India Market Wrap

Ø INDICES: Sensex -264 at 17222 (-1.51%), NIFTY -89 at 5234 (-1.66%), CNXMIDCAP -138 at 7672 (-1.77%)

Ø SECTORAL PERFORMANCE: BANKEX -1.81%, AUTO -1.13%, CAPITAL GOODS -3.16%, HEALTHCARE 0.32%, Metal -3.44%, OIL & GAS -1.49%, IT -1.13%, FMCG -0.62%, PSU -2.05%, REALTY -0.55%, Consumer Durables -1.56%, POWER -2.49%

Ø MARKET BREADTH: 102 Advances, 395 Declines (BSE 500)

Ø VOLUMES: BSE $0.35bn (-11%), NSE $1.5bn (-12.99%), F&O $15.25bn (11.67%)

Ø TODAY'S GAINERS: RBXY 3.99%, DRRD 2.24%, CIPLA 1.62%, HUVR 1.33%, BJAUT 1.06%

Ø TODAY'S LOSERS: HNDL -5.33%, CAIR -4.96%, IDFC -4.86%, STLT -4.34%, JPA -4.3%

MARKET COMMENTARY:

It was a sea of red on Dalal Street on Monday as the key equity benchmarks lost altitude amid sustained selling pressure. Sentiment was again hit by media reports over the weekend that the proposed General Anti-Avoidance Rules (GAAR) could affect FII investments through participatory notes (P-notes), which runs into billions of dollars. The GAAR comes into effect from April 1. FIIs are worried that the Government could raise tax demands as a result of these new provisions. Nifty though somehow managed to cling on the important psychological 5,250 levels but could not sustain and ended around the session’s lows as sentiments got undermined from the dismal cues from global markets. Sentiments in the Asian region got undermined amid concerns over the slowdown in the US and lingering debt crisis in Euro-zone, denting the earnings prospects for Asian exporters. Investors lacked conviction as cues from over the weekend US markets remained unsupportive as US employers added fewer jobs than forecast, damping the outlook for a recovery in the world’s biggest economy. Besides, the reports that China’s consumer price index (CPI), a main gauge of inflation, exceeded forecasts as it came in at 3.6% year on year in March also undermined investors’ morale. Back home, investors were seen squaring off hefty positions from the Metal counter tracking the global weakness in commodities while Capital Goods and rate sensitive pockets too bore the brunt of hefty selling pressure. On the other hand only the defensive Healthcare sector kept its head above the water with around a quarter percent gains Moreover, the broader markets traded on a weak note but the Small Cap index was outperforming all its larger peers as it traded with relatively moderate losses. Overall the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø Tata Power Company rose 1.14%intraday but later gave away all the gains and closed with marginal loss of 0.50%, despite of reports that the company is in talks with South African energy company Sekoko Resources to acquire a 30% stake in the Waterberg Coal Project in South Africa.

Ø Manappuram Finance tumbled nearly 4.17%, with the stock sliding on profit taking after four-day 19.23% rally.

Ø Hindustan Unilever rose nearly 1.33%, after the company signed an agreement with Piramal Realty for assignment of its leasehold rights of the land and building named

Ø Bharat Heavy Electricals lost close to 4.29%, with the stock sliding on profit booking after 4-day 9.88% rally.

Ø Titan Industries lost nearly 2.69%, with the stock sliding on profit taking after 5-day 11.27% rally.

Ø Development Credit Bank lost nearly 2.56%, with the stock sliding on profit taking after 4-day 11.1% rally triggered by the private sector bank approving the allotment of equity shares on preferential basis to three investors

Ø Mahindra Satyam lost 2.53% after Aberdeen Global and others claimed damages in excess of $150 million from the company for losses they allegedly suffered by investing in the scam-hit company.

Ø Essar Oil lost close to 4.32% after the company said that the Supreme Court of India disallowed its review petition in relation to deferred sales tax.

Ø Godrej Properties rose nearly 1%,after the company said its wholly owned subsidiary has entered into a development management agreement with R R Builders to redevelop a MHADA property in Byculla, Mumbai.

Ø Pantaloon Retail (India) lost nearly 4.36% on profit booking after gaining 14.24% in the prior two trading sessions.

Ø Strides Arcolab lost nearly 2.10%, with the stock sliding on profit taking after six-day 8.41% rally.

CORPORATE NEWS:

Ø L&T arm begins India's largest solar power plant

Ø McNally Bharat receives order worth Rs139.36 crore

Ø Godrej Prop signs redevelopment project in Byculla

Ø Dhanlaxmi Bank has no plans to shut branches

Ø KFA pays 2nd installment to IT dept: sources

Ø Glenmark gets US nod for generic contraceptives

Ø Dabur, Marico may hike price of some products

Ø Maruti 800 switch to roll out by Dec 2012

Ø Gammon Infra bags letter of award

Ø SBI to speculate rate cuts after RBI's credit policy

Ø Hindustan Copper plans to raise Rs1,250 cr via ECB

Ø RIL, BP clique to start imported LNG marketing

Ø TD Power hits monthly high on signing agreement

ECONOMIC NEWS:

Ø No policy paralysis in government: FM

Ø Imports of sensitive items up 43% during Apr-Jan