India Market Wrap

* INDICES: Sensex +22 at 17753 (0.12%), NIFTY +10 at 5385 (0.18%), CNXMIDCAP +94 at 7706 (1.24%)

* SECTORAL PERFORMANCE: BANKEX -0.59%, AUTO 0%, CAPITAL GOODS -1.59%, HEALTHCARE 0.34%, Metal 1.45%, OIL & GAS 2.53%, IT 0.46%, FMCG -0.72%, PSU 1.51%, REALTY 1.1%, Consumer Durables 0.66%, POWER 0.28%

* MARKET BREADTH: 312 Advances, 180 Declines (BSE 500)

* VOLUMES: BSE $0.68bn (20.53%), NSE $3.22bn (12.79%), F&O $20.42bn (8.92%)

* TODAY'S GAINERS: ONGC 3.46%, SAIL 3.41%, RIL 3.04%, SESA 3.03%, WPRO 2.88%

* TODAY'S LOSERS: LT -3.02%, HDFCB -2.53%, SIEM -1.88%, JSP -1.84%, ITC -1.45%

MARKET COMMENTARY:

As mention in our morning note “In a minute there is time for decisions and revisions which a minute will reverse” As soon as the GDP data was released by the govt investor decision were revised and sentiments were undermined soon after that .Indian benchmark pared gains to trade below neutral line in red in the late afternoon session. Economic activity in the country expanded at its weakest annual pace in almost three years in the three months to December, largely because high interest rates and rising input costs constrained investment and manufacturing. Traders were seen piling up positions in Oil & Gas, PSU and Power sector while selling was witnessed in Capital Goods, Bankex and Auto sector. Industry heavyweight RIL was seen trading in green with gain of around more than two percent giving the much needed support. On the global front, Asian markets were trading in green barring Shanghai Composite while the European markets were too trading in green on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,350 and 17,700 levels respectively. The market breadth was neutral in the ratio.

NEWS ON TODAYS MOVERS:

Ø Mahindra Lifespace Developers rose close to 0.68% with the stock extending Tuesday's 1.03% gain triggered by the company announcing the launch of a premium residential project.

Ø ONGC advanced 3.46%, after the government approved offloading 5% stake in the state-run oil exploration firm through auction route.

Ø State-run oil firms rose by between 0.56% to 2% after the government approved offloading 5% stake in the state-run oil exploration firm through auction route.

Ø Tata Motors traded with a loss of 0.88% despite the company's American depository receipt, or ADR surged 4.25% to settle at $27.71 on the New York Stock Exchange on Tuesday, 28 February 2012.

Ø Reliance Industries rose nearly 3.04%, with the stock extending Tuesday's 1.9% gain triggered by reports the company will develop the D6 natural gas block and its satellite fields as an integrated unit.

Ø Tata global rose nearly 4.02%, on reports wholesale tea prices will rise by about 10-15% soon on the back of a faltering supply

Ø GMR Infrastructure rose nearly 2.88% on reports the company is in talks with private equity investors to raise $250-300 million through stake sales in some of its road projects

Ø BGR Energy surged over 9%, on hopes of getting orders from the state-owned electric utilities company NTPC Ltd

Ø TCS trade flat for the day despite company announced bagging a contract from South Africa's Nedgroup Insurance Company (NIC) for deploying its financial services platform

CORPORATE NEWS:

Ø McNally Bharat receives LOI from Crescent Power

Ø PBA Infra secures contract from MMRDA

Ø PSU shares surge as Govt clears ONGC stake-sale

Ø NTPC signs agreement with Bangladesh

Ø TCS secures contract from S Africa's Insurance Co

Ø LIC sells 2% stake in Tata Global for Rs161 cr

Ø Govt OKs 5% stake sale in ONGC via auction

Ø NALCO likely to finalise Gujarat refinery in a month

Ø Union Bank may cut home, education interest rates

Ø IFCI to take 20% stake in India-focussed fund

ECONOMIC NEWS:

Ø Rupee touches 3-week high on capital inflow

Ø India’s GDP at 6.1% in Q3 vs. 6.9% in Q2

Ø Brent rises above $122, ECB loan may spur buying

Ø Govt to auction 4G spectrum this year: Sibal

Ø Govt proposes cutting defence budget for this year

Mid Market Wrap

Market Commentary:

Ø Asian stocks rose, with the benchmark index poised to enter a bull market, as better-than- forecast industrial production data in Japan and South Korea boosted growth prospects. The euro climbed before the European Central Bank provides funds to support banks.

