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Indian stock market morning report by Keynote Capitals (June 30, 2009, tuesday, 7.00 a.m. GMT)

Views on markets today

- Indian markets closed flat yesterday amid huge volatility. Investors, wary ahead of the Union Budget next Monday, booked gains by end of the day. Consumer durables, real estate and metal stocks witnessed investor interest, while IT and auto stocks declined.

- Market breadth was positive at around 1.7x.

- FIIs and domestic institutions yesterday bought equities worth Rs292Cr and Rs144Cr respectively. Trading volumes and deliverable volumes on top 10 traded stocks improved on both exchanges. SBI witnessed strong volumes on the NSE and L&T on the BSE.

- Asian markets have opened positive this positive, on strong US markets overnight. Resource and energy stocks rallied on surging crude prices. Investors are optimistic about the upcoming US economic data.

- We expect a strong opening for the Indian markets today, following global cues. FIIs have been buying over the last two sessions, which is a positive. However, we expect some profit taking at higher levels, as investors may remain cautious ahead of the budget.

Economic and Corporate Developments

- The rupee (INR) rose to a 2-week high this morning to 47.86/87 per USD, compared with the previous close of 48.10/11.

- NYMEX Crude Oil (CL) is currently trading at $72.84 per barrel.

Buzzing stocks

- Companies that have announced fund raising plans: GMR Infra, HCC, Birla Power, HDIL, United Spirits

- Shaw Wallace & Company intends to sell 10.28mn shares held by it in United Spirits, in the open market.

- PVR is in talks to acquire DT Cinemas, a wholly-owned subsidiary of DLF Group.
- S Kumars is acquiring Hartmarx, the men's largest formal wear clothing company in US for $119mn.

- L&T has bagged six orders worth Rs12.30bn from electrical projects in the domestic market.

- Areva T&D has bagged an order from Hindalco for erecting 440KV substations at its plants in Singrauli (Madhya Pradesh) and Sambalpur (Orissa).

Results to be announced today
Hindalco Inds, Bombay Dyeing, Financial Technologies, EIH, Adlabs Films

US markets

The US markets overnight ended positive 1.1% although there were no real triggers. All 10 major sectors ended in green. Super swindler Bernie Madoff received the maximum sentence of 150 years in prison. Apple was a leader in the tech stocks but surrendered its gains despite news that CEO Steve Jobs will return to work. Apple CEO, Steve Jobs returned to his job as CEO after a liver transplant sidelined the originator and public face of the computer giant. The CBOE volatility index also dropped.

Economic data
June Consumer confidence data to be released today