India Market Wrap

* INDICES: Sensex +330 at 17194 (1.96%), NIFTY +112 at 5199 (2.2%), CNXMIDCAP +161 at 7101 (2.32%)

* SECTORAL PERFORMANCE: BANKEX 3.84%, AUTO 2.37%, CAPITAL GOODS 0.82%, HEALTHCARE 1.36%, Metal 2.24%, OIL & GAS 1.73%, IT 1.85%, FMCG 1.02%, PSU 1.13%, REALTY 3.51%, Consumer Durables 1.01%, POWER 1.41%

* MARKET BREADTH: 407 Advances, 88 Declines (BSE 500)

* VOLUMES: BSE $0.56bn (14.17%), NSE $2.77bn (17.3%), F&O $17.61bn (13.86%)

* TODAY'S GAINERS: SESA 6.97%, RCOM 6.72%, HNDL 6.58%, ICICIBC 5.86%, IDFC 5.72%

* TODAY'S LOSERS: Coal -2.52%, PNB -1.48%, SIEM -1.36%, CAIR -1.12%, HUVR -0.89%

* MARKET COMMENTARY:

Indian equities continued maintain the strong momentum trade in today session on back of buying among investors. All the sectoral indices ended in the green Traders were seen piling up the positions in Bankex, realty and oil & gas sector while selling was witnessed in capital goods sector. Sentiments also remained sanguine despite government slightly lowering India’s economic growth forecast to 8.4 percent from the earlier estimate of 8.5 percent for financial year 2010-11. Industry heavyweight RIL was in green, the company's share buyback program starts from tomorrow, February 01, 2012 and the last date for the buy-back is January 19, 2013. On the global front, all the Asian markets traded in green barring Jakarta Composite while the European markets were too trading in green on an optimistic note. Some tentative improvement in investors’ risk appetite was evident amid hopes of a positive outcome of Greek debt negotiations after Greek Prime Minister Lucas Papademos said that major progress has been made in debt-swap talks. Back home, the market breadth was in favor of advances.

* NEWS ON TODAYS MOVERS:

- Tata Global Beverages surged 10.06%,after the company said it has entered into a 50:50 joint venture with Starbucks Coffee Company to open Starbucks cafés across India.

- State Bank of India gained close to 3.85%,after the government agreed to infuse approximately Rs 7,900 crore into the state-run bank through a preferential issue.

- Suzlon Energy rose almost 6.26%,after the company said it has signed a contract for a 100 megawatts wind power project with CLP India.

- Punjab National Bank lost nearly 1.48%,after non-performing assets increased to 1.11% at 31 December 2011 from 0.72% at 31 December 2010.

- Coal India fell almost 2.52%,on reports the company will roll back an increase in prices that it effected earlier this month due to opposition from consumers.

- Glenmark Pharmaceuticals lost nearly 5.36%,after consolidated net profit fell 46.7% to Rs 46.12 crore on 37.7% growth in net sales to Rs 1031.09 crore in Q3 December 2011 over Q3 December 2010.

- KSK Energy Ventures was locked in the 5% upper circuit filter at Rs 59.75, extending Monday's spurt triggered by reporting blockbuster Q3 earnings on Saturday, 28 January 2012.

- Essar Oil lost close to 2.00%,after the company received demand notice from the Gujarat state government for repayment of the sales tax deferment benefit amounting to approximately Rs 6300 crore plus interest accrued.

- ICICI Bank jumped close to 5.86% after net profit rose 20.25% to Rs 1728.10 crore on 24.14% growth in total income to Rs 10,483.73 crore in Q3 December 2011 over Q3 December 2010.

* CORPORATE NEWS:

- Dabur India Q3 cons net profit at Rs173 cr

- Coal India cuts prices, revenue may be hit

- France's Peugeot reviews India plans

- SBI needs Rs 15,000 cr a year to meet loan demand

- Coal shortage pulls down NTPC output by 15%

- New price regime unlikely to hike coal prices: CIL

- Gujarat asks Essar to repay Rs 6,300 cr sales tax

- ICICI Bank Q3 net rises 20% to Rs 1,728 cr

- TCS expands in US to focus on mobility solutions

- Air India owes Rs 1,200 cr, says Airports Authority

- Suzlon bags Rs 600 cr contract from CLP India

- PNB Q3 net up 5.5% at Rs 1,150 cr

- Dabur Q3 net profit up 12% at Rs 173 cr

- Growth rate revised downward to 8.4% for 2010-11-Govt

- Kajaria Ceramics buys 51% stake in Jaxx Vitrified

- Bhushan Steel to raise Rs700 cr via rights issue

- Siemens' 2 new plants in Goa begins prodn

- Jyothy Labs raises Rs550 cr via debt from Axis Bank

- Suzlon Energy signs a contract with CLP India

- Bajaj launches all-new Pulsar with triple spark engine

- Lupin receives USFDA nod for diabetes drug

- GMDC Q3 net profit surges by 11%

* ECONOMIC NEWS:

- Core industry growth slows to 3.1% in Dec

- Govt OKs Rs7,900 cr capital infusion in SBI

- Govt OKs Rs1,284 cr capital infusion in PNB

- HC rejects Yeddyurappa plea on quashing summons

- 2G: SC allows Swamy's petition on grant of sanction

- Cong gives big infra push in UP, woos caste votes

- Priyanka to campaign in Rae Bareli, Amethi from Feb 3

- Possibility of another CRR cut always on table: RBI

Mid Market Wrap

Market Commentary:

* Asian stocks rose, heading for the first back-to-back monthly gain since October 2010, after factory output in Japan climbed the most in seven months and Greece’s Prime Minister said debt-swap talks have made progress. Oil and the euro advanced.

* Back home, equity markets have made a firm start led by some bottom fishing after yesterday’s sharp fall of over 100 points. Sustained buying in mostly all the key heavyweights along with broader indices supported Sensex & Nifty to trade comfortably over their crucial 17,000 and 5,100 mark respectively.

The market gains were led by Reliance, SBI and ICICI Bank. Even Infosys, ONGC, Bharti and TCS too were playing supportive role. However, capital goods stocks slipped further.

* The market breadth, indicating the overall health of the market, was strong.

* The rupee rose supported by gains in the BSE Sensex and improved global risk appetite, although dollar demand from oil refiners kept gains under check. The rupee was at 49.67/68 to the dollar, stronger than Monday's close of 49.79/80.

* For Nifty, Intra-day support remains @ 5100 while upside can be capped at 5180.

* INDICES: Sensex +187 at 17051 (1.11%), NIFTY +57 at 5144 (1.12%), CNXMIDCAP +56 at 6996 (0.81%)

* SECTORAL PERFORMANCE: BANKEX 2.11%, AUTO 0.89%, CAPITAL GOODS -0.69%, HEALTHCARE -0.13%, Metal 0.17%, OIL & GAS 1.25%, IT 1.19%, FMCG 1.06%, PSU 0.64%, REALTY 1.15%, Consumer Durables 1.16%, POWER -0.05%

* MARKET BREADTH: 348 Advances, 138 Declines (BSE 500)

* TODAY'S GAINERS: ICICIBC 3.33%, SBIN 3.1%, BJAUT 2.89%, IDFC 2.38%, JSP 2.01%

* TODAY'S LOSERS: SIEM -1.98%, TATA -1.44%, CAIR -1.14%, MSIL -1.09%, LT -0.85%

Pre Open Thoughts: Stick To Your Conviction…

Pre Open Thoughts: Stick To Your Conviction…

Ø The pessimist sees difficulty in every opportunity. The optimist sees the opportunity in every difficulty. You must stick to your conviction, but be ready to abandon your assumptions. Mounting evidence of an economic slowdown have resulted in a short supply of confidence and conviction.

Ø Fortunately, the start is set to be good amid a sea of red across world markets. Asian markets are showing some resilience. Given the huge event risk and weak global backdrop, US stocks closed negative as investors turned cautious and also ahead of talks among EU leaders as lack of concrete progress in Greek debt talks as they still struggle to clinch a deal with its private creditors on a proposed debt swap.

Ø It will be prudent to be cautious and let the dust settle down a bit. Results will continue to be examined Outcome of the state elections and the run up to the Union Budget are going to be crucial.

Ø The short-term uptrend is in danger is likely to fizzle out only if Nifty violated key support of 5050 below which selling pressure could aggravate further. One big positive is that FIIs pumped in ~Rs90bn during the month.

Ø We advocate caution at current levels with immediate support likely around 5000. As our systems will turn into a short below 5000 levels.

Results Today: Aban Offshore, BASF India, Central Bank of India, Century Textiles, Crompton Greaves, Dabur India, Delta Corp., FT, Gateway Distriparks, HCL Infosystems, ICICI Bank, IDBI Bank, Ipca Labs, Jagran Prakashan, KEC International, Muthoot Finance, NMDC, PNB, PTC India, Shoppers Stop, Siemens, Subex, TIL, Titan and TVS Motor.

India Market Wrap

* INDICES: Sensex -371 at 16863 (-2.15%), NIFTY -117 at 5087 (-2.26%), CNXMIDCAP -150 at 6940 (-2.11%)

* SECTORAL PERFORMANCE: BANKEX -2.78%, AUTO -1.84%, CAPITAL GOODS -5.55%, HEALTHCARE -0.17%, Metal -2.85%, OIL & GAS -2.18%, IT -1.45%, FMCG -0.75%, PSU -1.82%, REALTY -3.1%, Consumer Durables -2.55%, POWER -3.54%

* MARKET BREADTH: 88 Advances, 407 Declines (BSE 500)

* VOLUMES: BSE $0.49bn (-9.78%), NSE $2.37bn (-15.19%), F&O $15.51bn (9.33%)

