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Indian stock market daily morning report (September 28, 2012, Friday)

Contributed by Keynote Capitals

Views on markets today

- The BSE Sensex opened with a small gap on the upside and then traded in a choppy manner throughout the day. Nifty 50 made a high of 5,693.70 and Sensex touched the level of 18,735.95. The Nifty 50 closed at 5,649.50, down 13.95 points or 0.25% from previous close and the Sensex ended the session at 18,579.50, down 52.67 points or 0.28%.

- Indian benchmarks rallied over 6% in September series while the foreign institutional investors have net bought more than Rs17971Cr worth of shares in current month. Another major reason was the reforms announced by the government to give a boost to sluggish economic growth. Cabinet approved FDI in retail and aviation sectors, also hiked diesel price by Rs 5 a litre and capped the use of subsidised LPG to 9 cylinders per family in a year.

- Among the 13 sectoral indices, eight sectors closed in negative, while remaining five sectors closed in positive. Top Gainers: BSE FMCG up by 1.51%, BSE CD gained by 1.36%, BSE CG surged by 0.91%. Top Losers: BSE Oil & Gas down by 1.6%, BSE IT down by 1.1%.

- Market breadth was positive at ~1.1x as investors bought large cap stocks. On provisional basis, FII bought equity of '3.99bn and domestic institutions sold equity of '4.48bn in cash segment.

- Asian markets traded mix today, after Japanese stocks lost the initial gains and Chinese shares were up.

- We expect a cautious opening for the Indian markets, following the mixed cues from the Asian markets.

Economic and Corporate Developments

- The group of minister on land acquisition bill deferred a decision on the proposed legislation as all the 14 members could not put forth their views. The GoM will meet again after October 4.

- A ministers panel finalised the pharma pricing policy under which 348 essential drugs will come under price control of the government.

Buzzing Stocks

- Diageo deal may speed up as ICRA downgraded USL to junk

- Power Grid okays investment plans worth Rs.1328 cr

- I-T defends retrospective tax in McLoed Russel case.

- S Kumars Nationwide defers AGM as lenders delay nod for dividend payment.

- LIC Housing Finance plans to raise $250-270m via share sale Agencies

- Dubai carrier Emirates in believed to have signaled an early interest to acquire stake in KFA

- JBF Industries, Coca Cola in pact to set up bioglycol production unit in Brazil

- Govt seeks to allot at least 16 coalfields by Dec to state owned companies

- Taj Mansingh lease extended by 1 year, big reprieve for Indian hotels

- Guj NRE Coke Board meets to consider proposal of amalgamation of Bharat NRE Coke with company