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Indian stock market daily morning report (January 11, 2013, Friday)

Contributed by Keynote Capitals

Views on markets today

The BSE Sensex and Nifty 50 ended flat on Thursday as Infosys and other software services exporters fell ahead of quarterly results, while cement stocks such as Ambuja Cements, UltraTech and India Cements slipped 2.5% to 3.5% due to outlook concern.

BSE Sensex declined 3.04 points or 0.02% to close at 19,663.55 and Nifty50 declined 2.85 points or 0.05% to close at 5968.65. However, oil stocks such as ONGC gained after government officials told reporters a long-awaited proposal to raise fuel prices would be submitted to the cabinet.

Citigroup also issued a cautionary note, saying a rebound in economic growth, corporate risk appetite and the investment cycle may not be as strong as current expectations, and downgraded India to "underweight" from "neutral" as part of its emerging markets review.

Index heavyweight Reliance Industries (RIL) fell 0.23% to Rs 849.60.

The stock hit high of Rs 858.50 and low of Rs 847.05. Hardy Oil said that no agreement has been reached yet with RIL and any such agreement would be subject to Government of India's approval.

Among the main losers were BHEL snapped 2.19%, Hindalco declined 1.52%, TCS down 1.35% and Sterlite down 1.28%.

Among the 13 sectoral indices, six sectors closed in negative, while remaining five closed in positive. Top Gainers: BSE Bank up by 0.62%, BSE Oil & Gas gained by 0.47% and BSE PSU surged by 0.32%. Top Losers: BSE Power down by 0.93%, BSE Healthcare down by 0.70% and BSE Metal 0.63%.

Market breadth was negative at ~0.65x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs2.49bn and domestic institutions sold equity of Rs4.33bn in cash segment.

We expect a soft opening for Indian markets ahead of Infosys quarterly result and IIP data.

Economic and Corporate Developments

Prime Minister Dr. Manmohan Singh on Wednesday, 9 January 203, said at the occasion of the launch of National Electric Mobility Mission Plan 2020 in New Delhi, that 80% of Indias requirements of petroleum products are met through imports and this import dependence for petroleum products is likely to increase.

The Central Statistics Office (CSO) will unveil industrial production data for November 2012 on 11 January 2013.

Buzzing Stocks

Cabinet clears 10 per cent divestment in EIL

IDFC PE to pick 20 per cent stake in Simran Wind Project

Rolta wins $31 mn ERP project from Memphis Light Gas

Usher Agro has taken up capacity expansion/ new products projects in Mathura, Uttar Pradesh. The project includes expansion plan of Rice & Allied Products with a capacity of 486000 MTPA, expansion of Pulse Milling with a capacity of 105600 MTPA and expansion of Pulse Flour Milling with a capacity of 23100 MTPA

The board of Hindustan Motors in its meeting has approved scheme of arrangement between HML and Hindustan Motor Finance Corporation and their respective shareholders providing for demerger of the Chennai car plant (demerged undertaking) of HML to HMFCL from 01 April 2012 (the appointed date).