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Indian stock market daily morning report (January 23, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices snapped three-day winning streak as weak European stocks weighed on sentiment adversely. The barometer index, BSE Sensex settled below the psychological 20,000 mark after sliding below that level in late trade. The Sensex was down 120.25 points or 0.6% off 175.29 points from the days high and up 28.66 points from the days low. Index heavyweight and cigarette maker ITC fell on profit booking after recent gains triggered by strong Q3 results.

FMCG major, Hindustan Unilever (HUL) tumbled 5.94% after its quarterly results, Net profit increased by 15.59% to Rs 871.36 crore and total income increased by 12.47% to Rs 6788.54 crore in Q3 December 2012 over Q3 December 2011.

Berger Paints India jumped 3.24% to Rs 167.40. The stock hit a record high of Rs 170.45 in intraday on 22 January 2013. The company will announce Q3 results on 2 February 2013

Pantaloon Retail (India) spurted after the central bank eased restrictions on the purchase of shares in the company by foreign institutional investors, non-resident Indians and persons of Indian origin. Kotak Mahindra Bank rose after strong Q3 results. Shree Cement reversed intraday gains triggered after reporting strong Q3 results. Capital goods and realty stocks edged lower on profit booking. Cairn India reversed intraday gains after reporting Q3 results. Asian Paints gained on good Q3 results.

NTPC gained after company said after market hours on Monday, 21 January 2013 that the board of directors of the company at its meeting held on 21 January 2013, has accorded approval for equity investment of up to Rs 2269.75 crore in Nabinagar Power Generating Company (NPGCPL).

Among the 13 sectoral indices, all thirteen sectors closed in negative.

Top losers: BSE REALTY down by 1.98%, BSE CONSUMER DURABLES by 1.93%, BSE FMCG by 1.30% and BSE PSU by 0.91%

Market breadth was negative at ~0.58x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs10.46bn and domestic institutions sold equity of Rs8.55bn in cash segment.

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

Economic and Corporate Developments

RBI for periodic interest reset on long-term fixed-rate loans instead of charging a fixed rate throughout the tenure as it will be costlier for a borrower than floating rate loans.

The finance minster has promised foreign institutional investors (FIIs) that he will stick to the 5.3% fiscal deficit target for the current year.

Buzzing Stocks

HUL to more than double royalty percentage to Unilever by Mar'18

Anticipating more manufacturing-related outsourcing deals, Wipro plans to open development centres in Europe.

Kingfisher Airlines needs to invest at least Rs 2,000 crore to restart its operations, said one of its lender SBI 's Chairman Pratip Chaudhuri.

Engineering major Larsen & Toubro (L&T) today said it has bagged a Rs 447 crore contract from the Defence Ministry to supply 18 high speed interceptor boats for the Indian Coast Guard.

Welspun Energy, India's biggest developer of solar projects, it has commissioned a 15 mega-watt solar project in Rajasthan ahead of schedule.