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Indian stock market daily morning report (February 28, 2013, Thursday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices surged and hit fresh intraday high in mid-afternoon trade after the Economic Survey 2012-13, presented by Finance Minister Mr. P. Chidambaram in the Lok Sabha today, 27 February 2013, stated that Indian economy is likely to grow between 6.1% to 6.7% in 2013-14 as the downturn is more or less over and the economy is looking up. Gains in global stocks also boosted sentiment. The Sensex was up 137.27 points or 0.72% to close at 19152.41. Whereas Nifty50 gained by 35.55 points or 0.62% to close at 5796.90.

Shares of Core Education have been worst hit in the carnage. Around 80 per cent of company's marketcap has been eroded in the past three sessions. The stock ended at Rs 59.80, down 46.4%, on the NSE. It touched a high of Rs 117.80 and a low of Rs 56.65 in trade today.

Shares of Jet Airways surged higher in trade today on reports that it may be nearing a deal closure with Abu Dhabi-based Etihad Airways. The stock ended at 534.85, up 19.2%, on the BSE. It touched a high of Rs 538.10 and a low of Rs 450 in trade today.

Among the 13 sectoral indices, three sectors closed in negative while ten sectors closed in positive. Top Gainers: BSE Capital Goods up by 2.41%, BSE Realty by 2.12% and BSE Oil & Gas by 1.17% .Top Losers: BSE IT down by 0.96%, BSE Teck by 0.23% and BSE 0.04%.

Market breadth was positive at ~1.06x as investors bought large cap stocks. On provisional basis, FII bought equity of Rs0.75bn and domestic institutions sold equity of Rs1.61bn in cash segment.

We expect a weak opening for Indian markets following the cues from the global markets.

Economic and Corporate Developments

Resource mobilisation in the corporate debt category witnessed a significant decline as just Rs 4,974 crore was garnered through debt issues in the first nine months of the current fiscal, which was not even 10 per cent of the total funds raised during entire 2011-12.

The government tables the Economic Survey for 2012-13. Survey says WPI inflation may decline to 6.2-6.6% in March.FY13 Economic Survey says lower inflation to create more room for rate cuts .It says growth downturn more or less over, economy looking up. However, the key fiscal risk remains oil subsidy, which needs to be addressed. It adds that the widening trade, current account gap are matters of concern.

Buzzing Stocks

Fairfield Atlas locked at 5 percent upper circuit on Wednesday as the board of directors approved delisting of company's shares from Bombay Stock Exchange.

Ranbaxy shares tumbled 4%, on a surprise fourth quarter loss on the back of falling sales and costs related to the recall of its cholesterol lowering drug in the US market.

IT firm Wipro Technologies has inked a global pact with cloud-based service provider Axeda Corporation to offer end-to-end solutions for leveraging machine-to-machine (M2M) communication.

Larsen and Toubro (L&T) on Wednesday said it has secured orders worth Rs 1,504cr order during the ongoing month from India and abroad.

Coal India invited bids from bankers and interested parties for acquiring assets abroad, a move that would help the world's largest dry-fuel producer meet shortages as it battles problems in enhancing output.