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Indian stock market daily morning report (January 15, 2013, Tuesday)

Contributed by Keynote Capitals

Views on markets today

The Key benchmark indices rallied to their highest levels in more than two years after Finance Minister P. Chidambaram said that the government has decided to defer the implementation the GAAR by two years until 1 April 2016. Data showing easing of inflation based on the wholesale price index (WPI) eased in December 2012 and firm global stocks aided gains on the domestic bourses. Interest rate sensitive stocks such as DLF, HDIL, SBI, ICICI bank and HDFC surged ahead of RBI policy at the end of month.

The BSE Sensex gain 242.77 points or 1.23% to close at 19,906.41 and Nifty50 declined 71.25 points or 1.20% to close at 6024.05.

Among the main losers were Maruti Suzuki snapped 1.72%, Cipla declined 1.23%, Bajaj Auto down 1.14% and Sunpharma down 0.58%.

However, among stocks that fell, Jaiprakash Power Ventures Ltd (JAPR.NS) shares dropped 4.6 percent on fears of equity dilution after its board approved raising up to 35 billion rupees and It has posted a net loss of Rs. 975.80mn for the quarter ended December 31, 2012, where as the net profit for the quarter ended on December 31, 2011 was at Rs. 595.20mn for the quarter ended December 31, 2011.

Muthoot registers Rs270cr PAT in Q3.During the same period in the previous fiscal the PAT was Rs 251cr. The year-on-year increase was 7%. Muthoot shares gained 4.9% to close at 226.90.

Infosys rose 3.5 percent, after already gaining nearly 17 percent on Friday. CLSA, JP Morgan and Barclays Capital were among the banks that upgraded the stock following its earnings results.

Among the 13 sectoral indices, two sectors closed in negative, while remaining eleven closed in positive. Top Gainers: BSE Realty up by 5.01%, BSE IT gained by 2.57% and BSE CD surged by 1.80%. Top Losers: BSE Auto down by 0.46% and BSE HC down by 0.06%.

Market breadth was positive at ~1.58x as investors bought large cap stocks. On provisional basis, FII bought equity of Rs6.11bn and domestic institutions sold equity of Rs12.10bn in cash segment.

Asian markets were trading mix today.

We expect a positive opening for Indian markets.

Economic and Corporate Developments

The government will delay by two years implementation of controversial rules on tax avoidance to 2016, Finance Minister P. Chidambaram said

Rising for the third consecutive month, retail inflation breached the double-digit mark at 10.56% in December, driven by higher prices of vegetables, edible oil, pulses and cereal.

Buzzing Stocks

Realty major DLF said it has signed an agreement to sell luxury hotel chain Amanresorts to the hospitality property's founder and chairman Adrian Zecha for about $300 million (over Rs 1,600 crore).

Muthoot Finance net profit up by 7% for Q3

Tata Housing today said it has signed an agreement with the Gujarat government to invest Rs 3,500 crore to build affordable homes at Ahmedabad.

Crompton Greaves today said it will acquire compact fluorescent lamp (CFL) manufacturing business of Himachal Pradesh-based Karma Industries

State-owned miner NMDC may revise iron ore rates for February because of firming prices of the key steel-making raw material internationally.