Ø Buoyed by global optimism, Indian markets have continued their northward journey for second straight session after a four day of correction. The Nifty retained its early trade gains, scaling up itself above the 5450 level led by across the board buying before the release of GDP numbers. Lower than expected GDP at 6.1% pulled market down and very close to 5400 level.

Ø Among largecaps, ONGC topped the buying list, rising 4.6%. All sectoral indices were in the green. The broader indices were outperforming benchmarks.

Ø The Indian rupee surged to its highest in three weeks as capital inflows picked up ahead of a large share sale in state-run ONGC. Rupee was at 48.97/98, 0.2 percent firmer than last close of 49.0750/0850

Ø For Nifty Mar Futs, Intra-day resistance can be seen at 5490-5500 level while on the downside it can slip upto 5420 level.

* INDICES: Sensex +205 at 17937 (1.16%), NIFTY +60 at 5435 (1.11%), CNXMIDCAP +105 at 7716 (1.38%)

* SECTORAL PERFORMANCE: BANKEX 0.53%, AUTO 0.94%, CAPITAL GOODS 0.55%, HEALTHCARE 0.84%, Metal 1.39%, OIL & GAS 2.88%, IT 0.79%, FMCG 0.81%, PSU 2.3%, REALTY 1.95%, Consumer Durables 1.45%, POWER 1.4%

* MARKET BREADTH: 376 Advances, 121 Declines (BSE 500)

* TODAY'S GAINERS: ONGC 4.99%, RIL 3.35%, BJAUT 3.28%, SAIL 3.11%, IDFC 3.07%

* TODAY'S LOSERS: DRRD -0.91%, SIEM -0.68%, LT -0.57%, HDFCB -0.5%, CAIR -0.49%

Pre Open Thoughts: Decision & Revisions!!!

Pre Open Thoughts: Decision & Revisions!!!

Ø In a minute there is time for decisions and revisions which a minute will reverse. For now the global developments have been changing by the minute. Back home all eye will be on the release of Q3 GDP data which is scheduled today. It is likely to show further drop in economic growth.

Ø We would still advise to be on a cautious approach towards the markets before determining the next leg of markets’ direction as a slew of important events lined up domestically. The budget session will kick off on March 12. Election results will be out on March 6. IIP for January will be released on March 12 while February inflation is due on March 14.

Ø One cause for concern lately has been the persistently tight liquidity in the banking system, stoking speculation of a possible move by the RBI on CRR cut before the March 15 policy meeting.

Ø Asian markets are up. US shares rallied as did their European counterparts. So, the opening is set to be pretty good. The question is whether the early gains will be sustained amid a spate of domestic macro-economic issues. The market is delicately poised with the Nifty just below 5500.

Ø As mentioned in our last note to keep the faith on the Tuesday’s wonders for Indian benchmarks. Indices Galloped close to 1.82%. For Nifty 5600 remains to be major resistance level now and on down side 5200 should act as a major support.

Ø The FIIs were net buyers of Rs 7.27bn in the cash segment on Tuesday while the domestic institutional investors (DIIs) were net sellers at Rs 5.87bn, as per the provisional figures released by the NSE.

Results today : Bata India, Claris Lifesciences, Kinetic Motor, Plethico Pharma and Videocon Industries.

