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Indian stock market daily morning report (January 09, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

The BSE Sensex and Nifty50 indices edged higher after Prime Minister Dr. Manmohan Singh said that despite domestic constraints and challenges, India is confident that the strong economic fundamentals, backed by sound policies, will enable the country to return to a higher growth path. Gains in European stocks also supported domestic bourses.

BSE Sensex gained 51.10 points or 0.26% to close at 19,742.52 and Nifty50 surged 13.30 points or 0.22% to close at 6001.70. Index heavyweight and cigarette maker ITC edged higher. Among bank stocks, State Bank of India (SBI) hit 52-week high.

FMCG stocks gained on renewed buying. Godrej Consumer Products, Tata Global Beverages, Hindustan Unilever, Dabur India and Nestle India gained by 0.04% to 1.02%.

Marico said that the demerger will lead to sharper focus and greater energy across both organizations and businesses. It will also create synergies across the value chain, product portfolios, talent pool and capability through an integrated FMCG business in India and overseas, Marico said.

Among the main losers were Tata Steel snapped 1.55%, Wipro declined 1.46%, L&T down 1.45% and Infosys down 1.55%.

Among the 13 sectoral indices, six sectors closed in negative, while remaining seven closed in positive. Top Gainers: BSE Realty up by 1.22%, BSE FMCG gained by 1.07% and BSE Healthcare surged by 0.73%. Top Losers: BSE CD down by 2.01%, BSE Metal down by 0.96% and BSE CG 0.71%.

Market breadth was negative at ~0.98x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs8.87bn and domestic institutions sold equity of Rs10.28bn in cash segment.

Asian markets were trading mixed today.

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

Economic and Corporate Developments

The Reserve Bank of India (RBI) undertakes Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013.

Buzzing Stocks

Aurionpro Solutions has announced that the equity shareholders of the company at the High Court convened meeting held 07 January 2013 have approved the scheme of amalgamation Seeinfobiz with Aurionpro Solutions.

Educomp Solutions has announced that the company has executed definitive agreements to sell its entire 50% shareholding in Eurokids International to a group of financial investors led by GPE India, a leading investor in education.

PVR has announced that the company through Cine Hospitality, a wholly owned subsidiary of the company, has purchased controlling stake in the share capital of Cinemax India through a block deal executed on the floor of the stock exchange on 08 January 2013.

Wockhardt has received final approval from the United States Food & Drug Administration (US FDA) for marketing 25mg, 50mg, 100mg,

200mg and 300mg extended release tablets of Lamotrigine, which is used in treatment of epilepsy.

The board of Swelect Energy Systems in its meeting on 07 January 2013 has approved to invest Rs 22 crore in the equity share capital of HHV Solar Technologies, Bangalore.

Tirupati Sarjan has received major work orders worth Rs 90.76 crore.