Invest Scope

Invest Scope Daily

Daily
` February 8, 2011

Global Indices
Global 1D 1M 3M • Dow Jones rose on Monday, boosted by news of several big acquisitions and
Feb 7
% Chg % Chg % Chg a strong earnings report from Loews Corp.
Indices
• Nikkei ended higher on Monday as a weaker yen and a drop in the US
DJIA 12162 0.57 4.17 6.27 unemployment rate strengthened global economic recovery hopes.
Nasdaq 2784 0.53 2.99 7.95 • Straits Times fell on Monday amid concerns over the unrest in Egypt.
Nikkei 225 10592 0.46 0.48 10.04 • Hang Seng ended lower on Monday, led down by Chinese financial firms
Straits Times 3192 NA -2.12 -1.49 because of concerns about further tightening measures and oil companies
Hang Seng 23554 NA -0.56 -5.32 due to lower oil prices.
Shanghai • At 8 AM in the morning, Asian Markets were trading mixed.
Composite
closed NA NA NA
• FTSE index ended higher on Monday led by mining stocks which were driven
FTSE 100 6051 0.89 1.11 2.99 by firmer metal prices and strong results from Randgold.
Indian 1D 1M Trailing
Feb 7 Indian Equity
Indices % Chg % Chg PE
• Benchmark indices erased most intraday gains to end flat on Monday on
Sensex 18037 0.16 -8.40 19.83 basket-selling by FIIs with the NSE’s Nifty ending below the 5400-mark.
S&P CNX
5396 0.00 -8.61 20.69 • Among BSE sector indices, pharma and capital goods were the worst hit,
Nifty while realty and FMCG gained the most.
Advance Decline Ratio • Cipla ended down 3% on disappointing Oct-Dec results, while short covering
BSE NSE helped Suzlon Energy end 3.2% higher.
Advances 1138 474 • SpiceJet ended 3.6% down on reports that the CBI may probe the company's
Declines 1662 954 promoters on the source of funds for buying the company.
Unchanged 148 43 • Nagarjuna Construction ended down 3.6% on news that the company may
miss its 2010-11 (Apr-Mar) revenue target by at least 10% due to delays in
Rs. Cr FII Inv MF Inv DII Inv execution in the road and irrigation segments.
(Equity) Feb 4 Feb 4 Feb 7
Buy 2576 570 865.46 Derivatives Market
Sell 2351 592 877.86 • Nifty February futures (near future) closed down against the spot index with
Net 224 -21 -12.40 2 point discount; it also witnessed 0.27 mn decrease in open interest (OI).
Net Since • Put Call Ratio (OI) rose from 1.11 on February 4 to 1.15 on February 7.
Jan 1, 2011
-5916 951 6729.76
• Nifty 5500 February Call strike continued to witness the highest OI.
Derivative Statistics- Nifty • Nifty 5400 February Put strike continued to witness the highest OI.
Feb 7 Feb 4 Change
Near Futures 5394.05 5387.00 7.05 Indian Debt
Near Basis -1.95 -8.75 6.80 • Interbank rates ended at 6.50-6.60% on Monday as there was strong
demand from banks to meet their daily reserve requirements.
Near OI (Mn) 24.51 24.78 -0.27
• Banks borrowed Rs.65680 cr through RBI's repos vs Rs.56805 cr on Fri.
Put/ Call (OI) 1.15 1.11 0.04
• Government bonds were largely unchanged at the end of a lacklustre session
Futures
117084 188804 -71720 on Monday because participants refrained from taking fresh positions ahead
Turnover (Mn)
Rollover OI % 7.73 7.29 0.44 of the announcement of securities for the weekly bond auctions.
India VIX% 24.69 24.41 0.28 • Intraday, bonds weakened on concern over further monetary tightening.
OI= Open Interest • Fear of a rate action by the RBI rose as RBI Deputy Governor said that the
prevailing political turmoil in Egypt was adding to uncertainty over oil prices,
and would have an impact on RBI’s monetary policy.
Debt Market Indicators • The 7.80%, 2020 bond closed at 8.21% yield vs or 8.20% yield on Friday.
Call Rate 6.60% • Intraday, prices were largely unchanged after data released by the CSO
10 Yr Gilt 8.21% showed that GDP growth advance estimate for 2010-11 is pegged at 8.6%.
3-mth CP rate 10.00% • After market hours, RBI announced the auction of three gilts worth Rs.10000
5 yr Corp Bond 9.34% cr on February 11.
G-sec Volume (Rs Cr) 4170
Indian Rupee
Currencies Vs INR (Closing) • The Indian rupee rose against the US dollar on Monday because banks sold
Feb 7 Feb 4 the greenback as local shares held on to gains and on talks of dollar inflows
USD 45.48 45.59 from ECBs; bt dollar purchases by oil companies capped gains in the rupee.
GBP 73.58 73.67 •
Euro 62.04 62.24 Commodity News
