India Market Wrap

Ø INDICES: Sensex +346 at 17404 (2.03%), NIFTY +117 at 5296 (2.25%), CNXMIDCAP +194 at 7711 (2.58%)

Ø SECTORAL PERFORMANCE: BANKEX 2.55%, AUTO 2.27%, CAPITAL GOODS 1.96%, HEALTHCARE 1.84%, Metal 2.58%, OIL & GAS 2.82%, IT 1.99%, FMCG 1.12%, PSU 2.57%, REALTY 2.61%, Consumer Durables 0.85%, POWER 1.73%

Ø MARKET BREADTH: 425 Advances, 71 Declines (BSE 500)

Ø VOLUMES: BSE $0.68bn (80.12%), NSE $2.36bn (-17.5%), F&O $17.39bn (-64.28%)

Ø TODAY'S GAINERS: RBXY 5.03%, IDFC 4.69%, TATA 4.12%, ICICIBC 4.03%, KMB 3.96%

Ø TODAY'S LOSERS: CAIR -0.65%, JSP -0.53%, SUNP -0.33%, GRASIM 0.08%, NTPC 0.15%

MARKET COMMENTARY:

The Indian benchmarks advanced smartly today, defying a worldwide negative bias for risky assets, as market players snap up some of the beaten-down stocks following the recent selloff. Indian stocks accelerated after Finance Minister Pranab Mukherjee said that the Government doesn't intend to levy any tax on the holders of Participatory Notes (P-Notes). He also said that a clarification on the matter would be issued by the Government in due course and that the Centre has no intention of harassing genuine overseas investors. It may be recalled that the Indian stock market has been under pressure throughout this week on fears that the proposed GAAR tax regulations could hurt FII investments coming through the Mauritius route. Traders were seen piling up position in Metal, Realty and Oil & Gas sector. Meanwhile, global rating agency Fitch expects Indian economy to grow at 7.5% in 2012-13. RIL, Infosys, TCS, Coal India, Axis Bank, ICICI Bank, BHEL, DLF, Tata Steel, Tata Power, ITC, HDFC Bank, L&T, Tata Power, Sterlite Inds were among the notable leaders. On the global front, Asian markets were trading on a mix note while the European markets were trading in green on optimistic note.

NEWS ON TODAYS MOVERS:

Ø TCS rose nearly 2.42% after the company said Malaysia-based financial services group AmBank has decided to deploy the company's banking solution.

Ø Essar Oil rose nearly 1.61% after the firm's CEO, L. K. Gupta, told the media on Thursday that the firm expects its revenue to grow by 35% in the fiscal year ending March 2013, helped by improved refining capacity.

Ø Dena Bank surged nearly 4.16% after the state-run bank said it has allotted 1.66 crore equity shares at Rs 90.73 per share to LIC on preferential allotment basis for a total consideration of Rs 151.24 crore.

Ø Punjab & Sind Bank declined nearly 1.70% after the state-run bank said its board has allotted 1.11 crore equity shares at Rs 85.46 per share to LIC on preferential allotment basis.

Ø NTPC traded firm after the company said that Simhadri Super Thermal Power Project's unit-IV of 500 megawatts was commissioned today, 30 March 2012, at 07:09 IST.

Ø L&T surged nearly 2.22% after the company said it has signed consortium agreements with Nexter Systems of France to collaborate for key Artillery Gun programmes of the Indian Army.

Ø IT stocks rose by 1% to 2.25% after the US government reportedly clarified that there will be no hike in fee for H-1B work visa for professionals next year.

CORPORATE NEWS:

Ø L&T construction bags orders worth Rs1875 cr

Ø Adani raises fund from overseas lenders

Ø ONGC, COP ink pact shale gas, deepwater oil today

Ø Madras HC approves Amalgamation of Sterlite Inds

Ø NTPC freezes expansion of gas-based projects

Ø MRPL expands refining capacity by 27%

Ø KS Oils zooms on approval of CDR package

Ø Ashok Leyland plans foray into aerospace biz

Ø Tata Motors to invest Rs600 cr on development of FICV

Ø HDIL MD Sarang Wadhawan sells 1.19% more stake

Ø Bharat Forge to develop artillery gun for Indian Army

Ø Tata Comm gets extension up to April 19 for C&W bid

Ø Suzlon Coimbatore unit prod hampered due to strike

Ø Unitech seeks injunction against Telenor on biz transfer

Ø Adani raises Rs 6,250 cr refinancing loan

ECONOMIC NEWS:

