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Indian stock market daily morning report (February 08, 2013, Friday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices edged lower after the Central Statistics Office (CSO) projected India's GDP growth at 5% for 2012-13, the lowest in a decade, and significantly lower than the growth rate of 6.2% in 2011-12. The economy is expected to grow by 4.6% in second half of FY13 (H2FY13) pointing that the economy has not yet bottomed out. The barometer index, BSE Sensex, shed 59.40 points or 0.3%, off 122.24 points from the day's high and up 40.24 points from the day's low to close at 19,580.312. Whereas Nifty50 dropped by 20.40 points or 0.34% to close at 5,938.80.

A USD 2.1 billion share auction in NTPC was fully covered. By 3:05 p.m., the single-day auction had received bids for 840.65 million shares at an indicative weighted average price of Rs 145.46 per share. The government was selling 783.26 million shares, or 9.5% of the company's stock, at a minimum price of Rs 145 per share for bids.

Cement maker ACC announced fall of 45.76% in consolidated net profit to Rs 2.51 billion for the quarter ended Dec. 31, 2012 as compared to Rs 4.63 billion in the same period last year. The sharp fall attributed to high base for last year as the profit included one-time gain of Rs 1.29 billion for tax write back. Consolidated net sales of the company rose 2.52% to Rs 27.68 billion for the quarter ended Dec. 31, 2012 from Rs 27 billion in the year ago period.

Workers negotiating a wage settlement at Hero MotoCorp have demanded doubling of monthly salary to near Rs 1 lakh, apart from other benefits like subsidized housing as well as interest-free loans running up to Rs 10 lakh.

Among the 13 sectoral indices, ten sectors closed in negative, while three sectors closed in positive. Top Gainers BSE IT up by 0.63%, BSE AUTO by 0.30% and BSE FMCG by 0.30% . Top Losers: BSE Consumer Durables slashed by 3.34%, BSE Realty declined by 1.47% and BSE Power dropped by 1.39%.

Market breadth was negative at ~0.58x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs8.27bn and domestic institutions sold equity of Rs9.90bn in cash segment.

We expect a weak opening for Indian markets following the cues from the global markets

Buzzing Stocks

VIP Industries in its third quarter results announced net profit down at Rs 3.5 crore versus Rs 10.3 crore, year-on-year, YoY. Its share price lost 2.17% close at 76.65

Gold jewellery manufacturer and exporter Rajesh Exports has bagged an order worth Rs 432 crore from the UAE's Al Malek Jewellery to export designer range of gold and diamond studded jewellery Tube InvestmentsBSE -3.21 % of India Ltd, part of the Rs 22,300 crore Murugappa Group, has put expansion plans for its tubes and chains business on hold, due to the economic slowdown, a top official said.