India Market Wrap

* INDICES: Sensex +117 at 16155 (0.73%), NIFTY +35 at 4866 (0.72%), CNXMIDCAP +62 at 6654 (0.95%)
* SECTORAL PERFORMANCE: BANKEX 0.5%, AUTO 0.03%, CAPITAL GOODS 2.86%, HEALTHCARE 0.03%, Metal 3.21%, OIL & GAS -0.38%, IT 0.67%, FMCG 0.55%, PSU 1.55%, REALTY 2.12%, Consumer Durables -0.4%, POWER 2.39%
* MARKET BREADTH: 361 Advances, 138 Declines (BSE 500)
* VOLUMES: BSE $0.53bn (6.93%), NSE $2.35bn (-1.96%), F&O $22.34bn (5.18%)
* TODAY'S GAINERS: RPWR 7.58%, TATA 6.9%, RCOM 5.8%, Coal 5.57%, LT 3.6%
* TODAY'S LOSERS: GAIL -3.06%, BJAUT -3.04%, HCLT -1.97%, MSIL -1.75%, SUNP -1.24%

* MARKET COMMENTARY:
Market ended in positive territory after retreating from intermediate resistance levels. Global markets rose over positive comments on the region's outlook from the European Central Bank and the success of Spain's bond auction, with attention focused on Italy's first debt sale of the year. Back home, despite volatility the markets managed a close of green supported by the surge in the realty sector. Capital goods sector too responded after a day of better than expected IIP numbers and the markets recovered more than what they have lost in last session. The power sector continued their surge for most part of the day, Reliance Power, the ADAG company surged on reports that permission has been granted by EGoM to the company to use incremental coal as and when available, after meeting Sasan requirements. While the PSU Coal India remained in delighted mood after the company’s management agreed to a wage hike of 25% for its three lakh-odd mine workers. The broader indices once again outperformed the benchmarks and closed with gains of over a percent.

* NEWS ON TODAYS MOVERS:
- Aviation stocks were on uptick on hopes that the government may allow foreign air carriers to invest in domestic aviation firms
- Cholamandalam Investment surges over 16% to make a day’s high of Rs146, on reports the company plans to raise Rs200 cr via private placement; stock ended 6% higher to Rs. 133.
- Shares of power generation and power equipment makers rise after electricity sector reported a robust growth of 14.6% in November
- Ceat surges by 7% to hit the monthly high of Rs90.90, after the company said its board will meet on Jan 24 to consider allotment of convertible warrants on a preferential basis to promoters; stock closed 6% in green to Rs.88.
- Suzlon Energy rose 8.72% to Rs 22.45 after the company said its subsidiary, REpower Systems SE, won a contract to supply 10 wind turbines to Bradwell wind farm in the UK.
- Metal Index rose as LMEX, a gauge of six metals traded on the London Metal Exchange, rose 2.16% to settle at $3,498.60 on 12 January 2012.
- IndusInd Bank lost 1.8% to Rs 280 on profit taking after the stock jumped 16.18% in the preceding three trading session on the back of strong Q3 results.
- sugar companies extended recent gains on reports that the government may allow additional sugar exports of one million tonnes during the current marketing year.
- Coal India jumped 5.57% to Rs 344 on reports the company has agreed in-principle to increase the wages of its three lakh-odd mine workers by 25%, as against a 100% hike that the unions had demanded last year.
- GVK Power surges by 5%, after the company said GVK Shivpuri Dewas Expressway has signed an agreement with NHAI for a toll road project in MP.

* CORPORATE NEWS:
- Coal India to increase wages by 25%
- Diamond Power rises on winning order worth Rs48.30 cr
- BPCL to invest Rs45K cr on expansion
- NMDC incorporates SPV co for power plant at Chhattisgarh
- L&T Finance arm raises $100 mn via ECB
- LIC Home Finance launches Rs500 cr VC fund
- IDFC unveils round two of tax-saving bonds
- Oil India in talks to buy asset in Africa
- Jet Airways orders 17 Boeing 737s
- IOC to shut diesel unit for 15 days
- Sintex Industries 3Q profit Rs 822 mln v/s 1.13 bln

* ECONOMIC NEWS:
- Credit card transaction value rise 14.4% in Nov, 2011