Mid Market Wrap

Market Commentary:

Ø After a continuous four days of consolidation the undercurrent has been buoyed by news of progress in resolving the eurozone debt crisis. Also, China's trade surplus came in much higher than anticipated in December. Investors are also hoping that the upcoming results season will turn out to be better than expected. Reports of an in-principal approval of States to the proposed GST may have also spurred hopes of further reforms in the coming months.

Ø On the Currency Front Rupee has recovered some of the lost ground while FIIs have been steadily increasing their bets on the Indian equities amid reasonable valuations.

Ø Trend on other Asian bourses are also positive, following overnight gains on the US market driven by positive economic data. Back home, sustained buying in mostly all the key heavyweights along with broader indices supported.

Ø Meanwhile, banking stocks rose on expectations that the Reserve Bank of India (RBI) will start cutting interest rates in the coming months to prop up slowing economy moreover; power sector too remained in jubilant mood ahead of the meeting of an empowered group of ministers (EGoM) later this month. Gas-based power projects with a generation capacity of about 4,000 Mw are ready to commence operations by March 31 and are awaiting allocation by the EGoM.

Ø The broader indices were going neck to neck with benchmarks. The market breadth is positive.

Ø On Nifty as mentioned in our morning Note ~4850 will be a crucial level to watch. A break and close above the same could reignite buying momentum in the near term.

Ø Intraday trading: Sell Nifty Futs @ CMP, Stop loss at 4865

* INDICES: Sensex +280 at 16095 (1.77%), NIFTY +86 at 4829 (1.81%), CNXMIDCAP +117 at 6433 (1.86%)

* SECTORAL PERFORMANCE: BANKEX 2.45%, AUTO 2.57%, CAPITAL GOODS 2.57%, HEALTHCARE 1.01%, Metal 2.22%, OIL & GAS 2.08%, IT 0.98%, FMCG 1.11%, PSU 1.75%, REALTY 2.74%, Consumer Durables 1.53%, POWER 1.99%

* MARKET BREADTH: 460 Advances, 37 Declines (BSE 500)

* TODAY'S GAINERS: RELI 4.45%, AXSB 4.12%, MM 4.07%, SBIN 3.35%, BHEL 3.29%

* TODAY'S LOSERS: RBXY -0.51%, GRASIM -0.45%, TCS 0.1%, TPWR 0.11%, PWGR 0.69%