India Market Wrap

* INDICES: Sensex +139 at 18429 (0.76%), NIFTY +43 at 5607 (0.77%), CNXMIDCAP +56 at 7981 (0.7%)

* SECTORAL PERFORMANCE: BANKEX 0.81%, AUTO 0.11%, CAPITAL GOODS 0.87%, HEALTHCARE 0.06%, Metal 0.68%, OIL & GAS 2.29%, IT 0.37%, FMCG 0.37%, PSU 0.76%, REALTY 4.34%, Consumer Durables 3.29%, POWER 0.97%

* MARKET BREADTH: 320 Advances, 177 Declines (BSE 500)

* VOLUMES: BSE $0.7bn (-20.81%), NSE $3.23bn (-23.22%), F&O $31.18bn (-14.94%)

* TODAY'S GAINERS: BHEL 4.76%, ONGC 3.77%, RELI 3.67%, RIL 3.1%, HNDL 3.08%

* TODAY'S LOSERS: STLT -3.57%, TPWR -2.65%, BPCL -1.66%, WPRO -1.15%, GRASIM -1.04%

MARKET COMMENTARY:

Indian benchmarks continued its firm trade in green in today’s session on back of buying in the frontline counters. The sentiments remained upbeat in the session after government released an encouraging India's first-ever CPI-based inflation data which showed inflation based for Rural Labourers (CPI-RL) and Agricultural Labourers (CPI-AL) fell to 4.92% and 5.27% in January from 6.37% and 6.72% in December. Traders were seen piling up positions in Consumer Durables, Realty and Oil & Gas sector while selling was witnessed in Auto and IT sector. On the global front, Asian markets were trading on a mix note while the European markets were trading in red on pessimistic note. However, investor mood was upbeat on encouraging reports that Finance ministers from the Euro-zone have finally struck a deal for Greece's second bailout package however, details were still being worked out in the early hours of Tuesday, more than 12 hours after discussions began. Back home, the market breadth was in favor of advances. Meanwhile, provisional annual inflation for January 2012 stood at 7.65% as compared to January 2011. Inflation in rural areas was up to 7.38% and for the urban areas it was at 8.25%, as per data released by the Ministry of Statistics & Programme Implementation.

NEWS ON TODAYS MOVERS:

Ø Offshore oil services providers rose by 0.51% to 3.03% as crude oil traded near nine-month high on speculation fuel demand will increase after euro-area finance ministers agreed on a second bailout for Greece.

Ø Cairn India rose 1.66% as crude oil traded near nine-month high on speculation fuel demand will increase after euro-area finance ministers agreed on a second bailout for Greece.

Ø Bhel jumped nearly 4.76% on reports the cabinet is likely to approve a proposal to impose a 19% duty on imports of power generation equipment to help local manufacturers compete for orders with Chinese rivals.

Ø Kingfisher Airlines slumped 11.47%on opening but later recovered all the loses and closed flat for the day after the news that aviation regulator summoned the company's CEO for an emergency meeting today, 21 February 2012, to explain large-scale disruptions in the operations of the carrier.

Ø JSW Steel traded flat after the company said that the finance committee of the board of directors has decided to avail an external commercial borrowing of $275 million, which includes a green shoe option of $75 million.

Ø Allahabad Bank rose nearly 4.87% after the bank said its board would meet on Wednesday, 22 February 2012, to consider issuing equity shares to Life Insurance Corporation of India on a preferential basis.

Ø CRISIL rose 2.4%intraday and closed flat for the day after consolidated net profit rose 10.4% to Rs 55.81 crore on 30.4% growth in total income to Rs 233.65 crore in Q4 December 2011 over Q4 December 2010.

Ø Suzlon Energy surged nearly 5.34%, after the company said its subsidiary REpower Systems SE signed a framework contract with Maia Eolis for supplying up to 250 megawatts

Ø HCL Infosystems surges over 2.07%, after the company said it has secured a contract worth Rs278 crore from Electronics Corporation of Tamil Nadu

Ø Coal India traded in green throughout the day after company commented on inking MOU with Central Trade Unions

Ø Union Bank of India jumped nearly 1.50% on introducing next-generation branches Union Bank of India is introducing next-generation branches to improve customer experience.

Ø L&T traded flat on the bourses despite the company’s Metering & Protection Systems business and UK-based Cyan Holdings agreed to form a strategic partnership to collaborate in the development, supply and delivery of advanced metering solutions comprising L&T electricity meters integrated with Cyan's wireless communication modules for AMI, Smart Metering and Smart Grid Pilot projects.

Ø Ranbaxy Laboratories traded in green after a company’s subsidiary-Ranbaxy Australia Pty (RAPL)- has launched Atorvastatin 10mg, 20mg, 40mg and 80mg tablets in the Australian market, after receiving approval from the Therapeutic Goods Administration (TGA), the regulatory authority in Australia.

CORPORATE NEWS:

Ø Moser Baer restructured its payment obligations

Ø DHI seeks Rs1K cr fund in Budget for auto parts industry

Ø S Kumar’s to buy fashion chain Peacocks out of administration

Ø Realty industry expects reforms in Budget

Ø JSW Steel board okays fund raising via ECB

Ø Tata's Nano set to roll into Bangladesh

Ø Syndicate Bank to get Rs539 cr capital infusion from govt

Ø RIL gets over 70 bids for CBM gas

Ø Major airlines raise fares on KFA cancellations

Ø South Indian Bank revives its QIP plan to raise Rs1K cr

Ø SpiceJet to take delivery of 33rd aircraft soon

ECONOMIC NEWS:

Ø Economic slowdown likely to be temporary: Pranab

Ø Budget 2012: Food Security Bill may receive Rs5K cr

Ø FM holds pre-budget talks with financial regulators

Ø Budget 2012: Govt to take tough policy measures to spur growth

Ø Jan consumer price inflation at 7.65%

Ø RBI to consider any CRR cut only at policy meet