1

Market Outlook India Research

April 13, 2010

Please refer to important disclosures at the end of this report Sebi Registration No: INB 010996539

Dealer’s Diary The benchmark indices turned highly volatile as bulls and bears remained indecisive post reports of the market regulators sparring over Unit Linked Insurance Products. The markets opened in green but slipped sharply soon following cues from major Asian markets. However the markets soon recovered sharply and managed to trade in positive at the end of afternoon session. Volatility set in as markets fell in the final session and closed with ~0.5% losses. The Sensex and Nifty ended with losses of 0.5% and 0.4% respectively, while BSE Mid-cap and Small-cap indices were mixed with loss of 0.1% and gains of 0.3% respectively. Among the front-liners, Hero Honda, Sun Pharma, HUL, ITC and Tata Steel were up by 1-2%, while Tata Motors, L&T, M&M, Sterlite and NTPC were down by 2-3%. In the Mid-cap segment, HMT, Balrampur Chini, Ruchi Soya, Bombay Dyeing and AstraZeneca were up by 5-7%, while Essar Shipping & Ports, REI Six Ten, Allahabad Bank, Central Bank and Sobha developers were down by 3-5%.

Markets Today The trend deciding level for the day is 17888 / 5349 levels. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17960 – 18067 / 5373 – 5406 levels. However, if NIFTY trades below 17888 / 5349 levels for the first half-an-hour of trade then it may correct up to 17781 – 17709 / 5316 – 5292 levels.

Indices S2 S1 R1 R2

SENSEX 17,709 17,781 17,960 18,067 NIFTY 5,292 5,316 5,373 5,406

News Analysis Simplex Infrastructure - Company Update

IVRCL bags three orders worth Rs832cr

HCC secures order worth Rs608cr

Result Preview - Infosys 4QFY10

Refer detailed news analysis on the following page.

Net Inflows (Apr 09, 2010) Rs cr Purch Sales Net MTD YTD

FII 2,631 2,373 258 3,868 23,679 MFs 464 828 (364) (644) (6,462)

FII Derivatives (Apr 12, 2010)

Rs cr Purch Sales Net Open Interest

Index Futures 985 972 13 14,050 Stock Futures 1,064 1,415 (351) 29,611

Gainers / Losers

Gainers Losers

Company Price (Rs) Chg (%) Company Price (Rs) Chg (%)

Apollo Hosp 663.6 11.9 Great Offshore 530 -6.6

Ispat Ind. 22.3 7.8 Amtek Auto 176 -3.4

Castrol India 609.3 6.2 Dr Reddys Lab 1,147 -3.3

Reliance Power 154.2 4.9 Glaxo Pharma 1,594 -3.2

Sintex Ind. 269.0 4.8 Cipla 335 -3.0

Domestic Indices Chg (%) (Pts) (Close)

BSE Sensex -0.5% (80.1) 17,853

Nifty -0.4% (22.1) 5,340

MID CAP -0.1% (7.1) 7,078

SMALL CAP 0.3% 28.5 9,092

BSE HC -0.5% (28.0) 5,320

BSE PSU -0.8% (75.2) 9,054

BANKEX -0.8% (91.7) 10,805

AUTO -0.9% (66.5) 7,749

METAL -0.2% (43.2) 18,302

OIL & GAS -0.3% (34.3) 10,395

BSE IT 0.2% 10.3 5,339

Global Indices Chg (%) (Pts) (Close)

Dow Jones 0.1% 8.6 11,006

NASDAQ 0.2% 3.8 2,458

FTSE 0.1% 6.7 5,778

Nikkei 0.4% 47.6 11,254

Hang Seng -0.3% (70.3) 22,138

Straits Times 0.2% 5.2 2,977

Shanghai Com -0.5% (16.1) 3,129

Indian ADRs Chg (%) (Pts) (Close)

Infosys 0.8% 0.5 $61.4

Wipro -0.7% (0.2) $23.5

Satyam -0.4% (0.0) $5.5

ICICI Bank -3.7% (1.7) $43.3

HDFC Bank 0.1% 0.1 $147.8

Advances / Declines BSE NSE

Advances 1,566 644

Declines 1,329 674

Unchanged 79 35

Volumes (Rs cr)

