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Indian stock market daily morning report (September 03, 2010, Friday)

Contributed by Keynote Capitals

By Keynote Capitals

Views on markets today

- Indian markets gained yesterday for second straight day on firm global markets as strong US manufacturing data eased some concerns about the pace of global economic recovery. However, negative European markets led the market to pare some of its gain. Sugar stocks rose on reports of possible decontrol in prices while Auto and cement stocks gained on higher August sales data. The up-move was mainly led by gains in metal, consumer durable and consumer durable, banks, FMCG and auto stocks while IT and oil & gas stocks witnessed profit booking.

- Market breadth was strong at ~1.71x as investors bought large cap stocks. FIIs bought equities worth `82.31Cr while domestic institutions sold equities of `1.18bn.

- The Asian markets are trading positive this morning. The Nikkei rose in today trading as more encouraging data reassured investors about the state of the global economic recovery and sparked short-covering. The Hang Seng is also trading up.

- Indian markets are expected to open flat to positive today mirroring positive cues across the globe. Markets are expected to remain volatile, as weekly inflation will be released today.

Key events today

- Weekly inflation figure to be announced today

Economic and Corporate Developments

- The sugar industry has offered to supply around 1,000 million litres ethanol to oil marketing companies for blending it with petrol.

- Sale proceeds of carbon credits will not escape tax when the new Direct Taxes Code comes into effect from April 1, 2012.

Buzzing Stocks

- The marketing agreement between GAIL and RIL to sell D6 gas stands inoperative due to a Government policy that does not allow RIL to sell gas independently.

- Consortium led by Tata Power plans to develop a 240MW geothermal power project in Indonesia.

- PNB plans to acquire a 64% stake in JSC Dana Bank for US$24mn by 2010 in Kazakhstan.

- HPCL plans to invest around `150bn in setting up a 9mn ton per year refinery on the west coast.

- Sobha Developers announced the launch of a super luxury project – Sobha Classic – on Sarjapur Road in Bangalore.

- Cipla to buy 25% in its S Africa unit.

- TCS has become the second largest insurance BPO provider in the UK after winning two deals worth GBP250mn.

- Petronet plans `23bn expansion at LNG terminal.

- Koutons Retail is mulling raising funds through a public issue or private placement.

- SKIL Infrastructure plans to raise `25bn by selling less than 20% stake in two phases that includes a private placement to overseas funds besides a public issue.

US markets

The US markets closed on positive note as data showed improvement in housing and the job market a day ahead of the critical monthly payrolls figures. Data from the National Association of Realtors showed pending home re-sales rose unexpectedly in July and a separate report showed new claims for unemployment insurance fell for a second straight week.

The housing and labour markets have long been considered two of the biggest headwinds the economic recovery faces. Today’s payrolls report is expected to show about 100,000 jobs were lost in August.

Shares of Hovnanian Enterprises rose 5.4% on the home sales data and after the sixth-largest US builder reported a narrower quarterly loss.