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Indian stock market daily morning report (February 20, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices surged as European stocks edged higher and as trading of US index futures indicated a positive opening of US stocks later in the global day. The barometer index, BSE Sensex, and the 50-unit CNX Nifty index, both, attained their highest closing level in almost two weeks. The Sensex surged 134.64 points or 0.69%, up about 180 points from the days low and off close to 35 points from the days high. Index heavyweights Reliance Industries (RIL) and ITC, both, reversed intraday losses in late trade. The market breadth, indicating the overall health of the market, was strong. The BSE Small-Cap and Mid-Cap indices, both, outperformed the Sensex.

DLFs net debt declined by Rs 1870 crore in Q3 December 2012. The company said it continues to make investments in new assets, with a capex/land of about Rs 250 crore in Q3 December 2012. DLF said that the management believes that with the new initiatives by the government.

Pharma stocks rose on renewed buying. Sun Pharmaceutical Industries and Wockhardt hit record high. GlaxoSmithKline Pharmaceuticals rose after announcing Q4 December 2012 results.

FMCG stocks rose after the Centre after trading hours on Friday, 15 February 2013, said that as per reports received from various states, the sowing of rabi crops is progressing well in different parts of the country.

Among the 13 sectoral indices, all sectors closed in positive. Top Gainers: BSE Realty up by 1.90%, BSE IT by 1.66%, BSE Healthcare by 1.38% and BSE Power by 1.16%

Market breadth was positive at ~1.85x as investors bought large cap stocks. On provisional basis, FII sold equity of Rs1.81bn and domestic institutions bought equity of Rs0.25bn in cash segment.

Asian markets were trading in green today on improving economic data. We expect a positive opening for Indian markets following the cues from the global markets.

Economic and Corporate Developments

PSU disinvestment and reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months.

Moodys said it would be watching the assumptions underlying Indias budget deficit target for the new fiscal year that begins on April 1, as well as the expenditure and revenue policies announced in order to meet that goal.

Buzzing Stocks

Kingfisher Airlines was locked at 5% upper circuit at Rs 10.53 after group firm United Breweries (Holdings) said it is hiking its loan limit for the debt-laden carrier from Rs 300 crore to Rs 750 crore. The company made the announcement after market hours on Monday, 18 February 2013.

Infosys gained 1.53%. Infosys after trading hours on Monday, 18 February 2013, said that it will be the first Indian company admitted to trading on NYSE Euronexts (NYX) London and Paris markets from Wednesday, 20 February 2013.

TCS rose 1.25%. The company is expanding its operations in the UK. The company has invested in a new delivery centre in Liverpool, dedicated to delivering government services that require Impact Level 3 (IL3) security constraints.

Auto stocks edged higher. Mahindra & Mahindra (M&M) rose 0.86%. M&M said it has decided to invest about 80 billion Korean Won which is equivalent to around $73.73 million at the current exchange rate, by way of subscribing to preferential issue of equity shares of the companys Korean subsidiary viz. Ssangyong Motor Company (SYMC).