DEALER’S DIARY 6th March 2012

Ansal Properties & Infrastructure Ltd sold 1.90 mln sq ft area for nearly 2.0 bln rupees in February, and 1.94 mln sq ft area for 2.4 bln rupees in January. Ansal Properties said realisations declined around 15% in February as the share of floor space index sales in total sales increased. However, in the 11 months ended Feb 29, realisations increased 10% to around 1,183 rupees a sq ft due to higher realisations in the residential segment. In the period,

Ansal Properties sold area worth 23.9 bln rupees, and payments from customers improved around 23%.

ICICI Bank, Bank of Baroda, Citicorp Finance India Ltd, and Life Insurance Corp of India today signed a memorandum of understanding to set up an infrastructure debt fund. The infrastructure debt fund will be structured as a nonbanking finance company. ICICI Bank, together with a wholly-owned subsidiary, will hold 31% stake in the

company, Bank of Baroda 30%, Citicorp Finance India Ltd 29%, and LIC 10%."The IDF (infrastructure debt fund) would seek to raise debt capital from domestic as well as foreign resources and would invest in infrastructure projects under the public-private partnership model that have completed one year of operations.

Promoter group company Tata International Ltd sold its entire 0.06% stake or 1.58 mln shares of Tata Motors Ltd on Mar 3. As of Dec 31, the total promoter holding in Tata Motors was at 35.04%.

The Reserve Bank of India said over-the-counter trades of certificates of deposit, and commercial papers must be settled according to procedures followed while reporting over-the-counter trades of corporate bonds. The settlements have to be done through the pooling accounts of the National Securities Clearing Corp Ltd, and Indian Clearing Corp Ltd.

Shares of Indraprastha Gas may rise Tuesday on news the company is hiking prices of compressed natural gas by 1.70-1.90 rupees/kg to offset the rise in natural gas cost.

Market Outlook Tuesday the 6th March 2012

The trend in domestic shares will hinge on the state election

result Tuesday, and a clear win for the Samajwadi Party in Uttar

Pradesh, as predicted by the exit polls, could further dampen

sentiment. In that case, the Samajwadi Party will not need

Congress' support to form a government in Uttar Pradesh, which

would imply that the latter could struggle to remain in control at

the Centre. Most exit polls have predicted Congress would come

fourth in the state. However, the exit polls can be misleading and

it will be prudent to wait for the final results. Shares of Anil

Ambani-promoted companies that ended up 2-6% could get a

further boost Tuesday if the election result favours the Samajwadi

Party. We see strong support for the Nifty at 5200 and do not

expect the index to slip below that mark. Resistance for Nifty is

seen at 5370 levels. Volatility may rise in the coming days as

market reacts to a spate of key events such as IIP and inflation

data, RBI's policy meet Union Budget and advance tax numbers