BSE 4,275

NSE 12,384

April 13, 2010 2

Market Outlook | India Research

Simplex Infrastructure – Company Update Simplex Infrastructure (SI) has underperformed the BSE Sensex and its peers by ~15% YTD, primarily on account of poor quarterly performances and a lack of visibility on the order book front. However, we believe that it has entered into a comfortable valuation zone (lower than its five and three-year average P/E trading bands) and will catch the eye of investors, given the long-term opportunity in the infra space and with private capex (forming >50% of SI's business) expected to improve in the second half CY2010 (given the excellent IIP numbers). We are expecting a 28.2% Earnings CAGR over FY2010-12E, owing to strong Top-line growth (CAGR of 19.2%) and stable EBITDA margins. We have assigned a Target P/E multiple of 14x (at a ~20% discount to its three and five-year average) on its FY2012E EPS, which implies a potential upside of 24% from current levels. Therefore, we reiterate a Buy on SI, with a Target Price of Rs586. IVRCL bags three orders worth Rs832cr IVRCL Infrastructures and Projects Ltd (IVRCL) has bagged three orders amounting to Rs832cr. The projects are spread across regions of Mumbai, Gurgaon and Tamilnadu and are expected to be finished within a time frame ranging between 30-48months. The Outstanding Order Book of IVRCL stands at around Rs18,800cr or 3.2x its FY2010E revenues. We have valued IVRCL on an SOTP basis, valuing its core construction business at a FY2012E target P/E of 14x, whereas its stake in Hindustan-Dorr Oliver and IVR Prime have been valued on a MCap basis. At CMP of Rs179, the stock trades at 9.0x FY2012E and 1.2x FY2012E P/BV on a standalone basis. We maintain a Buy on the Stock with a Target price of Rs240. HCC secures order worth Rs608cr Hindustan Construction (HCC), a leading construction and development company, has secured order amounting to Rs608cr. The Orders is relating to Reconstruction and completion of Dry Dock and Associated North and South Wharves at Naval Dockyard, Mumbai and is to be completed in a time frame of 48months. With accretion of these orders the outstanding Order Book stands at around Rs17,000cr or 4.6x its FY2010E revenues. At CMP of Rs143, the stock trades at 13.0x FY2012E and 1.1x FY2012E P/BV on a standalone basis. In the backdrop of rich valuations we continue to maintain our Neutral view on the Stock. Result Preview - Infosys 4QFY10 We expect Infosys to witness 3.1% qoq growth in revenues backed by volumes to Rs5,919cr in 4QFY10 ahead of its guidance of Rs5,721cr. The EBIDTA margins are expected to contract by 75 bp on account of strong manpower intake and higher SG&A spends with improved business environment. The net profit is expected to be up by 2% qoq to Rs1,613cr. We maintain Buy on the stock.

April 13, 2010 3

Market Outlook | India Research Economic and Political News

Industrial output up 15.1% in Feb’10

RBI allows FIIs to pledge Govt. bonds as collateral for stocks

All-India 3G bid at Rs4,324cr; Delhi, Gujarat sees highest prices

Corporate News

Glenmark settles drug patent row with GSK

Pfizer promoter hikes stake to 70.8%

Retail buyers may get 5% discount on SAIL FPO Source: Economic Times, Business Standard, Business Line, Financial Express, Mint

Events for the day Infosys Dividend, Results Mastek Results Essar Oil Results Blue Dart Results

April 13, 2010 4

Market Outlook | India Research

Research Team Tel: 022-4040 3800 E-mail: research@angeltrade.com Website: www.angeltrade.com

DISCLAIMER This 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 make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment.

Angel Securities Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document 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 and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, and is for general guidance only. Angel Securities Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Securities 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 Securities Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past.

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

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section).

Angel Broking Ltd: BSE Sebi Regn No : INB 010996539 / CDSL Regn No: IN - DP - CDSL - 234 - 2004 / PMS Regn Code: PM/INP000001546 Angel Securities Ltd:BSE: INB010994639/INF010994639 NSE: INB230994635/INF230994635 Membership numbers: BSE 028/NSE:09946

Angel Capital & Debt Market Ltd: INB 231279838 / NSE FNO: INF 231279838 / NSE Member code -12798 Angel Commodities Broking (P) Ltd: MCX Member ID: 12685 / FMC Regn No: MCX / TCM / CORP / 0037 NCDEX : Member ID 00220 / FMC Regn No: NCDEX / TCM / CORP / 0302

Address: Acme Plaza, ‘A’ Wing, 3rd Floor, M.V. Road, Opp. Sangam Cinema, Andheri (E), Mumbai - 400 059. Tel : (022) 3952 4568 / 4040 3800