India Market Wrap

* INDICES: Sensex -15 at 16451 (-0.09%), NIFTY -12 at 4956 (-0.23%), CNXMIDCAP -78 at 6648 (-1.16%)

* SECTORAL PERFORMANCE: BANKEX -0.44%, AUTO -1.13%, CAPITAL GOODS -2.04%, HEALTHCARE -0.39%, Metal -2.19%, OIL & GAS 3.12%, IT -1.77%, FMCG -0.22%, PSU -1.31%, REALTY 0.61%, Consumer Durables -0.18%, POWER -1.25%

* MARKET BREADTH: 145 Advances, 351 Declines (BSE 500)

* VOLUMES: BSE $0.49bn (-5.99%), NSE $2.41bn (0.44%), F&O $21.56bn (-11.04%)

* TODAY'S GAINERS: RIL 5.08%, RELI 3.29%, HDFCB 2.88%, RPWR 2.76%, ONGC 2.35%

* TODAY'S LOSERS: TATA -4.03%, SAIL -3.81%, Coal -3.4%, MM -3.05%, AXSB -3.01%

* MARKET COMMENTARY:

Indian Benchmarks witnessed some profit booking amid choppy trade in the narrow range and putting pause on yesterday’s rally. The market fizzled on account of profit booking as investors seem to be lost in absence of any positive triggers for the market. Traders were seen piling up the positions in Oil & Gas and Realty sector while selling was witnessed in IT, Metal and TECH sector. IT bellwether TCS was down for its lowest level in almost two months despite announcing quarterly earnings that were in line with street expectations amid speculations that of slowdown in major importing regions like Europe and the US will impact future earnings. However, index heavyweight Reliance Industries was firm trading with gain of around more than four percent on reports that the board is mulling over share buy-back which underpinned the positive sentiments in the stock, giving the much needed support and preventing the downside for the benchmarks. Meanwhile, shares of aviation companies like Jet Airways, Kingfisher and SpiceJet rallied after the government opined that it was considering allowing foreign carriers to take 49 percent stake in Indian airlines. On the global front, Asian markets largely traded in green while the European markets were trading in red on pessimistic note. Investors seemed to be shifting their focus to Portugal’s debt auction and talks in Greece on its debt restructuring. Back home, the Indian rupee has also lost some ground versus the US dollar after touching a fresh two-month high. The undercurrent has also softened a bit after the World Bank lowered its growth forecast for the global economy and a Fitch Ratings official warned of an impending debt default by Greece.

* NEWS ON TODAYS MOVERS:

- HDFC Bank has been featured by ‘Harvard Business Review’ on an elite list of 10 companies globally, which have grown their net income by 5% every year for the 10-year period ended 2009. HDFC Bank is the only bank on the list. Technically HDFC Bank Also gave a Break out on the stock above 475 triggering buy on our systems with target of 525; stock ended 2.9% higher to Rs 482.

- Reliance Industries jumped 5.1% at Rs 780 after the company said its board will meet on Friday, 20 January 2012, to consider buyback of shares.

- Bharti Airtel soars after the company unveiled with, operations in 19 countries across Asia and Africa, has launched 3.75G technology in Zambia. With this customers will be able to experience high speed mobile broadband access, make video calls and watch television live. Our Systems Has also triggered buy on the same with target of 375 on the stock; stock ended flat to Rs. 345.

- DLF traded higher on the bourses after the news that company along with its joint venture partner Hub town have sold 100% of their respective shareholding in DLF Ackruti Info Parks (Pune) (DLF Ackruti), for an aggregate consideration of Rs 810 crore to an entity controlled by real estate fund affiliated with the Blackstone Group, BRE/Mauritius Investment II, after obtaining all necessary approvals. 'DLF Ackruti' owns a notified IT/ITES SEZ located in Pune, Maharashtra; stock closed 1.7% in green to Rs. 202.

- Bajaj Finance surges by 4.2%, after company net profit rises by 57.08% to Rs119.99 cr Q3 Dec 2011

- Brigade Enterprises surges 10%, after the company announced its first villa project at Devanahalli in Bangalore

- Aviation shares gain after the government said it would soon launch the process to allow foreign airlines 49% stake in Indian carriers

- Zee News surged 9.4%,after consolidated net profit rose 61.3% to Rs 9.97 crore on 5.1% growth in revenue to Rs 78.27 crore in Q3 December 2011 over Q3 December 2010.

- TCS fell 2.5% at Rs 1,076, as the company's Q3 December 2011 earnings matched market estimates.

- Tata Steel tumbled 4% , on profit booking after the stock jumped 22.39% in the preceding six sessions to Rs 442.80 on 17 January 2012, from a recent low of Rs 361.80 on 9 January 2012.

- Essar Oil slumped 12% , after the company said it will have to deposit approximately Rs 6300 crore in sales tax to the Gujarat government.

- Coal India slipped 3.4%, after coal minister Sriprakash Jaiswal told the media today, 18 January 2012, that the firm may not raise prices after it finalizes a wage increase agreement with its workers later this month.

- IT index fell by more than 2%, as the Indian rupee scaled a new two-month high today, 18 January 2012, boosted by strong dollar inflows.

* CORPORATE NEWS:

- Usha Martin to commence operation at Thailand

- RCom to raise Rs7500 cr via IPO for Singapore unit

- CIL to hire consultants for overseas mines buyout

- SBI not seeking to raise more funds: chairman

- Marico eyes acquisitions in domestic, overseas markets

- HCL Tech puts hold on acquisition plans

- HDFC Bank in Harvard Business Review's elite list

- NMDC completes Legacy Iron Ore deal

- NIIT Tech Q3 net up 40% at Rs 64 cr q-o-q

- Indian retail sector outlook in 2012 stable: Fitch

- Opto Circuits to supply equipment to Russian hospitals

- L&T Infra's power sector exposure not stressed: officials

- Reliance Industries to buy back shares

* ECONOMIC NEWS:

- IEA cuts 2012 oil demand growth forecast

- Govt suggests caution on Iran oil situation

- India needs Rs 30 lakh cr investment in hydrocarbon value chain: study

- Cheaper food items drag CPI down in Dec