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Indian stock market daily morning report (September 20, 2012, Thursday)

Contributed by Keynote Capitals

Views on markets today

- Snapping the nine-day winning trend, The Sensex ended at 18,496.01, down by 0.25% and the Nifty fell 0.18% to close at 5,600.05, with investors adopting caution after recent gains amid retail inflation data touching double-digits. Energy stocks were the biggest underperformers because of the selloff in Cairn India and Reliance Industries. Reliance Industries closed 2.1% lower. The company's share prices rose above the maximum buyback price of Rs. 870 for the first time since the offering was announced on January 20. IT stocks also came under selling pressure after TCS, India's biggest software services exporter, said its margins may fall in the September quarter. TCS shares closed 3.15% lower while Wipro was the top Nifty loser, down 3.9%.

- Retailers retreated after a strong recent rally sparked by the government's action to open up the multi-brand retail sector to direct foreign investment. Pantaloon Retail fell 4.2 per cent after gaining 27.34% over the previous two sessions.

- Shares of sugar manufacturing companies were in demand with most of the frontline stocks up over 4% on expectation of huge demand ahead of the festive season.

- Among the 13 sectoral indices, five sectors closed in negative, while remaining 8 sectors closed in positive. Top Gainers: BSE PSU rose by 1.58%, BSE CG surged by 0.90%, BSE Power gained 0.88%. Top Losers: BSE Oil & Gas down by 1.13%, BSE IT down by 0.54%, BSE HC slipped by 0.22%.

- Market breadth was positive at ~1.41x as investors bought large cap stocks. On provisional basis, FII bought equity of '10.49bn while domestic institutions sold equity of '6.70.38bn in cash segment.

- Asian stocks slipped in the initial trading session today, following the sharp fall in the oil prices and weak Chinese manufacturing data.

- We expect a weak opening for the Indian markets today, following the Asian cues, political uncertainties over the diesel price and LPG decision and reforms in FDI and insurance.

Economic and Corporate Developments

- Opposition political parties of India announced a nation-wide strike opposing the FDI retail reforms, diesel price hike and cap on LPG cylinders per household.

Buzzing Stocks

- Finance Ministry proposes 9.5% stake sale in NTPC

- Suzlon Energy seeks 4-month extension for repayment of foreign currency convertible bonds (FCCBs) due in October. The company said it is actively working to raise funds for FCCB repayment

- EID Parry to hold shareholders meet on October 11 on demerger plan

- SBI cuts base rate by 25 bps to 9.75% effective today (First to move after cash reserve ratio (CRR) cut by RBI)

- HCL Technologies bags 5-year, multi-million deal from US based Freescale Semiconductors

- Tata Motors bags record order of 1314 trucks, deal worth Rs 225 crore

- Department of divestment invites bids from merchant bankers for divesting stake in Oil India

- Apar Industries to consider Board for Industrial and Financial Reconstruction (BIFR) order of amalgamation of Uniflex Cables with itself

- Motherson Sumi bonus issue in the ratio of 1:2 on October 5

- Environment ministry panel to inspect Adani Port and SEZ at Mundra

- Dabur files a case against Amar Remedies for infringing of its product IPR