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Indian stock market daily morning report (September 18, 2012, Tuesday)

Contributed by Keynote Capitals

Views on markets today

- The Sensex and Nifty closed on a positive note on the back of further policy announcements made by the government last Friday. The RBI responded to these initiatives by reducing CRR by 25 basis points. The Sensex and Nifty indices stayed higher throughout the day owing to gains in index heavyweights which helped the markets to remain in green zone for the entire day. Rate sensitives like banking, realty, capital goods and auto stocks led major support while weakness in technology, FMCG and healthcare stocks erased more than half of the gains in second half of trade.

- The Sensex ended at 18542.31, up by 78.04 points, while the Nifty closed at 5610, up by 32.35 points. The rally was aided by consistent inflow of foreign money that lifted the rupee to 54 against the US dollar, a third quantitative easing by the Federal Reserve, diesel price hike and FDIs approval in retail, aviation & broadcast carriage services sectors.

- Among the 13 sectoral indices, nine sectors closed in green zone while remaining four sectors closed in red zone. Top Gainers: BSE Realty rose by 6.21%, BSE CG surged by 3.74%, BSE Bankex gained 3.24%. Top Losers: BSE FMCG down by 3.66%, BSE IT down by 3.18%, BSE TECk slipped by 1.86%.

- Market breadth was positive at ~1.29x as investors bought large cap stocks. On provisional basis, FII bought equity of '22.52bn while domestic institutions sold equity of '8.38bn in cash segment.

- Asian stocks mostly struggled with Japan moderately up, with exporters hit amid a dispute between China and Japan.

- We expect a negative opening for the Indian markets, following the weak cues from the Asian markets and disappointment from the RBI on keeping the key repo rates intact while CRR has been cut.

Economic and Corporate Developments

- The Reserve Bank of India cut Cash Reserve Ratio by 25 basis points

Buzzing Stocks

- Tech Mahindra to buy 51% in Comviva Technologies for Rs 260 crore (Comviva is Bharti group company)

- Coal India (CIL) board may consider price pooling issue today (Board meeting today)

- Hindalco raises Rs 9900 crore for its aluminium project in Odisha

- Jaiprakash Associates looking to cut debt via sale of power assets

- Kingfisher Airlines (KFA) bankers want company to pledge its band as collateral

- Selan Exploration approves buyback at maximum Rs 350/share

- Alstom Holdings to acquire 6.21 crore shares of Alstom T&D India at Rs 187.64/share

- Schneider Electric Infrastructure has made an open offer to acquire 6.21 crore shares (26% stake) in Indian arm at Rs 83.10/share

- Sun Pharma Advanced Research Company (SPARC) rights issue extended till September 21, rights issue in the ratio of 1:7, at Rs 67/share

- KEI Industries board meet to consider preferential allotment of 33 lakh shares at Rs 18/share to promoters (CMP Rs 16.5/share)

- JNPT scraps container terminal deal worth Rs 8,500 crore of ABG consortium