Mid Market Wrap

Market Commentary:

Ø Post sharp sell-off in last session, the domestic benchmarks made gap-up opening as sentiments turned bullish on the back of higher global markets.

Ø Ambiguity pertaining to P-note taxation under GAAR is leading FIIs to wind up their positions. Concerns regarding the same might keep shares under pressure this week if the government introduces short-term capital gains taxes on derivative products sold overseas.

Ø The world markets rallied after the Fed Chairman suggested further monetary easing in the US to drive growth and employment. Short-term interest rates are near zero in the US and rates are unlikely to change in the near future, Ben Bernanke indicated.

Ø Back home, Sensex – Nifty recaptured their crucial, 17,100 and 5,200 mark respectively, supported by most of the index heavyweights along with broader indices.

Ø On the sectoral front, realty witnessed the maximum gain in trade followed by fast moving consumer goods and consumer durables while, oil and gas and banking remained to be the only losers.

Ø Meanwhile, Finance Minister Pranab Mukherjee clarification that there was no 'vindictive intention' behind the move to retrospectively amend the income tax act too supported the sentiments.

Ø The broader indices too were trading in the green and the market breadth was positive.

Ø Auto stocks declined after the Maharashtra state government increased the tax on petrol and diesel cars sold in state in the budget for 2012-13 tabled in the Maharashtra assembly on Monday by state finance minister and deputy chief minister Ajit Pawar.

Ø INDICES: Sensex +96 at 17149 (0.56%), NIFTY +28 at 5212 (0.53%), CNXMIDCAP +9 at 7560 (0.12%)

Ø SECTORAL PERFORMANCE: BANKEX 0.15%, AUTO 0.06%, CAPITAL GOODS 0.11%, HEALTHCARE 0.79%, Metal 0.48%, OIL & GAS 0%, IT 0.95%, FMCG 1.17%, PSU 0.05%, REALTY 1.48%, Consumer Durables 1.86%, POWER -0.39%

Ø MARKET BREADTH: 274 Advances, 214 Declines (BSE 500)

Ø TODAY'S GAINERS: CIPLA 2.94%, STLT 2.82%, HUVR 2.62%, SESA 2.12%, HDFC 2.11%

Ø TODAY'S LOSERS: BHEL -2.15%, MSIL -2%, WPRO -1.55%, TPWR -1.41%, SIEM -1.21%