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Indian stock market daily morning report (February 01, 2013, Friday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices edged lower amid initial volatility amid weakness in Asian stocks and derivative expiry. The barometer index, BSE Sensex, fell below the psychological 20,000 mark in opening trade. The Sensex declined by 110.02 points or 0.55%, off 113.85 points from the day's high and up 29.26 points from the day's low.

The BSE Sensex snapped by 110.02 points or 0.55% to close at 19894.98 and Nifty 50 gained 21.00 points or 0.35% to close at 6034.75 led by stocks of Bank, IT and Oil & Gas.

ICICI stock declined 1.93% to close at 1190.85 after its quarterly results. India's largest private sector lender ICICI Bank's third quarter (October-December) standalone net profit jumped more than 30% year-on-year to Rs 2,250 crore, driven by robust net interest income, which increased 29% to Rs 3,500 crore. Other income too climbed 17% to Rs 2,215 crore adding to the profit margin.

Suzlon stock surged 15.57% to close to 24.5 after large overseas order win. Suzlon Group's subsidiary REpower Systems SE has signed a contract with EDF EN Canada, Inc., a subsidiary of EDF Energies Nouvelles, for the delivery of 175 2 megawatts (MW) wind turbines of the REpower MM82 and MM92 type for a project in Quebec, Canada. With a total rated output of 350 MW the Riviere-du-Moulin wind farm will be the biggest project in the history.

Colgate Palmolive (India) has reported a standalone sales turnover of Rs 783.77 crore and a net profit of Rs 111.05 crore for the quarter ended Dec '12. Other income for the quarter was Rs 11.74 crore. For the quarter ended Dec 2011 the standalone sales turnover was Rs 689.78 crore and net profit was Rs 115.58 crore., and other income Rs 9.74 crore. The stock declined by 2.43% to close at 1350.80.

Net profit of Dhampure Speciality Sugars rose 28.57% to Rs 0.18 crore in the quarter ended December 2012 as against Rs 0.14 crore during the previous quarter ended December 2011. Sales rose 34.12% to Rs 13.05 crore in the quarter ended December 2012 as against Rs 9.73 crore during the previous quarter ended December 2011.

Among the 13 sectoral indices, seven sectors closed in negative, while remaining six sectors closed in positive. Top Gainers BSE Realty gained by 1.38%, BSE PSU by 1.02% and BSE CD by 0.61%. Top Losers: BSE Bank by down by 0.42%, BSE Oil & Gas by 0.42% and BSE IT by 0.26%.

Market breadth was positive at ~1.03x as investors bought large cap stocks. On provisional basis, FII bought equity of Rs9.58bn and domestic institutions sold equity of Rs8.63bn in cash segment.

Asian markets were trading mix after china's PMI came below expectation. We expect a weak opening for Indian markets following the cues from the global markets and investor will keep eye on Oil India ahead of its OFS.

Economic and Corporate Developments

Standard & Poor's on Thursday said the possibility of India's sovereign rating downgrade is less than it was in April 2012.

India's fiscal deficit during the April-December period was Rs 407,000 crore, or 78.8 percent of the budgeted full fiscal year 2012-13 target, government data showed on Thursday.

Buzzing Stocks

Suzlon Group said its unit REpower Systems has bagged an order for setting up a 350 MW wind farm at Quebec in Canada.

Tata Power mentioned that its 25 MW solar project in Gujarat has been registered under the United Nations Clean Development Mechanism, a move that would allow the company to trade carbon credits from the plant.

Cairn India will start the second phase of its Sri Lankan oil exploration programme this week with the drilling of a fourth well and will decide the commercial viability of the project by 2014.

The US has allowed state-run Gail to ship shale gas to India, making an exception to its restrictive export policy. This will facilitate Gail IndiaBSE 1.03 % to import 3.5 million tonnes per year of liquefied natural gas (LNG) for two decades from 2017-18 , government and industry officials said.

Engineering major Larsen & Toubro has secured orders worth Rs 1,401 crore in the current month from both India and abroad.

Lupin Ltd, India's fourth largest drug-maker by sales, expects to launch three to four new generic drugs in its key US market by March end