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Indian stock market daily morning report (February 13, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices edged higher in choppy trade as bargain hunting emerged after a sustained slide in share prices over the past few trading sessions. The barometer index, BSE Sensex, snapped the 8-day losing streak. The Sensex was provisionally up 100.47 points or 0.52% to close at 19,561.04. Whereas Nifty50 was up by 24.65 points or 0.42% to close at 5,922.50.

Oil India Ltd reported a 7.26% drop in quarterly profit, at Rs 940.29cr for the quarter ended December 31, 2012 as compared to Rs.1013.98cr for the quarter ended December 31, 2011. The stock fell 0.89% after the result and closed at 533.55.

Steel Authority of India fell 0.62% to Rs 80.40 after net profit fell 23.38% to Rs 484.30cr on 1.99% decline in total income to Rs 10670.12 crore in Q3 December 2012 over Q3 December 2011.

Voltas fell more than 1.5% intraday as third quarter numbers were disappointing on an operating level though the company turned corner with consolidated net profit at Rs76.8cr. It has recorded a net loss of Rs115.4cr in December quarter of FY12.

Britannia Industries rose 1.34% to Rs 476 after consolidated net profit rose 11% at Rs 62.10cr on 16.4% growth in revenue to Rs 1607.90cr in Q3 December 2012 over Q3 December 2011.

Among the 13 sectoral indices, five sectors closed in negative, while eight sectors closed in positive. Top Gainers: BSE Oil and Gas up by 1.52%, BSE Heathcare by 1.19% and BSE PSU by 1.15%. Top Losers: BSE Realty down by 3.96%, BSE IT by 0.63% and BSE Metal by 0.35%.

Market breadth was negative at ~0.68x 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.

Asian markets were trading mix today. We expect a positive opening for Indian markets following the cues from the global markets.

Economic and Corporate Developments

December industrial production unexpectedly shrank for a second straight month in December by 0.6%, weighed down by weak investment and consumer demand.

The rupee slipped to 54.01 against the dollar on weak factory output and high inflation numbers.

Buzzing Stocks

Mahindra & Mahindra has completed the entire stake buyout of US based Navistar in two joint ventures - Mahindra Navistar Automotives and Mahindra Navistar Engines.

Power Grid Corporation of India's net profit grew by 39.5% year-on-year to Rs1,129cr in the third quarter of financial year 2012-13. Net sales rose more than 36% to Rs3,362 cr from Rs2,467cr during the same period.

Despite a slowdown in various sectors, Vivek Gambhir, CEO - Designate, Godrej Consumer, feels that the company has not seen any sustainable sign of a slow down in the category in which they operate.

Nikhil Gandhi, chairman of Pipavav Shipyard says the private ship-builder is in talks with a French company for a strategic stake sale. He says this partnership is primarily aimed to bring in the technological knowhow and proprietary knowledge of military hardware into the country.