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Indian stock market daily morning report (September 26, 2012, Wednesday)

Contributed by Keynote Capitals

Views on markets today

- The BSE Sensex gains 0.11%, while the 50-share Nifty gains 0.08%. Defensive stocks such as ITC gain on value buying after recent declines as investors churned in favour of cyclical and high-beta stocks, betting on additional government reforms and global liquidity from the U.S. Fed's new asset purchase programme. Power sector stocks, led by Torrent Power, ended with gains. Torrent rose by 1.78% to Rs 171.10, Adani Power was up 1.09% and Reliance Power 0.94%.

- Axis Bank fall 2.6% on concerns over credit provided to Indonesia's PT Bumi Resources, whose parent company, Bumi Plc , launched an investigation into alleged financial irregularities at its Indonesian operations.

- Among the 13 sectoral indices, four sectors closed in negative, while remaining nine sectors closed in positive. Top Gainers: BSE Realty up by 2.1%, BSE FMCG gained by 1.8%, BSE CD surged by 0.7%. Top Losers: BSE Metal down by 1.36%, BSE Auto down by 0.72%.

- Market breadth was positive at ~1.17x as investors bought large cap stocks. On provisional basis, FII bought equity of '58.45bn and domestic institutions sold equity of '13.74bn in cash segment.

- Asian stocks dropped sharply, following the cues from the US markets, as many investors sold resource shares on global growth fears.

- We expect a drop in the Indian markets in the morning session on double whammy of falling global markets and anticipation of correction in the stocks.

Economic and Corporate Developments

The Empowered Group of Ministers on telecom, headed by finance minister P Chidambaram, may meet in the first week of October to decide on onetime fee for extra spectrum held by existing operators.

Buzzing Stocks

- Lenders fail to admit Deccan Chronicle Holdings (DCHL) into corporate debt restructuring (CDR) cell

- Alok Industries plans to raise Rs 551 crore via rights issue

- Central Bank to cut deposit rates by at least 25 basis points

- SEBI approves government's stake hike in IFCI to 55.57%

- EIH rights issue: 1.08 crore shares at Rs 100/share in the ratio of five shares for nine held. Issue opens today and closes on October 12.

- Shareholders okay United Breweries , Scottish and Newcastle merger

- Gujarat NRE Coke to mull merger of Bharat NRE Coke with company on Friday

- M&M to invest Rs 1500 crore in new platform with Ssangyong

- NTPC not ready to sign new fuel supply agreements with Coal India

- BHEL considering to buy European metro rail technology provider for approximately USD 500 million

- Pennar Industries receives order worth Rs 70 crore from Texmaco, L&T, Mahindra EPC