India Market Wrap

Ø INDICES: Sensex -405 at 17196 (-2.3%), NIFTY -137 at 5228 (-2.54%), CNXMIDCAP -184 at 7611 (-2.36%)

Ø SECTORAL PERFORMANCE: BANKEX -3.41%, AUTO -1.89%, CAPITAL GOODS -3.37%, HEALTHCARE -1.18%, Metal -3.29%, OIL & GAS -2.74%, IT -1.45%, FMCG -1.3%, PSU -1.48%, REALTY -4.25%, Consumer Durables -3.15%, POWER -3.62%

Ø MARKET BREADTH: 73 Advances, 425 Declines (BSE 500)

Ø VOLUMES: BSE $0.58bn (-8.93%), NSE $2.76bn (6.04%), F&O $38.81bn (30.67%)

Ø TODAY'S GAINERS: Coal 2.26%, HMCL 0.98%, ONGC -0.37%, SUNP -0.38%, DRRD -0.65%

Ø TODAY'S LOSERS: JSP -7.21%, JPA -6.76%, RPWR -5.94%, IDFC -5.89%, RELI -5.52%

MARKET COMMENTARY:

The market took a breather after surging past the 5400 mark initially much to the delight of the bulls who hardly had anything to cheer about. The bears managed to keep an upper hand for day as the Government faltered in the face of a series of scandals. An extremely hawkish RBI and the worsening credit crisis in the eurozone added to the Centre’s headache. Finally, whatever little courage it showed in yesterday’s rally was undone. Another dampener is that crude oil prices continue to be uncomfortably high for the past few days. The Indian equity markets suffered big losses on today’s session. Traders were seen piling up position in PSU sector while selling was witnessed in Realty, Capital Goods and Oil & Gas sector. The trade continued on weak note also after the newly re-instated Railway minister Mukul Roy rolled back most fare hikes proposed by the earlier minister. But the move has reignited worries amongst the market participants over the decision making power of the ruling Congress as they fear any decision by the government relating to hike in prices of petroleum products is likely to meet with similar fortune. On the global front, Asian markets were trading on a mix note while the European markets were trading in red on pessimistic note. Back home, the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø Manappuram Finance and Muthoot Finance slumped nearly 18% and 10% respectively at after the central bank tightened gold loan norms for non-banking financial companies, citing the rapid growth of the business and rising risks.

Ø LIC Housing Finance lost 3.48% on profit taking after the stock jumped 8.33% in three trading sessions to Rs 268.95 on Wednesday, 21 March 2012, from a recent low of Rs 248.25 on 16 March 2012.

Ø Tata Motors lost nearly 2.17% despite the company's wholly-owned unit, Jaguar Land Rover, finalized a joint venture agreement with Chery Automobile Co to manufacture and sell vehicles in China.

Ø ITC rose 1.12% intraday and later gave up all the gains on account of profit taking after the recent gains which came on back of the finance minister, in the Union Budget 2012-13 on 16 March 2012, proposed an increase in excise duty on 'demerit' goods.

Ø L&T lost nearly 3.68% on profit taking after Wednesday's 4.46% gain after the company said it has secured new orders valued over Rs 1120 crore across various business segments in March 2012.

Ø Coal India surged nearly 2.26% as the Largest coal producing company in the world, under pressure to step up production, has enhanced its offers for land acquisition. The new rehabilitation and settlement (RnR) policy was recently approved by the company’s board. As per the policy, the Indian miner in addition to offering the price of land will now offer Rs 5 lakh an acre to farmers as ‘compensation’ to loss of livelihood with options of annuity income. The compensation, however, will not be available if the land loser opts for employment in CIL.

Ø Mahindra Satyam surged nearly 3.48% extending the recent gains followed by the merger announcement from the company with Techm

Ø Tata Communications declined nearly 3.54% despite the company Launching Tata Global Network - Eurasia cable

CORPORATE NEWS:

Ø GDL to consider 2nd interim dividend

Ø Eros Inter acquires international rights of TEZZ

Ø Muthoot promoters to dilute 10% stake to raise funds

Ø L&T Construction bags orders worth Rs1120 cr

Ø Welspun Corp bags orders worth Rs1,217 cr

Ø Tata Motors up after JLR inks JV with Chery Automobile

Ø Telenor seeks 2G spectrum auction by June 2

Ø Tata Communications to recruit 1,200, may raise debt

Ø LIC Housing raises Rs810 cr by issuing preferential shares

Ø RBI tightens norms for gold financing NBFCs

Ø Reliance capital, nippon life insurance sign final agreements

Ø India’s Idfc may get $250 mln opic loan for renewable projects

Ø Larsen construction wins orders valued at 11.2 bln rupees

ECONOMIC NEWS:

Ø India may see 76,000 MW capacity addition in 12th Plan

Ø World Bank says no plan to trim lending to India

Ø Brent falls below $124 on China demand concerns

Ø Govt to place Rs400-cr CMS by 2014

Ø TRAI summons Airtel, Idea, Loop on MNP

Ø Rail Minister Mukul Roy rolls back some fare hikes

Ø India loses $210bn from coal sale; Steel Stock hit