India Market Wrap

Ø INDICES: Sensex +56 at 17151 (0.33%), NIFTY +19 at 5226 (0.36%), CNXMIDCAP +25 at 7604 (0.33%)

Ø SECTORAL PERFORMANCE: BANKEX 1.22%, AUTO 1.31%, CAPITAL GOODS 1.1%, HEALTHCARE 0.01%, Metal 0.4%, OIL & GAS -0.27%, IT -0.65%, FMCG 0.97%, PSU 0.44%, REALTY 1%, Consumer Durables 0.52%, POWER 0.14%

Ø MARKET BREADTH: 320 Advances, 167 Declines (BSE 500)

Ø VOLUMES: BSE $0.34bn (-39.66%), NSE $1.74bn (-32.92%), F&O $17.75bn (-33.57%)

Ø TODAY'S GAINERS: TTMT 3.94%, JPA 3.04%, AXSB 2.99%, SBIN 2.39%, PNB 2.35%

Ø TODAY'S LOSERS: ACEM -2.33%, BHARTI -1.99%, ACC -1.67%, INFO -1.58%, SUNP -1.29%

MARKET COMMENTARY:

Stock markets in India have gradually inched up today in post afternoon trade after displaying a lackluster performance for most part of session. The benchmark gauges traded with marginal gains of around a quarter percent and sailed well above the psychological 17,100 (Sensex) and 5,200 (Nifty) levels. The frontline equity indices traded with a positive bias as it became increasingly certain that in the backdrop of weak February industrial production numbers and slight moderation in March WPI inflation to 6.89% v/s 6.95% in February, the Indian central bank would start the liquidity easing cycle by cutting key interest rates. Investors piled up hefty positions in the Capital Goods counter as the lower manufacturing inflation numbers will give comfort for the RBI to deliver a 25 bps rate cut. While, the interest rate sensitive Banking, Realty and Automobile counters too gained traction in the session. The local bourses even went on to outperform all its Asian peers in the session which traded with notable losses as market participants remained influenced by the plunge in US markets over weekend. Apart from the US concerns the regional worries too have gripped the investors, as Bank of Korea cut its economic growth estimate and concerns over the Europe's debt crisis deepened too. However, the European markets on the other hand traded on a mixed note, failing to give any clear direction to the domestic markets. However, the information technology counters continued to languish at the bottom of the table with over half a percent cuts, despite the brutal butchery they suffered in the previous session after bellwether Infosys announced its gloomy guidance for the year. Besides these, the rise in bond yields and continued depreciation in Indian rupee against a US dollar too played on mind of investors. Moreover, the broader markets traded on an optimistic note with the market breadth in favor of advances.

NEWS ON TODAYS MOVERS:

Ø Reliance Industrial Infrastructure rose nearly 0.98% after net profit rose 5.50% to Rs 23.61 crore on 9.50% rise in net sales to Rs 61.34 crore in the year ended March 2012 over the year ended March 2011.

Ø Prime Focus rose nearly 3.46% after the company said its board has approved the conversion of 10 lakh convertible warrants held by the promoter, Mr Namit Malhotra into 1 crore equity shares at Rs 55.47 per share.

Ø Development Credit Bank rose 1.14% after net profit rose 52.2% to Rs 17.28 crore on 25.8% growth in total income to Rs 223.23 crore in Q4 March 2012 over Q4 March 2011.

Ø Piramal Healthcare declined by 1.80% after the company said it has agreed to buy a research and development portfolio from Bayer AG.

Ø Maruti Suzuki India rose nearly 1.48%, with the stock extending two-day 3.97% gains triggered by the company unveiling industry's first Life Utility Vehicle -- Ertiga.

Ø eClerx Services rose close to 1.85% after the company said it has signed a definitive agreement to acquire 100% of Agilyst Inc, a US based Knowledge Process Outsourcing firm, through its overseas subsidiary, eClerx Investments

Ø Hexaware Technologies rose nearly 5.28% after the company said it entered into an agreement with the Indroyal Group to provide IT solution.

Ø Jubilant Food works traded higher at 1.18%, after the market leader in the organized pizza home delivery segment in India, has launched 3 new exotic Pizzas with extra loaded new toppings in their vegetarian and non-vegetarian pizza menu.

Ø Itc surged Tobacco major surged 2.03% after it has hiked cigarette prices by 5-16 percent, a move that comes close on the heels of the Union Budget proposing a hike in excise duty of cigarettes by 15 percent.

CORPORATE NEWS:

Ø Castrol Q1 net profit down 10%

Ø RINL records Rs14,457cr turnover last fiscal

Ø Domino’s re-launch its Pizza Mania range with new toppings

Ø eClerx buys US Based KPO - Agilyst Inc

Ø Techno Electric executes order of 40 MW

Ø Chinese firm signs $ 240 cr power project in India

Ø BHEL to expand solar PV mfg unit

Ø Maruti plans to invest Rs2K cr for diesel engine unit

Ø Maruti may hike marketing budget by 5-10% this fiscal

Ø Bosch eyes solar projects with private players

Ø Nalco to set up new unit with investment of Rs18K cr

Ø OBC cuts fixed deposit rates by 0.5%

Ø Apollo Hosp to invest Rs1,500 cr by March 2014

Ø Tata Steel to invest in Wales over the next 5 years

ECONOMIC NEWS:

Ø TDSAT upholds DoT's power to impose penalty on operators.

Ø FDI in srvs sector rises 62% in April-Jan last fiscal

Ø RBI may cut CRR, repo by 0.25%: Bankers

Ø Foreign trade policy to unveil next month: Khullar

Ø March Inflation at 6.89% versus 6.95% in February

Ø Govt may lower GDP estimation for last fiscal

Ø DGH asks Oil Min to take call on on RIL-BP gas investments

Ø Air India invites merchant bankers to raise funds