India Market Wrap

Ø INDICES: Sensex +84 at 17588 (0.48%), NIFTY +26 at 5360 (0.49%), CNXMIDCAP +70 at 7760 (0.91%)

Ø SECTORAL PERFORMANCE: BANKEX 1.22%, AUTO 0.87%, CAPITAL GOODS 2.56%, HEALTHCARE -0.15%, Metal 0.92%, OIL & GAS 1.24%, IT -0.75%, FMCG 0.1%, PSU 0.6%, REALTY 1.33%, Consumer Durables 1.9%, POWER 0.69%

Ø MARKET BREADTH: 329 Advances, 164 Declines (BSE 500)

Ø VOLUMES: BSE $0.46bn (-33.83%), NSE $2.71bn (1.41%), F&O $18.56bn (0.31%)

Ø TODAY'S GAINERS: SBIN 3.79%, LT 3.58%, RIL 3.2%, RPWR 3.01%, JSP 2.49%

Ø TODAY'S LOSERS: MM -1.94%, ONGC -1.86%, CIPLA -1.64%, TCS -1.61%, HDFC -1.38%

MARKET COMMENTARY:

Given the significant events lined up next week market participants were uncertain back of which Indian benchmarks witnessed a lackadaisical trade in green in the narrow range. Though in the in the late afternoon session after prospects of monetary easing by Indian central bank was dimmed by the astoundingly strong industrial growth numbers for the month of January 2012. Market participants exerted hefty selling pressure on the markets and dragged the frontline indices even below the previous closing levels. Meanwhile, sentiments also got support from India’s President Pratibha Patil comments on Indian economy which she said will slow down to 7% this fiscal from 8.4% last fiscal but soon revert to the 8-9% growth trajectory on the back of strong fundamentals and favorable domestic factors. Buying interests were largely evident in the Capital Goods counter while rate sensitive Banking, Realty and Auto pockets too gained decent ground. Automobile shares remained in fine fettle after an industry body - SIAM data showed car sales in India rose an annual 13.1 percent in February, with automakers posting a fourth straight monthly increase as they continue to recover from record falls in late 2011. However, selling was largely evident in Information technology pocket which plunged around a percent while the defensive FMCG and Healthcare counters too traded with marginal losses. In the meantime, Indian bourses despite the volatility managed to outperform their Asian counterparts which reeled under selling pressure after the worse than expected Chinese trade data highlighted that the nation’s trade deficit widened to the highest levels seen in at least a decade in February. While European stocks too exhibited a mixed trend on fresh jitters of a slowdown in world’s second largest Chinese economy. Overall Back home the market breadth was in favor of advances.

NEWS ON TODAYS MOVERS:

Ø State Bank Of India galloped nearly 3.79%on the bourses after the central bank cut the cash reserve ratio for banks by 75 basis points on Friday, 9 March 2012. Separately bank also announced an inauguration of a Retail Assets Central Processing Centre at Madhapur to furnish to the retail advances of customers in housing, education, auto and personal loan sectors.

Ø Jain Irrigation Systems surged close to 4.63% on the bourses, recently company has organized a unique one-day international conference on ‘Building Shared Value in Agribusiness’ along with Enterprise Solutions to Poverty (ESP), USA, on February 12, 2012. The management experts will deliver keynote addresses at the conference. More than 80 agribusiness and banking leaders as well as small farmers in India are expected to participate in the symposium.

Ø Tata Motors rose 1.26% after the company has unveiled Tata Megapixel, a new four-seater city-smart global range extended electric vehicle (REEV) at the 82nd Geneva Motor Show. Combining a lithium ion phosphate battery and an on-board petrol engine generator for recharging on the move, the Tata Megapixel offers a range of up to 900 km (with a single tank of fuel), path-breaking CO2 emission of just 22 gm/km and fuel economy of 100 km/litre (under battery only power).

Ø Biocon traded flat for the day despite company commented on a plan to launch anti-cholesterol drug in US market

Ø Hero MotoCorp shined nearly 1.13% on reports that the company is building in-house capabilities to make its own engines by teaming up with the world's largest privately-owned engine developer, AVL of Austria.

Ø Allahabad Bank rose close to 2.47%, after the bank said it launched a special domestic term deposit scheme at an interest rate of 9.25% per annum on deposits of Rs 5 crore and above.

Ø JSW Steel rose close to 2.38%, after the company said it is foraying into the manufacture of electrical steel in line with the company's strategy of increasing its portfolio of value added products.

Ø Hindustan Construction Company rose close to 1.81% , with the stock extending Friday's 3.57% gain triggered by the board's decision to opt for corporate debt restructuring process for re-alignment of the company's debt.

CORPORATE NEWS:

Ø Ranbaxy opens new manufacturing facility in Morocco

Ø Industrial growth rises to 6.8% in Jan

Ø Domestic car sales in February up 13%

Ø Kingfisher cancels some flights on employee stir

Ø No compromise on nuclear safety, says Pratibha Patil

Ø President favours setting up of NCTC

Ø L&T Finance enters into housing finance biz

Ø Allahabad Bank up on launch of special term deposit scheme

Ø L&T to bag 200MW solar projects next fiscal

ECONOMIC NEWS:

Ø Aviation authority to modernise airports

Ø CWG scam: Charges against 7 in street lighting case

Ø Govt won't allow fresh cotton exports

Ø Ahead of Budget, armed forces asked to return Rs 4,000 cr

Ø Govt to check generation of black money: President