100 Yen 55.44 55.91 • Crude oil prices fell $1.55 to settle at $87.48 a barrel on the NYMEX.
Commodity Week Month Year • CRISIL says that Indian sugar companies are unlikely to benefit from high
Feb 7 global prices, which are expected to remain firm at 30-year levels till May,
Prices Ago Ago Ago
NYMEX Crude due to export curbs imposed by the government.
Oil ($/bbl)
87.48 92.19 88.03 71.19
Gold (Rs / 10
gm)
20000 19973 20148 16263
Silver (Rs per
Kg)
44703 43016 44200 24400
Domestic Economic and Corporate News
• The CSO says that the Indian economy is likely to grow at 8.6% in FY11 compared with 8.0% a year ago; the farm sector is
likely to grow 5.4% in 2010-11, while industry and services are likely to expand 8.1% and 9.6%, respectively.
• FM says that he is concerned about inflation; adds that it is quite encouraging that growth is not deteriorating.
• FM says that government's fiscal and revenue deficit ratios in FY11 are likely to be lower than target because of higher than
expected growth in nominal gross domestic product.
• India’s GDP deflator shows that average inflation rate in FY11 is seen at 8.97% compared with 7.56% a year ago.
• Chief Statistician of India says that CSO will release a new national Consumer Price Index series on February 18.
• Indian government's direct tax collections rose 20.4% on year in Apr-Jan to Rs.3.175 lakh cr.
• Indian government signs a tax information exchange agreement with tax haven Isle of Man.
• Environment Ministry bans the use of plastic materials in the packaging of food items and for storing, packing or selling
products such as gutkha, tobacco and pan masala.
• Oil Ministry says that it is for expediting clearance to Vedanta Resources' acquisition of Cairn India, but wants ONGC's
concerns addressed before that.
• RBI Deputy Governor says that the central bank may factor in the surge in crude oil prices at its mid-quarter policy review.
• RBI Deputy Governor says that the government has started drawing down its huge cash balance with the RBI, a move which
will help ease liquidity in the banking system.
• RBI to open sub-offices in all the capital states of North-East, starting with Agartala.
• SEBI wants "interested" shareholders to keep away from voting on special resolutions on related-party transactions;
recommends to the Corporate Affairs Ministry to amend Clause 166 of the Companies Bill 2009.
• SEBI bans transfer of shares from Pacific Corporate Services, an entity barred from trading in stock market, to Investsmart
Financial Services.
• The Supreme Court stays an Allahabad High Court order asking Uttar Pradesh cane commissioner to hear Bajaj Hindusthan’s
claim on tax exemptions.
• ICAI asks PriceWaterhouseCoopers, KPMG, Ernst & Young and Deloitte to desist from acquiring Indian audit outfits.
• NASSCOM says that political unrest in Egypt is unlikely to directly hurt Indian Information technology companies in the near
term, but may cause uncertainty in potential markets for software exporters.
• BHEL enters into a technology tie-up with Spain's Abengoa Solar to develop concentrated solar power projects in India.
• BPCL says more gas has been discovered in a block in Mozambique in which the company holds a 10% participatory interest.
• SpiceJet says it may not raise fares immediately and wait for another spike in aviation turbine fuel prices before taking a call.
• Mercedes Benz India, fighting a legal battle for around 12 years over charges of resorting to unfair trade practice for phasing
out one of its vehicle models, is cleared of the allegation by national consumer commission.
• Association of Private Airport Operators want the government to bring aviation fuel under the Goods and Services Tax Act in
the upcoming budget and also double duty-free allowances for passengers coming from international destinations.
• IDBI Bank increases its base rate by 0.5% to 9.50% and BPLR by 0.25% to 14%.
• Oriental Bank of Commerce hikes its Base Rate and the BPLR by 50 bps each to 9.50% and 13.75%, respectively.
• L&T Finance Holdings may launch its initial public offer by Mar 31 if markets stabilise.
• Ratanchand Jewellers Ltd files initial papers with SEBI to raise up to Rs.150cr via an IPO.
• Construction Federation of India seeks service tax exemption for development of power projects in the upcoming Budget.

