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Indian stock market daily morning report (January 29, 2013, Tuesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices registered small losses on the first trading day of the week. The barometer index, BSE Sensex closed flat, off 79.32 points from the day's high and up 30.34 points from the day's low. Index heavyweight and cigarette maker ITC rose marginally. Another index heavyweight Reliance Industries (RIL) extended intraday losses in late trade. The market breadth, indicating the overall health of the market, was positive.

Interest rate sensitive auto stocks rose as the Reserve Bank of India (RBI) is seen cutting its key policy rate at Third Quarter Review of Monetary Policy 2012-13 on 29 January 2013. Car major Maruti Suzuki India rose 0.55% to Rs 1,608.95, with the stock extending Friday's gains by triggered by strong Q3 results. The stock hit 52-week high of Rs 1,634 in intraday trade on 28 January 2013. The company on Friday, 25 January 2013, said its net profit jumped 143.8% to Rs 501.30 crore on 45.6% growth in net sales to Rs 10957 crore in Q3 December 2012 over Q3 December 2011.

Bank of India shed 2.51%. The state-run bank during market hours reported 12.19% growth in net profit to Rs 803.48 crore on 11.96% increase in total income to Rs 8959.83 crore in Q3 December 2012 over Q3 December 2011.

Reliance Infrastructure (RInfra) edged lower as an exceptional one-time profit of Rs 418.34 crore on sale of shares of Reliance Power lifted the company's bottom line in Q3 December 2012. The stock shed 2.12%.

The company's consolidated net profit jumped 78% to Rs 728 crore on 14.02% fall in total operating income to Rs 5296 crore in Q3 December 2012 over Q3 December 2011.

Adani Ports and Special Economic Zone gained 4.98%. The company's consolidated net profit rose 12.52% to Rs 361.09 crore on 49.83% growth in total income to Rs 1389.57 crore in Q3 December 2012 over Q3 December 2011.

Among the 13 sectoral indices, six sectors closed in negative, while remaining seven sectors closed in positive. Top Gainers BSE Realty up by 1.84%, BSE Auto gained by 1.03% and BSE Bank by 0.68%. Top Losers: BSE Oil & Gas down by 1.14%, BSE Consumer Durables by 0.69% and BSE Capitals Goods by 0.65%.

Market breadth was positive at ~1.22x as investors bought large cap stocks. On provisional basis, FII bought equity of Rs7.84bn and domestic institutions sold equity of Rs8.64bn in cash segment.

Asian markets were trading positive today after strong US data.We expect a positive opening for Indian markets ahead of RBI policy meet.

Economic and Corporate Developments

RBI policy meeting

India's economic growth could fall to 5.5% this fiscal before seeing gradual recovery next yeay:RBI

Buzzing Stocks

Government has started roadshows in five countries, including the US, UK and Japan for promoting the proposed Rs 13000Cr stake sale in power producer NTPC.

Indian private sector lender Axis Bank Ltd is selling shares to raise as much as $1billinon.

Chasing number two spot in the Indian passenger vehicle market, Tata Motors said it will speed up the time for introduction of new products, apart from reorienting its dealer network towards better customer experience. The company launched the new Vista D90 hatchback priced at Rs 5.99 lakh and Rs 6.83 lakh (ex-showroom Delhi), also said its capex for the next fiscal will be around Rs 3,000 crore.

Diversified conglomerate Mercator Group said it has bagged two contracts worth Rs 210 crore from Paradip Port Trust in Odisha.

State-owned Engineers India said it has signed a contract to upgrade Oil India Ltd's Naharkatiya- arauni crude oil pipeline.EIL last week signed the engineering, Procurement and Construction Management (EPCM) contract for implementing the project for upgrading pump stations/terminal of the crude pipeline, the company said in a statement here.

ONGC Videsh Ltd, which trumped a strong bid by arch-rival China National Petroleum Corp to bag a stake in Kazakhstan's giant Kashagan oilfield, has cleared the first hurdle when it secured approval of all the partners in the project for its USD 5 billion acquisition.