India Market Wrap

* INDICES: Sensex -67 at 18079 (-0.37%), NIFTY -22 at 5483 (-0.4%), CNXMIDCAP -31 at 7646 (-0.4%)

* SECTORAL PERFORMANCE: BANKEX -0.33%, AUTO -0.79%, CAPITAL GOODS -0.52%, HEALTHCARE -0.28%, Metal -1.41%, OIL & GAS 0.35%, IT -0.51%, FMCG 0.82%, PSU -0.25%, REALTY -2.46%, Consumer Durables -0.05%, POWER 0.64%

* MARKET BREADTH: 176 Advances, 321 Declines (BSE 500)

* VOLUMES: BSE $0.65bn (-16.35%), NSE $3.72bn (-1.06%), F&O $52.61bn (15.41%)

* TODAY'S GAINERS: BPCL 5.24%, HUVR 2.56%, PWGR 2.46%, BHEL 1.76%, NTPC 1.23%

* TODAY'S LOSERS: JPA -6.87%, SESA -3.89%, STLT -3.76%, MM -2.6%, ACEM -2.54%

MARKET COMMENTARY:

Indian Benchmarks trimmed losses to continue its firm trade in green in the post afternoon session on back of buying in the front line counters. The investors were however, cautious and adopted a wait and watch policy on the concluding day of derivative expiry. The near-month February 2012 F&O contracts expired today, February 23, 2012. Traders were seen piling up positions in Power, FMCG and Oil & Gas sector while selling was witnessed in Realty, Metal and Auto sector. Also, the recent sharp spurt in international crude oil prices has set alarm bells ringing, stoking nervousness not only among market participants but also the policy makers. The rally in oil prices would certainly have spiraling effect on the Indian economy as the nation imports more than 70% of the commodity for domestic requirements, thus re-fuelling the inflationary concerns. The market is also jittery about the outcome of the Uttar Pradesh elections and its implications on the upcoming Union Budget. Inflation remains sticky, stoking speculation over the RBI's next policy move at a meeting next month. On the global front, Asian markets were trading in red barring Shanghai Composite and Nikkei while the European markets were trading in green on optimistic note. Back home, the market breadth was in favor .

NEWS ON TODAYS MOVERS:

Ø Hero MotoCorp declined nearly 2.40% after the company said it has forged a strategic partnership with Erik Buell Racing of the US, encompassing multiple areas of collaboration.

Ø Bharti Airtel fell 2.52% on reports South Africa-based Econet Wireless is seeking at least $3.1 billion in damages from the Indian firm in a dispute over ownership of its subsidiary Airtel Nigeria.

Ø State Bank of India rose 0.24% after the bank's deputy managing director, R. Venkatachalam, denied media reports that the bank was close to offering a bailout loan package to Kingfisher Airlines.

Ø D B Realty fell nearly 4.73% after Dubai-based telecom operator Etisalat on Wednesday, 22 February 2012, said it would shut down operations of its telecoms joint venture with the Indian company.

Ø Lupin rose nearly 3.71% after the company and its subsidiary has entered into a settlement agreement with Santarus Inc and Depomed Inc to resolve pending patent litigation involving GLUMETZA extended release metformin tablets.

Ø Kingfisher Airlines rose nearly 0.60%, recovering from the day's low after Civil Aviation Minister Ajit Singh said the government has no plans to cancel the operating license of the air carrier.

Ø ITC trades in the green for the whole day after company said that it has purchased over 17.9 million shares from Russell Credit through an off-market transaction on February 9, 2011. It has been regularly increasing its stake in Krishnan Nair-promoted Hotel Leelaventure. ITC aims to increase stake in Hotel Leelaventure if the prices are attractive.

Ø Hindustan Unilever traded higher on bourses after the company said that it had tried to introduce small pack sized soup powders at Rs 5 under Knorr Annapurna with Soupy Snax, which failed to take off. Premium Knorr soups are priced between Rs 30 and Rs 35. This time it is expecting to appeal to the consumer's taste buds with variants such as Tomato Chatpata and Mixed Vegetable

Ø Ranbaxy Laboratories traded and closed in green despite the company reported a net loss of Rs 2982.76 crore in Q4 December 2011 as against a net loss of Rs 97.48 crore in Q4 December 2010.

CORPORATE NEWS:

Ø Adani considers buying BG stake in Gujarat Gas

Ø Current account deficit a matter of concern: FM

Ø DB Realty sinks as Etisalat to exit India

Ø Vakrangee Soft gets OK for sub-division & bonus issue

Ø Maruti Suzuki bets big on the new Dzire

Ø PM panel wants diesel price hike

Ø Bharti Airtel drops as Econet seeks $3.1 billion in damages

Ø PNB to raise Rs1590 cr via selling stake

Ø Govt formally allows airlines to import jet fuel directly

Ø No fresh loans given to debt crippled KFA: SBI

Ø DLF sells 350 flats in Gurgaon for Rs500 cr

Ø RITL approches TDSAT to recover Rs1,200 cr from Etisalat DB

Ø Ceat plans to begin plant in Bangladesh

ECONOMIC NEWS:

Ø MMRDA plans to link Bandra Sealink with Transharbour Link

Ø Maharashtra budget session to begin March 15

Ø I-T dept rejects KFA plea to unfreeze accounts

Ø Railways workers’ body appeal for bailout package

Ø Budget 2012: Govt expects 18% hike in plan allocation