Reports » India

Indian stock market daily morning report (January 24, 2013, Thursday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices eked out small gains in a volatile session of trade as indices staged a comeback in late trade as European stocks edged higher ahead of a vote to increase the US debt ceiling. The barometer index, BSE Sensex, regained the psychological 20,000 mark, having alternately moved above and below that mark in intraday trade. The Sensex was up 45.04 points or 0.23% to close at 20,026.61 off 31.46 points from the days high and up 105.70 points from the days low. Nifty50 gained 5.80 points or 0.10% to close at 6054.30 Index heavyweight and cigarette major ITC edged higher. Another index heavyweight Reliance Industries (RIL) rose in volatile trade.

Both Bharti Airtel and Idea Cellular have increased their call tariff rates by nearly 100%. While Bharti Airtel has doubled the call rates from Re 1 per minute to Rs 2 per minute, Idea has also gone for a steep hike from 1.2 paise per second to 2 paise per second.

Hindustan Unilever (HUL) extended Tuesday's losses triggered by the company's announcement that it has decided to increase the rate of royalty payment to parent Unilever Plc in a phased manner until the year ending 31 March 2018

The shares of HDIL cracked as much as 15.8% on Wednesday after vice chairman and managing director Sarang Wadhawan offloaded partial stake in the company. He sold 5 million shares worth Rs 57 crore in secondary markets on Tuesday, reducing his stake to 0.99% from 2.19%.

Among the 13 sectoral indices, ten sectors closed in negative while only three sectors closed in positive. Top gainers: BSE TECK gained by 0.64%, BSE BANKEX by 0.43% and BSE CAPITAL GOODS by 0.10%. Top losers: BSE REALTY slashed by 2.34%, BSE PSU by 1.00% and BSE CONSUMER DURABLES by 0.94%

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 weak today as investors were cautious ahead of manufacturing data from china.We expect a weak opening for Indian markets following the cues from the global markets

Economic and Corporate Developments

The Reserve Bank of India (RBI) has allowed exporters to access the foreign exchange market without having to first exhaust funds in their foreign currency accounts, reversing a previous restriction imposed to prevent a sharp fall in rupee.

India's foreign direct investment (FDI) inflows declined to a nearly two-year low of $1.05 billion in November 2012, mainly due to global economic uncertainties. In November 2011, the country had attracted FDI worth $2.53 billion

Buzzing Stocks

Syndicate Bank's third quarter (October-December, FY13) net profit surged more than 50.3% year-on-year to Rs 508 cr, boosted by a one-off tax refund of Rs 141 cr.

Amket auto gained after it sold 5% stake in its subsidiary Amtek Crankshafts (India) to a foreign investor at Rs 300 per share aggregating Rs 22.38 crore.

Larsen and Turbo rose 0.82% ahead of its Q3 December 2012 to be released on 24th January.

Ankit Miglani, deputy managing director, Uttam Galva gives details on the company's plans to scale up exports by 50% to achieve an equilibrium in the exports and domestic sales.

Tata Motors-owned Jaguar Land Rover today said it will raise USD 400 million (over Rs 2,100 crore) through issue of bonds

Tata Power is actively looking at opportunities to develop hydro projects as part of efforts to boost its renewable energy portfolio which is expected to make up about one-fourth of its overall generation capacity by 2020.