Indian stock market daily morning report (January 10, 2014, Friday)
January 10, 2014, Friday, 06:25 GMT | 01:25 EST | 11:55 IST | 14:25 SGT
Views on markets today
- Markets ended a volatile trading session marginally in the red with the benchmark indices flat with a negative bias.
At close, the Sensex was down 16 points at 20,713 and the Nifty was down six points to close at 6,168.
- GVK Power & Infrastructure rose 5.41% to Rs 9.94 on BSE on reports the company will inaugurate the newly developed terminal-II at the Mumbai international airport on Friday, 10 January 2014.
- Shares of two gold financing firms spurted 20% each on BSE after the central bank allowed non-banking finance companies to lend up to 75% of the value of gold from 60% at present.
Muthoot Finance (20%) and Manappuram Finance (20%), edged higher.
- Among the 12 BSE Sectoral Indices 6 sectors closed in positive while 6 sectors ended the day in negative. Top Gainers: BSE Metal up by 1.06% and BSE Oil & Gas by 0.76%. Top Losers: BSE Realty down by 2.31% and BsE Capital Goods by 2.03%.
Market breadth was negative at ~0.82 as investors sold large cap stocks. On provisional basis, FII's sold Rs 0.037bn worth of Indian equities and DII's sold Rs 1.18bn worth of equities.
Economic and Corporate Developments
- The year 2014 is likely to be a "slow recovery year" for India, with economic growth rising, inflation easing and currency and rates largely stable, Citigroup said.
"India should start recovering in 2014 - slowly, but likely steadily," Citigroup said in a research note. "We see growth up, inflation down, the currency and rates largely stable."
The economy may expand by 5.1% in the second half of FY14, led by agriculture and exports, following four consecutive quarters of sub-5% growth and a 4.6% rate in the first half of FY14, Citigroup said.
- Fund raising by Indian companies through private placement of debt securities or bonds fell by 11% to nearly Rs 3 lakh crore in 2013. The funds were raised primarily for business expansion and meeting capital requirements.
According to the latest data from capital market regulator Sebi, Indian firms garnered Rs 3,36,396 crore through private placement of debt securities in 2012, compared to Rs 2,99,656 crore last year. In 2011, it totalled Rs 2.43 lakh crore.
- Mastek jumped 5.53%, in the opening trade, to Rs 210 on BSE after the company said its board approved buyback of shares.
- Umang Dairies closed 18.05% up at Rs 39.25 on BSE after the company said it has launched its poly pouched liquid milk in Lucknow on 6 January 2014 under the brand name JK Milk.
- Suven Life Sciences closed 3.20% up at Rs 77.50 on BSE after the firm said it has secured 3 product patents one each from Australia, Sri Lanka and South Korea for NCE's for the treatment of disorders associated with neurodegenerative diseases
- Jubilant FoodWorks closed 3.01% down at Rs 1,230.50 on BSE after the central bank restricted foreign institutional investors from buying additional shares in the company as their shareholding has reached the limit.
- Ranbaxy Laboratories rose 1.08%, in the early trade, to Rs 479.10 on BSE after the company said it has signed a product licensing agreement with EPIRUS Switzerland GmbH, a wholly-owned subsidiary of Boston-based EPIRUS Biopharmaceuticals, Inc.
- MCX closed 1.57% down at Rs 587.30 on BSE on profit booking after the stock rose 22.20% in the preceding four trading sessions to Rs 596.65 on - January 2014 from a recent low of Rs 488.25 on 2 January 2014.
- Tata Steel rose 0.96%, in the morning trade, to Rs 396 on BSE after the company said it has won a two-year contract to supply more than 2 lakh tonnes of track to French rail operator SNCF.
- Suzlon Energy closed 2.87% down at Rs 11.49 on BSE on profit booking after the stock rose 12.24% in the preceding four trading sessions to Rs 11.83 on - January 2014, from a recent low of Rs 10.54 on 2 January 2014.
- Titagarh Wagons closed 2.05% down at Rs 124.05 on BSE, with the stock extending Wednesday's 6.02% gains triggered by the company divesting its entire stake in Barrackpore Enterprises on 31 December 2013.
- NHC Foods closed 13.62% down at Rs 34.20 on BSE, extending Wednesday's 2.21% rise triggered by the central bank allowing foreign institutional investors and non-resident Indians to increase stake in the company.
- Cadila Healthcare closed 5.29% up at Rs 890.45 on BSE, extending Wednesday's 4.91% rise triggered by a foreign brokerage upgrading its rating on the stock to buy from underperform.
- Technofab Engineering jumped 7.01% to Rs 87.75 on BSE, with the stock extending Wednesday's 5.94% gains triggered by the company's announcement that it is participating in executing two new orders aggregating about Rs 320 crore.
- Coal India rose 2.53% to Rs 296.05 on BSE, with the stock extending Wednesday's 4.77% gains triggered by speculation that the company may announce a hefty interim dividend next week.