weekly

29-FEB-08 22-FEB-08 VARI (%)

HEXAWARE TEC 74.50 82.55 -9.8

TITAN IND. 1097.60 1191.45 -7.9

BRIGADE 253.05 273.60 -7.5

EIH LTD. 172.50 186.35 -7.4

SUZLONENERGY 281.30 303.80 -7.4

POLARIS SOFT 88.80 95.40 -6.9

DLF LIMITED 780.55 828.90 -5.8

JSWSL 1061.55 1115.45 -4.8

REL.CAP. 1818.25 1901.95 -4.4

CORPN.BANK 325.55 340.20 -4.3

JETAIRWAYS 737.35 769.15 -4.1

GEOMETRIC L 67.65 70.50 -4.0

MICRO INKS L 305.20 317.45 -3.9

CHAMBAL FERT 58.50 60.75 -3.7

WELSP GUJ SR 440.45 457.20 -3.7

Market may stabilise

The market might stabilise in the coming weeks with the key event viz the Union Budget 2008-2009

over. Rollover of derivative contracts from February 2008 series to March 2008 series was decent.

Nifty saw rollover of about 75% and market wide rollover was 72% to 73%, when derivative

contracts expired on 28 February 2008.

The Finance Minister P Chidambaram proposed hike the short-term capital gains tax on sale of

shares to 15% from 10% in Union Budget 2008-09 which he presented to the parliament on Friday,

29 February 2008. However there was no change in corporate tax and the rate of Securities

Transaction Tax (STT), too, was kept unchanged. The finance minister said STT paid by the taxpayer

will be treated like any other deductible expenditure against business income.

The general Centvat on all goods has been reduced to 14% from 16%. The peak customs duty was

kept unchanged at 10%.

The 30-share BSE Sensex gained 229.65 points or 1.32% to 17,578.72, in the week ended 29

February 2008. The S&P CNX Nifty advanced 112.75 points or 2.20% to 5223.50, in the week.

Sensex is down 3,628.05 points or 17.10% from a record high of 21,206.77 hit on 10 January

2008. The barometer index is down 2708.27 points or 13.34% in calendar 2008 so far.

The wholesale price index rose 4.89% in the 12 months to 16 February 2008, higher than the

previous week’s rise of 4.35%, government data showed on Friday, 29 February 2008.

Domestic market will also be influenced by global markets. Federal Reserve Chairman Ben Bernanke

signaled a readiness to cut interest rates again to prevent further damage to the weak US economy,

even as he took note of rising inflation risks last week. Delivering the Fed’s semiannual report on

the economy to Congress, Bernanke made clear the central bank was worried a deepening housing

slump, softening jobs market and tighter credit could dim an already bleak economic outlook.

Higher crude oil prices are also a matter of concern. Crude oil prices touched a record high above

$103 a barrel on Friday, 29 February 2008, after Ecuador shut a key export pipeline and a fire hit a

major European natural gas plant, while the US dollar’s fall to a series of lows kept fresh funds

flowing in.

3

SHAREMASTERINDIA P/E Ratio

* BSE 500 companies

HIGH P/E RATIO STOCKS* LOW P/E RATIO STOCKS*

COMPANY PRICE 52 WEEK PE IND.

(29-FEB-08) HIGH LOW PE

Moser Baer (I) 177 345 164 182 13

Bombay Dyeing 693 1019 433 135 14

NIIT 124 172 85 133 5

GVK Power Infra 50 94 28 129 9

BOC India 158 233 120 94 13

Gulf Oil Corpn. 164 387 152 87 13

DCM Shriram Cons 72 106 56 79 21

PTC India 119 202 54 77 8

Brigade Enter 253 428 185 76 14

Karuturi Net. 270 442 74 67 10

NOCIL 30 68 20 55 13

Subex Ltd 273 675 234 51 15

Guj. St.Petronet 71 114 44 51 10

Tata Power Co. 1401 1641 483 50 9

Siemens 817 1125 484 50 20

Redington India 356 458 118 49 13

TVS Motor Co. 44 79 33 48 17

Puravankara Proj 311 535 290 45 14

Alstom Projects 730 1109 369 45 23

Asahi India Glas 87 137 85 43 12

Ganesh Housing 466 830 278 39 14

Rain Commodities 212 309 108 39 28

Kirl. Brothers 345 527 275 39 19

B H E L 2282 2925 970 39 23

Power Grid Corp. 110 167 80 38 9

Zee Entertainmen 241 363 169 38 29

Himatsing. Seide 81 140 70 37 14

Gati 123 215 80 37 31

Opto Circuits(I) 414 581 166 36 20

Elecon Engg.Co 237 343 111 35 8

Raymond 342 474 251 35 17

Nestle India 1372 1663 876 35 25

Tata Comm 508 783 342 34 6

Neyveli Lignite 152 274 49 34 9

Torrent Power 148 270 56 34 9

Jagran Prakashan 113 169 60 34 29

R C F 85 150 34 33 11

Guj. NRE Coke 157 181 32 33 10

ICRA 755 1158 525 33 10

Allcargo Global 799 1129 610 33 10

Trent 570 829 473 33 17

Sun TV Network 315 458 260 31 29

Apollo Hospitals 496 630 362 31 17

Blue Star 471 548 180 31 26

Motherson Sumi 107 124 67 30 12

Asian Paints 1112 1320 642 30 23

COMPANY PRICE 52 WEEK PE IND. DIV Y

(29-FEB-08) HIGH LOW PE (%)

JK Lakshmi 137 221 97 3 33 1

Mangalam Cement 138 243 107 4 33 3

Varun Ship. Co. 78 111 50 4 7 6

SRF 118 207 94 4 5 5

Bongaigaon Ref. 63 117 39 4 10 6

Birla Corp. 227 386 175 4 33 2

J K Cements Ltd 168 257 125 4 33 2

Dalmia Cement 365 620 296 5 28 1

Chennai Petroleu 300 490 173 5 10 4

Prithvi Info 258 358 206 5 15 1

Orient Paper 49 85 35 5 6 2

Aftek Ltd 53 103 46 5 15 2

Guj. Alkalies 173 275 107 5 15 1

Kesoram Inds. 405 675 296 5 21 1

Zylog Systems 256 525 233 6 15 1

Aurobindo Pharma 330 820 233 6 24 1

GE Shipping Co 417 572 185 6 7 3

Prism Cement 48 80 29 6 33 2

NIIT Tech. 131 425 90 6 15 5

Lloyd Electric 121 224 111 6 26 2

G N F C 182 231 87 7 11 2

Alok Inds. 69 108 50 7 9 2

Graphite India 54 96 43 7 12 6

T N Newsprint 105 147 81 7 11 4

Unichem Labs. 151 284 138 7 24 3

Indian Oil 561 810 355 7 10 3

Nava Bharat Vent 225 352 83 8 26 2

G S F C 253 370 152 8 11 2

H P C L 299 406 218 8 10 6

Alembic 55 108 51 8 24 2

B P C L 460 560 287 8 10 3

ISMT Ltd 71 140 64 8 11 1

Prajay Engg. 324 480 164 8 14 1

Asian Electronic 265 590 222 8 23 1

Torrent Pharma. 158 272 125 9 24 2

Man Inds. 114 177 86 9 11 1

Patni Computer 241 573 185 9 33 1

HCL Infosystems 213 300 125 9 13 4

Jindal Stainless 157 244 116 9 11 1

KPIT Cummins Inf 84 154 68