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Indian stock market daily morning report (September 02, 2010, Thursday)

Contributed by Keynote Capitals

By Keynote Capitals

Views on markets today

- Indian markets ended positive to a one month high yesterday on fund buying across the sector after firm global markets, strong auto sales, rising exports and expansion in manufacturing sector. Positive European markets also aggravated buying in the markets. TCS gained ~1.5% as its UK subsidiary Diligenta bagged contracts worth 250mn pounds. All sectoral indices closed positive with metal, real estate, IT and oil & gas led the market to close positive. Metals stocks rallied as a rebound in manufacturing in China propelled base metals.

- Market breadth was strong at ~2.94x as investors bought large cap stocks. Both FIIs and domestic institutions bought equities worth `3.59bn and `1.68bn respectively.

- The Asian markets are trading positive this morning. The Nikkei is trading higher, moving further away from a 16-month low touched the previous day, after US and Chinese manufacturing data eased investor worries about the global economy. The Hans Seng is also trading positive.

- Indian markets are expected to open higher in line with US and Asian markets that climbed after strong US manufacturing data, which soothed worries about the global economy. Momentum may be seen in cement companies after August shipments showed a mixed trend.

Key events today

- Announcement of food and fuel price inflation data.

Economic and Corporate Developments

- India's exports rose for the ninth straight month in July, growing an annual 13.2% to $16.24bn. Imports for the month rose 34.3% to $29.17bn. Exports during the April-July period rose 30.1% to $68.63bn.

Buzzing Stocks

- ONGC, foreign arm ONGC Videsh is set to acquire shale gas assets in the US.

- Jaguar Land Rover, a Tata Motors subsidiary, will launch a slew of entry-level cars, including a station wagon and a roadster, to boost volumes across markets.

- ICICI Bank seeks help from debt recovery tribunal in an attempt to recover dues from Subhiksha, which owes the bank over Rs1.5bn.

- Fortis Healthcare plans to launch an IPO for its diagnostics business unit, Super Religare Laboratories (SRL), in 2011. SRL had acquired the diagnostics business of Piramal Healthcare for Rs6bn in the first quarter of this financial year.

- TCS, through its UK subsidiary has acquired Unisys Insurance Services, in lieu of which the company received business worth ?250mn for the next six years

- Nalco is considering selling stake in its $3.9-billion aluminium project in Indonesia in lieu of acquiring equity in coal mines in the island country.

- Reliance Broadcast Network, plans to raise Rs4bn through a preferential issue.

- JSW Energy has commissioned commercial operation of the first unit of 300 MW of the 1,200-MW (4x300 MW) thermal power project at Jaigad, Ratnagiri district of Maharashtra.

- L&T Power Ltd, a subsidiary of L&T, expects its Hazira facility to be fully commissioned by the end of this year.

- Ranbaxy Laboratories has set up a new manufacturing facility in South Africa with an investment of US$30mn. The new facility will manufacture analgesics, cold, cough and flu preparations, antihistamines, anti-hypertensive, CNS drugs, vitamins and minerals as well as a comprehensive range of over-the-counter medication.

US markets

The US markets posted its best day in eight weeks as investor mood brightened after better-thanexpected factory data from the United States and China. Economically sensitive sectors like industrials and basic materials posted large gains, after the Institute for Supply Management (ISM) showed US factory activity grew faster than forecast. The ISM report added fuel to a global equities rally driven by strong overnight data out of China and Australia.

Apple Inc shot up 3% after it introduced a new version of Apple TV and a new iPod line up. Heavy equipment maker Caterpillar Inc rose 4.6% as it will invest $180mn over two years to expand manufacturing in Brazil, signalling confidence in emerging markets.