India Market Wrap

* INDICES: Sensex +35 at 16189 (0.22%), NIFTY +8 at 4874 (0.16%), CNXMIDCAP -7 at 6647 (-0.1%)

* SECTORAL PERFORMANCE: BANKEX -0.3%, AUTO 0.78%, CAPITAL GOODS 2.07%, HEALTHCARE -0.62%, Metal 0.19%, OIL & GAS -1.71%, IT 1.59%, FMCG 0.69%, PSU -0.57%, REALTY -0.52%, Consumer Durables 0.14%, POWER -0.08%

* MARKET BREADTH: 249 Advances, 242 Declines (BSE 500)

* VOLUMES: BSE $0.4bn (-23.76%), NSE $1.84bn (-21.49%), F&O $16.89bn (-24.29%)

* TODAY'S GAINERS: BHEL 3.82%, MSIL 3.17%, STLT 2.7%, LT 2.49%, IDFC 2.4%

* TODAY'S LOSERS: RPWR -2.85%, NTPC -2.62%, RIL -2.58%, KMB -2.37%, HDFCB -1.94%

* MARKET COMMENTARY:

Asian stocks fell after Standard & Poor's cut the rating of nine European nations. Stalled debt talks in Greece also dampened investor sentiments globally. On back of this, Asian markets traded in red while the European markets were trading on a mix note. Indian equities though extended gains to trade firm hovering and closing towards the day’s high in post afternoon session. Key benchmarks gained momentum as risk-averse investors were back in the market with buying activity picking across the broad. Traders were seen piling up the positions in IT, TECH and FMCG sector while selling was witnessed in Oil & Gas, Bankex and Realty sector. The investors’ sentiments remained buoyant after the government data showed that India’s headline inflation plummeted below the uncomfortable 9% for the first time since December 2010 to the lowest levels in around two years to 7.47%. With the inflation at two-year low, market men believe that a cut in reserve ratios look a certainty in the Reserve Bank's meet on January 24. Also, RIL will announce its Q3 December 2011 results on Friday, January 20, 2012 which will further give direction to domestic bourses. Moreover, India's December exports rose an estimated annual 6.7% to $25 billion, while imports for the month were at $37.8 billion, leaving a trade deficit of $12.8 billion. Last week was a bad week for IT stocks. Post Infosys' guidance, INFY and TCS both declined by close to 10% last week. Today's rise could be a reaction to last week's fall. Also, TCS' results are due tomorrow. Recently TCS has been reporting better results than Infosys.

* NEWS ON TODAYS MOVERS:

- Private sector banks fell by 0.13% to 2.00% after the Reserve Bank of India on Friday, 13 January 2012, issued guidelines that seek to limit variable pay and stop guaranteed bonuses to senior staff of private sector

- Fertilizer companies rose by 0.08% to 5.98%,on reports the government plans to raise prices of urea, the most widely consumed fertilizer in India, by a steep 40% which is later denied by the govt.

- Gas distribution firms fell, extending Friday's, 13 January 2012, losses triggered by reports that the petroleum regulator will determine marketing margins for natural gas.

- Reliance Industries fell 2.58%,on reports the market regulator is examining whether the company made proper disclosure about the acquisition of significant stakes in ETV channels.

- CMC shoots up by 2.19%, after company reported Q3 consolidated net profit at Rs41.37 cr for the quarter Dec 2011

- Cable operators stocks zoom, on reports that RIL is planning to pick up a minimum 26% stake in leading cable operators, including multi-system operators

- Ing Vysya Bank gains over 3%intraday but later on erased all the gain and closed flat as the company to announce Q3 results today .

- South Indian Bank gains over 3% and hits monthly high of Rs23.45 after the company’s Q3 net profit rises 32%

- Sbin Gain Over 2.27 %, on reports that company has received Finance Ministry approval for a capital infusion of Rs60-80 billion

* CORPORATE NEWS:

- Dewan housing 3q net 749.7 mln rupees vs. 617.6 mln

- Tata Elxsi 3q net profit 115 mln rupees vs. 55.8 mln rupees

- Motilal Oswal 3q net 260.2 mln rupees vs. 421.4 mln year ago

- Tata investment corp 3q profit 312.6 mln rupees vs 456.1 mln

- Gail India said in talks to buy u.s. gas from free port LNG

- Development credit bank director kassam resigns

- South Indian bank 3q net 1.02 bln rupees, analyst est. 984 mln

- SBI may raise car loan interest rates

- Glenmark eyes 20% sales growth in India speciality biz

- NTPC to enter retail distribution segment

- Oil India plans to buy shale gas assets

- Gas co shares fall as regulator to fix marketing margins'

- Reliance Media to transfer biz into subsidiaries

- India bulls raises funds from IL&FS for Bharat Mills project

- Global PE majors woo Prestige to buy out SEZ

- Suzlon signs MoU with AP government

- UB Group to consolidate foreign liquor assets

- JRI Industries board to consider sub-division

- TVS Motor to expand production capacities

- DCB defers Rs150 crore QIP plan to June

- GMR Infra arm plans to step up solar power plant

- RIL-ETV deal under regulatory scrutiny

- Maruti to invest Rs200 cr on logistics hub in Bengal

* ECONOMIC NEWS:

- Dec inflation at 7.47 % vs. 9.1% in Nov

- Inflation to come down to 6-7% by March end: FM

- Sebi says there is `case' for cutting securities trade tax

- India’s dec. trade deficit at $12.8 bln

- India’s dec. imports at $37.8 bln

- India’s dec. exports at $25 bln

- India’s fy12 economic growth seen at about 7 percent: Rangarajan

- India’s dec. imports rise 19.8% from year earlier