India Market Wrap

Ø INDICES: Sensex -28 at 17146 (-0.16%), NIFTY -2 at 5220 (-0.04%), CNXMIDCAP +3 at 7471 (0.03%)

Ø SECTORAL PERFORMANCE: BANKEX 0.69%, AUTO 0.22%, CAPITAL GOODS -0.31%, HEALTHCARE 0.4%, Metal -1.51%, OIL & GAS -1.51%, IT 0.32%, FMCG -0.03%, PSU -0.95%, REALTY 0.9%, Consumer Durables 0.04%, POWER -0.52%

Ø MARKET BREADTH: 205 Advances, 290 Declines (BSE 500)

Ø VOLUMES: BSE $0.52bn (-13.47%), NSE $2.45bn (-17.87%), F&O $22.85bn (-30.55%)

Ø TODAY'S GAINERS: JPA 7.11%, RPWR 5.77%, HCLT 2.8%, WPRO 1.82%, RBXY 1.82%

Ø TODAY'S LOSERS: STLT -4.21%, SESA -2.77%, NTPC -2.61%, PWGR -2.21%, RIL -1.9%

MARKET COMMENTARY:

Indian benchmarks continued to add losses maintaining its momentum in downward journey on account of selling pressure across the board but finally closed flat erasing all the day’s losses. The market had been witnessed choppy trade from the morning hitting 5-week lows. Investors have started eyeing on budget announcement by Finance Minister which is scheduled on March 16, 2012 for further direction. Traders were seen piling up positions in IT, and Health Care sector while selling was witnessed in Metal, Oil & Gas and Capital Goods. Besides, sentiments were also spooked on reports that ratings firm Standard and Poor (S&P), in its report, Asia - Pacific Sovereigns, has cautioned India over its growing fiscal deficit. It has warned that if measures are not taken to rein the burgeoning fiscal deficit and steps to boost growth, it could lead to a downgrading from the rating agency. Also any policy setbacks on monetary, financial, and economic fronts, which lower medium-term growth prospects, could also bring in a cut in the ratings. The stock markets will remain shut tomorrow, i.e. on March 08, 2012, on account of Holi. On the global front, Asian markets were trading in red while the European markets were trading on a mix note. Reports that the European region is already in recession, with the economy shrinking 0.3% in the fourth quarter of last year played the spoilsport. Sentiments globally remained somber as renewed worries over a recession in Europe and slowdown in global growth engines like China, threatened investors’ risk appetite globally. Back home the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø CESC surged nearly 1.83% on reports the West Bengal State Electricity Regulatory Commission has allowed the company to hike electricity tariff in Kolkata by over 13% for 2011-12.

Ø Anil Dhirubhai Ambani Group companies rose by 0.10% to 1.62% after Samajwadi Party secured a stunning victory in Uttar Pradesh assembly.

Ø JSW Steel slided close to 1.68%,after it triggered by the company's announcement its steel production was severely impacted in February 2012.

Ø Development Credit Bank surged nearly 1.68% after the bank said its board of directors has allotted 1.96 crore equity shares at a price of Rs 47.84 per share, aggregating to Rs 94 crore to qualified institutional buyers.

Ø L&T traded positive and closed flat , after the company said it has secured new orders valued over Rs 1454 crore across various business segments in February and March 2012.

Ø Wipro surged nearly 1.52% after company announced that its subsidiary established strategic partnership with Eucalyptus

Ø Infosys surged nearly 1.31% after company commented on setting up software development centre in Pune, IT major Infosys is planning to establish another software development centre in Maharashtra with an investment of about Rs 100 crore. In this regard, the Bangalore-based software services provider has signed a Memorandum of Understanding (MoU) with Maharashtra Airport Development Company (MADC). India's second-largest software firm will be allocated 142 acres for the centre at Mihan, a air cargo project being developed by MADC.s on plans to establish software development centre in Maharashtra

CORPORATE NEWS:

Ø Bank of India downgraded to D from D+ by Moody

Ø Oil companies down on fuel price hike delay fears

Ø L&T Construction Bags Rs1,454 cr Orders

Ø Tulip Telecom to sell 25% stake in it's data centre

Ø FM may rework budget numbers

Ø MCX to list shares on BSE on Friday

Ø Essar in talks to raise up to $600 mn

Ø NTPC to begin trial run of 500MW unit at Andhra Pradesh

Ø CESC jumps on 13% tariff hike in Kolkata

Ø Hero MotoCorp to set up 4th plant in Gujarat plant

Ø Overseas investment by Indian cos at $2 bn in Feb

Ø Diamond Power gets order worth Rs93.44 cr

ECONOMIC NEWS:

Ø India’s cotton export ban set for review

Ø SP workers root for Akhilesh Yadav as CM

Ø Sonia rules out damage to UPA due to poll verdicts

Ø New rail freight scheme to hike rates 20-25%

Ø Govt could aim at fiscal deficit of 4.3% in FY13