International News
• US Treasury Secretary says that Brazil is bearing a disproportionate burden from capital inflows because other emerging
economies are trying to sustain undervalued currencies.
• US Consumer credit increased by $6.1bn in December after rising $2bn in November; the amount of all outstanding
consumer credit rose 2.6% in the Q4 from a year earlier.
• Euro zone Sentix investor sentiment index rose to 16.70 in February from 10.6 in January.
• Bank of Japan Governor says that the Japanese economy is likely soon to emerge from its recent lull, but warns of the long-
term risks of the nation's deteriorating fiscal health.
• Japan’s current account surplus rose 30.5% in December from a year earlier to $1.2 trillion yen; for all of 2010, Japan
posted a trade surplus of 17.08 trillion yen, up 28.5% from 2009.
• Oil rig company Ensco PLC to buy Pride International Inc. for $7.3bn.
• Chesapeake Energy is planning to raise $5bn from sale of Fayetteville shale stake and other assets.

Mutual Fund News

• EPFO invites initial bids from fund managers for management of its corpus; the last date for submitting the bids is February
17.
• ICICI Prudential MF to launch ICICI Prudential Fixed Maturity Plan - Series 55 - 1 Year Plan C, a 367-day plan, on Feb 14.
• Tata MF launchs a 91-day fixed maturity plan, which will remain open until Feb 9.
• Canara Robeco MF to Canara Robeco Capital Protection Fund on Feb 11.
• IDBI MF to launch IDBI Monthly Income Plan on Feb 14, which will close on Feb 28.
• IDFC MF extends the exit period to 91 days from 31 days earlier on IDFC Ultra Short Term Fund for levy of 1% load.
• DSP BlackRock MF to extend the new fund offer of its DSP BlackRock FMP - 12M - Series 14 until Feb 14.

