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Indian stock market daily morning report (February 11, 2013, Monday)

Contributed by Keynote Capitals

Views on markets today

The BSE Sensex snapped by 95.55 points or 0.49% to close at 19,484.77. It declined for a seventh consecutive session to the lowest close this year as Mahindra & Mahindra as well as cement makers such as Ambuja and ACC retreated after earnings missed estimates.

Nifty50 fell by 35.30 points or 0.59% to its lowest level of 2013 and closed below psychological level of 5,900 at 5,903.50 as weaker hands continued to exit long positions ahead of the Union Budget

Mahindra & Mahindra released its Q3 results in which standalone net profit for the third quarter rose 26% from a year ago to Rs 836 crore.Net sales for the three month period rose 29% year-on-year to Rs 10,643 crore.

Hindalco Industries' net profit fell 4% to Rs 434 crore, Y-o-Y on higher finance cost. The company's finance cost rose to Rs.169 crore from Rs 79 crore, Y-o-Y on account of greater average borrowings. Sales of the company increased around 4% to Rs 6872 crore on higher volumes in copper businesses.

Sun Pharmaceutical Industries performed better than expected with a third quarter net profit of Rs 881 crore, up 32% year-on-year, helped by strong growth across its businesses, including arm Taro Pharma. The pharma major's third quarter net sales rose 33% from a year ago to Rs 2,852 crore.

Among the 13 sectoral indices, nine sectors closed in negative, while four sectors closed in positive. Top Gainers BSE IT up by 0.86%, BSE Teck by 0.69% and BSE Capital Goods by .48%. Top Losers: BSE Metal declined by 1.70%, BSE PSU by 1.23% and BSE Realty by 1.9%.

Market breadth was negative at ~0.55x 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.

Most Asian markets will be shut today on account of Lunar New Year Holidays. We expect a weak opening for

Indian markets on mutetd global cues.

Economic and Corporate Developments

Railway fares could see another round of increase soon. Railway Minister Pawan Kumar Bansal hinted on Thursday that fares could be hiked for the second time in 2013 as the organisation has not been not able to complete several projects due to lack of funds.

Buzzing Stocks

Tata Steel Europe is investing 2.3 million euros at its IJmuiden facility in the Netherlands to develop next-generation steels for the auto industry that are lighter, stronger and better able to withstand crashes.

In a major organisational restructuring, Bharti Airtel split its business into eight segments with a view to build a more connected organisation

GlaxoSmithKline Consumer Healthcare today expanded its oral healthcare portfolio in the country with the launch of gum care toothpaste 'Parodontax'. The company, which currently markets Sensodyne toothpaste under its oral healthcare portfolio, has launched the new product across the country.

Exide Industries Ltd will raise prices for replacement auto batteries by 5-6 percent due to rising input costs, a company source with direct knowledge of the matter told Reuters on Friday.