Ø No tax liability on P-notes holders: FM

Ø Govt plans financial bailout for power distribution cos

Ø RBI plan to buy bonds of Rs 10,000 crore today

Mid Market Wrap

Market Commentary:

Ø The Indian benchmarks have made a firm start led by some bottom fishing after two sessions’ of downfall. However, global cues remained choppy as the US markets made a mixed closing on Thursday as the news from the economy front too remained mixed while, Asian counters exhibiting mixed trend at this point of time.

Ø Back home, sustained buying in mostly all the key heavyweights along with broader indices supported to trade comfortably over their crucial 17,200 and 5,200 mark respectively.

Ø On the sectoral front, banking, realty and oil and gas remained the top gainers while there was no loser on the index. The sentiments got a boost after the Reserve Bank said it will buy up to Rs 10,000 crore of bonds through open market operations today.

Ø Meanwhile, the sharp jump in core sector also added to optimism. The eight core infrastructure industries that account for nearly 40% in the IIP grew at 6.8% in February against 0.5% last month.

Ø The broader indices were going neck to neck with benchmarks while, the market breadth was positive.

Ø On currency front The rupee appreciated by 23 paise to 51.17 against the US dollar in early trade today on the Interbank Foreign Exchange market as the American currency fell against the euro and other currencies overseas.

Ø Nifty is likely to face resistance at 5340-5350 while on the downside 5170-5200 remains to be strong support for the market

Ø INDICES: Sensex +222 at 17280 (1.3%), NIFTY +74 at 5253 (1.42%), CNXMIDCAP +101 at 7619 (1.35%)

Ø SECTORAL PERFORMANCE: BANKEX 1.79%, AUTO 1.01%, CAPITAL GOODS 1.51%, HEALTHCARE 0.82%, Metal 2.11%, OIL & GAS 1.51%, IT 1.12%, FMCG 0.39%, PSU 1.78%, REALTY 2.33%, Consumer Durables 1.46%, POWER 1.47%

Ø MARKET BREADTH: 432 Advances, 66 Declines (BSE 500)

Ø TODAY'S GAINERS: IDFC 4.38%, HNDL 3.77%, JPA 3.49%, SESA 3.18%, TPWR 3.03%

Ø TODAY'S LOSERS: WPRO -0.72%, SUNP -0.43%, CAIR -0.37%, HUVR 0%, JSP 0.04%

Pre Open Thoughts: Corrective Rebound??

Pre Open Thoughts: Corrective Rebound??

Ø A mind troubled by doubt cannot focus on the course to victory. Same Way Trouble for Our market continues to swing on both sides amid heightening worries.

Ø We expect start to be muted as most Asian markets are also in the muted. But we do not rule out a ‘corrective’ rebound but be careful as volatility will remain elevated.

Ø Overall our market is in a transitory phase. Today’s movement will also hinge on global market. For our markets, the crucial event will be the RBI’s policy meeting on April 17.

Ø On Nifty, 5170 will act as a support on break of which we can see a slide up to 4800. Overall we maintain our view that the near-term outlook is cautious till the Nifty closes convincingly above 5350 for the Trend to reverse.

Ø SBI will be in focus as according to sources with direct knowledge of the development, country’s largest bank will restructure loans worth 25-30 billion rupees in the fourth quarter. This is significantly higher than loans worth 26.62 billion rupees that were restructured by SBI in the first nine months of this year.

India Market Wrap

Ø INDICES: Sensex -63 at 17059 (-0.37%), NIFTY -16 at 5179 (-0.31%), CNXMIDCAP +19 at 7518 (0.26%)

Ø SECTORAL PERFORMANCE: BANKEX -0.15%, AUTO 0.67%, CAPITAL GOODS -1.61%, HEALTHCARE 0.92%, Metal 0.39%, OIL & GAS 0.19%, IT -1.01%, FMCG -0.65%, PSU -0.15%, REALTY 0.35%, Consumer Durables 0.88%, POWER -0.1%

Ø MARKET BREADTH: 271 Advances, 226 Declines (BSE 500)

