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Indian stock market daily morning report (September 13, 2012, Thursday)

Contributed by Keynote Capitals

Views on markets today

- Indian markets rose for a sixth consecutive session yesterday to close at its highest since 23rd February, 2012 on rising hopes for government reforms after the aviation minister signalled the country was moving to allow foreign direct investment into the sector. Allowing foreign carriers to invest in the sector would help cement expectations for further government action, with investors also hopeful India will open up the multi-brand retail sector and raise fuel prices to lower its subsidy burden. Gains in domestic markets also tracked a risk-on mood globally, after GermanyRs.s top court backed the legality of the euro zone bailout funds, although with conditions. Investors are also hopeful the Federal Reserve will announce new US asset purchases when it concludes its two-day meeting.

- Real Estate gained as almost flat growth of industrial output in July 2012 strengthened the case for the central bank to mull cutting policy rates in RBIRs.s policy review in order to help revive growth.

- Tata Motors gained 5.38% on anticipation of a boost in sales when the auto maker releases a fourth-generation Range Rover in October. GSPL gained 3.8% after Petroleum & Natural Gas Regulatory Board (PNGRB) cuts tariffs to transport gas via high pressure networks in the state of Gujarat by less than expected.

- Market breadth was positive at ~1.25x as investors bought large cap stocks. On provisional basis, FI Is bought equity of Rs.4.51bn while domestic institutions sold equity of Rs.0.56bn in cash segment.

- Asian markets mostly mixed today, with Japan gaining, and Chinese markets falling as investors cautious ahead of the Fed decision.

- We expect a flat opening for the Indian markets, mixed with the profit booking sentiments of the investors and cautious Asian markets.

Economic and Corporate Developments

- Real Estate developers under the competition commission of India (CCI) radar for collusion; includes Unitech, Parsvnath and Omaxe.

- The Union Ministry of Environment and Forest (MoEF) suspends environmental clearance of 93 Goa mines.

Buzzing Stocks

- NSE has cut transaction costs by 2/3rd and annual member fees have also been cut.

- Godrej Properties sell its entire Phase 1 of its Gurgaon project on opening day.

- RIL may join GAIL in race to buy the LNG assets of Respol.

- L&T bags cryostat order from French nuclear project (value undisclosed).

- Jaiprakash Associates redeems foreign currency convertible bonds (FCCBs) worth USD 523 million.

- NALCO declares final dividend of Rs.258Cr to shareholders.

- Inox Leisure board meets today to consider scheme of amalgamation of Fame India and Fame Motion Pictures.

- FCS Software board approves allotting of 40 crore Convertible warrants on preferential basis.

- Cabinet committee on political affairs (CCPA) to meet today to decide on fuel price hike.

- Competition Appellate Tribunal (COMPAT) to hear cement companiesRs. appeal versus CCI order today.

- Reliance MediaWorks clarifies that Rs.30Cr as debt to Digital Domain Media instead of Rs.140Cr (reported in various media) which has filed for bankruptcy.