Reports » India

Indian stock market daily morning report (January 16, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices edged higher for the second straight day after the government on Monday, 14 January 2013, announced its decision to defer the implementation the General Anti Avoidance Rules or GAAR by two years until 1 April 2016. Gains in European stocks aided gains on the domestic bourses. The market was volatile as the barometer index, BSE Sensex, fell below the psychological 20,000 mark after piercing that level in intraday trade. The Sensex advanced 80.41 points or 0.40%, off about 50 points from the days high and up about 105 points from the days low.

The BSE Sensex surged 80.41 points or 0.40% to close at 19,986.82 and Nifty50 gained 32.55 points or 0.54% to close at 6,056.60 led by stocks of Realty, Banks.

Axis Bank posted a 22% rise in net profit at Rs 1,347 cr during the Q3FY13. The bank had recorded a net profit of Rs 1,102cr during the previous year. Net interest margin (NIM) stood at 3.57% compared with 3.46% in the July-September quarter.

Essar Oil has posted a net profit of Rs 32cr for the December quarter when compared with a loss of Rs 362cr, y-o-y mainly on improved margins. The company has registered gross refining margins at USD 9.75/bbl as against USD 3.82/bbl reflecting higher complexity benefits post expansion of projects.

Among the 13 sectoral indices, four sectors closed in negative, while remaining nine sectors closed in positive. Top Gainers: BSE Realty up by 1.25%, BSE Bankex gained by 0.76%, BSE Teck surged by 0.69%. Top Losers: BSE Metal down by 0.30%, BSE IT by 0.17% and BSE Power by 0.02%

Market breadth was negative at ~0.97x as investors sold large cap stocks. On provisional basis, FII bought equity of '10.77bn and domestic institutions sold equity of '7.55bn in cash segment.

Asian markets were trading mix today.

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

Economic and Corporate Developments

Industry body Assocham asked the government to further raise the rail passenger fares to finance the huge investments required for modernisation and safety of Indian Railways.

President Pranab Mukherjee said the country can achieve the targeted 4% growth in the agriculture sector during the 12th Plan period with the help of better seeds, improved water management practice and balanced use of fertilisers and pesticides, among others.

Buzzing Stocks

Yes Bank Ltd is in talks to buy the local retail and commercial banking operations of Royal Bank of Scotland Group Plc (RBS). RBS's Indian unit has 31 branches, 400,000 customers and was profitable, with assets of 190 million pounds and revenues of 42 million pounds in the first nine months of last year.

Mahindra Satyam and TechMatrix announce ASEAN Partnership.

MEEZA and Sonata Software Sign Partnership to enhance IT Service Offering.

ONGC has current investments in 44 mega projects at Rs 86,862cr to be completed in the next 8 years.

Gujarat State Fertilizers and Chemicals Ltd (GSFC) has bought 19.98% stake in Canadian potash company for Rs250cr.

Hindustan Motors has entered into a three-year agreement with Raaj Unocal Lubricants for manufacture and marketing of co-branded genuine oils exclusively for HM vehicles.

Tata Motors said its global sales decreased 13.88 per cent in December 2012 to 98,968 units over the same period in the previous year.

Crompton GreavesBSE -0.25 % has entered into a pact for buying Himachal Pradesh-based Karma Industries' compact fluorescent lamp manufacturing business for Rs 14.5 crore, the Avantha Group company said.