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Indian stock market daily morning report (September 07, 2012, Friday)

Contributed by Keynote Capitals

Views on markets today

- Indian markets edged higher yesterday in choppy trade as world stocks rose on hopes that the European Central Bank (ECB) will announce a bond-market intervention at its policy meeting later in the day. ECB chairman Mario Draghi is set to unveil his plan later in the day to save the euro. European stocks also edged higher in anticipation of the ECBRs.s action, but fears of a disappointment weighed.

- Technology shares gained ahead of a crucial meeting of the European Central Bank. IT services providers such as Infosys, which draw about three quarters of their revenue from the U.S and Europe, led the gainers on hopes of improved spending environment after ECB easing. PSU OMCs gained for the 3rd straight day on reports the government plans to raise fuel prices after the monsoon parliament session ends on September 7. SBI rose 1.3% after the bank slashed its deposit rates between 50-100 basis points across maturities, effective Friday. Macquarie has upgraded Yes Bank to Rs.outperformRs. from Rs.neutralRs. and raised its target price to 415 rupees from 380 rupees, saying current levels "offers good opportunity to accumulate."

- Titan Industries dropped on concerns that record high gold price will adversely affect sales growth of the companyRs.s jewellery division. ITC fell 2.7% on concerns that India may follow the rest of the world in adopting anti-smoking regulations.

- Market breadth was positive at ~1.08x as investors bought large cap stocks. On provisional basis, FIIs bought equity of Rs.1.66bn while domestic institutions sold equity of Rs.0.34bn in cash segment.

- Asia shares rose sharply after the European Central Bank unveils a bond buying plan to stabilize markets. Japan exporters get extra boost from falling yen.

- We expect a positive opening for the Indian markets following the cues from the Asian markets and a boost that is expected to get from ECBRs.s move.

Economic and Corporate Developments

- The massive bond buying programme announced by the ECB today could boost capital flows into the country and help cover the huge current account deficit, RBIRs.s KC Chakrabarty said.

Buzzing Stocks

- NALCO to sell 12.15% stake, Department of divestment invites merchant bankers.

- Tribunal issues IOC, HPCL, BPCL notice for alleged cartelisation on RIL, Essar OilRs.s plea.

- From 2G Conference: MTNL not to participate in 2G spectrum auction.

- Exide steps up efforts to acquire INGRs.s 26% stake in insurance JV.

- Mitsui, Sanyo buy 49% in Mahindra UgineRs.s steel business for Rs.218Cr.