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Indian stock market daily morning report (January 10, 2013, Thursday)

Contributed by Keynote Capitals

Views on markets today

The BSE Sensex fell on Wednesday as two-wheeler makers such as Bajaj Auto and Hero Motocorp retreated after an industry body cut its estimates for motorcycle sales, while software services exporters fell ahead of earnings announcement.

BSE Sensex declined 75.93 points or 0.38% to close at 19,666.59 and Nifty50 declined 30.20 points or 0.50% to close at 5971.50. Index heavyweight and cigarette maker ITC declined 1.93% to close at 279.8. Among bank stocks, State Bank of India (SBI) gained 1.13% to close at 2521.65.

Shares of companies whose fortunes are linked to orders from Indian Railways rose on reports Railways minister Pawan Kumar Bansal announced hike in fares from January 21.

Havells India jumped 4.94% to Rs 681.15, extending recent gains triggered by the company revising trademark license agreement with one of its promoter group firms that owns the ‘Havells brand. The stock hit a record high of Rs 684.70 in intraday.

Among the main losers were BHEL snapped 2.69%, Tata steel declined 2.54%, Bajaj Auto down 1.96% and ITC down 1.93%.

Among the 13 sectoral indices, nine sectors closed in negative, while remaining four closed in positive. Top Gainers: BSE Auto up by 0.74%, BSE Oil & Gas gained by 0.50% and BSE PSU surged by 0.17%. Top Losers: BSE FMCG down by 1.26%, BSE CD down by 1.21% and BSE Metal 1.18%.

Market breadth was negative at ~0.88x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs8.49bn and domestic institutions sold equity of Rs5.18bn in cash segment.

Asian markets increased in early trade tracking gains in global market.

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

Economic and Corporate Developments

Railway Minister P.K. Bansal on Wednesday announced an across-the-board hike in passenger fares less than two months before presenting the Railway budget. The hike comes into effect from January 21.

The government is likely to come up with a Bill in the forthcoming Budget session of the Parliament to regulate the real estate sector, Housing Minister Ajay Maken said.

Buzzing Stocks

Target production of 464 million tonne of coal in FY13: Coal India.

Finance Ministry asks Law Ministry to reconsider view on Hindustan Zinc stake sale.

Bharti Airtel has increased the price of its 1GB 2G data plan by 25% and Airtel 2G customers will now have to pay Rs 125 for 1GB of data, which was Rs 100 earlier.

Ashok Leyland's total sales declined 19% to 7,299 units in December 2012 over December 2011. Sales of commercial vehicles excluding sales of small commercial vehicle (SCV) DOST, declined 34% to 5,230 units in December 2012 over December 2011.

LIC hikes stake in Infosys Technologies to 7.2 per cent by buying shares worth Rs 3,000 crore.

Bhushan Steel is planning to raise INR 475 crore through rights issue, which will be launched in the third week of this month