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Indian stock market daily morning report (February 25, 2013, Monday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices ended lower on Friday, the fourth successive weekly loss as traders and investors refrained from major commitments ahead of the Budget. Jet Airways topped the list of losers, shedding around 6% to close at Rs 527 following a report in the Business Standard that the stake sale to Etihad Airways could be delayed further because of certain demands made by Etihad. Bharti Airtel was the top gainer on the Sensex rising more than 4%. The Nifty50 dropped by 1.95 points or 0.03% to close at 5850.30. The Sensex was provisionally down 8.35 points or 0.04% to close at 19317.01.

The much-awaited norms for new banking licence are finally out. The Reserve Bank of India (RBI) on Friday issued the final guidelines for licensing of new private sector banks wherein entities both from private and public sector shall be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC).

Sun Pharmaceuticals Industries Ltd surged over 2% to hit its 52-week high of Rs 813.50 on Friday

Bearings supplier SKF India touched a new 52-week low of Rs 536.15 (down nearly 3%) on Friday after fall in bottomline and topline numbers in the fourth quarter. Net profit dropped by 20% y-o-y to Rs 32.2cr in the quarter ending December 2012 while net sales went down over 13% to Rs 513.4cr from Rs 593.1cr during the same period.

Gitanjali Gems rose 1.11% to Rs 573.95 after the company said its management committee has approved to open foreign currency convertible bonds issue on 25 February 2013.

Among the 13 sectoral indices, five sectors closed in negative while eight sector closed in positive. Top Gainers: BSE Realty up by 1.35%, BSE Teck by 1.33% and BSE IT by 0.83%.Top Losers: BSE FMCG down by 1.41%, BSE Auto by 0.55% and BSE Metal by 0.53%.

Market breadth was negative at ~0.97x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs2.80bn and domestic institutions sold equity of Rs3.52bn in cash segment.

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

Economic and Corporate Developments

The government has realised Rs 3.75 lakh crore as indirect tax in the April-January period, 74.41% of the target for 2012-13 fiscal.

RBI released final guidelines for issuing new bank licenses on Friday, paving the way for corporate houses to enter the banking sector. They said it will allow applications for new bank licenses until July 1, 2013.

Buzzing Stocks

The Finance Ministry will take up on March 6 the investment proposal of Malaysian budget carrier AirAsia which seeks to enter India through a joint venture with the Tata Group and another company.

On a consolidated basis, Gujarat Gas Company's (GGCL) net profit surged 182.40% to Rs 70.60 crore on 17.93% increase in net sales to Rs 756.50 crore in Q4 December 2013 over Q4 December 2011

Lupin rose 1.01% to Rs 600 after the company received approval from the US health regulator for its Suprax oral suspension used for treating bacterial infections.

Shares of Housing Development Finance Corporation (HDFC) fell nearly 3% on Friday after the research firm Goldman Sachs cut its rating on the stock to sell from neutral, on expectations that India's economy would recover at a modest pace and the prospect of rising competition.