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Indian stock market daily morning report (January 31, 2013, Thursday)

Contributed by Keynote Capitals

Views on markets today

Key equity benchmarks continued to trade within a tight range, ending trade marginally in the green after Reliance Industries ended by 1.87% to close at Rs899.05 from a four-session losing streak, while ICICI Bank surged 1.11% to close at Rs 1214.25 ahead of its quarterly earnings results. While the market was somewhat under pressure on investors clearing their positions before the monthly expiry in the derivatives segment, a better global trend supported the market. Sentiment also remained weak after the RBI disappointed investors by staying cautious on future monetary easing.

The BSE Sensex gained by 14.10 points or 0.07% to close at 20005.00 and Nifty 50 gained 5.85 points or 0.10% to close at 6055.75 led by stocks of oil and gas

Reliance Industries moved higher after a 4-day fall on hopes that the issue related to Defence Ministry's classification of KG-D6 areas as 'No-Go' will be sorted out today. The Cabinet Committee on Investment (CCI), chaired by the Prime Minister, is likely to resolve the Defence Ministry's concerns.

Merck net profit rose 58.37% to Rs 20.05 crore in the quarter ended December 2012 as against Rs 12.66 crore during the previous quarter ended December 2011. Sales rose 27.34% to Rs 161.18 crore in the quarter ended December 2012 as against Rs 126.57 crore during the previous quarter ended December 2011.

Astra Microwave Products Net profit declined 42.74% to Rs 6.19 crore in the quarter ended December 2012 as against Rs 10.81 crore during the previous quarter ended December 2011. Sales rose 2.00% to Rs 49.90 crore in the quarter ended December 2012 as against Rs 48.92 crore during the previous quarter ended December 2011.

EID Parry (India) reported Net Loss of Rs 21.98 crore in the quarter ended December 2012 as against net loss of Rs 48.09 crore during the previous quarter ended December 2011. Sales declined 0.51% to Rs 250.70 crore in the quarter ended December 2012 as against Rs 251.98 crore during the previous quarter ended December 2011.

Among the 13 sectoral indices, five sectors closed in negative, while remaining eight sectors closed in positive. Top Gainers BSE Realty gained by 1.39%, BSE CD by 1.24% and BSE Oil & Gas by 1.06%. Top Losers: BSE CG by down by 1.24%, BSE power by 0.68% and BSE Auto by 0.49%.

Market breadth was negative at ~0.79x 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 as the Japan's industrial production data was below expectation and U.S. growth unexpectedly stalled.We expect a weak opening for Indian markets following the cues from the global markets.

Economic and Corporate Developments

Finance Minister P Chidambaram will meet financial sector regulators tomorrow to seek their inputs for the Budget with a view to improving investment climate and boosting economy.

It is too early to say that Japan's aggressive recent moves to weaken the yen constitute a currency war but countries must resist falling into the trap of competitive devaluations, India's finance minister Palaniappan Chidambaram said.

Buzzing Stocks

Unity Infraprojects Ltd has been awarded the construction/Improvement of Major Roads in Solapur city under the scheme of Maharashtra Suvarna Jayanti Nagarotthan Mahaabhiyan Yojana Road Project, Phase -I (Sponsored by State Government) by Solapur Municipal Corporation and the said project is to be completed within a period of 18 months. The Project Value is Rs. 234.96 crores.

Aditya Birla Nuvo Ltd has decided for brownfield expansion of Urea capacity by 3850 TPD at existing fertilizer complex at Jagdishpur, U.P. Such expansion is envisaged at a capex of around Rs. 4000 Crores.

The government expects to raise more than Rs 2,500 crore ($465 million) by selling a 10 percent stake in Oil India Ltd on Friday, Oil Secretary G.C. Chaturvedi said on Wednesday.

Hero MotoCorp commenced its operations in three Latin American countries - El Salvador, Honduras and Guatemala in Latin America -eventually hoping to go to as many as 30 countries spread across the globe.

Yes bank is looking to expand its business and grow its financial metrics going forward. The company is open to possible acquisitions in banking, broking and asset management businesses, even as its organic growth plans are sufficient to meet its near-term targets.