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Indian stock market daily morning report ( September 06, 2010,Monday)

Contributed by Keynote Capitals

By Keynote Capitals

Views on markets today

- Indian markets closed range-bound session marginally lower on Friday on caution ahead of US August employment report and rising food inflation evoked worries of a further rate hike by the RBI this month. Though most of the Asian and European markets remained in the positive terrain during the session, the Indian markets failed to hold on to their early gains. Metals, oil & gas and capital goods stocks witnessed selling pressure while some buying activities in real estate, auto and pharma stocks capped losses to major extend.

- Market breadth was however strong at ~1.33x as investors bought large cap stocks. FIIs bought equities worth `1.47bn.

- The Asian markets are trading positive this morning. The Nikkei gaining for a fourth day after fewer-than-expected US job losses in August bolstered optimism that the US economy would not fall back into recession. The Hang Seng is also trading positive.

- Indian markets are expected to open positive in line with the firm global markets after fewer U.S. job losses than expected. Maruti will in be focus after its parent, Japan's Suzuki Motor said it would build its fourth plant in India boosting output to 1.5 million units a year. Hindalco may also be in limelight as the company plans to spend $2.1 billion in the current financial year ending in March.

Economic and Corporate Developments

- Food inflation inched up marginally to 10.86% for the week ended August 31.

- Domestic Steelmakers have hiked flat steel prices by `2,000/ton making them costlier then the imported flat steel products.

Buzzing Stocks

- Wipro and Leica Geosystems bags `1.2bn project that involves setting up operator-independent truck dispatch systems at Coal India’s 11 large mines.

- SBI is considering the merger of all five of its remaining associate banks with itself, having amalgamated with two of them in the last two years.

- Indian promoters of Hero Honda are reportedly in talks with PE players to raise the funds to buy 26% stake held by Honda Motors.

- Cipla could take a decision on buying up to 25% stake in a unit of South Africa-based Cipla Medpro at the next board meeting in October.

- Reliance Capital AMC has bought two series of convertible preference shares in Trent, the retail arm of the Tata group, for `210mn.

- Videocon group may sell a controlling stake in its wireless unit to an overseas partner to help fund expansion of the business.

- Suzlon Energy wins 30MW order from Altrade Group.

- BHEL is in look out for a technology provider to manufacture heavy turbines for atomic power stations.

- NMDC may invest in Potash One Inc’s mining project in Canada and a rock phosphate venture in Zimbabwe, as part of a plan to diversify into fertilisers.

- Jet Airways plans to set up a maintenance, repair and overhaul facility in India, possibly in the South.

US markets

The US markets closed positive on Friday as stronger-than-expected labour market report bolstered optimism that the economy would not fall back into recession. US payrolls fell for a third straight month in August, the Labour Department said, but the loss of 54,000 non-farm jobs was far less than the 100,000 expected by economists.