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Indian stock market daily morning report (September 09, 2010,Thursday)

Contributed by Keynote Capitals

By Keynote Capitals

Views on markets today

- Indian markets recovered from lower level in late trade and closed with marginal gain yesterday, outperformed global markets, which fell on renewed concerns about the health of European banks. IT stocks were major gainers despite disappointing news that the American state of Ohio has imposed a ban on outsourcing of government IT projects to offshore destinations such as India. Other than IT, other gainers were real estate, pharma and metal stocks while capital goods, FMCG and power stocks witnessed selling pressure. Sun Pharma gained 2.1% after the Supreme Court of Israel ruled in favour of the drug maker and paved the way for closing of its offer for Taro TAROF.PK.

- Market breadth was strong at ~1.19x as investors bought small and mid cap stocks. FIIs bought equities worth `2.81bn while domestic institutions sold equities of `98.21Cr.

- Asian markets are trading flat this morning. Nikkei rises on Europe relief but gains seen capped. Market sentiment improved after a successful auction of Portuguese debt eased concerns about the credit-worthiness of weaker European economies. Hangseng trading flat at 0.8% up.

- Taking cues from the global peers, Indian markets are expected to open on flat note.

Key events today

- Listing of IPO of Gujarat Pipavav Port, issue price: Rs46 per share

- Announcement of food and fuel price inflation data

Buzzing Stocks

- DLF plans to reduce its net debt burden

- Piramal Healthcare completes sale of domestic formulations biz to Abbott

- Ashok Leyland to mop up Rs 600 crore through long-term debt

- Nectar Lifesciences gets KFDA’s approval for Cefuroxime Axetil

- Neyveli Lignite to expand its mining capacity to 64.82 MTPA and power generation capacity upto 12790 MW

- BHEL to set up a financial arm in the form of NBFC where the company has started the process to identify a strategic partner

- Suven Life Sciences secures 8th product patent both in Australia and Mexico

- Shipping Corporation plans stake buyout in a shipyard to diversify its business after profit and sales of the company slumped last year

- Arcelor Mittal may get land for $6.4 bn India plant by December 2010

US markets

US markets closed slightly higher, but off the session highs as investors continued to exhibit wariness about the health of US economy. U.S. stocks rose on Wednesday as investors latched onto positive news out of Europe in the latest in a string of low-volume sessions suggesting little confidence in market direction.

Bank stocks recovered from Tuesday's losses, with JPMorgan Chase and Co up 2.2 percent and the BKW bank index .BKX up 1.7 percent. A successful Portuguese debt offering as well as news that nationalized Irish lender Anglo Irish Bank would wind down assets pulled global equity markets higher.

The important things to watch out today from the US are the weekly jobless claims and McDonald’s August sales