India Market Wrap

* INDICES: Sensex +277 at 16466 (1.71%), NIFTY +93 at 4967 (1.92%), CNXMIDCAP +78 at 6725 (1.18%)

* SECTORAL PERFORMANCE: BANKEX 1.23%, AUTO 2.62%, CAPITAL GOODS 3.73%, HEALTHCARE 0.64%, Metal 3.66%, OIL & GAS 2.79%, IT 0.98%, FMCG 0.68%, PSU 1.78%, REALTY 3.46%, Consumer Durables 0.63%, POWER 1.67%

* MARKET BREADTH: 380 Advances, 116 Declines (BSE 500)

* VOLUMES: BSE $0.52bn (28.32%), NSE $2.39bn (29.62%), F&O $24.13bn (42.56%)

* TODAY'S GAINERS: MSIL 9.95%, HNDL 6%, JPA 5.65%, LT 5.46%, TATA 4.98%

* TODAY'S LOSERS: RBXY -0.81%, ICICIBC -0.76%, GAIL -0.5%, TCS -0.49%, ITC -0.33%

* MARKET COMMENTARY:

There was no stopping for the bulls today it seems. Indian Benchmarks continued to rally enthusiastically throughout the session as the frontline indices kept gaining steam in line with other Asian peers. The key gauges finally managed to pierce the 4,920 (Nifty) levels as investors took to hefty across the board buying. Sentiments got bolstered amid indications of improving overall domestic macro-economic scenario and hopes that the government will employ a slew of investor friendly measures in the forthcoming budget in March, as the government looks to revive the economy without raising fiscal deficit. However, UP based sugar stocks remained in somber mood in the session after the Apex court directed the private sugar mill owners in Uttar Pradesh to clear the dues of sugarcane growers. Meanwhile encouraging earnings report from technology major HCL Technologies too lifted sentiments. Leads from the Asian peers too remained heartening as markets in China rallied over four percent on hopes of monetary easing after the world’s second largest economy registered stronger than expected growth in the quarter ended December 31. The European indices too trading in positive terrain after a successful French debt auction which alleviated concerns over the S&P’s downgrade of European nations’ debt rating. Back home, on the sectoral space, there appeared absolutely no evidence of selling. The high beta Realty stocks remained top gainers with around four and half a percent gains while the metal pocket too shone brightly with around three and half a percent gains. The market breadth overall was dominantly in favor of bulls.

* NEWS ON TODAYS MOVERS:

- Tata Motors rose 1.7% , after the company said its global vehicle sales rose 27% to 1.14 lakh units in December 2011 over December 2010.

- Reliance Industrial Infrastructure rose 1.0% , after net profit rose 22.5% to Rs 5.99 crore on 16.3% growth in net sales to Rs 15.15 crore in Q3 December 2011 over Q3 December 2010.

- ING Vysya Bank rose 0.4% , after net profit rose 43.98% to Rs 119.52 crore on 35.4% rise in operating income to Rs 1161.45 crore in Q3 December 2011 over Q3 December 2010.

- Suzlon Energy rose 2.0% , after the company's subsidiary -- SEFORGE secured a contract worth Rs 600 crore for the supply of forged and machined rings over a period of 5 years.

- Maruti Suzuki India jumped 10.0% , on BSE on reports the company has raised prices of all vehicles by 0.3%-3.4% with immediate effect due to adverse foreign exchange movements and a rise in commodity prices.

- Aviation stocks rose by 4% to 10% , on reports a group of ministers will meet today, 17 January 2012, to consider a proposal that allows foreign airlines to buy stakes in domestic carriers.

- Opto Circuits (India) rose 3.9% , after the company's US subsidiary -- Criticare Systems Inc signed a contract to supply vital signs monitors to major hospitals in Tyumen Oblast, Russia's third-largest province.

- BPCL and Videocon Industries both rose 4.0% after US oil and gas company Anadarko Petroleum said it had made another gas strike offshore Mozambique, adding the well was its best so far in the region.

- Cairn India rose 2.33% , as crude oil futures topped $100 a barrel mark in Asian trade today, 17 January 2012.

- Metal Index rose by 3.7% , after data showed the Chinese economy grew at a faster-than-expected pace in the fourth quarter of 2011.

- Sugar stocks under pressure on back on reports Supreme Court on Tuesday directed the private sugar mill owners in Uttar Pradesh to clear the dues of sugarcane growers. The Apex Court also directed private sugar mill owners to pay total dues of around Rs 1,000 crore to the farmers for the year 2006-08. A bench of seven SC judges will finally decide the right to set sugarcane prices that mills are obliged to pay farmers, SC directed.

- Chambal Fertilizers & Chemicals lost 4.2%, after the company reported net loss of Rs 1.24 crore for Q3 December 2011, compared with net profit of Rs 107.42 crore in Q3 December 2010.

- Reliance Communications rose 2.8%, after the company said it tied up refinancing for outstanding foreign currency convertible bonds worth Rs 6125 crore.

* CORPORATE NEWS:

- ONGC denies reports of MoU with ConocoPhillips

- Essar Oil begins HMU at Vadinar Refinery

- Sudarshan Chemicals buys Finnish cosmetics pigments brands

- Opto Circuits inks deal with Criticare Systems

- Suzlon Energy arm bags order worth Rs600cr

- BoB to set up mid-corporate branch in Bangalore

- Maruti Suzuki hikes vehicle prices

- Maruti Suzuki’s new Swift D’zire to be launched next month

- RCom to refinance outstanding bonds worth $1.18 bn

- Govt of Singapore acquires 1.09% stake in RIL

- Chambal fertilizers 3q loss 12.4 mln rupees vs. 1.07b profit

- gmr infrastructure founder gmr holdings pledges 29.9m shrs

- Marico looking for acquisitions in India, overseas: mariwala

- Outlook on Indian real estate sector for 2012 negative: Fitch

* ECONOMIC NEWS:

- UP polls: Parties to infuse star power in campaign

- State FMs to press Pranab for CST compensation release

- GoM to discuss on investment cap in aviation

- Only marginally decline in manufacturing inflation cause of concern: FM

- Govt rejects reports of urea decontrol, 40% price hike