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Indian stock market daily morning report (January 28, 2013, Monday)

Contributed by Keynote Capitals

Views on markets today

The BSE Sensex bounced back by 179.75 points to close at 20,103.53 on heavy buying in interest-sensitive stocks ahead of RBI credit policy on Tuesday and encouraging earnings by Maruti Suzuki.

The BSE Sensex index gained 179.75 points, or 0.90%, to close at 20,103.53 points, while the Nifty 50 added 55.30 points, or 0.92%, to end at 6,074.65.

Maruti Suzuki rose 4.15% to close at Rs 1,600 after the company said its profits doubled to Rs 501Cr in the fiscal third quarter due to higher sales of existing models, good response to new launches and a tighter cost-control drive.

Among lenders, State Bank of India shot up by 2.23% to Rs 2,513.25, ICICI Bank by 0.76% to Rs 1,172.75, Bank of Baroda by 4.71% to Rs 880.70 and Bank of India by 4.70% to Rs 364.40.

Exide Industries shares fell 2.3%, down for the second day after Dutch banking and insurance group ING said it was selling its 26 percent stake in an Indian insurance venture to local partner Exide.

Reliance Industries ended 0.4% lower as recent recommendations on a revision in local gas prices was seen benefiting state-run upstream companies such as Oil and Natural Gas Crop and Oil India with immediate effect.

All the 13 sectoral indices closed in positive, Top gainers: BSE Realty gained by 4.42%, BSE Auto 2.19%, BSE Consumer Durables by 1.71%.

Market breadth was positive at ~1.37x as investors bought large cap stocks. On provisional basis, FII bought equity of Rs5.87bn and domestic institutions sold equity of Rs3.32bn in cash segment

Asian markets were trading mix today.We expect a weak opening for Indian markets following the cues from the global markets.

Economic and Corporate Developments

Finance minister P Chidambaram on his road show in Hong Kong and Singapore has assured foreign investors of continuation of reform and to cut fiscal deficit.

Foreign direct investment (FDI) inflows into the services sector declined by about 14 per cent to USD 3.63 billion during the April-November period this fiscal. The financial and non-financial services sector had attracted FDI worth USD 4.22 billion during the same period last year, according to the Industry Ministry data.

Buzzing Stocks

Maruti Suzuki, India's biggest carmaker by sales volume, has purchased the land for its fourth plant in India, with a view to roughly doubling annual production capacity to about 3 million units, the Nikkei business daily said on Sunday.

Ceat has signed a Joint Venture Agreement with A K Khan & Company Limited, a leading business house of Bangladesh, for setting up a bias automotive tyre manufacturing facility in Bangladesh. The Company plans an investment of USD 67 million for a capacity of 110metric tonnes per day in phases. Under the Joint Venture Agreement, while CEAT Limited will hold shareholding of 70%in the JV Company, balance 30% will be held by A K Khan & Company Limited.

Buoyed by rising demand in countries like Russia, Tata Coffee's instant coffee processing capacity is being ramped up by nearly 30% to 8,400 tonnes by April.

Jain Irrigation Systems expects a 35%t rise in turnover at Rs 5,000 crore in the current fiscal on the back of growth in solar water pump, food and tissue culture businesses. The Jalgaon-based company had posted a turnover of about Rs 3,710 crore for the 2011-12 financial year.

Vedanta group firm Sesa Goa has finalised the capital expenditure plan for its Liberian iron ore mining project and plans to begin shipments from it from February 2014, a top company official said.