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Indian stock market daily morning report (February 22, 2013, Friday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices slumped as stocks fell across the globe after minutes from the US Federal Reserve released on Wednesday, 20 February 2013, stoked concerns that policy makers could pull back on their massive quantitative-easing program as the US central bank said that it would review the program in March 2013. The Fed's asset purchases, known more popularly as quantitative easing (QE), are regarded as a key source of global liquidity that helps support an array of assets, including equities. The Nifty50 hit its lowest level in almost 9 weeks which dropped by 90.80 points or 1.53% to close at 5852.25. The Sensex was provisionally down 322 points or 1.64%, off 233.91 points from the day's high and up 31.04 points from the day's low to close 19325.36.

Videocon Industries surged as much as 18% on reports that state-run ONGC in talks to buy Videocon's 10% stake in Mozambique's Rovuma basin.

ABB disappointed investors on Thursday by posting 73.8% y-o-y decline in December quarter profit to Rs 16.8cr, sending shares to new 52-week low of Rs 587. Net sales went down by 5.4% to Rs 2,052.8cr from Rs 2,169.6cr during the same period.

Among the 13 sectoral indices, twelve sectors closed in negative while only one sector closed in positive. Top Gainers: BSE Consumer Durables up by 0.04%.Top Losers: BSE Metal down by 3.23%, BSE Bankex by 2.52%, BSE Realty by 2.33% and BSE Capital Goods by 2.07%.

Market breadth was negative at ~047x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs12.14bn and domestic institutions sold equity of Rs2.29bn in cash segment.

Asian markets fell for second day on worries about US and eurozone economies.We expect a weak opening for Indian markets following the cues from the global markets.

Economic and Corporate Developments

The Steel Ministry has shot down domestic manufacturers' plea for hiking import duty on the alloy, saying there is no need to initiate such an action right now as imports have not reached an alarming level.

The Reserve Bank tightened norms for import of precious and semi-precious stones by imposing a limit of 90 days towards letter of credit.

Buzzing Stocks

The Foreign Investment Promotional Board has capped Tata Sons equity exposure in the three-way joint venture proposed by Malaysian carrier for launching a Chennai headquartered budget airline at USD 9 million

Pennar Industries Ltd. (Pennar) has received orders from L&T, ABB, Ramky, Lanco and others worth Rs. 40 Crore

US private equity firm TPG Capital has raised USD 305 million by selling about half of its stake in commercial vehicle financier Shriram Transport Finance Co Ltd

Shriram Transport Finance Company clocked volume of 13.69 lakh shares, a 46.67-times surge over two-week average daily volume of 29,000 shares. The stock tumbled 7.06% to Rs 704.25 as the firm TPG capital raised $305m by selling its stake in the firm.