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Indian stock market daily morning report (February 27, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices dropped to three-month low after the Minister of Railways Mr. Pawan Kumar Bansal announced fuel adjustment component (FAC) linked revision for freight tariff to be implemented with effect from 1 April 2013, in Railway Budget for 2013-14. European markets namely CAC, DAX and FTSE went down between 1-2% after elections in Italy left the country facing political deadlock. The barometer index, BSE Sensex, regained the psychological 19,000 level soon after falling below that mark in late trade. The Sensex was down 316.55 points or 1.64%, off 278.35 points from the day's high and up 38.20 points from the day's low. Whereas Nifty50 dropped by 93.40 points or 1.60 % to close at 5761.35. The BSE Small-Cap index was off nearly 2.5%. The BSE Mid-Cap index was off more than 1.5%.

Ranbaxy said consolidated sales fell 28.8% to Rs2671cr in the fiscal fourth quarter ended December. Sales in its key North America market fell to Rs851cr ($157.91 million) in October-December compared to $407 million in the year earlier when the company gained from exclusive rights to sell generic Lipitor in the United States. They reported a consolidated net loss of Rs 492cr. This sent its shares down more than 4%

Vesuvius India rose 1.72% to Rs 332.10 on BSE after net profit rose 32.58% to Rs17.66cr on 3.8% growth in net sales to Rs153.51cr in Q4 December 2012 over Q4 December 2011.

Among the 13 sectoral indices, eleven sectors closed in negative while only two sectors closed in positive. Top Gainers: BSE IT up by 0.89% and BSE Teck by 0.77% .Top Losers: BSE Oil & Gas down by 3.07%, BSE Auto down by 2.76%, BSE Capital Goods by 2.44% and BSE Metal by 2.30%

Market breadth was negative at ~0.37x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs0.75bn and domestic institutions sold equity of Rs1.61bn in cash segment.

Asian markets were trading mix on hopes for U.S. federal reserve stimulus. we expect a weak opening for Indian markets following the cues from the global markets. while investors will keep close eye on Economic survey.

Economic and Corporate Developments

Spot gold inched up on Tuesday, extending gains from the previous session as uncertainty over Italy's election results stoked fears of a resurgent euro zone debt crisis, inferring it as a safe-haven investment.

Presenting his maiden budget, Railway Minister Pawan Kumar Bansal on Tuesday said that the losses from railways is estimated at Rs24,600Cr for the current financial year.

Buzzing Stocks

Tata Motors-owned Jaguar Land Rover launched luxury sedan Jaguar XJ Ultimate, priced up to Rs 1.88 Cr (ex-showroom, Mumbai).

Maruti Suzuki India lost 1.73% to Rs1417.50 at on BSE after the RBI on Monday notified that aggregate investment by foreign institutional investors has crossed the overall limit of 24% of the paid-up capital in the company.

Sanofi India has reported a standalone sales turnover of Rs422.80cr and a net profit of Rs44.80cr for the quarter ended Dec '12. Other income for the quarter was Rs16.10cr. For the quarter ended Dec 2011 the standalone sales turnover was Rs358.60cr and net profit was Rs 36.1cr, and other income Rs8.00cr.

CORE Education & Technologies surged 3.88% to Rs 115.25 on BSE after the company said that none of the shares that the company has pledged with financial institutions have been sold in the open market.