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Indian stock market daily morning report (January 17, 2013, Thursday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices dropped as comments on Tuesday, 15 January 2013, from Reserve Bank of India (RBI) Governor Mr.Subbarao tempered expectations of cut in key policy rate by the RBI at Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013. Weakness in global stocks also weighed on sentiment on the domestic bourses. The market breadth was weak. The BSE Mid-Cap and BSE Small-Cap indices dropped more than 1% each.

The BSE Sensex snapped by 169.19 points or 0.85% to close at 19,817.63 and Nifty50 dropped by 54.75 points or 0.90% to close at 6,001.85 led by stocks of Auto and Metal.

Index heavyweight Reliance Industries (RIL) gained 1.72% to Rs 860.40. The stock hit high of Rs 870 and low of Rs 846.05. The company announces Q3 results on Friday, 18 January 2013. RIL on 10 January 2013 said it has bought back 4.62 crore shares for about of Rs 3359.76 crore till 8 January 2013 under its ongoing share buyback program.

Bajaj Auto closed in red after Q3 Results. India's second largest two-wheeler maker Bajaj Auto reported a 3% rise in third quarter net profit at Rs819Cr and Its turnover rose 9 percent from a year ago to Rs 5,413Cr in the quarter. The stock declined 1.87% to close at 2075.60.

Among the 13 sectoral indices, twelve sectors closed in negative, while only one sector closed in positive. Top Gainers: BSE OIL & GAS up by 0.43%.Top Losers: BSE AUTO down by 2.40%, BSE METAL by 2.10%,BSE BANKEX by 1.66% and BSE Realty by 1.37%.

Market breadth was negative at ~0.47x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs10.29bn and domestic institutions sold equity of Rs6.91bn in cash segment.

Asian markets were trading in green today.We expect a positive opening for Indian markets following the cues from the Asian markets

Economic and Corporate Developments

Reserve Bank of India Governor Duvvuri Subbarao tempers expectations of rate cut

Sebi for allowing ETFs to park 20% gold holdings with banks

Buzzing Stocks

Maruti-Suzuki Private Limited has launched a refreshed version of its WagonR for 2013. The new model comes with several updates to both its exteriors and interiors.

Punjab National Bank acquires 30% stake in Metlife India Insurance the Company will be rebranded as PNB Metlife India Ltd

India's State-run, GAIL has made its 5-million tonne a year import facility of the Dabhol power plant operational and is now looking into opportunities in shipping.

Reliance Communications to award a multi-year contract valued at more than $1 billion to Franco-American telecommunications equipment maker Alcatel-Lucent to manage its network.

Premier has announced that the company has entered into an agreement with Horizon Projects, part of the Runwal Group, to develop an affordable/ middle income housing project on 150 acres (out of 218 acres) of its land at Dombivli, Mumbai.