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Indian stock market daily morning report (August 23, 2010, Monday)

Contributed by Keynote Capitals

By Keynote Capitals

Views on markets today

- Indian markets ended range-bound session with modest losses on the back of weak global cues and profit booking on Friday. European and Asian markets declines weighed by poor US economic data, which reignited global economic worries, led the downward trend in the markets. The downward movement was mainly led by loss in FMCG, IT and banks stocks while real estate, capital goods and oil & gas stocks witnessed some buying activities.

- Market breadth was weak at ~0.84x as investors sold large cap stocks. FIIs bought equities worth Rs6.62bn while domestic institutions sold equities of Rs1.02bn.

- The Asian markets are trading lower this morning. The Nikkei is trading negative, dented by selling by hedge funds and foreign investors amid worries that a strong yen would derail a fragile economic recovery and lingering fears about global economic growth. The Hang Seng is also trading lower.

- The Indian markets are expected to have a flat to positive start in today’s session owing to the mixed cues from the global peers.

Key events today

- Opening of the IPO of Gujarat Pipavav Port Ltd. (price band Rs42-48 per share), closes August 26.

Economic and Corporate Developments

- India’s engineering exports jumped about 26% yoy to US$3.2bn in July on the back of revival in the US demand.

- SEBI is planning to make listing of all Mutual Funds schemes mandatory. These will include all debt, equity, open-ended and close-ended schemes.

Buzzing Stocks

- Bharti Airtel has outbid Idea Cellular, Karbonn Mobile and Micromax to win the sponsorship rights of all international cricket matches to be played in India over the next three years.

- A potential tie-up between Reliance Industries and GAIL India for marketing natural gas has turned out to be a non-starter with the D6 gas allocation going into government hands.

- Bharti Airtel and Reliance Communications are ready with their 3G infrastructure and are waiting for the government to release spectrum.

- ABB opens a wind power generator factory in Vadodara, fourth such plant in India.

- IVRCL Infrastructure plans to raise funds for two subsidiaries - Rs6bn through a QIP for IVRCL Assets and Holdings, and an Rs2.5bn QIP for Hindustan Dorr Oliver, its industrial EPC arm.

- BPCL plans to buy equity stakes in Australian shale gas assets from Norwest Energy.

- Dabur India plans to bring in a strategic investor in its retail venture christened "newu", once it breaks even in the business.

- Aurobindo Pharma has received final approval from the USFDA for its abbreviated new drug Ampicillin.

- HCC Infrastructure, wholly-owned subsidiary of HCC, is entering the business of building and operating airports.

US markets

The US markets closed on Friday negative as persistent concerns the recovery has tapered off. Thursday's gloomy jobs and regional manufacturing data remained in the forefront as investors debated how much the recovery could slow, while overall options action reflected cautious investor sentiment. Hewlett-Packard Co was among the biggest drags on the Dow after several brokerages cut their price targets on the computer maker's shares due to concern about demand for tech products.