Day Ahead
• US Crude Inventories, week ended February 5
• UK Trade Balance, December
• Japan’s Consumer Confidence, January
• Japan’s Machine Tool Orders, January
• China’s HSBC Services Purchasing Managers Index (PMI), January
 Mutual Fund Scheme Returns as on February 4, 2011
Avg. P2P Returns Risk Ratios
Inception
AUM NAV 6 1 3 5 Since Std.
Date Sharpe
Rs Cr* Months Year Years Years Inception Dev
Large Cap
HDFC Equity Fund 8-Dec-94 8353 268.77 0.65 20.78 11.18 19.10 23.11 14.70 0.45
Reliance Quant Plus Fund 18-Apr-08 42 13.12 3.63 18.58 NA NA 10.17 17.11 -0.06
ICICI Prudential Focused Bluechip Equity Fund 7-May-08 1658 15.55 0.39 18.25 NA NA 17.73 15.60 -0.03
Fidelity Equity Fund 19-Apr-05 3269 33.98 -1.88 17.97 5.96 17.43 23.82 14.65 0.15
HDFC Top 200 Fund 1-Sep-96 9489 201.88 -0.33 17.23 9.26 19.24 23.34 15.13 0.05
Mid Cap and Small Cap
DSP BlackRock Micro Cap Fund - Regular 25-May-07 455 14.68 -11.81 21.74 4.14 NA 11.11 17.45 0.55
HDFC Mid-Cap Opportunities Fund 8-Jun-07 1195 14.52 -2.45 18.44 7.14 NA 10.87 14.42 0.52
ICICI Prudential Discovery Fund 30-Jul-04 1583 47.28 -0.84 16.05 14.54 16.67 27.09 14.17 -0.11
UTI Master Value Fund 1-Aug-05 689 50.13 -3.07 15.83 7.78 12.16 16.31 16.15 -0.07
IDFC Small & Midcap Equity (SME) Fund 15-Feb-08 1095 17.36 -6.33 15.63 NA NA 20.84 15.75 0.00
Diversified Equity
Reliance Equity Opportunities Fund 7-Mar-05 2861 33.82 -3.41 19.39 7.58 17.11 23.12 15.47 0.30
Fidelity India Growth Fund 26-Sep-07 350 11.79 -1.70 17.49 6.23 NA 5.15 15.03 0.03
Canara Robeco Emerging Equities 23-Feb-05 38 21.45 -5.51 17.21 0.45 8.88 14.05 14.36 0.09
HDFC Growth Fund 11-Sep-00 1388 83.02 -1.59 16.99 5.45 18.28 22.56 13.87 0.40
ICICI Prudential Dynamic Plan 7-Oct-02 2785 104.07 1.27 16.06 7.46 18.17 32.87 11.31 0.14
Index Funds
Reliance Gold Exchange Traded Fund 1-Nov-07 341 1900.51 10.66 20.21 18.61 NA 21.19 16.38 1.29
SBI Gold Exchange Traded Scheme (SBI GETS) 18-May-09 155 1990.16 10.51 20.19 NA NA 19.61 16.37 1.28
UTI Gold Exchange Traded Fund 12-Mar-07 449 1953.58 10.64 20.18 19.26 NA 20.91 16.43 1.29
Kotak Gold ETF 4-Jul-07 243 1952.98 10.63 20.15 19.20 NA 24.86 16.39 1.30
Gold Benchmark Exchange Traded Scheme
(Gold BeES) 23-Feb-07 1506 1954.29 10.61 20.12 19.35 NA 18.67 16.41 1.29
Sector and Thematic
ICICI Prudential Technology Fund 5-Feb-00 114 18.54 14.30 36.02 6.84 12.11 5.81 19.38 0.73
Kotak PSU Bank ETF 2-Nov-07 74 429.69 1.89 35.59 10.61 NA 12.69 25.54 0.59
PSU Bank Benchmark Exchange Traded Scheme
(PSU Bank BeES) 25-Oct-07 8 415.98 1.79 35.35 10.10 NA 55.19 25.50 0.59
Reliance Banking Fund 28-May-03 1639 97.97 1.06 35.00 14.10 26.31 34.41 21.06 0.86
UTI-Pharma & Healthcare 1-Aug-05 88 38.77 6.92 28.68 23.28 12.41 14.77 12.53 1.34
Balanced
HDFC Prudence Fund 1-Jan-94 5709 203.56 -0.76 17.82 11.29 18.25 20.13 10.58 0.84
HDFC Balanced Fund 20-Jul-00 225 52.21 0.00 15.38 10.34 15.02 17.21 9.15 0.66
Birla Sun Life 95 Fund 19-Jan-95 377 300.55 -0.49 14.58 8.05 16.80 24.35 10.34 0.06
Reliance Regular Savings Fund - Balanced 10-May-05 806 21.61 -2.69 14.28 11.45 16.30 14.58 12.18 0.20
ICICI Prudential Balanced Fund 8-Oct-99 274 44.07 0.94 12.22 0.73 9.23 14.36 10.48 -0.15
MIP
SBI Magnum Monthly Income Plan - Floater 30-Nov-05 11 13.18 2.49 9.04 4.72 5.48 5.47 3.07 1.25
HDFC Monthly Income Plan - LTP 29-Dec-03 9863 22.47 1.88 8.77 10.07 11.11 12.05 3.49 0.39
Canara Robeco Monthly Income Plan 3-Apr-01 352 28.94 1.80 7.83 8.39 11.52 11.95 2.48 0.33
Debt Long Term
SBI Dynamic Bond Fund 9-Feb-04 12 11.56 3.22 7.41 1.81 2.24 2.10 1.67 1.81
ICICI Prudential Banking & PSU Debt Fund -
Premium Plus 29-Dec-09 1488 10.69 3.70 6.63 NA NA 6.31 0.08 9.31
Templeton India Income Opportunities Fund 21-Dec-09 4109 10.81 2.23 6.21 NA NA 7.00 0.85 0.53
Avg. P2P Returns
Inception
AUM NAV 15 Days 1 Month 3 Months 6 Months 1
Date
Rs Cr* Year
Debt Short Term
JPMorgan India Short Term Income Fund 26-Mar-10 164 10.53 0.35 0.72 1.82 3.36 NA
Axis Short Term Fund - Retail 2-Mar-10 164 10.45 0.33 0.71 1.86 2.89 NA
Tata Treasury Manager Fund - RIP 12-Jul-07 107 1283.09 0.34 0.70 1.88 3.38 5.85
Liquid
Reliance Liquid Fund - Cash Plan 4-Dec-01 638 15.69 0.33 0.68 1.85 3.17 5.01
Reliance Liquidity Fund 16-Jun-05 7827 14.58 0.33 0.67 1.85 3.40 5.84
SBI Magnum InstaCash 19-May-99 3321 21.51 0.32 0.66 1.87 3.43 5.85
Note -
All returns below 1 year are actual and not annualised * Avg AUM as of December 2010
Only growth options of schemes are considered for calculating performance.
Risk Ratios are for the period of one year as of Jan 27, 2011 and annualised. Risk free rate is 5.60 - the average 91-day T-Bill auction cut-off rate for a one-year period
Standard Deviation is a measure of a scheme’s volatility and shows how much the actual performance of a fund over a period of time deviates from the average performance,
lower the better.
Sharpe Ratio measures whether the returns that a fund has delivered are commensurate with the kind of volatility it exhibited, higher the better.
Disclaimer: PL has taken due care and caution in composition of data. Information has been obtained by PL from sources it considers reliable .However, PL does not guarantee
the accuracy, adequacy or completeness of the information and is not responsible for any errors or omissions or for the results obtained from the use of such information. PL is
not responsible for any errors in data reproduction. PL especially states that it has no financial liability whatsoever to the subscribers and users of this bulletin.
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