India Market Wrap

Ø INDICES: Sensex -190 at 17173 (-1.09%), NIFTY -58 at 5222 (-1.1%), CNXMIDCAP -62 at 7468 (-0.82%)

Ø SECTORAL PERFORMANCE: BANKEX -1.09%, AUTO -0.52%, CAPITAL GOODS -1.94%, HEALTHCARE -0.32%, Metal -3.88%, OIL & GAS -1.79%, IT -0.32%, FMCG 0.79%, PSU -0.82%, REALTY -0.97%, Consumer Durables 0.62%, POWER -2.38%

Ø MARKET BREADTH: 133 Advances, 361 Declines (BSE 500)

Ø VOLUMES: BSE $0.6bn (23.29%), NSE $2.99bn (38.31%), F&O $32.96bn (90.81%)

Ø TODAY'S GAINERS: DLFU 2.97%, SIEM 2.58%, ITC 1.64%, INFO 1.52%, MSIL 1.25%

Ø TODAY'S LOSERS: RPWR -7.13%, RELI -5.96%, HNDL -5.83%, TATA -5.71%, STLT -5.48%

MARKET COMMENTARY:

As expected the safety on numbers didn’t come for congress and SP took over as the single majority in the UP assembly getting a chance at the centre What's worse for the Congress, the grand old party is also likely to be a loser in Punjab. On Back of this Indian benchmarks trimmed its gains to trade in red in the late afternoon session as market participants grew increasingly worried on the ideal outcome of assembly elections. The market witnessed a huge volatility as investors took some profits off the table since Congress’ poor showing in UP elections may not prove fruitful for the government at the centre as it may fail to revive stalled reforms. Traders were seen piling up positions in Consumer Durables, Realty and FMCG sector while selling was witnessed in Metal, Capital Goods and Power sector. On the global front, Asian markets were trading in red while the European markets were too trading in red on pessimistic note. Investors are awaiting the outcome of Greek private investors’ willingness to participate in the bond swap deal. It is not clear how the credit default swaps will be treated by the industry association because under the Greek laws any acceptance rate below 66% will trigger the collective action clause and under the UK law the trigger is set below 75% acceptance rate. Investors have March 8 deadline to accept or reject the debt swap. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 5,300 and 17,300 levels respectively. The market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø JSW Steel lost ground by nearly 6.65%, with the stock extending Monday's 3.89% fall triggered by the company's announcement that its steel production was severely impacted in February 2012 due to usage of inferior grades of iron ore.

Ø Indraprastha Gas traded flat for the day and closed with minor losses of 0.42% after the company on Monday, 5 March 2012, raised prices of CNG, or compressed natural gas, for the sixth time in the last 14 months.

Ø Hindalco Industries declined nearly 5.83% after the company's US-based unit Novelis said it is selling three aluminium foil manufacturing plants in Europe to American Industrial Acquisition Corporation for an undisclosed sum.

Ø IT shares rose by 0.55% to 2.22% after the Indian rupee weakened past 50 against the dollar today, 6 March 2012.

Ø Ranbaxy Laboratories lost nearly 1.23% even after the company said it has launched generic Atorvastatin in Italy, Netherlands and Sweden after receiving approval from the respective local regulatory authorities in those countries

Ø Tata Communications dropped 2.83% on reports the company is seeking $2 billion in term loans for a tenure ranging from three to five years to finance a potential bid for London-listed Cable & Wireless Worldwide.

Ø AstraZeneca Pharma India jumped 10%at opening trades and later erased all the gains and closed flat with gains of 0.50% on reports UK-based AstraZeneca is planning to delist the Indian unit.

Ø Metal shares fell by 0.71% to 6.15%, extending losses for the second straight day after China's Premier Wen Jiabao on Monday, 5 March 2012, cut the country's growth target to 7.5% for 2012, from an 8% goal in place since 2005.

CORPORATE NEWS:

Ø Ranbaxy launches generic atorvastatin in Italy, Netherlands and Sweden

Ø Oriental Carbon buys 50% stake in JV company

Ø EGoM to meet next week on 4G spectrum

Ø Rana Sugars rallies as board approves preferential issue

Ø MRPL, HPCL to trim crude oil imports from Iran

Ø CNG price raised 5% in Delhi

Ø L&T arm mulls bid to buy Hexaware Tech

Ø ICICI Bank, BoB, others forms Rs10K cr IDF

Ø Mallya’s woes: United Spirits starting to mirror KFA

Ø Cairn awaits OK to raise Mangala oilfield prodn

Ø Patel Engg bags 2 urban infra proj worth Rs377-cr

Ø Tata Steel India's most admired company: Fortune

ECONOMIC NEWS:

Ø Govt holding in ONGC drops by 4.91% post sale

Ø Corp Affairs Min wants Mines Bill provisions fine-tuned

Ø SP set to rule UP