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Indian stock market daily morning report (September 11, 2012, Tuesday)

Contributed by Keynote Capitals

Views on markets today

- Indian markets ended flat yesterday as investorRs.s sentiments were hit by worries that continued delays in government fiscal reforms would contribute to stagnating growth and prevent the central bank from lowering interest rates. The flat trading session tracked a day of flat to lower markets in Asia after ChinaRs.s exports last month grew at a slower pace than forecast while imports surprisingly fell. The data comes after weaker-than-expected US jobs data on Friday. IndiaRs.s economy is also stagnating at a time when high inflationary pressure is preventing the RBI from lowering interest rates. Central bank officials have repeatedly pushed the government to take fiscal consolidation steps, but India has yet to take decisive action. However, on a more positive note, investors are hopeful the Federal Reserve would revive its asset purchase programme, potentially sparking increased demand for emerging market risk assets.

- Investors are also growing cautious ahead of industrial output data on Wednesday, followed by inflation numbers on Friday. Both reports come ahead of the RBIRs.s policy review on Sept. 17.

- Infosys gained after the company announced a definitive agreement to acquire Lodestone Holding AG, a leading global management consultancy firm while ONGC rose after its subsidiary ONGC Videsh said it buy US energy firm Hess Corp.Rs.s stake in AzerbaijanRs.s giant Azeri-Chirag-Gunashli oil field.

- Market breadth was positive at ~1.16x as investors bought large cap stocks. On provisional basis, FIIs bought equity of Rs.6.93bn while domestic institutions sold equity of Rs.3.18bn in cash segment.

- Asian markets dropped sharply today, following the US markets overnight ahead of key event risks from the U.S. and Europe later in the week, and with a weak euro hitting exporter stocks in Japan.

- We expect a weak opening for the Indian markets tracking the global cues.

Economic and Corporate Developments

- Law Ministry advises granting mining licences on existing norms.

- SC to deliver verdict of media guidelines today.

Buzzing Stocks

- Max India to sell Max Speciality Films unit to German co Treofan for Rs.540Cr.

- Infosys BPO Arm McCamish acquires US-based Marsh BPO.

- Fulford India revises its open offer price from Rs.830 to Rs.1000 per share.

- Opto Circuits receives DCGI nod for heart devices

- IRB Infra receives service tax demand notice of Rs.60.46Cr from I-T dept.

- Karnataka Bank schedules board meet on Sept 14 to consider a rights issue.

- Cement Co cut prices buy 5% from Rs.340 to Rs.325.

- Anand Mahindra considering merger of IT businesses under Mahindra Satyam & Tech Mahindra

- SwedenRs.s H&M in talks with Arvind & RIL for retail foray into India.

- Venture Capitalist Srini Raju is willing to invest in Deccan Chronicle Holdings at "right price”.