India Market Wrap

* INDICES: Sensex +157 at 17234 (0.92%), NIFTY +46 at 5205 (0.9%), CNXMIDCAP +39 at 7090 (0.55%)

* SECTORAL PERFORMANCE: BANKEX -0.37%, AUTO 1.05%, CAPITAL GOODS 1.82%, HEALTHCARE 0.45%, Metal 1.89%, OIL & GAS 2.69%, IT 2.02%, FMCG -0.81%, PSU 0.4%, REALTY -2.22%, Consumer Durables 2.54%, POWER -0.25%

* MARKET BREADTH: 321 Advances, 171 Declines (BSE 500)

* VOLUMES: BSE $0.55bn (0.22%), NSE $2.79bn (-8.3%), F&O $14.13bn (-63.08%)

* TODAY'S GAINERS: SESA 7%, SAIL 6.91%, STLT 6.11%, BHARTI 4.26%, TTMT 3.85%

* TODAY'S LOSERS: RBXY -6.45%, DLFU -3.45%, BHEL -3.13%, BJAUT -3.03%, PNB -2.98%

* MARKET COMMENTARY:

Indian Benchmarks continued to strengthen today’s session as sentiment got a boost after data showed food inflation hovered in the negative terrain for fourth straight week. The weekly food inflation ending January 14, 2012 moderated to -1.03% from its previous levels of -0.42% for the week ended January 7. The decline in inflation can largely be attributed to drop in the price of vegetables, especially onions and potatoes and wheat. Traders were seen piling up the positions in Oil & Gas, Consumer Durables and TECH sector while selling was witnessed in Realty, FMCG and Bankex sector. Industry heavyweight RIL was trading with a gain of around more than three and half percent pulling the markets higher. Meanwhile all sugar stocks including Bajaj Hindustan, Shree Renuka and Balrampur Chini rallied sharply on reports that Prime Minister Manmohan Singh has formed expert committee to examine issues concerning the sugar industry and also the deregulation of the sector. On the global front, the Asian markets traded on a mix note while the European markets were trading on a pessimistic note. Investors were cautious as they are eyeing negotiations between private bondholders and the Greece’s government over the nation’s debt trouble. Back home, the market breadth was in favor of advances.

* NEWS ON TODAYS MOVERS:

- Tata Communications lost close to 1.88% as the company remained in the red in Q3 December 2011.

- Ranbaxy Laboratories tumbled more than 6.45%,after the company said it filed a consent decree with a US court as part of its settlement with the American authorities.

- Tata Steel rose close to 3.12% ,after the company said it would cut 200 jobs at four European plants as part of a restructuring of its European steel tubes business in the face of tough economic conditions and weakening demand.

- BEML traded firm despite of company’s net profit fell 20.4% to Rs 40.07 crore on 12.7% decline in net sales to Rs 574.50 crore in Q3 December 2011 over Q3 December 2010.

- PTC India Financial Services was locked at upper circuit limit of 20% after the company reported strong Q3 December 2011 results after trading hours on Wednesday, 25 January 2012.

- Future Capital Holdings surged close to 1.25%,after consolidated net profit jumped 188.8% to Rs 28.91 crore on 112.3% spurt in total income to Rs 182.15 crore in Q3 December 2011 over Q3 December 2010.

- Suzlon Energy rose close to 4.95%, extending Wednesday's 2.8% gains triggered by the company's subsidiary REpower Systems SE concluding a contract for the delivery of 25 wind turbines of the MM92 type with US developer enXco.

- Metal and mining firms rose by close to 3.5%, a gauge of six metals traded on the London Metal Exchange gained 2.37% to 3,776.90 on Thursday, 26 January 2012.

- Sesa Goa advanced over 7%,after the company announces Q3 results. The net profit of the company stood at Rs370.54 crore for the quarter ended December 31, 2011 whereas the same was at Rs843.92 crore for the quarter ended December 31, 2010.

- Oracle Financial Services Software rose over 3%intraday and close flat with maginal gains after the company posted good results The net profit of the company rose by 1.75% to Rs251.68 crore for the quarter ended December 31, 2011 as compared to Rs247.35 crore for the quarter ended December 31, 2010.

- Bank of India gained by nearly 3%, after the company announced its Q3 numbers. The bank’s net profit rose by 9.64% to Rs716.15 crore for the quarter ended December 31, 2011 as compared to Rs653.16 crore crore for the quarter ended December 31, 2010.

- Canara Bank lost close to 2.94%,after net profit fell 20.8% to Rs 875.56 crore on 33.3% growth in total income to Rs 8591.15 crore in Q3 December 2011 over Q3 December 2010.

* CORPORATE NEWS:

- NHPC Q3 net profit declines by 29%

- Coal India to announce new set of prices this month

- Canara Bank Q3 net profit declines by 21%

- Future Capital spurts on good Q3 nos

- JSPL to spend $600 mn for setting up facility in Bolivia

- Tata Steel to cut 200 jobs in Europe

- Indian Hotels Q3 net profit marginally up by 0.38%

- NTPC gets MOEF OK for Karnataka power project

* ECONOMIC NEWS:

- Credit offtake up 17.1% as of mid-Jan

- PM forms committee for sugar decontrol'

- Food inflation at -1.03% vs -0.42%

- RBI may intervene in forward forex mkts: Sources