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Indian stock market daily morning report (September 10, 2012, Monday)

Contributed by Keynote Capitals

Views on markets today

- India's main stock index ended flat on Saturday in a special session conducted by the exchange to test a disaster recovery software programme. Market sentiment also boosted by provisional data showing that foreign institutional investors (FIIs) remained net buyers of Indian stocks. With parliament's monsoon session ending without any progress on key legislation, investors are concerned about whether the government can push forward reforms such as foreign direct investment in retail and fuel price hike through executive decisions.

- Investors are waiting for July industrial output data on Sept. 12 and August inflation on Sept. 14 ahead of the central bank's monetary policy review on Sept. 17.

- Metal shares extended Friday's rally triggered by China's thrust on infrastructure projects to spur growth in the world's second biggest economy. NALCO and NMDC edged higher as the Finance Ministry has issued an advertisement for appointing merchant bankers for divestment of government stake in these two state-run companies. FMCG stocks rose on revival of monsoon rains towards the end of the monsoon season. Drugmaker Cipla rose as much as 3% after an Indian court ruled a patent infringement case in its favour filed by Roche Holding AG over Cipla's cancer drug.

- Market breadth was positive at ~2.25x as investors bought large cap stocks. On provisional basis, FIIs bought equity of '0.19bn while domestic institutions sold equity of '0.08bn in cash segment.

- Asia shares traded mixed mostly higher in a choppy session as Japanese shares are down, amid hopes global central banks would act to lift sagging economic growth.

- We expect a positive opening for the Indian markets today following the cues from the Asian markets and possible chances that the economic revival will come with easing liquidity.

Economic and Corporate Developments

- Riding on surplus August rains, the south-west monsoon for the first time touched the near normal level with the rainfall deficit narrowing down to 9% of the seasonal average.

Buzzing Stocks

- Jindal Steel & Power (JSPL) accused of cheap coal, costly power (JSPL refute charges).

- Deccan Chronicle Holdings (DCHL) to seek debt recast of '3000Cr.

- Bharti Infratel likely to file DRHP for '5000Cr IPO this week.

- Infosys in talks to acquire Spanish consulting firm, DMR Consulting.

- Reliance Capital board to meet today to decide on interim dividend pay-out (Company announced at the AGM).

- Max India to consider sale of Max Speciality film unit today.

- JSPL to go for second arbitration against Bolivia.

- Ministry of Coal asks Coal India (CIL) to lift the suspension of supplies to Lanco Amarkantak (a subsidiary of Lanco Infratech).