MID MARKET WRAP

Market Commentary:

Ø The Indian equity markets have made a soft start with benchmarks tumbling below its crucial levels on the back of weak global cues. Weakness in Asian stocks dampened sentiment. Expectations of weak Q3 December 2011 earnings also weighed on sentiment. The US markets closed mixed on Friday, though the domestic economic reports remained good but the European jitters once again weighed on the mood of the investors after ratings were cut

Ø On the domestic side, somberness is likely to persist as Prime Minister Manmohan Singh, while admitting that the country was going through difficult times has cut the nation's growth rate down to 7% in the current fiscal from 8.5% last year.

Ø On the sectoral front a weak rupee also supported IT stocks. The rupee fell on opening trade as worries about the impact of Europe's debt crisis on the global economy sapped risk appetite in most Asian markets. The rupee was at 52.77/78 to the dollar, weaker than Friday's close of 52.715/725. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Ø We Maintain our call on the markets as mentioned in our morning note with enthusiasm, likely to fizzle out as profit booking can emerge. Our systems Remain Short with a stop on nifty at 4880-4900 levels. On break of which we can see trend reversal taking place.

* INDICES: Sensex -118 at 15731 (-0.74%), NIFTY -35 at 4712 (-0.74%), CNXMIDCAP -10 at 6265 (-0.16%)

* SECTORAL PERFORMANCE: BANKEX -0.77%, AUTO -1%, CAPITAL GOODS -0.17%, HEALTHCARE 0.26%, Metal -1.19%, OIL & GAS -1.05%, IT -0.27%, FMCG -0.51%, PSU 0.05%, REALTY 0.29%, Consumer Durables -0.22%, POWER 0.74%

* TODAY'S GAINERS: BHEL 2.01%, RPWR 1.7%, TPWR 1.25%, CIPLA 1.03%, MSIL 0.93%

* TODAY'S LOSERS: BHARTI -3.05%, SESA -2.53%, Coal -2.14%, BPCL -1.96%, SBIN -1.74%