India Morning Note - Keynote Capitals (February-18-'11)

Please Share:: India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��

Views on markets today

·      Indian markets climbed for a fifth consecutive session, longest run since Sept. 2010 triggered after the food inflation eased to a two-month low to 11.05% for the week ended February 5 against 13.07% in the previous week. Except real estate, all sectoral indices closed positive with capital goods, banks, auto and FMCG stocks were major gainers. Mahindra Satyam rose 1.5% after the software services firm agreed to pay $125mn to settle US shareholder litigation arising from an accounting fraud that in 2009 turned into India's biggest corporate scandal. DQ Entertainment gained 5.4%, after the animation content provider has signed a licensing agreement with Germany's TV Mania through its merchandising agents in France.

·      Market breadth was strong at ~1.49x as investors bought large cap stocks. Both FIIs and domestic institutions bought equities worth `37.98 and `2.44bn, respectively.

·      Asian markets are moderately positive today as the US markets showed strong close overnight. Japanese shares saw some profit booking while the Hang Seng up led by banks stocks.

·      We expect a positive opening for the Indian markets as the cues are positive from the global markets. Besides that moderating food inflation data will help improve investors confidence.

Economic and Corporate Developments

·      Food inflation eased to a nine-week low of 11.05% in the first week of February as prices of vegetables came down sharply from the previous week.

·      GSM-based mobile operators added 13.7mn new subscribers in January, taking the overall user base to 556mn.

·      The government will unveil the new series of consumer price inflation for rural, urban and combined (rural + urban), with the figures for January to be released today.