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Indian stock market daily morning report (October 12, 2012, Friday)

Contributed by Keynote Capitals

Views on markets today

- The BSE Sensex up by 173.65 points to close at 18,804.75 and Nifty 50 surged by 0.99% to end 5708.05, supported by Realty, CG & Metal stocks. BSE Sensex and Nifty 50 closed in green ahead of Infosys earnings & industrial output data on Friday and hopes of more reforms following clearance to direct transfer of urea subsidy.

- Infosys gained 1.1%, while HDFC Bank surged 1.1%. Both are set to report their July-September earnings on Friday.

- Fertiliser stocks gained after the government raised the price of urea, the most-used nitrogenous fertiliser, by 50 rupees per tonne on Thursday. Rashtriya Chemicals & Fertilizers rose 4.43%, while Chambal Fertilisers and Chemicals surged 2.6%.

- Among the 13 sectoral indices, one sector closed in negative, while remaining twelve sectors closed in positive. Top Gainers: BSE Realty up by 4.61%, BSE CG surged by 2.04% and BSE Metal up by 1.61%. Top Losers: BSE HC down by 0.13%

- Market breadth was positive at ~1.4x as investors bought large cap stocks. On provisional basis, FII bought equity of '10.43bn and domestic institutions sold equity of '5.73bn in cash segment.

- Asian markets rose today, after Chinese banks performed strongly to lift the sentiments of investors.

- We expect a positive opening for the Indian markets, following the cues of the Asian stocks. However, a caution would remain ahead of Infosys and HDFC Bank results along with industrial production data. Interest rate sensitive stocks may also get boost after ICICI Bank cuts its home loan rates by up to 100 bps.

Economic and Corporate Developments

Government raised Urea prices by Rs 50/tonne (came in market hours)

Buzzing Stocks

- UBPCL consortium announces another successful exploration well in Brazil

- BNP Paribas, SREI invest Rs 200 crore in JV SREI Equipment Finance

- Great Offshore board extends maturity date of USD 40 million FCCB by 6 months

- Motilal Oswal 's PE arm to float Rs 500 crore real estate fund

- Government has granted infrastructure status to telecom tower providers, Bharti Infratel (subsidiary of Bharti Airtel ), Reliance Infratel (a part of Reliance Communications ) to benefit

- EIH Associated Hotels rights issue closes today

- Maruti Suzuki halves growth forecast for FY13 to 5% from guidance of 10% earlier

- ICICI Bank cut home loan rates by upto 100 bps