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Indian stock market daily morning report (March 18, 2010, Thursday)

Contributed by Keynote Capitals

By Nitin A. Khandkar (Keynote Capitals)

Views on markets today

- The Sensex closed positive yesterday in line with the strong markets as sentiments turned bullish after the US Fed Reserve maintained its pledge to keep interest rates near zero, and pointed to increased momentum in the recovery of the US economy. Metal stocks rose on gains in metal prices on the London Metal Exchange. Infosys Tech and TCS touched all-time highs on improving demand outlook on the back of a recovery in world markets.

- Market breadth was, however, weak at around 0.78x as investors sold small and mid cap stocks. FIIs bought equities worth Rs8.15bn, while domestic institutions sold equities worth Rs2.97bn.

- The Asian markets are trading negative this morning. The Nikkei is trading down as property stocks like Mitsui Fudosan retreated on a brokerage downgrade and recent gainers like Canon lost ground. The Hang Seng is also trading low.

- The Indian markets are expected to open negative and remain volatile on lower Asian markets

Key events today

- Listing of IPO of United Bank of India (issue price Rs66 per share) (NSE: UNITEDBNK, BSE code: 533171)

- Announcement of food price inflation

Buzzing Stocks

- L&T has bagged a project worth Rs1,013Cr from ONGC for engineering, procurement and installation of four well platforms for the Mumbai High North Re-development Project.

- Reliance Communications has enter into deal with Polycom Inc to roll out wireless video conferencing services in India, expanding its offerings in the world's fastest growing market for wireless services.

- TTMLhas agreed to sell its telecom towers for an enterprise value of Rs1,318Cr to Tata Quippo.

- Dalmia Cement will split its business into four units as it seeks to raise funds for various businesses and expand them.

- Birla Power Solution to invest nearly Rs50bn in three years to set-up thermal and solar power plants.

- Venus Remedies is planning to foray into European drug market with innovative generic injectables and cancer drugs.

- McNally Bharat has bagged an order worth Rs173.2Cr for works at Mahanadi Coalfields in Sambalpur, Orissa.

- Gail has set a target of transmitting 114.8mscmd of natural gas from domestic sources and through liquefied natural gas during FY11.

US markets

The US markets closed at a 17-month high, after a benign February inflation data supported the Federal Reserve's renewed pledge of low interest rates. The market reacted positively to a drop in the February Producer Price Index, further supporting the near-zero interest rates.