India Market Wrap

* INDICES: Sensex -85 at 17622 (-0.48%), NIFTY -27 at 5335 (-0.49%), CNXMIDCAP -79 at 7355 (-1.06%)

* SECTORAL PERFORMANCE: BANKEX 0.56%, AUTO -1.1%, CAPITAL GOODS -2.29%, HEALTHCARE -0.01%, Metal -1.77%, OIL & GAS 0.88%, IT -1.21%, FMCG 0.28%, PSU -0.31%, REALTY -2.1%, Consumer Durables 0.61%, POWER -1.98%

* MARKET BREADTH: 197 Advances, 297 Declines (BSE 500)

* VOLUMES: BSE $0.7bn (8.82%), NSE $2.9bn (-5.34%), F&O $24.38bn (0.74%)

* TODAY'S GAINERS: KMB 2.92%, CAIR 2.51%, ACC 1.85%, ITC 1.56%, RBXY 1.43%

* TODAY'S LOSERS: BHEL -4.18%, JPA -4.06%, RCOM -3.66%, TATA -3.4%, SESA -3.32%

* MARKET COMMENTARY:

Indian benchmarks after exhibiting range bound trends for most part off the session, but later trimmed all the gains to trade below neutral line. The trade continued in red as investors chose to take some profits off the table after the recent sharp rally in equities. Traders were seen piling up the positions in Oil & Gas, Consumer Durables and Banking sector while selling was witnessed in Capital Goods (CG), Power and Realty sector. In the scrip specific movement, telecom stocks Bharti Airtel, Idea Cellular, Tata Teleservices (Maharashtra), Reliance Communications and MTNL edged lower after telecom regulator indicated that it may have to intervene if telecom operators decide to increase tariffs. Meanwhile, stocks from Aviation pocket including Kingfisher Airlines, Jet Airways and SpiceJet skyrocketed in the session after the empowered group of ministers gave their green signal to the decision to allow airlines to directly import Air Turbine Fuel from abroad. On the global front, the Asian markets were trading on a mix note while the European markets were too trading on a mix note. The French President and German Chancellor cautioned Greece that it was running out of time to reach a consensus on the bailout loan package aimed at preventing the eurozone member nation from defaulting on its debts. Back home, the market breadth was in favor of declines.

* NEWS ON TODAYS MOVERS:

- TCS rose close to 0.35%, after the company said that it signed a multi-year, multi-million euro contract with Europcar, the car rental leader in Europe.

- MOIL lost 4.78%, after net profit fell 18.8% to Rs 101.50 crore on 5.4% decline in net sales to Rs 239.54 crore in Q3 December 2011 over Q3 December 2010.

- Tulip Telecom surged 4.46% in opening trades but later on gave up all the gains and lost nearly 6.32% on closing despite of the company said its wholly-owned subsidiary, Tulip Data Centre Services, commissioned a new data center in Bengaluru.

- Hindustan Unilever fell 1.27%, extending Monday's 3.49% decline triggered by the company's Q3 December 2011 sales growth falling short of market expectations.

- Texmaco lost 3.39%, after net profit fell 32.9% to Rs 2.63 crore on 2.7% growth in net sales to Rs 3.38 crore in Q3 December 2011 over Q3 December 2010.

- Aviation shares rose by 10% to 15%, on reports the government panel has recommended up to 49% foreign direct investment by foreign airlines and direct import of jet fuel by airlines.

- Escorts traded in green for the most part of the day and then closed marginally positive on the bourses after company said it reduced production and raised prices of tractors by Rs 7,000 in January to improve its profitability after a tough first quarter ending December 31.

- IDBI Bank gained by 2.73% after the company said it introduces country's first online retail G-Sec Portal, IDBI Samriddhi G-Sec Portal, operational from January 17, 2012. This portal provides an opportunity for retail investors to invest in Government securities (bonds) issued, both by Central and State governments. Through bank's website, retail investors having access to the Internet and Demat account can freely buy and sell government bonds at the click of a button.

- Jindal Steel & Power traded flat on the bourses after the company said it is planning to set up steel units, a sponge iron plant and an iron ore pellet plant as part of an integrated facility in Bolivia. In this regard, the company will invest $600 million in the current year. The company expects to sign a gas supply agreement with the local government authorities by next month for its upcoming integrated facilities.

- Mahindra & Mahindra fell 2.89%, after the company in its outlook said it expects its margins to continue to be under pressure in the near future.

* CORPORATE NEWS:

- Norway minister meets Sibal, raises concerns over Uninor

- M&M cons Q3 net profit surges by 16%

- GPT Infra bags orders worth Rs99.40 cr

- Cadila Healthcare cons Q3 net profit declines by 7%

- Suven Life bags 3 Product patents

- L&T Construction bags orders worth Rs1880 cr

- Dena Bank to allot 5% stake to LIC

- Sobha Group acquires 8 mn sq ft land in Dubai

- TCS signs contract with European car rental co

- Govt gives Rs3K cr loan nod to railways

- RBI asks Manappuram Fin not to accept public deposits

- Opto Circuits Q3 net profit jumps by 30%

- Pfizer to spin off animal healthcare biz for Rs 440 cr

- Glencore, Xstrata agree $90 bn merger

- Samalkot plant to be ready for generation this fiscal: RPower

- UTV denies purchasing 'Dabangg 2' rights

- GoM approves Air India debt recast

- Stage set for 1st phase of UP polls

* ECONOMIC NEWS:

- India’s GDP to grow 6.9% in FY12

- Budget 2012: Govt may hike income tax exemption limit to Rs2 lakh

- Budget 2012: Reduction in Fiscal Deficit a key challenge for FM