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Indian stock market daily morning report (January 30, 2013, Wednesday)

Contributed by Keynote Capitals

Views on markets today

Key benchmark indices extended intraday losses to hit fresh intraday low in late trade. The barometer index, BSE Sensex, fell below the psychological 20,000 level. The market breadth, indicating the overall health of the market was negative. Index heavyweight Reliance Industries (RIL) extended intraday losses in late trade. Index heavyweight and cigarette maker ITC extended intraday gains in late trade. The barometer index, BSE Sensex, was down 112.45 points or 0.56%, off 212.76 points from the day's high and up 20.9 points from the day's low.

BSE Sensex and Nifty 50 indices edged higher in choppy trade after Reserve Bank of India (RBI) announced a 25 basis points reduction in the repo rate and 25 basis points cut in cash reserve ratio after a monetary policy review. The Sensex and the Nifty 50 hit their highest level in more than two years in mid-morning trade. From the banking pack, private sector bank ICICI Bank hit 52-week high. Axis Bank also struck a 52-week high after the private sector bank launched qualified institutional placement (QIP) of equity shares on Monday, 28 January 2013.

Sterlite industries declined 0.70% to close at 113.25 after quarterly results. The company posted consolidated net profit growing 30.4 percent year-on-year to Rs 1,191 crore in the third quarter of financial year 2012-13.

Dabur India fell 1.22%. The company during market hours reported 22.15% growth rise in consolidated net profit to Rs 211.11 crore on 12.48% growth in total income to Rs 1658.01 crore in Q3 December 2012 over Q3 December 2011.

Among the 13 sectoral indices, twelve sectors closed in negative, while remaining one sector closed in positive. Top Gainers BSE FMCG gained by 0.70%. Top Losers: BSE Realty down by 2.07%, BSE Oil & Gas by 1.35% and BSE Auto by 1.12%.

Market breadth was negative at ~0.82x as investors sold large cap stocks. On provisional basis, FII bought equity of Rs8.99bn and domestic institutions sold equity of Rs9.38bn 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

The Reserve Bank of India on 29 January 2013, announced a 25 basis points reduction repo and CRR

The RBI does not necessarily see steps taken to reduce the country's fiscal deficit as contractionary, its Governor Duvvuri Subbarao said on Tuesday.

The RBI is close to finalising the guidelines for new bank licences, Duvvuri Subarao, the governor of the Reserve Bank of India said on Tuesday.

Buzzing Stocks

Bharti Airtel has bid for telecom licence in Myanmar as India's biggest private telecom company looks to expand its overseas operations. A host of other global players including Norway's Telenor and Malaysia's Axiata have also submitted their bids in the process of awarding a licence to provide mobile telephony services in Myanmar.

Diversified conglomerate GMR Group has synchronised the first unit of its 1050 mw coal-fired power plant at Kamalanga in Odisha with the central grid. This is the group's second coal-based plant to be synchronised, according to a statement issued here.

Industrial and automotive batteries manufacturer Amara Raja Batteries, in which the US battery giant Johnson Controls holds 26% stake, has decided to spend Rs 440 crore on augmenting production capacities of its VRLA and four-wheeler batteries over the next 16-18 months.

World's fourth largest drug maker GlaxoSmithKline has teamed up with Hyderabad-based vaccines company Biological E Ltd for early-stage research and development of a six-in-one combination paediatric vaccine to help protect children in India and other developing markets, a move that will strengthen the multinational giant's position in the Rs 1,800-crore Indian vaccine market.

Adani Ports, India's largest private sector port company, is planning to use more than $235-million (Rs 1,300 crore) fund from stake sale at Abbot Point Coal terminal in Australia to fund its expansion plans in India's east coast. Adani Port had acquired Abbot Point coal terminal in Australia in 2011 for $2 billion.