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Indian stock market daily morning report (September 24, 2012, Monday)

Contributed by Keynote Capitals

Views on markets today

- The Sensex on Friday closed at one-year high of 18,752.83 surging by 404 points as the stock market gave thumbs up to UPA government's resolve to push ahead with economic reforms on the back of continued support from the Samajwadi Party. Power, capital goods, metal and bank stocks led Sensex's rise. Finance Minister P Chidambaram's announcement of slashing withholding tax on overseas borrowings to 5% from 20% and approval to Rajiv Gandhi Equity Savings Scheme (RGESS) to encourage first-time retail investors to invest in stocks also lifted the sentiment.

- Among the 13 sectoral indices, two sectors closed in negative, while remaining eleven sectors closed in positive. Top Gainers: BSE power rose by 4.35%, BSE CG surged by 4.12%, BSE Metal gained 4.06%. Top Losers: BSE IT down by 0.68%, BSE TECk down by 0.04%.

- Market breadth was positive at ~1.65x as investors bought large cap stocks. On provisional basis, FII bought equity of '23.27bn and domestic institutions sold equity of '11.27bn in cash segment.

- Asia shares dropped on Monday, with metal-related firms weak, possibilities of profit taking. while some Japanese stocks suffered from a rising yen and growing tension between China and Japan.

- We expect a weak opening for Indian markets following the cues from the Asian markets

Economic and Corporate Developments

- Government lines up a slew of steps like raising ceiling for foreign borrowing, easing curbs on portfolio investors etc

- Government is poised to unveil measures aimed at reviving the insurance sector

- Centre bans states from allowing companies to export iron ore from captive mines

Buzzing Stocks

- Oil companies may cut prices on falling crude prices and strengthening rupee

- SAIL shareholders approves buyback

- Planning commission has suggested spinning off Coal India 's subsidiaries into separate entities

- GVK Infrastructure seeks 660% hike in aeronautical tariff. Also seeks introduction of user development fee (operates Mumbai Airport)

- SBI cuts BPLR by 25 bps to 14.5%

- Irrigation allots 75 lakh warrants to promoters at Rs 86.30/share on a preferential basis

- Punjab State Industrial Corp to divest its 44.26% stake in Punjab Alkalies and Chemicals (CMP Rs 25/share, market cap Rs 51 crore)

- SKS Ispat, Bhushan Steel move against de-allocation of coal blocks

- The Competition commission of India (CCI) may order probe into oil marketing companies' price moves

- BPCL to offer 51% stake to LG Chemical in Rs 6000 crore Kochi plant

- NTPC awaiting for re-allocation of 5 of its cancelled blocks: BS

- JSW's Bengal plant might be delayed due to deallocation of Gaurangidh ABC coal mine