India Market Wrap

* INDICES: Sensex +244 at 16996 (1.46%), NIFTY +81 at 5127 (1.61%), CNXMIDCAP +120 at 6954 (1.75%)

* SECTORAL PERFORMANCE: BANKEX 3.21%, AUTO 1.53%, CAPITAL GOODS 3.3%, HEALTHCARE 0.53%, Metal 1.78%, OIL & GAS 1.03%, IT 1.06%, FMCG 0.12%, PSU 1.01%, REALTY 1.14%, Consumer Durables 0.29%, POWER 0.94%

* MARKET BREADTH: 346 Advances, 145 Declines (BSE 500)

* VOLUMES: BSE $0.93bn (118.14%), NSE $2.84bn (40.13%), F&O $40.99bn (83.58%)

* TODAY'S GAINERS: LT 5.84%, IDFC 5.62%, SBIN 5.17%, HNDL 4.7%, JPA 4.45%

* TODAY'S LOSERS: Coal -1.51%, GRASIM -1.46%, SUNP -1.29%, HUVR -0.64%, BHEL -0.53%

* MARKET COMMENTARY:

Indian stock markets continued to remain in fine fettle in late hours as sentiments remained sanguine on the back of encouraging move by Reserve bank of India which apart from keeping key policy rate unchanged for second straight time went on to cut the cash reserve ratio to 5.5% from 6% which underscores a cut of 50 basis points. Stocks from the rate sensitive banking counter kept gaining traction as the reduction in the CRR would result in infusion of around Rs 32,000 crore of primary liquidity into the banking system. Hefty buying was also evident in Capital Goods and high beta Realty index which traded with strong gains. On the global front, the markets that were open in Asia settled on a positive note. However, the European markets traded on a negative note as there was no headway in negotiations between European ministers and Greek bondholders over how to resolve the nation’s debt crisis. Back home, the market breadth was in favor of advances.

* NEWS ON TODAYS MOVERS:

- Idea Cellular jumped closed to 7.04%, extending Monday's 3.68% rise triggered by the company's strong Q3 December 2011 results.

- Essar Oil rose almost 16.71% ,after the company said its east India coal-bed methane block holds an estimated 113 billion cubic feet of gas reserves.

- IVRCL rose close to 10.82%, extending Monday's 3.53% gains triggered by the company's water and buildings divisions securing orders aggregating Rs 701.49 crore.

- Sterlite Industries (India)rose close to 3.06%,despite company reported a weak Q3 December 2011 results at the fag end of the trading session that day.

- KPIT Cummins Infosystems jumped close to 4.02%,after the company's board approved a 1:1 bonus shares.

- Automobile makers traded flat with marginal gains ,after the central bank left its key policy rates unchanged at its third quarter monetary policy review today, 24 January 2012.

- Phoenix Mills fell close to 3.98% despite of company’s net profit rose 13.2% to Rs 26.90 crore on 12% growth in net sales to Rs 50.49 crore in Q3 December 2011 over Q3 December 2010.

- Bank shares rose by close to 3.13%,after the central bank cut the cash reserve ratio for banks by 50 basis points at its third quarter monetary policy review today, 24 January 2012.

- Yes Bank rose almost 3.85%,after net profit rose 32.95% to Rs 254.09 crore on 47.19% increase in total income to Rs 1895.49 crore in Q3 December 2011 over Q3 December 2010.

- RCom Gains shares rose close to 3.21% after the company said it has disconnected from its network a mobile phone joint venture between Abu Dhabi-based Etisalat and India's DB Group over non-payment of fees for using its towers.

- Suzlon Energy rose nearly 1.72%, after the company said its Germany-based Group- subsidiary REpower Systems SE has bagged cumulative wind turbine orders of 151 MW across Europe and North America over a three month period, excluding orders announced separately.

- Reliance Industries Ltd ( RIL) opened firm and closed with nearly 1.58% gains after the company said it will open its share buyback from February 1, and close the offer on January 19 next year

- State-run NTPC traded flat after company expects to sign a joint venture (JV) agreement for the 1,320-mega watt (MW) Khulna power project in Bangladesh by the end of this month. The project would be a 50:50 JV between NTPC and the Bangladesh Government.

* CORPORATE NEWS:

- RCom cuts off Etisalat over payments

- RIL $2.1 bln share buyback to open from Feb 1

- NTPC to sign JV for Bangla project by month-end

- Bajaj Electricals unit to supply CFLs to domestic lamp makers

- Maruti's new diesel plant to be ready by second half of FY13

- GMR close to Rs600 cr private equity deal for highways biz

- Essar Projects secures contract from Gujarat govt

- RIL's KG-D6 output may drop this fiscal: DGH

- LIC Housing to raise Rs200 cr from bond

- YES Bank Q3 net profit up 33%Inflation may moderate below 7% by March

- Bajaj Auto launches 'Duke 200' at Rs 1.18 lakh

* ECONOMIC NEWS:

- CRR cut to increase liquidity, boost growth: FinMin

- High fiscal deficit restraining policy rate cut: RBI

- India's purchase of Iranian oil drops

- RBI cuts CRR by 50 bps, leaves policy rates unchanged