Ø VOLUMES: BSE $0.38bn (-46.11%), NSE $2.87bn (33.68%), F&O $48.83bn (31.17%)

Ø TODAY'S GAINERS: RBXY 6.53%, JSP 4.19%, BPCL 3.1%, HMCL 2.44%, JPA 2.27%

Ø TODAY'S LOSERS: SIEM -3.2%, RCOM -2.13%, LT -2.08%, TCS -2.05%, INFO -1.8%

MARKET COMMENTARY:

The frontline Indian equity benchmarks ended almost unchanged on Monday at the end of a choppy trading session as investors chose to stay quiet despite of F&O expiry. As mentioned in our morning note benchmarks plunged at start and the undercurrent continued to be jittery over the impact of the proposed GAAR tax regulations on FII investments through Mauritius and via Participatory Notes (PNs). Offshore markets also didn’t help much to change the sentiment. Overall Selling pressure in local markets got aggravated after the negative opening for European markets which extended their declining momentum for third straight session on growing worries over global economic slowdown. Traders rolled over positions from the near-month to next month series ahead of the expiry. The March 2012 derivatives contract expires today i.e. on March 29, 2012.On the Flip side traders were seen piling up position in Health Care sector while selling was witnessed in Capital Goods, FMCG and TECH sector. Also on reports that India's core sector industries' output grew 6.8% year on year in February, too failed to prop-up sentiments. The market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø Dr. Reddys Laboratories traded in pink of health with 0.44% gains extending from yesterday’s rally which was triggred on back of launching of Quetiapine fumarate tablets (25mg, 50mg, 100mg, 200mg, 300mg and 400mg), a bioequivalent version of SEROQUEL tablets in the US market.

Ø Aurobindo Pharma rose nearly 0.52% after the company said it has received final approvals from the US Food and Drug Administration to market Quetiapine Fumarate tablets in multiple strengths.

Ø Development Credit Bank rose declined nearly 3.35% after the private sector bank said its board has approved the allotment of 2.06 crore equity shares at Rs 47.84 per share on preferential basis to three investors.

Ø IT shares traded mixed on reports the US government has decided to hike H-1B visa fee from next fiscal.

Ø Coal India surged nearly 0.36% on reports the company's board will meet again today, 29 March 2012, to approve the new draft fuel supply agreement for power plants as directed by the Prime Minster's office.

Ø Fortis Healthcare (India) declined 2.10 on report the company is planning to sell stake to private equity investors.

Ø Tilaknagar Industries surged nearly 4.86% after the company said during trading hours on Wednesday, 28 March 2012, it has acquired two firms -- P P Caps and Srirampur Grains.

Ø Cairn India fell nearly 1.31%, extending Wednesday's 4.06% fall triggered by worries that a proposed 80% increase in cess on crude petroleum oil produced in India could discourage the firm's expansion plan.

Ø Dish TV spiked nearly 2.78% after company tied-up with SVR Payment solutions for the recharge options for convenience of the customers

Ø Hero Moto Corp traded higher nearly 2.44% on the bourses after company said it is likely to set up manufacturing and assembly plants in Africa, as it has identified growth markets in Africa.

CORPORATE NEWS:

Ø DCB rises as board approves preferential allotment

Ø Neyveli Lignite signs pact with SBI for Rs2500 cr loan

Ø United Phos board declares interim dividend

Ø KFA to return 5 ATR aircraft

Ø KFA service tax repayment deadline may extend: FM

Ø GAIL sings Gas Transmission Agreement with ITPL

Ø IT-Dept frozen Unitech shares in JV with Telenor

Ø EIH Associated board oks Rs110 cr via rights issue

Ø Nalco pays Rs202 cr interim dividend to govt

Ø CIL board to meet today to discuss draft fuel supply pact

Ø Fortis in talks with PE firms to sell 15-20% stake

Ø BoB gets OK to raise Rs1,645 cr via pref issue to LIC

ECONOMIC NEWS:

Ø RBI asks banks to improve NPA management

Ø Rise of India, China should not be at the cost of US: McCain

Ø IB to probe leakage of Army Chief's letter to PM

Ø Hike in defence expenditure natural: Antony

Ø February infra output up 6.8% y-o-y

Ø Politics shouldn't affect trade flow: India

Ø RBI retains states short-term borrowing cap rate