India Market Wrap

* INDICES: Sensex -155 at 17924 (-0.86%), NIFTY -54 at 5429 (-0.98%), CNXMIDCAP -58 at 7588 (-0.76%)

* SECTORAL PERFORMANCE: BANKEX -1.95%, AUTO -0.56%, CAPITAL GOODS -2.96%, HEALTHCARE -0.49%, Metal 1.08%, OIL & GAS -1.71%, IT 0.56%, FMCG 0.28%, PSU -1.22%, REALTY -2.28%, Consumer Durables 0.31%, POWER -1.03%

* MARKET BREADTH: 152 Advances, 339 Declines (BSE 500)

* VOLUMES: BSE $0.58bn (-9.82%), NSE $4.8bn (29.21%), F&O $17.68bn (-66.38%)

* TODAY'S GAINERS: STLT 3.09%, TPWR 1.97%, Coal 1.52%, PWGR 1.46%, BHARTI 1.15%

* TODAY'S LOSERS: IDFC -3.76%, PNB -3.74%, LT -3.63%, HDFC -3.55%, DLFU -3.53%

MARKET COMMENTARY:

Indian benchmarks continued its weak trade in red in today’s session hovering near the lowest point of the day in absence of buying. The wary investors started taking cautious approach towards the market after the sharp run up starting from this year. Traders were seen piling up positions in Metal, Consumer Durables and IT sector while selling was witnessed in Realty, Capital Goods and Bankex sector. In view of a sharp drop in output from RIL's eastern offshore KG-D6 block, an Empowered Group of Ministers (EGoM) headed by Finance Minister Pranab Mukherjee is scheduled to meet later in the day to consider changes in the natural gas allocation policy. However, Sterlite Industries, Tata Steel, Hindalco Industries, SAIL and Jindal Steel from Metal counters were seen trading firm giving the much needed support for the market. On the global front, Asian markets were trading in green barring Jakarta Composite while the European markets were trading in green on optimistic note. Back home, the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø Bank of Baroda lost close to 1.60%, after the state-run bank said its board of directors will meet on 27 February 2012 to consider preferential issue of equity shares in favour of LIC/mutual funds.

Ø HDFC fell nearly 3.55% after large block deals were executed in the stock on NSE at the onset of the trading session reports suggest Citi sold it stake in HDFC at 6% discount

Ø Cairn India traded flat for the day despite of crude oil futures rose for a seventh straight day today, 24 February 2012, as investors bet that fuel demand may climb after economic reports signaled the global economy is recovering.

Ø D B Realty fell nearly 7.09% on reports Dubai-based Etisalat filed a lawsuit against its Indian joint venture partners alleging fraud.

Ø Sterlite Industries (India) traded higher on the bourses recovering some losses which were triggered by the merger announcement by the Vedanta resources group which revealed that it may merge Sesa Goa with Sterlite.

Ø Bharti Airtel gained close to 1.15% after the recent fall of 5% in the stock after company unveiled plans for Airtel money across India

Ø Oracle Financial Services Software surged nearly 16.70%, extending Thursday's 4.66% rally triggered by market buzz that the company may delist its shares from stock exchanges.

Ø Indian banks traded on a negative note after a report revealed that most of the Indian banks have raises Rs43.35 bln via CDs

Ø Sesa Goa lost nearly 0.24% after I-T dept claims Rs 246 cr dues from Sesa Goa

CORPORATE NEWS:

Ø Gayatri Projects arm signs pact with PT Bayan

Ø Gujarat Gas FY11 cons net profit down 70%

Ø DCB raises Rs100 cr via preference issue

Ø UCO Bank, Vijaya Bank to sell stake to LIC

Ø Etisalat takes Shahid Balwa, Vinod Goenka to court

Ø Shasun Pharma gains on preferential issue plan

Ø Gitanjali Gems focus more on jewellery retail biz

Ø Ashok Leyland to launch LCVs in India

Ø Allahabad Bank to recruit 1,600 probationary officers

Ø Bajaj Auto not to make 4-wheelers at Chakan plant

Ø Air India may get Rs10K cr Budget lifeline

Ø Coal GoM to meet on March 1

Ø SBI may issue shares to govt to raise Rs7,900 cr

Ø KFA crisis: Banks reluctant to lend more money

Ø IDFC PE to invest Rs150 cr in Jaipur based Co

Ø BJP's campaign in Delhi polls to be about corruption

ECONOMIC NEWS:

Ø Exporters unlikely to get tax incentives in Budget

Ø Congress leaders ask FM to raise IT slabs, reduce interest rates

Ø Govt to let Qualcomm clear Tulip Telecom dues

Ø K'taka BJP crisis: Gadkari meets Yeddyurappa, Gowda

Ø RBI to meet banks shortly to discuss bad loans