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Indian stock market daily morning report (October 31, 2012, Wednesday)

Contributed by Keynote Capitals

Views on markets today

- The BSE Sensex snapped 204.97 points or 1.10% to close at 18,430.85 and Nifty50 down 67.70 points or 1.19% to close at 5,597.90 led by stocks of Bankex, Realty and the Reserve Bank of India left key policy rates unchanged. It cut CRR by 25 basis points to 4.25%.

- ICICI Bank down 2.2% even as a cut in the CRR should benefit the sector by freeing up funds that earned no interest when deposited at the central bank.

- Interest-rate sensitive realty shares also slipped: DLF down 2.2%, while Housing Development and Infrastructure Ltd snapped 4.9%.

- Among the 13 sectoral indices, eleven sectors closed in negative, while remaining two sectors closed in positive. Top Gainers: BSE IT up by 0.51% and BSE Teck surged 0.36%. Top Losers: BSE Bankex down by 2.35%, BSE Realty snapped by 2.28% and BSE CD down by 2.26%.

- Market breadth was negative at ~0.55x as investors sold large cap stocks. On provisional basis, FII sold equity of '1.92bn and domestic institutions sold equity of '0.31bn in cash segment.

- Asian stocks up today, following the US markets overnight and better-than-expected economic contraction in Spain.

- We expect a positive opening for the Indian markets, tracking the global cues. However, RBI's decision not to cut key rates may keep the sentiments down.

Economic and Corporate Developments

The Reserve Bank of India cut cash reserve ratio by 25 basis points keeping the key policy rates steady. It expressed concern over high inflation levels.

Group of Ministers likely to discuss spectrum refarming issue on Nov 1.

Buzzing Stocks

- Welspun Corp bought back $44.1-m FCCBs

- Muthoot Finance aims at Rs 7k crore worth biz transactions

- Central Bank of India eyes Rs10K cr home loan biz in FY13

- Cairn India Board to consider interim dividend

- Satyam to challenge ED order of freezing Co Rs 822 cr

- Voltas puts one of its Mumbai property in block, could fetch approx Rs 75 cr

- AV Birla group may take a 51% stake in Living Media, which in turn owns 57.46% stake in TV Today Network

- Oil ministry and RIL meet for Wednesday deferred

- Govt plans NMDC road show around November 15: News Sources

- Rainbow Papers to issue of 1.5 cr warrants at Rs.81 on preferential basis (CMP Rs. 78.35)

- IL&FS Engineering receives LoI for Rs 445 cr order

- Dhampur Sugar board approves modernization cum expansion of its Rajpura sugar unit