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Indian stock market daily morning report (February 09, 2010, Tuesday)

Contributed by Keynote Capitals

By Nitin A. Khandkar (Keynote Capitals)

Views on markets today

- The Sensex bounced back from the early slide yesterday, closing with marginal gains. The Government’s forecast that the economy would grow by 7.2% this fiscal year, reinforcing expectations of strong industrial growth, along with positive European markets helped markets recover. Most of the buying was seen in capital goods, banking and real estate stocks, whereas metal and auto stocks witnessed selling pressure.

- Market breadth was marginally weak at around 0.92x. FIIs sold equities worth Rs9.35bn, while domestic institutions bought equities of Rs3.8bn.

- The Asian markets are trading mixed this morning. The Nikkei is trading down as heightened concerns about the euro zone's sovereign debt troubles continued to hurt investor confidence. However, the Hang Sang is trading marginally higher.

- The Indian markets are likely to open flat this morning with negative bias as most of the Asian markets recovering after faltering in early trade today.

Economic and Corporate Developments

- The Government has forecast economic growth for the current fiscal at 7.2% against 6.7% achieved in the previous fiscal, raising fears of possibility that the Government may start to unwind its fiscal stimulus package in the forthcoming budget.

Buzzing Stocks

- GMR Infrastructure plans to raise nearly Rs15bn for its power subsidiary GMR Energy to enable it to fund its expansion plan to increase its power generation capacity to 3,300 MW in the next 3 years from 800 MW now.

- BHEL has bagged a Rs10.16bn order from Punatsangchhu Hydroelectric Project Authority in Bhutan to supply equipment for a 1200 MW hydro power plant being developed in the neighboring country.

- Areva T&D India has bagged two projects worth Rs280Cr from the Power Grid Corporation of India Ltd (PGCIL) for installation of two sub-stations at Punjab and Haryana.

- Nagarjuna Construction has secured five construction related orders aggregating Rs583Cr.

- The global private investment firm TPG has submitted a proposal to the corporate debt restructuring (CDR) cell to buy stake in Vishal Retail.

US markets

The overnight DJIA closed below 10,000 for the first time since November as investors sold bank shares due to heightened concerns about the euro zone's sovereign debt troubles. The market is still being under pressured due to concerns about the fiscal stability of Greece, Portugal and Spain, which have rattled global markets over the last two weeks.

The financial sector is also under pressure due to tougher rules the US president proposed recently to curb banks' risk-taking.