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Indian stock market daily morning report (February 08, 2010, Monday)

Contributed by Keynote Capitals

By Nitin A. Khandkar (Keynote Capitals)

Views on markets today

- The Sensex continued its downward trend last Friday, closing below the 16,000 mark on concern over Europe's sovereign debt, indications of weak US jobs data and a fall in commodity and energy prices. Persistent  selling pressure was seen across the board and all sectoral indices closed negative with real estate, metals and capital goods stocks were the worst affected. Auto stock also declined after a government-appointed panel recommended additional duty on diesel-powered vehicles. Indian markets were open for a couple of hours last Saturday, for the purpose of software testing.

- Market breadth was extreme weak at around 0.21x as investors sold large cap stocks. FIIs sold equities worth Rs17.2bn, while domestic institutions bought equities of Rs11.68bn.

- Asian markets are trading lower this morning. The Nikkei is trading down as exporters were hurt by a stronger yen and mixed signals from the US labour market and growing anxiety over fiscal problems in Europe. The Hang Sang is also trading lower.

- The Indian markets may open flat this morning in absence of positive cues, and remain volatile on the back of weak Asian market.

Key events today

- Listing of IPO of Jubilant FoodWorks

- Opening of IPO of ARSS Infrastructure Projects (price band Rs410-450 per share); IPO closes February 11.

Buzzing Stocks

- L&T is planning to enter the general insurance business with no plans of a foray into the life insurance space.

- Reliance Industries gives a $2bn acquisition proposal to Canadian oil-sand major Value Creation Inc.

- McNally Bharat has bagged two orders worth Rs56.64Cr from Hindalco for construction related works for Aditya Aluminium Smelter Project and Mahan Aluminium Smelter Project.

- Torrent Power is planning to add 375MW capacity to its present capacity of 1,147.50MW at Sugen generation plant with an investment of Rs1,500Cr.

- ONGC has tied-up for Rs2,224Cr debt from Power Finance Corp for its proposed 700MW power plant at Tripura.

- BPCL plans to convert its ‘In&Out’ outlets into profit making ventures such as food courts and coffee shops by the next year.

- Kamdhenu Ispat plans to invest about Rs250Cr in next the 2-3 years to expand its existing businesses and fund diversification plans.

US markets

The US market closed with marginal gain after unemployment rate dropped to a five-month low of 9.7%. However, persistent concerns about the euro zone's sovereign debt problems restrict the market for a major gain. The investors have also showed interest in the technology and materials stocks, which were the worst performers during recent times.