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Indian stock market daily morning report (February 07, 2012, Tuesday)

Contributed by Keynote Capitals

Views on markets today

- Indian markets continued its winning streak for fifth straight sessions and closed on positive note yesterday tracking firm global markets after last week's robust U.S. jobs data, which helped improve risk appetite amongst investors. Markets also got support as the Congress led coalition government at the centre got a relief after a special court investigating the telecom licenses scam dismissed a petition to investigate Home Minister P Chidambaram's alleged role in a 2G scam. A bout of volatility was witnessed in mid-afternoon trade as key benchmark indices trimmed intraday gains as European shares dropped in early trade there. Except pharma, all sectoral indices closed on positive note with real estate, capital goods, metal and bank stocks were major gainers. Cement shares surged after cement firms reported higher dispatches for the month just gone by. Dena Bank closed 8.71% up after the bank reported a better-than-expected 20.7% rise in December-quarter net profit. IL&FS Transportation Networks gained 3.83% after it received an Rs.18.18bn road contract from the National Highways Authority of India. Piramal Healthcare closed down 1.14% afterrising more than 7% in last trading day as the company said that it would buy a 5.5% stake in Vodafone's India unit from Essar for Rs.30bn. Hindustan Unilever fell 3.57%, despite reporting a better-thanexpected net profit. The company lowered its spending on advertising and promotions in the quarter, raising concerns it may not be able to hold on to its market share.

- Market breadth was strong at ~1.76x as investors bought large cap stocks. On provisional basis, FIIs bought equities worth Rs.9.98bn while domestic institutions sold equities of Rs.1.83bn.

- Asia markets mostly rose early Tuesday, as investors shifted through batch of corporate earnings reports, but Japanese stocks lost ground.

- We expect a flat opening for the Indian markets, considering the mixed opening for the Asian shares.

Economic and Corporate Developments

- The government has asked upstream oil companies to compensate state-run oil refiners for 37.91% of revenue losses on fuel sales during April to December 2011, a government source told reporters.

Buzzing Stocks

- L&T has bagged an order worth Rs.1937Cr from GVK for four-laning of a major portion of Shivpuri-Dewas section of NH-3 in Madhya Pradesh.

- Tulip Telecom is looking to generate Rs.1,000Cr annual revenue within three years from Tulip Data Centre (TDC) which was launched commercially yesterday.

- Subex was extending the maturity date of its outstanding foreign currency convertible bonds (FCCBs). The proposal is subject to approval from the Reserve Bank of India and its bondholders.

- Manappuram Finance, which provides loans using gold as collateral, is not allowed to accept or renew deposits from the public, the Reserve Bank of India said, noting the firm gave up its licence to take deposits in March 2011.

- Venus Remedies received patent approval from the Japanese health regulator for Vancoplus, which is used in treating bacterial resistance.

US markets

U.S. stocks dropped Monday as Greece struggled for an agreement on spending cuts needed to ensure another round of rescue funds.

The Dow Jones Industrial Average on Monday shed 17.10 points, or 0.1%, to 12,845.13. The S&P 500 shed 0.57 point, or 0.04%, at 1,344.33. The Nasdaq Composite declined 3.67 points, or 0.1%, to 2,901.99.