India Market Wrap

Ø  INDICES: Sensex +131 at 17319 (0.77%), NIFTY +39 at 5248 (0.75%), CNXMIDCAP +55 at 7471 (0.75%)

Ø  SECTORAL PERFORMANCE: BANKEX 0.59%, AUTO 0.67%, CAPITAL GOODS 0.12%, HEALTHCARE 0.26%, Metal 0.9%, OIL & GAS 1.05%, IT 1.93%, FMCG -0.27%, PSU 0.79%, REALTY 1.05%, Consumer Durables -0.67%, POWER 0.82%

Ø  MARKET BREADTH: 327 Advances, 169 Declines (BSE 500)

Ø  VOLUMES: BSE $0.32bn (-15.73%), NSE $1.68bn (872.62%), F&O $12.58bn (-22.41%)

Ø  TODAY'S GAINERS: RPWR 6.36%, TCS 3.72%, JSP 3.61%, INFO 2.77%, ACC 2.67%

Ø  TODAY'S LOSERS: BHEL -2.08%, MSIL -1.85%, DRRD -1.31%, AXSB -1.29%, SAIL -0.84%

MARKET COMMENTARY:

Indian benchmarks despite trimming their gains continued to trade in green above neutral line in the late afternoon session as investors started booking profits in the frontline blue chip counters. Traders were seen piling up position in IT, and Realty while selling was being witnessed in Health Care, Capital Goods and Consumer Durables sector. The credit rating firm Moody's has reportedly reviewed three Indian banks ICICI Bank, Axis Bank and HDFC Bank for a potential downgrades though the debt and deposits ratings for all 3 banks remain unchanged. Also, most sugar stocks including Bajaj Hindustan along with shares of textile companies like Arvind, Alok Industries etc traded with notable gains ahead of a meeting called upon by Indian Prime Minister Manmohan Singh to deliberate on the objections raised by Agriculture Minister Sharad Pawar over the export of farm commodities such as sugar and cotton. The stock market will remain closed tomorrow, i.e. on May 01, 2012, on account of Maharashtra Day. On the global front, all the Asian markets were trading on a mixed note, while the European markets too were trading mixed. The subdued European market weighed on domestic sentiments after reports showed Spain’s economic growth declined 0.3% in the first quarter however, the number was better than expectations of 0.4% decline. On the home turf, the market breadth was positive.

NEWS ON TODAYS MOVERS:

Ø  Orchid Chemicals & Pharmaceuticals rose 1.04%, after the company said it has received approval from the US Food and Drug Administration for Olanzapine tablets in multiple strengths.

Ø  Maruti Suzuki India fell 1.83% after net profit declined 3% to Rs 639.84 crore on 17.1% rise in net sales to Rs 11524.52 crore in Q4 March 2012 over Q4 March 2011.

Ø  Bharat Heavy Electricals lost 2.07% after the Rajasthan Government reportedly scrapped tenders worth Rs 12000 crore that were bagged by the company without specifying any particular reason.

Ø  ICICI Bank rose 1.57%, with the stock extending 2-day 3.24% gains triggered by the bank announcing strong Q4 earnings.

Ø  Bank of India jumped 4.82% after net profit surged 93% to Rs 952.73 crore on 23.1% growth in total income to Rs 8777.73 crore in Q4 March 2012 over Q4 March 2011.

Ø  Oriental Bank of Commerce tumbled 4.42% after net profit fell 20.6% to Rs 264.90 crore on 29.22% growth in total income to Rs 4564.53 crore in Q4 March 2012 over Q4 March 2011.

Ø  Dabur India rose 1.04% after consolidated net profit rose 16% to Rs 170.52 crore on 23% growth in net sales to Rs 1363.58 crore in Q4 March 2012 over Q4 March 2011.

