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Indian stock market daily morning report (October 10, 2012, Wednesday)

Contributed by Keynote Capitals

Views on markets today

- The BSE Sensex up 84.38 points or 0.45% to end at 18,793.36 after a fall of 1.8% in the previous two sessions. The Nifty50 gained 28.6 points or 0.5% to end at 5,704.60. The BSE Sensex recovered on Tuesday from two previous sessions of losses as dented stocks such as Infosys rose ahead of Quarterly result on Friday, Telecom stocks fell as operators face a total surcharge of at least $5.2 billion to continue using the airwaves, after a ministerial panel recommended the sector be charged for existing second-generation holdings based on the price at an upcoming auction. Idea Cellular shares fell 3.2%, while Bharti Airtel fell 1.9%.

- Among the 13 sectoral indices, three sectors closed in negative, while remaining ten sectors closed in positive. Top Gainers: BSE CD up by 1.47%, BSE HC up by 1.14% and BSE IT up by 1.1%. Top Losers: BSE Oil & Gas down by 3.5%, BSE Power down by 0.08% and BSE Auto down by 0.04%.

- Market breadth was positive at ~1.19x as investors bought large cap stocks. On provisional basis, FII bought equity of '6.14bn and domestic institutions sold equity of '4.31bn in cash segment.

- Asian stocks declined sharply led by technology and steel stocks, as growth concerns depressed broad investor sentiment.

- We expect a weak opening for the Indian markets following the cues from the Asian markets.

Economic and Corporate Developments

- The government ruled out any further increase in diesel and cooking fuel prices even though the current retail rates are lower than their cost of production.

- The International Monetary Fund (IMF) has slashed India's growth forecast to 4.9 per cent for 2012 due to low business confidence and "sluggish structural reforms".

Buzzing Stocks

- CUK's CRH Plc terminates talks to buy Jaypee Cement's (a part of Jaiprakash Associates) Gujarat operations on valuations differences

- SEBI bars Arun Jain of Polaris from capital markets for two years on insider trading charges

- ICICI Bank acquires 5.4% stake in IL&FS Engineering via corporate debt restructuring

- M&M Financial board approves fund raising not exceeding Rs 925 crore via QIP

- Jyoti Structures gets orders worth Rs 69.75 crore for various water supply and irrigation schemes

- Peninsula Land in pact to develop 190-acre property in Central Mumbai (Sewree)

- Ranbaxy launches Evixac generic in the US

- National Pricing Authority issues show cause notice to Aventis Pharma, Aurobindo , Ind-Swift and Ipca Labs for overcharging of essential drugs

- NSE says Emkay Global has met all financial obligations w.r.t freak trade