India Market Wrap

* INDICES: Sensex +285 at 17731 (1.64%), NIFTY +94 at 5376 (1.79%), CNXMIDCAP +260 at 7611 (3.53%)

* SECTORAL PERFORMANCE: BANKEX 3.93%, AUTO 3.04%, CAPITAL GOODS 4.02%, HEALTHCARE 1.11%, Metal 3.43%, OIL & GAS 1.31%, IT 0.01%, FMCG -0.13%, PSU 2.99%, REALTY 5.91%, Consumer Durables 3.12%, POWER 3.57%

* MARKET BREADTH: 443 Advances, 56 Declines (BSE 500)

* VOLUMES: BSE $0.56bn (11.1%), NSE $2.85bn (5.35%), F&O $18.75bn (-8.49%)

* TODAY'S GAINERS: RELI 11.2%, RPWR 7.64%, RCOM 7.34%, JPA 7.08%, IDFC 6.7%

* TODAY'S LOSERS: CAIR -2.94%, TCS -2.04%, WPRO -1.07%, BPCL -1.05%, ITC -0.75%

MARKET COMMENTARY:

A bout of initial volatility was witnessed as the market regained strength after paring gains after a firm opening. The key benchmarks trimmed as profit booking emerged at higher levels. The weakness in international crude prices and positive development on the global front has supported the local markets to move higher for the day. Traders were seen piling up positions in Realty, Bankex and Metal sector while selling was witnessed in IT and FMCG sector. However, all eyes are set for tomorrow, February 29, 2012, when the government will announce Q3 December 2011 gross domestic product (GDP) data. The GDP growth stood at 6.9% in Q2 September 2011, the slowest in over two years. On the global front, Asian markets were trading in green barring KLSE Composite while the European markets were too trading in green on optimistic note. Back home, the NSE Nifty and BSE Sensex were trading above their psychological 5,350 and 17,700 levels respectively. The market breadth was in favor of advances.

NEWS ON TODAYS MOVERS:

Ø Bank of Baroda surged nearly 6.57% after the state-run bank said its board of directors has approved the proposal for issuing of equity shares in favor of Life Insurance Corporation of India/mutual funds on preferential basis.

Ø JSW Steel rose close to 4.64% after the company said its crude steel production rose 39% to 8.05 lakh tonnes in January 2012 over January 2011.

Ø Bank of Maharashtra surged 4.71% after the state-run bank approved issue of shares to Government of India and Life Insurance Corporation of India respectively on preferential basis.

Ø GVK Power & Infrastructure advanced 8.12% on reports the company is in talks with UK's BG Group to sell a part of its stake in seven oil and gas blocks off India's west coast.

Ø HDIL galloped 13.77%, on bargain hunting after sliding 24.2% in prior four trading sessions.

Ø DLF gained 5.10% on reports the company expects sales realisation of about Rs 700 crore from a soon-to-be-launched luxury housing project in Gurgaon.

Ø Union Bank of India zoomed 4.93% after company announced a launch of SampUrna ATM and reached the milestone of 3000 ATMs and has introduced a host of new products and services on ATMs.

Ø Idea shined nearly 1.56% after company announce a partner with RealNetworks to offer ringback tone service

Ø Tata Power Company spurts nearly 2.37% on exploring overseas opportunity is actively scouting for overseas opportunities for generation and distribution projects in SAARC nations, Africa, Turkey and West Asia. SAARC includes Sri Lanka, Bangladesh, Nepal and Bhutan

Ø IVRCL was in demand and surged 8.34% after company getting nod for proposed scheme of amalgamation has received an approval from board of directors of the company on February 27, 2012 for its proposed scheme of amalgamation between IVRCL, IVRCL Assets & Holdings, RIHIM Developers and IVRCL TLT and their respective shareholders. The scheme was approved with the requisite majority.

Ø Reliance Infrastructure surged 11.20% on reports the company is likely to hike power tariff in April 2012 to recover a revenue gap of the past year.

CORPORATE NEWS:

Ø GVK Power to sell oil & gas blocks'.

Ø Vijay Mallya arranges funds to pay salaries to employees

Ø SBI cuts loan rates on education

Ø JSW Steel Jan 2012 crude steel production up by 39%

Ø BP, RIL to submit single development plan for D6 block

Ø Essar Oil loses Rs 302 cr insurance claim

Ø GMR Infra in talks to sell $200 mn in road assets

Ø IOC gets state permit to draw river water for refinery

Ø ONGC, GAIL may offer Rs 9,800 cr for Cove

ECONOMIC NEWS:

Ø UP polls: 24% voters exercise franchise in 4 hrs

Ø CII wants measures to accelerate pace of investments

Ø Montek satisfied with increase in Plan outlay for FY13

Ø Brent slips below $124 after rally, supply woes support

Ø January infra output reduces to 0.5% y-o-y