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Indian stock market daily morning report (September 12, 2012, Wednesday)

Contributed by Keynote Capitals

Views on markets today

- Indian shares rose for a fifth consecutive session to a three-week closing high on rising hopes for fiscal reforms after Oil Minister S. Jaipal Reddy said India will have to hike the price of heavily subsidised fuels such as diesel in the near term. State-owned oil marketing companies such as Hindustan Petroleum Corp were among the day's leading gainers, while financial firms such as ICICI Bank also advanced on hopes fiscal reforms would spur the central bank to cut interest rates. Despite being disappointed in the past, investors remain hopeful the government will soon announce fiscal reforms given India is under threat of being downgraded into a sub-investment grade ratings by Standard & Poor's and Fitch Ratings.

- Infosys rose after the company said its BPO firm, McCamish Systems has increased its presence in the USA, and in the Voluntary Group Life Insurance Business. Panacea Biotec Ltd surged 20%, hitting its maximum daily limit for a second day, after saying it would jointly develop with U.S.-based Osmotica Pharmaceutical Corp at least 18 branded and generic drugs. However, shares in Sterlite Industries dropped 4.6% while Sesa Goa fell 6.2% after India's western Goa state temporarily suspended all mining activities starting on Tuesday. Hero MotoCorp fell 1.21% on worries the two-wheeler maker will have to cut production after an industry report on Monday said sales fell 11.9% in August.

- Market breadth was positive at ~1.25x as investors bought large cap stocks. On provisional basis, FIIs bought equity of '4.24bn while domestic institutions sold equity of '3.66bn in cash segment.

- Asian stocks rise as gains on US markets and comments from China's premier help sentiment ahead of key events due out of Europe and the U.S.

- We expect a positive opening for the Indian markets today, following the cues from the Asian markets. However, the trading can be volatile ahead of the industrial production data.

Economic and Corporate Developments

- RBI on Tuesday enhanced the limit of external commercial borrowings by any individual company. Currently, a company is allowed to raise 50% of the average annual export earnings during the same time mentioned above.

- Govt clears 21 FDI proposals worth '2,410Cr.

Buzzing Stocks

- Himadri Chemicals to divest partly or fully its noncore carbon black business.

- Deccan Chronicle Holdings (DCHL) board passes resolution to restructure debt via CDR route.

- Deccan Chronicle pledges its 4 trademarks (Deccan Chronicle, The Asian Age, Andhra Bhoomi and Financial Chronicle) to IDBI for '250Cr loan.

- IFCI planning to redeem '400Cr bonds to prevent government from converting the debentures into equity.

- Reliance Infrastructure equity in Delhi Airport Metro near zero, company transfers 65% stake to trust.

- Piramal Healthcare in race to acquire TPG's 20% stake in Shriram Transport.

- Earth Water to buy Wipro 's water business for ?50Cr

- Two city developers move to court against GTL over Mumbai land deal (Company had earlier sold Mumbai plot to Seth developers for ?543Cr)

- SEBI bars Almondz Global from taking up public offers.

- UB group senior official says the company could sell Whyte and Mackay completely.

- Dr Reddy's Labs (DRL) launches Metroprolol Succinate ER tablets in US market on September 11.

- Steel Ministry says RINL IPO may be filed by September-end.