Mid Market Wrap

Market Commentary

Ø A bout of volatility was witnessed in early trade as Indian benchmarks turned flat in the morning session, after making a gap-up start, due to profit-taking by investors in select stocks amid a mixed trend in the Asian markets. Even global markets are mixed due to lack of economic data, though Greece missed another deadline for debt deal.

Ø Moreover, investors remained concerned over whether the wrangling over Greece’s debt restructuring talks would eventually be resolved or trigger contagion across other euro zone countries.

Ø Back home government's advance estimate for FY12 showed that GDP is likely to grow by less than 7%. Although the numbers are not surprising, they have certainly given market players an excuse to step back after a five-week winning streak.

Ø On the domestic front, in its move to improve liquidity situation, RBI opined that repurchase of government securities that have been contracted for sale will be allowed for transaction. Meanwhile, IT stocks rose on a recent slew of positive economic data in the US. Index heavyweight. On the sectoral front, oil and gas, consumer durable and healthcare remained the top gainers while, realty capital goods and power remained the only losers on the index. The broader indices were going neck to neck with benchmarks. The market breadth was positive.

Ø As mentioned in our morning note short-term uncertainty and volatility is likely to persist. We feel that 5400-5100 will continue to be the broad trading range on the Nifty in the short term.

* INDICES: Sensex +29 at 17736 (0.16%), NIFTY +9 at 5371 (0.17%), CNXMIDCAP -6 at 7428 (-0.08%)

* SECTORAL PERFORMANCE: BANKEX 0.78%, AUTO -0.19%, CAPITAL GOODS -0.48%, HEALTHCARE 0.19%, Metal 0.09%, OIL & GAS 1.29%, IT -0.2%, FMCG -0.02%, PSU 0.32%, REALTY -0.57%, Consumer Durables 1.04%, POWER -0.81%

* MARKET BREADTH: 253 Advances, 242 Declines (BSE 500)

* TODAY'S GAINERS: CAIR 3.5%, RIL 1.9%, JSP 1.79%, KMB 1.52%, HMCL 1.38%

* TODAY'S LOSERS: BHARTI -2.34%, GAIL -2.18%, JPA -2%, HUVR -1.99%, SUNP -1.87%