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Indian stock market daily morning report (January 18, 2013, Friday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices edged higher in a volatile trading session on reports that the government has given authority to PSU OMCs to change diesel prices by a small margin from time to time. Comments by Finance Minister P. Chidambaram on Wednesday, 16 January 2013, that the immediate priority of the government is to keep the investment cycle going also boosted sentiments.

The BSE Sensex recovered by 146.40 points or 0.74% to close at 19,964.03 and Nifty50 gained 37.35 points or 0.62% to close at 6,039.20 led by stocks of Oil &Gas and Realty

Coming back to today's trade, index heavyweight and cigarette maker ITC edged higher ahead of its Q3 results tomorrow, 18 January 2013. Index heavyweight Reliance Industries (RIL) hit 52-week high ahead of its Q3 results tomorrow, 18 January 2013.

HCL Technologies jumped 4.31% to Rs 703.30 on strong Q2 results. The stock hit 52-week high of Rs 720.90 in intraday trade today, 17 January 2013. The company before trading hours today, 17 January 2013, said its consolidated net profit as per US accounting standards rose 9.7% to $177 million on 3.6% growth in revenue to $1.154 billion in Q2 December 2012 over Q1 September 2012.

Telecom stocks gained after the Union Cabinet approved reduction in reserve price for the auction of spectrum in 800 MHz band for CDMA by 50% from the previous reserve price approved by the Union Cabinet at its meeting held on 3 August 2012.

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.

Among the 13 sectoral indices, two sectors closed in negative, while eleven sectors closed in positive. Top Gainers: BSE OIL & GAS up by 3.11%, BSE Realty by 2.05% and BSE TECK Top Losers: BSE Capital Goods down by 0.62% and BSE HEALTHCARE by 0.15%

Market breadth was negative at ~0.97x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs5.64bn and domestic institutions sold equity of Rs5.19bn in cash segment.

Asian markets were trading higher today, tracking overnight gains in global equities market. We expect a positive opening for Indian markets today ahead of RIL and ITC quarterly results.

Economic and Corporate Developments

The government has given authority to PSU OMCs to change diesel prices by a small margin from time to time.

The government will not factor the impact of diesel price hike by oil companies while computing the oil subsidy bill for the current fiscal, Finance Minister P Chidambaram said

Buzzing Stocks

Hero MotoCorp Ltd missed estimates for the fourth straight quarter on Thursday as net profit fell 20.4 per cent on slowing motorcycle demand.

Punjab National Bank rose 0.8% to Rs 890.60. The state-run bank announced after market hours, its Chairman & Managing Director has approved raising up to Rs 1250 crore by issuing equity shares on preferential basis to Government of India.

BHEL wins 720 MW hydroelectric project worth Rs 730-750 crore in Bhutan.

GMR, GVK exiting mega projects due to unviability: NHAI

Tata Motors-owned Jaguar Land Rover today reported 32 per cent increase in sales at 2,393 units in 2012.

The meeting between Kingfisher management and bankers tomorrow Bajaj auto looking to emerge market leader in Northeast India Nalco to set up Rs 283-crore wind power project in Jaisalmer Essar Ports to invest Rs 10,000 crore in Gujarat