India Market Wrap

* INDICES: Sensex +13 at 16752 (0.08%), NIFTY -2 at 5046 (-0.05%), CNXMIDCAP +31 at 6834 (0.46%)

* SECTORAL PERFORMANCE: BANKEX 0.21%, AUTO 0.49%, CAPITAL GOODS 0.77%, HEALTHCARE -0.1%, Metal -2.06%, OIL & GAS -1.66%, IT 0.81%, FMCG 0.83%, PSU -0.15%, REALTY 0.82%, Consumer Durables -0.53%, POWER 0.73%

* MARKET BREADTH: 230 Advances, 253 Declines (BSE 500)

* VOLUMES: BSE $0.43bn (-25.44%), NSE $2.03bn (-25.39%), F&O $22.33bn (-23.4%)

* TODAY'S GAINERS: MSIL 5.18%, BHEL 3.12%, BHARTI 2.86%, DLFU 2.48%, ICICIBC 1.7%

* TODAY'S LOSERS: STLT -5.39%, HNDL -4.35%, HMCL -3.67%, KMB -3.44%, Coal -2.84%

* MARKET COMMENTARY:

Indian equity markets gain strength gyrating around the neutral line in throughout the session lacking any significant upside triggers for the day. The Reserve Bank of India’s decision in rate-setting meeting scheduled tomorrow coupled with Q3 earnings will decide the direction of the stock market in the near future. Traders were seen piling up the positions in Power, FMCG and Capital Goods sector while selling was witnessed in Oil & Gas, Metal and Auto sector. A slew of positive results along with earnings from heavyweight like L&T and Kotak Bank helped to bring positive sentiments in the market which in turn helped benchmarks to inch higher. Metal stocks fell after LMEX, a gauge of six metals traded on the London Metal Exchange dropped on January 20, 2012. However, market participants remain cautious while picking front line counters as they await the outcome of important RBI credit policy review meet. While consensus estimates are that the Indian central bank will keep both repo and reverse repo rates unchanged at 8.5% and 7.5% respectively however, there are some expectations of open market operations (OMO). The OMO is a tool by which central bank controls the short term interest rate and the supply of base money in economy, thus indirectly controlling the total money supply. On the global front, most of the Asian markets remain closed except Nikkei 225 which traded in red while the European markets were trading in green on optimistic note. Caution returned as Greece and private creditors struggled to reach an agreement vital for restoring confidence in Europe's refinancing ability. After several rounds of talks, Greece and private creditors are converging on a debt swap deal that would stave off bankruptcy for Athens, with investors shouldering losses of up to 70 percent. Euro zone finance ministers will decide terms of a Greek debt restructuring they are ready to accept as part of a second bailout package for Athens. Back home, the market breadth was in favor of advances.

* NEWS ON TODAYS MOVERS:

- Reliance Industries tumbled nearly 2.66% , after net profit declined 13.55% to Rs 4440 crore on 42.39% rise in net sales to Rs 85135 crore in Q3 December 2011 over Q3 December 2010.

- Ultratech Cement rose almost 0.39% , after net profit rose 93.40% to Rs 616.86 crore on 23.06% rise in net sales to Rs 4571.87 crore in Q3 December 2011 over Q3 December 2010.

- Asian Paints rose almost 3.16% , after consolidated net profit rose 16.6% to Rs 256.86 crore on 22% rise in net sales to Rs 2560.53 crore in Q3 December 2011 over Q3 December 2010.

- Godrej Consumer Products surged almost 4.07% ,after the company said it has entered into an agreement to acquire 60% stake in Cosmetica Nacional, a leading hair colorant and cosmetics company in Chile.

- United Spirits fell close to 5.02%, after net profit declined 63.79% to Rs 47.06 crore on 0.31% decline in net sales to Rs 1953.94 crore in Q3 December 2011 over Q3 December 2010.

- Tata Metaliks fell almost 4.20% , after the company reported consolidated net loss of Rs 40.35 crore in Q3 December 2011, higher than net loss of Rs 4.33 crore in Q3 December 2010.

- IVRCL rose close to 3.54%, after the company said its water/irrigation and buildings divisions have secured orders aggregating Rs 701.49 crore.

- Jet Airways (India) rose close to 4.36% , as an encouraging outlook by the company overshadowed its weak Q3 December 2011 results.

- KEC International rose almost 2.22% ,after the company said it has secured two orders aggregating Rs 371 crore for the construction of transmission lines in India.

- Oberoi Realty lost almost 2.72% , after consolidated net profit fell 50.3% to Rs 102.07 crore on 53% decline in net sales to Rs 185.72 crore in Q3 December 2011 over Q3 December 2010.

- Colgate Palmolive (India) jumped over 2.59%, after company reported Q3 results.

- Idea Cellular rose 3.62% after consolidated net profit jumped 90.03% to Rs 200.98 crore on 8.95% increase in net sales to Rs 5020.37 crore in Q3 December 2011 over Q2 September 2011.

- Cairn India lost close to 1% after crude oil futures fell for fourth day in a row today, 23 January 2012, as investors bet that sanctions against Iran may be delayed while Europe's debt crisis may slow commodity demand.

- L&T traded flat after recovering the initial losses of the day, after recurring profit after tax rose 22% to Rs 992 crore on 23% growth in gross revenue to Rs 14155 crore in Q3 December 2011 over Q3 December 2010.

- Maruti Suzuki India jumped close to 5.18%,despite company’s net profit fell 63.62% to Rs 205.62 crore on 16.44% decline in total income to Rs 8042.77 crore in Q3 December 2011 over Q3 December 2010.

- GAIL (India) was down close to 0.78%, paring some losses after net profit rose 12.79% to Rs 1091.42 crore on 31.97% increase in total income to Rs 11315.50 crore in Q3 December 2011 over Q3 December 2010.

* CORPORATE NEWS:

- L&T Q3 net profit up by 18%

- Disney may have to pay 10% more for UTV delisting

- RBI may go for rate cut in February: Moody's

- RIL to develop satellite fields in KG block

- L&T eyes 10% growth in sales from electrical biz

- Torrent Power Q3 cons net profit rises 8%

- M&M Fin Srvs Q3 cons net profit up 28%

- RInfra qualifies to bid for phase 1 of Jaipur Metro Project

- Asian Paints Q3 cons net profit up 16%;

- GCPL to buy 60% stake in Cosmetica Nacional

- Maruti Q3 net slumps 64%, falls more than expected

- NTPC expects JV for Bangla project by month-end

- RIL assures SC of paying VAT on UP gas sale from Feb 1

- Unichem Labs Q3 net down 4.45% to Rs 24 cr

- Sterlite Ind Q3 net dips 17% to Rs 913 cr

* ECONOMIC NEWS:

- Additional power target could be 100,000 MW for 12th Plan.