India Market Wrap

* INDICES: Sensex -169 at 17584 (-0.95%), NIFTY -45 at 5340 (-0.84%), CNXMIDCAP -42 at 7664 (-0.54%)

* SECTORAL PERFORMANCE: BANKEX -1.2%, AUTO -0.9%, CAPITAL GOODS -1.62%, HEALTHCARE 0.25%, Metal -0.85%, OIL & GAS -0.95%, IT -0.6%, FMCG -0.51%, PSU -0.73%, REALTY -3.29%, Consumer Durables -0.57%, POWER -0.41%

* MARKET BREADTH: 166 Advances, 327 Declines (BSE 500)

* VOLUMES: BSE $0.57bn (-16.17%), NSE $2.69bn (-16.25%), F&O $19.79bn (-3.01%)

* TODAY'S GAINERS: MSIL 4.8%, RELI 2.74%, RPWR 2.64%, ACEM 2.24%, CAIR 2.14%

* TODAY'S LOSERS: DLFU -5.5%, MM -3.96%, IDFC -3.25%, NTPC -2.54%, ICICIBC -2.52%

MARKET COMMENTARY:

As expected investors were watchful and vigilant as uncertainties abound and volatility prevailed on the Indian benchmarks as the weak trade continued. The street witnessed absence of buying as investors lacked conviction to open fresh positions amid increasing uncertainty over the global outlook. Traders were seen piling up positions in Health Care sector while selling was witnessed in Realty, Capital Goods and Bankex sector. In addition, the weak manufacturing PMI data which indicated that factory activity slowed in February from the previous month when it had accelerated at its fastest pace in eight months, weighed on investors’ mood. DLF from Realty counter was seen trading with cut of around more than six percent weighing heavily on the market on reports that there were no takers for the company’s Mumbai land parcel. On the global front, Asian markets were trading in red barring KLSE Composite while the European markets were trading on a mix note. The market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø MTNL surged 4.98% after there were reports that the company is considering closing down its CDMA operations.

Ø Fertilizers stocks FACT, National Fertilizer, RCF and Coromandel International were seen trading firm on reports that government has approved fixing nutrient-based subsidy rates for fertilizers

Ø IFCI was traded in positive zone on reports that the financial secretary panel may okay strategic partner for the company.

Ø BGR Energy Systems lost nearly 5.27% on profit taking after two-day 25.6% rally after the company said it will receive orders worth about Rs 10000 crore from NTPC for 660 megawatts boilers and 800 megawatts turbine generators

Ø Bata India lost nearly 1%, after net profit soared 31% to Rs 45.06 crore on 21.1% rise in net sales to Rs 430.93 crore in Q4 December 2011 over Q4 December 2010.

Ø Tata Communications surged nearly 0.15% on reports the company is eyeing Cable & Wireless Worldwide Plc, a London-listed telecom giant

Ø Sun Pharmaceutical Industries traded flat and in green for most part of the day ,after the company said it has secured approval from US Food and Drug Administration for generic version of Zyprexa Zydis, Olanzapine Orally Disintegrating tablets.

Ø JSW Steel lost nearly 4.00% on profit taking after surging 6.52% in the prior two trading sessions.

Ø Bajaj Auto fell nearly 1.52%, on profit booking after gaining 5.13% in the prior two trading sessions.

Ø Maruti Suzuki India advanced nearly 4.80%, after total sales rose 6.5% to 118,949 vehicles in February 2012 over February 2011.

Ø ONGC lost close to 1.71%, as the government stake-sale in the firm through auction route saw dull response.

Ø Tata Communications rose close to 1.09% after the company in clarification to media speculation confirmed it is evaluating a possible cash offer for Cable & Wireless Worldwide Plc, a London-listed telecom giant

Ø Bank of Baroda (BOB)rosed 2.29% after company commented to enter into a memorandum of understanding (MOU) with Credit Analysis and Research (CARE) under which the micro, small and medium enterprises (MSME) customers of the bank will obtain credit ratings from CARE and bank will utilize CARE’s ratings for evaluating its existing as well as potential MSME clients.

Ø Tata Power Company’s surged nearly 1.13% ,it first 800-MW unit of its flagship 4,000 MW Mundra Ultra Mega Power Project (UMPP) has achieved full capacity utilization and commercial date of operation of the unit will be declared shortly. The 4,000 MW Mundra plant in Gujarat is the country’s first UMPP. Mundra UMPP will have five units, each having a capacity of 800 MW.

Ø Vijaya Bank traded with loss of 0.49% on reducing interest rate on MSME loans

CORPORATE NEWS:

Ø Elder citizens ask 50% travel concession in Budget

Ø Glenmark Generics gets US nod for 2 new drugs

Ø KFA promoters may convert Rs1500 cr loans into equity

Ø Coal Min to outsource bidding process for auction of 50 coal blocks

Ø Vijaya bank cuts interest rate on MSME loans from today

Ø UTV Software to be suspended for trading on NSE from Mar 9

Ø SBI plans to bid ONGC shares

Ø Honda Motorcycle launches new edition of CBR 250R

Ø Vijaya bank cuts interest rate on MSME loans from today

Ø Coal Min to outsource bidding process for auction of 50 coal blocks

Ø Glenmark Generics gets US nod for 2 new drugs

Ø KFA promoters may convert Rs1500 cr loans into equity

Ø JSW Steel to finish $275-m fund raising in March

Ø ACC to set up plant in Chhattisgarh

ECONOMIC NEWS:

Ø India’s Trade Deficit increases to $14.7 billion in Jan 2012

Ø India's Jan exports surge 10%

Ø Ministers defer decision on power gear import duty

Ø Cabinet allows state cos to buy back shares

Ø Cabinet approves PSUs to buy back shares