India Market Wrap

* INDICES: Sensex +285 at 17731 (1.64%), NIFTY +94 at 5376 (1.79%), CNXMIDCAP +260 at 7611 (3.53%)

* SECTORAL PERFORMANCE: BANKEX 3.93%, AUTO 3.04%, CAPITAL GOODS 4.02%, HEALTHCARE 1.11%, Metal 3.43%, OIL & GAS 1.31%, IT 0.01%, FMCG -0.13%, PSU 2.99%, REALTY 5.91%, Consumer Durables 3.12%, POWER 3.57%

* MARKET BREADTH: 443 Advances, 56 Declines (BSE 500)

* VOLUMES: BSE $0.56bn (11.1%), NSE $2.85bn (5.35%), F&O $18.75bn (-8.49%)

* TODAY'S GAINERS: RELI 11.2%, RPWR 7.64%, RCOM 7.34%, JPA 7.08%, IDFC 6.7%

* TODAY'S LOSERS: CAIR -2.94%, TCS -2.04%, WPRO -1.07%, BPCL -1.05%, ITC -0.75%

MARKET COMMENTARY:

A bout of initial volatility was witnessed as the market regained strength after paring gains after a firm opening. The key benchmarks trimmed as profit booking emerged at higher levels. The weakness in international crude prices and positive development on the global front has supported the local markets to move higher for the day. Traders were seen piling up positions in Realty, Bankex and Metal sector while selling was witnessed in IT and FMCG sector. However, all eyes are set for tomorrow, February 29, 2012, when the government will announce Q3 December 2011 gross domestic product (GDP) data. The GDP growth stood at 6.9% in Q2 September 2011, the slowest in over two years. On the global front, Asian markets were trading in green barring KLSE Composite while the European markets were too trading in green on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,350 and 17,700 levels respectively. The market breadth was in favor of advances.

NEWS ON TODAYS MOVERS:

Ø Bank of Baroda surged nearly 6.57% after the state-run bank said its board of directors has approved the proposal for issuing of equity shares in favor of Life Insurance Corporation of India/mutual funds on preferential basis.

Ø JSW Steel rose close to 4.64% after the company said its crude steel production rose 39% to 8.05 lakh tonnes in January 2012 over January 2011.

Ø Bank of Maharashtra surged 4.71% after the state-run bank approved issue of shares to Government of India and Life Insurance Corporation of India respectively on preferential basis.

Ø GVK Power & Infrastructure advanced 8.12% on reports the company is in talks with UK's BG Group to sell a part of its stake in seven oil and gas blocks off India's west coast.

Ø HDIL galloped 13.77%, on bargain hunting after sliding 24.2% in prior four trading sessions.

Ø DLF gained 5.10% on reports the company expects sales realisation of about Rs 700 crore from a soon-to-be-launched luxury housing project in Gurgaon.

Ø Union Bank of India zoomed 4.93% after company announced a launch of SampUrna ATM and reached the milestone of 3000 ATMs and has introduced a host of new products and services on ATMs.

Ø Idea shined nearly 1.56% after company announce a partner with RealNetworks to offer ringback tone service

Ø Tata Power Company spurts nearly 2.37% on exploring overseas opportunity is actively scouting for overseas opportunities for generation and distribution projects in SAARC nations, Africa, Turkey and West Asia. SAARC includes Sri Lanka, Bangladesh, Nepal and Bhutan

Ø IVRCL was in demand and surged 8.34% after company getting nod for proposed scheme of amalgamation has received an approval from board of directors of the company on February 27, 2012 for its proposed scheme of amalgamation between IVRCL, IVRCL Assets & Holdings, RIHIM Developers and IVRCL TLT and their respective shareholders. The scheme was approved with the requisite majority.

Ø Reliance Infrastructure surged 11.20% on reports the company is likely to hike power tariff in April 2012 to recover a revenue gap of the past year.

CORPORATE NEWS:

Ø GVK Power to sell oil & gas blocks'.

Ø Vijay Mallya arranges funds to pay salaries to employees

Ø SBI cuts loan rates on education

Ø JSW Steel Jan 2012 crude steel production up by 39%

Ø BP, RIL to submit single development plan for D6 block

Ø Essar Oil loses Rs 302 cr insurance claim

Ø GMR Infra in talks to sell $200 mn in road assets

Ø IOC gets state permit to draw river water for refinery

Ø ONGC, GAIL may offer Rs 9,800 cr for Cove

ECONOMIC NEWS:

Ø UP polls: 24% voters exercise franchise in 4 hrs

Ø CII wants measures to accelerate pace of investments

Ø Montek satisfied with increase in Plan outlay for FY13

Ø Brent slips below $124 after rally, supply woes support

Ø January infra output reduces to 0.5% y-o-y