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Indian stock market daily morning report (October 11, 2012, Thursday)

Contributed by Keynote Capitals

Views on markets today

- The Indian markets opened with a gap-down as sentiments turned bearish in the Asian markets on concerns like slowdown in China. The BSE Sensex closed 162 points or 0.86%, to end at 18,631.10 and Nifty 50 down 0.92% or 52.45 points to end at 5,652.15, weighed down by Banks, Realty and Power stocks.

- The BSE Sensex extended its intraday losses after ratings agency Standard & Poor's warned of a significant chance of downgrading India's credit rating. A downgrade would take India's rating to below investment grade. S&P said there is a significant chance of cutting India's credit rating in the future. "There is 1 in 3 likelihood of India downgrade in the next 24 months

- Country's largest lender State Bank of India down 2% while its rivals ICICI Bank and HDFC Bank were down 1%.

- Among the 13 sectoral indices, twelve sectors closed in negative, while remaining one sector closed in positive. Top Gainers: BSE FMCG up by 0.04%. Top Losers: BSE Realty down by 4.61%, BSE Power down by 2.17% and BSE Bankex down by 1.31%.

- Market breadth was negative at ~0.51x as investors sold large cap stocks. On provisional basis, FII bought equity of '4.07bn and domestic institutions sold equity of '3.96bn in cash segment.

- Asian markets are down today, following the weak US markets overnight as concerns related to Europe's debt problems rose.

- We expect a weak opening for the Indian markets ahead of the industrial production data tomorrow and caution before important quarterly earnings results.

Economic and Corporate Developments

- Cabinet will meet today to mull direct urea subsidy transfer

Buzzing Stocks

- UB group stocks under SEBI scanner, regulator probing stock movement for violation

- Suzlon bondholders deny 4-month extension on USD 220.8 million October foreign currency convertible bonds (FCCBs)

- Corporation Bank begins probe into overdraft to Varda's firm

- IRB Infrastructure Developers acquires 74% in MVR Infra & Tollways

- Polaris CMD Arun Jain may move SAT against SEBI order

- Kingfisher Airlines (KFA) likely to extend lockout again

- Tata Steel invests 12 million Euros in new Netherlands facilities

- Asahi India Glass to raise up to Rs 275 crore via rights issue

- Dish TV offers 70 channels free in four metros, to trigger price war in direct-to-home (DTH) space