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Indian stock market and companies daily report (November 17, 2009, Tuesday)

Contributed by Angel Broking

By Angel Broking

The key benchmark indices pared their gains in late trade, as index heavyweights Reliance Industries (RIL) and Larsen and Toubro (L&T) came off the day's highs. Weakness in the US dollar aided the rally on the domestic bourses. Banking, realty, metal and auto stocks rose, but IT stocks fell. The market breadth was strong. The Sensex and the Nifty closed with gains of 1% each. The BSE Mid-Cap and Small-Cap indices also gained 1% each. Among the front liners, Maruti, DLF, Hero Honda, Sterlite and Rcom gained between 3%-5.5%, while TCS, Infosys, NTPC and HDFC Bank lost between 0.0%-0.6%. In the Midcap segment, BF Utilities, Everest Kanto, Amtek Auto, HT Media and Pantaloon Retail gained between 6.9%-20%, while Kansai Nerolac, Hind Oil Exploration, Aventis Pharma, National Fertilizer and Patni Computers lost between 3%-4.5%.

Markets Today
The trend deciding level for the day is 5042 / 17003. NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 5090 – 5121 / 17113 - 17193. However, if NIFTY trades below 5042 / 17003 for the first half-an-hour of trade then it may correct up to 5010 / 16923.

SAIL cuts the prices of flat products
SAIL has cut the prices of flat products by Rs500/tonne, used specifically for the auto and capital goods sectors. This is the second time in a month that SAIL has cut the prices of flat products. Notably, SAIL had cut the prices of flat products by Rs750-1,500/tonne in the beginning of this month. This cut in the prices of steel products have come on the back of a decline in global steel prices. The prices of steel have corrected by more than 20% in the last couple of months and are now hovering around US $500/tonne globally. However, the prices are not expected to fall significantly from here onwards, as demand remains healthy in the domestic market. We maintain a Neutral on SAIL.

HT Media hives off its Hindi Business Undertaking
HT Media has announced the sale/transfer of the Hindi Business Undertaking, comprising of Hindustan, a Hindi daily, Nandan and Kadambini, Hindi magazines, and internet portals of the respective publications, including all assets, liabilities and employees pertaining to the said Hindi Business Undertaking, on a slump-sale and going-concern basis, to Hindustan Media Ventures, a subsidiary Company, with effect from December 01, 2009 (opening), on Book Value as on November 30, 2009 (closing), for a lump-sum cash consideration of Rs149cr (including net working capital of Rs24cr). While the current move will help HT Media in increasing its focus on the Hindi business and pave way for future equity dilution for the same, there is no material change in its financials. Hence, we maintain Neutral on the stock.

Economic and Political News
- FII investments at US $15bn for the year so far
- Finance ministry seeks US$ 1bn World bank loan for roads
- Power ministry seeks abolition of service tax

Corporate News
- Aban raises Rs700cr through QIP
- Tata Steel to invest Rs1,100cr to up ore output
- Glenmark signs licensing deal with Medicis Pharmaceutical