India Market Wrap

* INDICES: Sensex +131 at 17432 (0.76%), NIFTY +34 at 5270 (0.65%), CNXMIDCAP +38 at 7226 (0.52%)

* SECTORAL PERFORMANCE: BANKEX 0.46%, AUTO 0.21%, CAPITAL GOODS 1.35%, HEALTHCARE -0.62%, Metal 1.4%, OIL & GAS 0.36%, IT 2.08%, FMCG -0.26%, PSU 0.81%, REALTY 1.25%, Consumer Durables -0.38%, POWER 0.96%

* MARKET BREADTH: 292 Advances, 201 Declines (BSE 500)

* VOLUMES: BSE $0.74bn (-24.16%), NSE $3.78bn (28.61%), F&O $24.58bn (25.09%)

* TODAY'S GAINERS: BHARTI 6.79%, HCLT 5.38%, SESA 4.71%, DLFU 4.26%, ACEM 4.14%

* TODAY'S LOSERS: IDFC -4.71%, RCOM -3.69%, DRRD -2.67%, CIPLA -2.44%, CAIR -2.28%

* MARKET COMMENTARY:

Indian benchmarks trimmed its gains post the 2G verdict but soon recovered and continued to trade in green with a final close with marginal gains. Traders were seen piling up the positions in TECH, Realty and IT sector while selling was witnessed in Health Care, Consumer Durables, and FMCG sector. The Supreme Court, in a major development having implications for the India’s corporate sector, cancelled the 122, 2G spectrum licenses granted by former telecom minister A Raja on the ground that they were issued in a 'totally arbitrary and unconstitutional' manner. Among the telecom companies, Unitech, DB Realty, Videocon, Tata Teleservices were badly hit on their licenses being cancelled while Bharti Airtel, MTNL and Idea Cellular rallied as barring them, almost all other telecom stocks were granted licenses post 2008. Reliance Communications too has taken a hit despite the company releasing an announcement that all its licenses were either issued in 2001 or prior to it. On the global front, the Asian markets were trading in green on optimistic note while the European markets were trading on a mix note. Back home, the market breadth was in favor of advances.

* NEWS ON TODAYS MOVERS:

- Hero MotoCorp rose nearly 1.96%,after total sales rose 11.5% to 5,20,272 units in January 2012 over January 2011.

- Sterlite Industries (India) surged close to 3.35%,after the company's American depository receipt, or ADR gained 6.01% to settle at $9.7 on the New York Stock Exchange on Wednesday, 1 February 2012.

- Zylog Systems rose 4.91%,after consolidated net profit rose 11.2% to Rs 54.50 crore on 16.5% growth in consolidated revenue to Rs 582.80 crore in Q3 December 2011 over Q2 September 2011.

- Mahindra Satyam declined 2.56%,after consolidated net profit rose 29.46% to Rs 308.43 crore on 8.89% growth in net sales to Rs 1718.08 crore in Q3 December 2011 over Q2 September 2011.

- Sun Pharma Advanced Research Company tumbled 4.10%,after the company reported a net loss of Rs 17.90 crore in Q3 December 2011, much higher than net loss of Rs 2.94 crore in Q3 December 2010.

- Hexaware Technologies jumped nearly 10.56%, after consolidated net profit as per Indian GAAP rose 36.4% to Rs 88.2 crore on 18% increase in gross revenue to Rs 431.9 crore in Q4 December 2011 over Q3 September 2011.

- Telecom services providers were mixed in intensely volatile trade after the Supreme Court today, 2 February 2012 ordered the Department of Telecommunications to cancel all the 122 mobile telecom services licenses it allotted after January 2008.

- Cairn India lost nearly 2.33% as crude oil prices fell for fifth straight day as US crude stockpiles increased more than estimated and gasoline use fell to a 10-year low.

- Reliance Communications declined 3.69%, recovering sharply from day's low, after the company in clarification to the today's Supreme Court ruling said it was issued licenses in 2001 and prior.

- Dena Bank rose 3.85%, after the state-run bank said its board will consider a proposal for preferential issue of equity shares to insurance companies and government sponsored mutual funds.

- ACC gained 5.16%, after cement production rose 9.22% while dispatches rose 8.78% in January 2012 over January 2011.

* CORPORATE NEWS:

- RCF Q3 net profit down by 21%

- Corporation Bank Q3 net profit up 5%

- Satyam Q3 net profit at Rs294 cr

- Bajaj Auto Jan total sales up 8%

- BHEL looks at South African mkt for CFBC boilers

- GIC Real Estate to invest $100 mn in Godrej Properties office

- SBI expects lending rates to fall before RBI's rate cut

- Ashok Leyland Q3 net profit up 54%

- JP Associates posts robust volume growth of 27% YoY

- Cairn India CEO sells 1.5 mn shares in company

- Ambuja Cements sales up 4% to 2 mn tonne in Jan

- NTPC in talks with GAIL for sourcing gas supplies

- Indoco in pact with DSM Pharma to tap Austrian mkt

- ACC sales up 9% to 2.23 mn tonne in Jan

- Kingfisher pays Rs 2.7 cr in tax until Jan

- Pfizer recalls 1 mn packets of birth control pills

- SBI not worried about Telco exposure

- Bank's exposure to 2G licence is safe: Indian Bank CMD

* ECONOMIC NEWS:

- 2G case: 122 licenses cancelled, relief for Chidambaram

- 97% of debt MFs are of high credit quality: ICRA

- Banks' asset quality to worsen this year: Fitch

- Investments in healthcare to grow slowly in 2012 : Fitch