* TODAY'S GAINERS: RBXY 1.52%, SUNP 0.91%, BJAUT 0.68%, JSP 0.66%, DRRD 0.64%

* TODAY'S LOSERS: BHEL -10.76%, STLT -6.67%, JPA -6.5%, LT -5.52%, SESA -5.12%

* MARKET COMMENTARY:

Indian benchmarks drifted to day’s lows in the today’s session, the benchmark equity indices continue weak trade in the absence of buying among investors. Heavy selling was witnessed in Capital Goods, Power and Bankex sector. Infact all the thirteen sectoral indices were seen trading in red. Also, a CII survey report underscored the decline in business confidence in the December quarter owing to uncertain global economy, rising interest rates and surging inflation. BHEL was down with cut off around more than eight and half percent on announcing worse than expected earnings for the third quarter of this fiscal and dented investors’ sentiments. On the global front, all the Asian markets traded in red barring Taiwan Weighted while the European markets were also trading in red on a pessimistic note. Market participants are also awaiting the meeting of Euro-zone ministers scheduled later on today to discuss austerity and belt-tightening measures. Back home, the market breadth was in favor of declines.

* NEWS ON TODAYS MOVERS:

- Shares of Phoenix Mills traded flat in weak market , on news that the company is in talks for selling its commercial property in Kurla, valued around Rs300 crore

- Bhel slumped nearly 10.75%, after net profit rose just 2.1% to Rs 1432.61 crore on 19.2% rise in net sales to Rs 10547.97 crore in Q3 December 2011 over Q3 December 2010 on the back of sharp contraction in operating margin.

- Suzlon Energy lost close to 7.87%,on profit taking after the company announced winning new orders worth approximately Rs 2000 crore worldwide between 22 December 2011 and 23 January 2012.

- NTPC fell nearly 1.32% despite of the news that company signed an agreement with the Bangladesh Power Development board for setting up 1,320 megawatt joint venture thermal power plant.

- Sterlite Industries (India) declined 6.67%, on profit booking after advancing 11.45% in prior three trading sessions.

- India bulls Financial Services closed negative despite of company’s consolidated net profit surges by 22.15% to Rs247.41 crore for the quarter ended December 31, 2011

- Reliance Power gains over 6%intraday but later on gave up the gains and closed marginally negative, despite of reports that cash-rich energy major Reliance Industries has held initial talks with the company to jointly develop their adjoining.

- OBC declines over 3%, after the company's net profit slips by 13.23% to Rs354.22 crore

- Allahabad Bank surges over 4% but later on gave up the gains despite the company’s Q3 net profit rises by 34.78% to Rs560.43 crore.

- United Phosphorus declined by 3.94%, after company posted net profit of Rs120.02 crore for Q3 December 31, 2011

- Tilaknagar Inds traded flat , after the company said it has recently unveiled Mansion House Whisky in Mumbai

- Divi's Laboratories lost close to 3.91%,on profit taking after net profit rose 20.7% to Rs 122.55 crore on 33.7% growth in net sales to Rs 414.68 crore in Q3 December 2011 over Q3 December 2010.

- KSK Energy Ventures was locked in the 5%,after consolidated net profit surged 782.5% to Rs 75.54 crore on 123.1% jump in net sales to Rs 569.65 crore in Q3 December 2011 over Q3 December 2010.

- LIC Housing Finance lost ground close to 2.46%,despite of company’s net profit surged 43.18% to Rs 305.69 crore on 30.94% growth in total income to Rs 1588.52 crore in Q3 December 2011 over Q3 December 2010.

- NMDC declined close to 5% on reports the Ministry of Environment and Forests has rejected clearance to one of the iron-ore mines of state-owned iron ore miner in Bailadila district, Chhattisgarh.

- Zee Learn climbs on planning to raise funds up to $30 million via GDR issue

* CORPORATE NEWS:

- IVRCL bags Rs 1,300-cr project in Chhattisgarh from NHAI

- Oriental Bank Q3 net dips 13% to Rs 354 cr

- Indian Bank Q3 net up 7% to Rs 526 cr

- Kotak Mahindra Bank eyes local acquisition

- Imax plans 17 theatres in India by 2013

- Havells India Q3 net profit at Rs78.88 cr

- Jyoti Structures dips as Q3 net profit drops

- Indian Bank Q3 net profit rises by 7%

- IL&FS Transportation arm bags road contract in Haiti

- IB Financial Srvs Q3 cons net profit up 22%

- IOB seeks Rs1,450 cr funding from govt

- Oil Min asks RIL to withdraw arbitration notice

- Novartis India Q3 net dips 5.3% to Rs 38.35 cr

- United Phosphorus Q3 net rises 33%, misses forecast

* ECONOMIC NEWS:

- Uttarakhand registers 20% polling till noon

- 30% polling in Punjab till noon

- Polling begins on dull note in Uttarakhand

- Govt to focus on fiscal consolidation in budget

- Govt won't cut Iranian oil imports: Mukherjee

- FM clears govt’s stance on FDI, calls India a safe haven for global capital