Indian stock market daily morning report (January 07, 2014, Tuesday)
January 7, 2014, Tuesday, 07:38 GMT | 03:38 EST | 13:08 IST | 15:38 SGT
Views on markets today
- Markets ended lower for the fourth straight session, amid weak Asian cues, after sharp contraction in December services PMI dashed hopes of a recovery in the second half of the year.
The 30-share Sensex ended down 57 points at 20,795 and the 50-share Nifty ended down 20 points at 6,192.
- Shares of six offshore oil services providers rose by 2.12% to 8.73% on BSE ahead of next round of auction of exploration blocks next week.
Aban Offshore (up 8.73%), Deep Industries (up 3.6%), Dolphin Offshore Enterprises (India) (up 6%), Global Offshore Services (up 3.6%), GoL Offshore (up 5.3%) and Jindal Drilling Industries (up 2.12%), edged
- Among the 12 BSE Sectoral Indices 6 sector closed in positive while 6 sectors ended the day in negative. Top Gainers: BSE Healthcare up by 0.48% and BSE FMCG by 0.44%. Top Losers: BSE Bankex down by 1.13% and BSE Realty by 0.71%.
Market breadth was positive at ~1.37 as investors bought large cap stocks. On provisional basis, FII's sold Rs 3.19bn worth of Indian equities and DII's sold Rs 0.22bn worth of equities.
Economic and Corporate Developments
- The services sector, which constitutes the biggest chunk of the Indian economy, contracted for the sixth month in a row in December, showed the widely-tracked HSBC purchasing managers' index (PMI). The index, on which growth means a reading above 50 points, declined to 46.7 in the month from 47.2 in November. This may dash the hopes of recovery that the policy makers are looking for from the second half of the current financial year.
Not only that services activities declined, but the pace of deceleration has also increased in December from the previous two months. PMI for October had stood at 47.1 points.
- Amid the government's intent to fast-track infrastructure development, 14 projects worth over Rs 33,000 crore in various areas are expected to be considered by the Cabinet Committee on Investment shortly.
The projects are in the sectors of industry, petroleum and natural gas, power, road transport and highways, shipping, textiles and railways.
- Mastek closed 11.55% up at Rs 180.55 on BSE after the company said its board will meet on Wednesday, - January 2014, to consider a proposal of buyback of equity shares of the company.
- Sobha Developers closed 3.03% down at Rs 322.95 on BSE after the company said that its sales volume declined 17.77% at 0.74 million square feet in Q3 December 2013 over Q3 December 2012.
- Lakshmi Vilas Bank closed 1.86% down at Rs 73.80 on BSE after the bank said that its board of directors have approved to issue and allot equity shares of the bank for an amount aggregating up to Rs 650 crore on rights basis.
- MOIL closed 1.00% up at Rs 236.50 on BSE after the company revised prices of various grades of manganese ore for the January-March 2014 quarter
- Lanco Infratech rose 2.63% to Rs 8.1- on BSE after the company said it has received favorable order from the Appellate Tribunal for Electricity in the matter of tariff determination for a power project unit in Chhattisgarh.
- L&T rose 0.77%, in the early trade, to Rs 1,020 on BSE after the company said L&T Construction won new orders worth Rs 2,962 crore across various business segments.
- Future Lifestyle Fashions closed 0.67% up at Rs 74.85 on BSE after the company said it has made investment to acquire 27.5% stake in Resource World Exim, a company engaged in fashion apparel business.
- RPP Infra Projects was locked at 20% upper circuit at Rs 60.40 on BSE after the company said it has recently secured few contracts in Tamil Nadu, taking the company's order book to Rs 650 crore.
- JSW Steel closed 4.11% up at Rs 1,034.85 on BSE after the company said that Raigad Unit of Heidelberg Cement India was transferred to the company on Friday, 3 January 2014.
- Heidelberg Cement India closed 1.52% up at Rs 40.10 on BSE after the company said that it has completed the sale and transfer of its cement grinding facility at Raigad, Maharashtra to JSW Steel.
- Ind-Swift surged 4.57% to Rs 8.47 on BSE, with the stock extending Friday's 1.25% gains triggered by the company's board approving the allotment of 41.6- lakh equity shares at Rs 17.50 per share to promoters group on preferential basis.
- McNally Bharat Engineering Company closed 1.72% up at Rs 59.05 on BSE after the company said it has secured two orders aggregating Rs 14.16 crore.
- Four Soft was locked at 5% upper circuit at Rs 17.05 on BSE after the company said its board will meet on - January 2014, to consider the proposal for acquisition of Deals15.com from Premium Web Services.
- India Infoline closed 5.94% up at Rs 65.05 on BSE after the company said it proposes to sell its entire 76% stake in its Sri Lankan subsidiary for a total consideration of Sri Lankan rupee 50 million.