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Indian stock market daily morning report (March 19, 2010, Friday)

Contributed by Keynote Capitals

By Nitin A. Khandkar (Keynote Capitals)

Views on markets today

- The Sensex closed marginally positive, extending its gains for the third successive day yesterday, after global rating agency Standard & Poor's upgraded India's outlook from negative to stable, saying the country's fiscal position could begin to recover and the economy would remain on a strong growth path. Bank, IT and metal stocks supported the market while FMCG and capital goods stocks capped gains.

- Market breadth was however weak at around 0.8x as investors sold small and mid cap stocks. FIIs bought equities worth Rs4.84bn, while domestic institutions sold equities worth Rs0.53bn.

- The Asian markets are trading positive this morning. The Nikkei is trading up as shares of exporters such as Canon Inc rose, helped by an advance in the US markets. The Hang Seng is also trading positive.

- The Indian markets are expected to open flat with positive bias. Key events today

- Opening of the IPO of Shree Ganesh Jewellery House (price band Rs260-270 per share), closes March 23.

- Closing of IPO of Persistent Systems (subscribed 5.67x as of March 18, 5PM)

Economic and Corporate Developments

- The Government has received applications from eight telecom companies to bid for 3G and broadband wireless access (BWA) spectrum to be auctioned starting April 9. Buzzing Stocks

- Welspun-Gujarat Stahl Rohren is acquiring a controlling stake in construction firm MSK Projects India for Rs4bn.

- SAIL and Korean steel major Posco have initiated talks to set up a steel plant under the joint venture route near SAIL’s existing steel making facility at Bokaro in Jharkhand.

- BEML has secured an order worth Rs6.3bn from the Defence Ministry for supply of 788 BEML Tatra vehicles to the Indian Army within 18 months.

- Punj Lloyd has bagged an order worth $40mn from Abu Dhabi Gas Industries Ltd (GASCO) for Engineering, Procurement and Construction of NGI (Mixed Case) Project in UAE.

- Fedders Lloyd, through its power division, has bagged orders worth Rs257Cr from Madhya Kshetra Vidyut Vitaran Co. Ltd. for supply, installation, testing and maintenance of high voltage distribution systems in various districts of Madhya Pradesh.

- ITC plans to open 25 new hotels under the Fortune brand during the next 12-18 months.

- Unitech plans to demerge its non-core businesses, like telecom, from the company to unlock value for shareholders.

US markets

The US markets closed positive for an eighth consecutive session, lifted by a rise in the Boeing stock, while a mixed group of economic Data. The Philadelphia Federal Reserve Bank's index showed factory activity expanded more than expected in March, although new orders fell. After the market, Palm Inc delivered news that it might weigh on technology shares, forecasting sharply lowerthan- expected revenue in the fiscal fourth quarter on dismal smartphone sales.