INDIA MARKET WRAP

* INDICES: Sensex +421 at 15939 (2.72%), NIFTY +129 at 4765 (2.77%), CNXMIDCAP +164 at 6260 (2.69%)
* SECTORAL PERFORMANCE: BANKEX 4.35%, AUTO 1.93%, CAPITAL GOODS 4.4%, HEALTHCARE 1.47%, Metal 5.05%, OIL & GAS 1.94%, IT 2.47%, FMCG 1.08%, PSU 3.78%, REALTY 4.28%, Consumer Durables 1.7%, POWER 3.11%
* MARKET BREADTH: 435 Advances, 61 Declines (BSE 500)
* VOLUMES: BSE $0.34bn (34.72%), NSE $1.54bn (41.14%), F&O $16.35bn (35.33%)
* TODAY'S GAINERS: DLFU 6.84%, KMB 6.69%, TATA 6.08%, JSP 5.7%, TTMT 5.44%
* TODAY'S LOSERS: BPCL -1.61%, MM -1.42%, ACEM -0.86%, HMCL -0.57%, ACC 0.43%

* MARKET COMMENTARY:
The new year celebrations have continued in to the second trading session of 2012 with the main stock indices extending gains from the previous session. Indian equities continued its firm trade as consistent buying across the board helped market to lock its morning gains. Rumors on a possible cut in interest rates by the central bank to boost growth also made rounds . Traders were seen piling up position in Metal, Capital Goods and Realty sector. Investors’ sentiments got buoyed on getting an encouraging manufacturing activity data which showed that the sector resiliently bounced in the month of December. On the global front, all Asian markets traded in green on optimistic note while the European markets were trading in mix. The market breadth was dominantly in favor of advances.

* NEWS ON TODAYS MOVERS:
- Oil India fell close to 1.09%, after the stock turned ex-dividend today, 3 January 2012, for an interim final dividend of Rs 25 per share for the year ending March 2012.
- Cairn India rose close to 4.61% , as crude oil futures topped $100 a barrel mark in Asian trade today, 3 January 2012, spurred by gains in Asian equities, a weaker dollar and geopolitical concerns involving Iran.
- Ashok Leyland advanced almost 3.54% , after vehicle sales reportedly rose 20.08% to 9,088 units in December 2011 over December 2010.
- State-run oil marketing companies fell 1.12% , after government on Monday did not allow them to hike petrol price following the parliamentary debacle last week and the impending polls in five states.
- Orchid Chemicals & Pharmaceuticals rose close 3.8% ,extending Monday's 6.3% rally triggered by the company announcing successful completion of phase I trial of its orally administered PDE4 inhibitor molecule OCID 2987 in Europe.
- DLF jumped almost 6.84%, on reports China-based HNA has offered above Rs 2000 crore to buy the company's non-core asset Aman Resorts.
- Hero MotoCorp traded firm after the company reported 7.8% rise in sales to 5.40 lakh units in December 2011 over December 2010
- L&T rose close to 5.13%, extending Monday's 1.3% gains triggered by the company announcing securing new orders valued over Rs 2056 crore across various business segments during December 2011.
- Coal India rose close to 4.82%, extending Monday's 3.6% gains triggered by the company announcing a switch over of non-coking coal pricing from useful heat value based grading system to gross caloric value based classification.
- Tata Motors surged close to 5.44%, extending Monday's 3.03% gain triggered by reporting 22% rise in total sales to 82,278 vehicles in December 2011 over December 2010.
- IVRCL surged close to 9.98% ,extending Monday's 3% gains triggered by the company's announcement that its buildings, transportation, mining, water and solar power divisions have secured new orders aggregating Rs 732.14 crore.

* CORPORATE NEWS:
- PNB launches PNB Smart Banking Current Account
- IDFC raises Rs533 cr via tax-saving infra bonds
- Bhushan Steel's Bengal plant lands in acquisition trouble
- SBI achieves 100% financial inclusion in AP circle
- Federal Bank hikes NRE deposit rate to 9.5%
- Bajaj Auto launches four-wheeler RE60
- TV18 broadcast board approves acquisition of ETV channels and approves rights issue of Rs 2,700 cr
- Bajaj auto expects fy12 exports valued at 65 bln rupees
- Ambuja cement dec. sales 1.93 mln tons vs. 1.83 mln
- Tv18, network18 to get access to infotel 4g broadband platform
- Reliance said to face delay in approval to increase gas output

* ECONOMIC NEWS:
- India needs to raise R&R spending to 2% of GDP by 2017: Singh
- India oct-dec sugar output 7.58 mln tons vs. 6.46 mln
- Telecom min questions TDSAT jurisdiction over Telco’s 3G plea