CORPORATE NEWS:

Ø  Oriental bank of commerce base rate reduction effective may 14

Ø  Coal India’s stagnant output growth unacceptable: chatterji

Ø  Telenor to write down nok 3.9 billion of indian assets  :tel no

Ø  Tata consultancy banking platform wins letshego holdings order

Ø  Alstom t&d india wins contract worth 840m rupees

Ø  Bank of india to pay 7 rupees-shr dividend       

Ø  Bank of india 4q net 9.53 bln rupees vs 4.94 bln

Ø  Oriental bank to pay 7.9 rupees-shr dividend

Ø  United phosphorus 4q net 2.02 bln rupees vs 1.12 bln   :untp in

Ø  Godrej consumer 4q net 1.93 bln rupees; analyst est. 1.71 bln

Ø  oriental bank of commerce 4q profit 2.65 bln rupees vs 3.34b

Ø  united phosphorus to pay final dividend of 0.50 rupee-shr

Ø  moody's reviews icici bank, hdfc bank, axis bank for downgrade

Ø  Exide industries 4q net 1.43 bln rupees; analyst est. 1.36 bln

Ø  Jindal steel not planning power unit ipo now, chairman says

ECONOMIC NEWS:

Ø  India coal ministry additional secretary chatterji speaks

Mid Market Wrap

Market Commentary:

Ø  Asian stocks rose for a fifth day, the best winning streak in three months, and the won gained as Bank of Communications Ltd. and Samsung Heavy Industries Co. reported better-than-expected earnings. Australia’s shares rallied to a nine-month high before a forecast interest-rate cut.

Ø  Backhome also, after making cautious start, key domestic bourses have turned firm as investors got some support from CII’s survey which showed that India’s business confidence has bettered from the last qtr. Nifty was trading strong above 5250.

Ø  The market breadth was strong. Except BSE Auto index, all the other sectoral indices on BSE were in the green.

Ø  Stocks in Focus:

v  Maruti Suzuki: Maruti Suzuki India declined more than 2% after the company declared its net profit fell 3.03%.

v  IT stocks: were helped by weaker rupee and hopes for more stimulus from the US Fed after data showed cooling US growth. TCS & INFY each gained more than 2%.

Ø  The rupee today rose marginally by 4 paise to 52.50 as the dollar weakened against other Asian currencies overseas.

Ø  From intra-day perspective, we expect Nifty May Futs to trade in green but it may trim gains in the afternoon trade.

Ø  INDICES: Sensex +157 at 17344 (0.91%), NIFTY +48 at 5257 (0.92%), CNXMIDCAP +51 at 7467 (0.68%)

Ø  SECTORAL PERFORMANCE: BANKEX 1.3%, AUTO 0.08%, CAPITAL GOODS 0.53%, HEALTHCARE -0.02%, Metal 1.08%, OIL & GAS 0.9%, IT 1.68%, FMCG 0.03%, PSU 1.1%, REALTY 2.03%, Consumer Durables 0.44%, POWER 1.09%

Ø  MARKET BREADTH: 365 Advances, 125 Declines (BSE 500)

Ø  TODAY'S GAINERS: RPWR 6.21%, RELI 3.53%, DLFU 3.48%, TCS 2.88%, IDFC 2.84%

Ø  TODAY'S LOSERS: MSIL -2.04%, BHEL -1.48%, DRRD -1.1%, MM -0.83%, ITC -0.12%

India Market Wrap

Ø  INDICES: Sensex +4 at 17134 (0.02%), NIFTY +2 at 5191 (0.03%), CNXMIDCAP -21 at 7369 (-0.28%)

Ø  SECTORAL PERFORMANCE: BANKEX 0.16%, AUTO 0.13%, CAPITAL GOODS -0.34%, HEALTHCARE 0.07%, Metal -0.83%, OIL & GAS -0.23%, IT 0.67%, FMCG -0.84%, PSU -0.84%, REALTY -0.83%, Consumer Durables 1.44%, POWER -0.08%

Ø  MARKET BREADTH: 202 Advances, 292 Declines (BSE 500)

Ø  VOLUMES: BSE $0.37bn (-16.18%), NSE $1.89bn (-18.83%), F&O $16.22bn (-55.23%)

Ø  TODAY'S GAINERS: ICICIBC 2.31%, HNDL 2.19%, HCLT 2%, SIEM 1.69%, AXSB 1.6%

Ø  TODAY'S LOSERS: SAIL -3.07%, RCOM -2.69%, Coal -2.27%, ACC -1.95%, IDFC -1.88%

MARKET COMMENTARY:

Indian benchmarks weakened further in today’s trade as investors lacked conviction to add fresh positions. Traders were seen piling up position in IT, TECH and Consumer Durables sector, while selling was being witnessed in Realty, Metal and PSU sector. Besides, investors are also closely watching India Inc's Q4 March 2012 and year ending March 2012 (FY 2012) earnings for the further direction. Banking sectors were buzzing on reports that the Cabinet has cleared the much awaited Banking Law (Amendment) Bill. IT counters Infosys, TCS and Wipro were trading in green but are under pressure since Standard & Poor's Ratings Services had revised the rating outlooks on them to negative from stable. In the scrip specific development, Hindustan Construction Company (HCC) slipped after company reported a higher than expected net loss for the fourth quarter of FY12. ICICI Bank rallied amid heavy volumes post the bank reported quite better than expected numbers for the fourth quarter of FY12. Heavyweight, Reliance Industries was trading weak in red after the company reported natural gas production from its eastern offshore KG-D6 fields dropped to less than 34 million standard cubic meters a day. On the global front, all the Asian markets were traded in red barring Seoul Composite, while the European markets recovering from their initial fall were trading in green on optimistic note. Standard & Poor's has cut its credit rating on Spain by two notches, reviving worries over the debt-stricken country. S&P, citing expectations Spain's finances will deteriorate even more than previously thought due to the recession and the country's ailing banking sector, downgraded Spain to BBB-plus with a negative outlook, saying the situation could deteriorate further unless strong measures were taken at a European level.

NEWS ON TODAYS MOVERS:

Ø  Idea Cellular declined nearly 2.76% after company’s consolidated net profit rose by only 18.91% to Rs 238.98 crore on 6.46% increase in net sales to Rs 5,344.66 crore in Q4 March 2012 over Q3 December 2011; stock closed 2.75% lower to 81.

Ø  United Spirits fell 1% on profit booking after the stock rose 14.69% in the preceding two trading sessions to Rs 782.40 on 26 April 2012 from a recent low of Rs 682.20 on 24 April 2012.

Ø  Essar Oil surged by 4.7% after the company said it has renewed a major product sale and purchase agreement with Bharat Petroleum Corporation.

Ø  Hindustan Construction Company tumbled by 5.8% after the company reported net loss of Rs 54.17 crore in Q4 March 2012 as against net profit of Rs 22.61 crore in Q4 March 2011.

Ø  Indiabulls Financial Services rose 4.4% after consolidated net profit rose 28.19% to Rs 302.58 crore on 45.22% growth in total income to Rs 1121.69 crore in Q4 March 2012 over Q4 March 2011.

Ø  ICICI Bank rose 2.3% after net profit rose 30.97% to Rs 1901.76 crore on 29.62% increase in total income to Rs 11,403.10 crore in Q4 March 2012 over Q4 March 2011.

Ø  Development Credit Bank rose 1.4%, with the stock recovering on bargain hunting after 8-day 12.41% slide.

CORPORATE NEWS:

Ø  Suzlon gets wind power project from UK’s Eoxis

Ø  Dena Bank looks to empanel creative agencies in Mumbai

Ø  Yes Bank reduces ATM expansion

Ø  ICICI Bank Q4 cons net profit up by 15%

Ø  Air India close to lease 2 major buildings in Mumbai, Delhi

Ø  FII stake in KFA up marginally during last quarter

Ø  Biocon Q4 cons net profit decline marginally

Ø  DLF in talks with 3 real estate cos to sell Mumbai land

Ø  RIL KG-D6 fields gas prodn slips

Ø  Sesa Goa to begin exploration in Liberia this week

Ø  RIL to sign GSPA with NTPC and 10 gas distribution cos

Ø  Strides Arcolab acquires Sterile Formulations facility

Ø  ONGC to set up more urea, power plants

Ø  MRF begins prodn at Rs900-cr for a plant in Tamil Nadu

ECONOMIC NEWS:

Ø  Govt may allow cable operators to raise FDI limits

Ø  India Banks: Cabinet passes Banking Amendment Bill