India Market Wrap

* INDICES: Sensex -478 at 17446 (-2.67%), NIFTY -148 at 5281 (-2.73%), CNXMIDCAP -237 at 7352 (-3.12%)

* SECTORAL PERFORMANCE: BANKEX -3.97%, AUTO -3.32%, CAPITAL GOODS -3.56%, HEALTHCARE -0.54%, Metal -4.86%, OIL & GAS -3.07%, IT -2.08%, FMCG 0.29%, PSU -2.78%, REALTY -5.29%, Consumer Durables -3.42%, POWER -4.03%

* MARKET BREADTH: 55 Advances, 444 Declines (BSE 500)

* VOLUMES: BSE $0.51bn (-12.83%), NSE $2.71bn (-43.78%), F&O $20.49bn (15.36%)

* TODAY'S GAINERS: ITC 1.38%, BPCL 0.5%, SUNP 0.17%, DRRD 0.05%, CIPLA -0.11%

* TODAY'S LOSERS: SESA -10.08%, RPWR -7.68%, SAIL -7.65%, RELI -7.42%, TATA -6.96%

MARKET COMMENTARY:

Indian benchmarks witnessed selling carnage and continued to trade its weak trade in red in the today session and closed near the lowest point of the day. The carnage on the street continued hitting their lowest level in more than three weeks due to absence of buying on depressing global developments and lack of significant positive upside triggers. Investors fretted over spillover risks from the European region while heightened geopolitical tensions between the nuclear ambitious Iran and the West too dented investors’ morale. Traders were seen piling up positions in FMCG sector while selling was witnessed in Metal, Realty and Power sector. Market participants were also seen growing increasingly nervous amid worries that the longest rally in international crude oil prices in two years would not only multiply India’s fiscal woes but also adversely impact global economic growth. On the global front, Asian markets were trading on a mix note while the European markets were trading in red on pessimistic note. Back home, the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø UCO Bank lost nearly 7.45%,after the bank said it will convene an Extra-ordinary General Meeting of the shareholders on 23 March 2012 to consider preferential allotment of equity shares to Government of India and LIC.

Ø Sesa Goa lost nearly 10.08%, Sterlite Industries (India) also lost 2.45%, after Vedanta Resources Plc group announced merger of Indian subsidiaries and proposed consolidation and simplification of group structure.

Ø Glenmark Pharmaceuticals fell and recovered towards the close with loss of nearly 0.22% after its US subsidiary issued a voluntary nationwide recall in the US for 7 lots of its oral contraceptive Norgestimate and Ethinyl Estradiol tablets due to a packaging error.

Ø ABB lost 2.79% intraday and recovered and closed with a gain of 0.74%,the slide was triggered by the company stating at the time of announcement of Q4 December 2011 results that its profit margin will remain under pressure.

Ø Fertilizer companies traded on a mix note after a group of ministers approved a revised investment policy offering incentives to fertilizer companies to expand and set up urea plants.

Ø Banking shares fell 1.61% to 6.51% on reports the Intelligence Bureau has warned that the proportion of bad loans on the books of Indian banks could double on account of "restructured" loans.

Ø Orchid Chemicals & Pharmaceuticals fell nearly 0.17% on reports the company would repay foreign currency convertible bonds worth $167 million tomorrow, 28 February 2012.

Ø Oracle Financial Services Software lost nearly 1.63%, after the company clarified that it is neither aware of any delisting plan nor it has received or issued such communication in this regard.

Ø Adani Ports gained nearly 0.67% after the company commented on receiving receives LOI from Kandla Port Trust

CORPORATE NEWS:

Ø McNally Bharat bags Rs66.42 cr orders

Ø Alstom T&D gets order from Power grid worth Rs64.80 cr

Ø Subex receives RBI OK to extend maturity of FCCB

Ø KFA in talks with 2 foreign airlines to rescue carrier

Ø ONGC Assam asset registers record gas sales

Ø ONGC spending Rs26K cr to develop 10 oil clusters

Ø NTPC to invest Rs24K cr in Andhra thermal power plant

Ø SBI decides to slash interest on education loan by 1%

Ø MCX IPO at top end of range, price set at Rs1032 a share

Ø RIL US arm raises $500 mn via bond issue

Ø SBI will not consider any fresh loans to KFA

Ø Glenmark recalls oral contraceptive tablets in US

Ø Govt likely to use disinvestment proceeds to revive PSUs

Ø EGoM meet on ONGC divestment cancelled

Ø Sterlite, Sesa Goa decline on merger plan

ECONOMIC NEWS:

Ø Govt asks PSU banks to cut loan rates by March

Ø GoM to decide on green signal for captive coal blocks

Ø Textiles Min seeks enhanced budget allocation of Rs24,597 cr

Ø Union Budget 2012: CII asks FM not to hike excise, service tax