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Indian stock market daily morning report (January 07, 2013, Monday)

Contributed by Keynote Capitals

Views on markets today

The BSE Sensex and Nifty50 indices managed to end in green for the fourth consecutive session on Friday. The markets traded in red throughout the day but manage to enter the green territory on account of support given by stocks of Gail, ONGC, TCS and ICICI. BSE Sensex gained 19.30 points or 0.10% to close at 19,784.08 and Nifty50 surged 6.55 points or 0.11% to close at 6,016.15.

BPCL, HPCL, IOC and Gail gained in 1.8-5.5% range on hopes that a proposed revision in the government's pricing formula would boost gas prices. Additionally, Oil Minister M Veerappa Moily has allowed Reliance Industries (RIL) and Cairn India to explore for oil and gas within the producing fields.

IT stocks like TCS, Wipro gained 1.5% and Infosys, which is going to declare quarterly results on Friday, increased 0.5%. The company denied a newspaper report it was planning to fire up to 5,000 poorly performing workers was "wrong", although it encourages "chronic underperformers" to leave as part of its routine staff management.

However, Tata Steel ended 1.9% lower and Jindal Steel and Power declined 1.8% on profit taking, after gaining on the back of a rise in international metal prices.

Among the 13 sectoral indices, four sectors closed in negative, while remaining nine closed in positive. Top Gainers: BSE Oil & Gas up by 1.05%, BSE PSU gained by 1.02%, BSE IT surged by 0.95%. Top Losers: BSE Metal down by 1.01%, BSE FMCG down by 0.28% and BSE Auto 0.26%.

Market breadth was positive at ~1.05x as investors bought large cap stocks. On provisional basis, FII bought equity of Rs11.64bn and domestic institutions sold equity of Rs8.25bn in cash segment.

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

Economic and Corporate Developments

The RBI is likely to issue final guidelines for grant of banking licences to new players within the next 4-6 weeks, while those interested in setting up new banks, including giants like Reliance, Religare and L&T groups

Buzzing Stocks

Suzlon Energy has finally got the terms and conditions of its corporate debt restructuring (CDR) package approved

Government shortlists Goldman Sachs, 5 others for NTPC share sale

Merrill Lynch has bought 36.18 lakh equity shares of Shree Renuka Sugars at Rs 32.77 a share via bulk deal on National Stock Exchange.

Rain CII Carbon completes acquisition of Rutgers

Creditors of grounded Kingfisher Airlines Ltd are set to begin recovery proceedings if parent UB Group doesn't infuse the funds that are needed for a limited resumption of flights