India Market Wrap

Ø INDICES: Sensex -274 at 17363 (-1.55%), NIFTY -79 at 5280 (-1.47%), CNXMIDCAP -126 at 7530 (-1.65%)

Ø SECTORAL PERFORMANCE: BANKEX -2.62%, AUTO -0.29%, CAPITAL GOODS -2.47%, HEALTHCARE -0.85%, Metal -3.06%, OIL & GAS -1.4%, IT -0.82%, FMCG 0.26%, PSU -1.75%, REALTY -3.26%, Consumer Durables -1.78%, POWER -1.35%

Ø MARKET BREADTH: 122 Advances, 375 Declines (BSE 500)

Ø VOLUMES: BSE $0.48bn, NSE $2.16bn, F&O $17.27bn

Ø TODAY'S GAINERS: RELI 5.77%, RPWR 5%, TTMT 2.31%, RCOM 1.74%, ITC 0.98%

Ø TODAY'S LOSERS: JPA -5.51%, DLFU -5.46%, HNDL -5.35%, SAIL -5.07%, GAIL -4.94%

MARKET COMMENTARY:

The uneasy calm which seemed to be in the air remained in the market for today’s session as it continued to grapple with multitude of problems. Looks like the worries that hounded investors throughout 2011 are slowly beginning to resurface. Indian equities trimmed its losses but continued to trade in red in the late afternoon session after hitting a lowest level in 4-1/2 weeks. The benchmarks are showing absolutely no signs of recovery, lacking any significant upside triggers. Also, wary investors were seen booking profits ahead of results of crucial assembly elections in Uttar Pradesh and four other states. Traders were seen piling up positions in FMCG sector while selling was witnessed in Metal, Realty and Bankex sector. On the global front, Asian markets were trading in red barring KLSE Composite while the European markets were trading in red on pessimistic note. European Union leaders have cleared the release of long-awaited second bailout package for debt-ridden Greece. This is to enable Greece avoid a default on paying back euro 14.5-billion debts due on March 20, 2012. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 5,300 and 17,500 levels respectively. The market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø Suzlon Energy declined nearly 3.30 despite the company's subsidiary -- SEFORGE secured a contract worth Rs 367 crore from a leading wind turbine manufacturer for supply of flanges for wind turbine towers over a period of 3 years.

Ø Mphasis rose close to 0.82% on bargain hunting after two-day 9.24% slide triggered by the company's disappointing Q1 January 2012 earnings.

Ø JSW Steel lost ground by nearly 3.79% after the company said its crude steel production was severely impacted in February 2012 due to usage of inferior grades of iron ore.

Ø Metal stocks fell by 0.72% to 4.62% after China's Premier Wen Jiabao today, 5 March 2012, cut the country's growth target to 7.5% for 2012, from an 8% goal in place since 2005.

Ø Bank stocks fell by 0.1% to 3.4% on fears banks' bad loans could increase in a slowing economy.

Ø Tata Motors surged nearly 2.31% on reports the company's Jaguar Land Rover unit and China's Chery Automobile Co are seeking regulatory approval for a 17.5 billion yuan car venture in eastern China.

Ø Bharti Airtel traded flat on the bourses after company said it has chosen Nokia Siemens Networks to establish and perate its fourth generation (4G) network in Maharashtra. The deal size ranges between Euro70-100 million spread over a 3-5 year period. The company plans to launch services in the state later this year.

Ø Tata Power plunged nearly 1.82% on the local bourses after company commented that through its subsidiary, Khapoli Investments and Exxaro Resources, South African based diversified resources, formed 50:50 joint venture to create a new energy company, Cennergi.

Ø M&M traded in red nearly 0.44% despite company’s Mahindra Two Wheelers (MTWL), a part of the $14.4 billion Mahindra & Mahindra (M&M) Group, continued to build its presence in the two wheeler segment as the newly introduced Mahindra Duro DZ scooter has received great response across the country, ever since its national launch in mid-February.

Ø ZEE surged nearly 3.71% after company’s digital arm launches OTT distribution platform Zee Entertainment Enterprises (ZEE) digital arm - Zee New Media, launched India's first and only OTT (Over-The-Top TV) distribution platform, Ditto TV, with an aim to offer LIVE TV Channels and On Demand Video Content to consumers on their Mobile Phones, Tablets, Laptops, Desktops, Entertainment Boxes and Connected TVs

CORPORATE NEWS:

Ø Sterlite to purchase stake in Hindustan Zinc, Balco

Ø RPP Infra bags orders worth Rs30 cr

Ø Cement prices expects to rule firm in coming mnths: CMIE

Ø Lupin gets USFDA OK for schizophrenia capsules

Ø Suzlon arm bags order worth Rs367 cr

Ø Dr Reddy's launches Ziprasidone Hydrochloride capsules in US mkt

Ø Tata Motors ties up with US based co

Ø ACC to add 5 mtpa cement capacity in next 3 yrs

Ø RIL gets certified as a 'Responsible Care Co'

Ø Realtors seek relaxation in FDI, ECB norm

Ø Infy to set up Rs100-cr development centre in Nagpur

Ø AIG to sell $6 bn AIA shares to repay US bail-out

Ø Mangalore Refineries plans hefty cut in Iran oil imports

Ø LIC raises stake in ONGC to 9.5% after auction

Ø Adani in pact to provide 4 MT coal to NTPC

ECONOMIC NEWS:

Ø TDSAT issues notice to S Tel over RInfra petition

Ø CWG scam: HC rejects plea of Swiss firm

Ø Out of intensive care, Europe risks chronic illness

Ø Services sector loses steam in Feb

Ø Assembly polls: Counting of votes to start tomorrow