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Indian stock market daily morning report (September 25, 2012, Tuesday)

Contributed by Keynote Capitals

Views on markets today

- The Sensex erased initial gains and closed 79 points lower on selling in HUL, ITC and HDFC, amid a weak global trend. The BSE benchmark index, which had surged to 14-month high in the previous session, climbed 58.30 points at the beginning but failed to sustain the momentum. It finally ended at 18,673.34, down 79.49 points, or 0.42%. Meanwhile, the Nifty50 slipped 21.55 points to 5,669.60, weighed down by oil & gas and FMCG stocks.

- Power projects financiers like Rural Electrification Corporation, PTC India and Power Finance Corporation gained 2-5% on hopes of debt restructuring package for SEBs.

- Bajaj Hindusthan, Shree Renuka Sugars and Balrampur Chini shot up by 2-3% ahead of the cabinet meeting.

- FMCG majors ITC and HUL dropped over 2% while oil & gas producers Reliance Industries and ONGC down by 1.6-2%.

- Among the 13 sectoral indices, eight sectors closed in negative, while remaining five sectors closed in positive. Top Gainers: BSE power rose by 1.7%, BSE Realty gained by 1.45%, BSE CG surged by 1.15%. Top Losers: BSE FMCG down by 1.48%, BSE Oil and gas down by 1.43%.

- Market breadth was positive at ~1.41x as investors bought large cap stocks. On provisional basis, FII bought equity of '15.96bn and domestic institutions sold equity of '11.56bn in cash segment.

- Asian stocks dropped excluding Japanese markets, as renewed global growth concerns weigh on share prices for commodity and construction firms.

- We expect a flat opening for the Indian markets today following the Asian markets and profit taking for the investors. However, government's reform measures for power sector may help markets to stand firm on the current levels.

Economic and Corporate Developments

- Government cleared State electricity board (SEB) restructuring package

- Companies bill may be put up for cabinet nod by October first week

- Inter ministerial group (IMG) has reviewed total 58 coal blocks that were sent showcause notice

Buzzing Stocks

- Government defers call on hiking sugar prices

- Maruti to hike car prices within a week

- Honda to raise prices of top selling models Brio, Jazz and City from October 1

- Adani Power pledges additional 7 crore shares (3.25% stake)

- Jindal Steel raises Rs 660 crore bridge loan to finance its CIC Energy Acquisition

- Oil India in talks with Carrizo Oil & Gas to acquire stake in Shale gas assets

- Tata Steel ruled out any plan to exit from Dhamra Port in Odisha

- Two bidders eye Mallya's 30% stake in Mangalore Chemicals and Fertilisers

- Idea Cellular rules out further tariff hikes for now

- Alok Industries board to meet today to consider rights issue

- Officials from IRDA will meet FM to discuss tax relief measures for the life insurance industry

- BPCL, Oman Oil JV to list IPO by next year