India Market Wrap

Ø INDICES: Sensex +207 at 17358 (1.21%), NIFTY +64 at 5290 (1.22%), CNXMIDCAP +68 at 7672 (0.89%)

Ø SECTORAL PERFORMANCE: BANKEX 0.79%, AUTO 0.8%, CAPITAL GOODS 1.67%, HEALTHCARE 0.18%, Metal 2.01%, OIL & GAS 0.93%, IT 0.94%, FMCG 1.44%, PSU 1.83%, REALTY 2.41%, Consumer Durables 0.27%, POWER 1.64%

Ø MARKET BREADTH: 332 Advances, 160 Declines (BSE 500)

Ø VOLUMES: BSE $0.52bn (51.92%), NSE $2.48bn (42.84%), F&O $32.47bn (83.06%)

Ø TODAY'S GAINERS: RELI 6.31%, RCOM 5.45%, ONGC 3.84%, RPWR 3.66%, JPA 3.58%

Ø TODAY'S LOSERS: CAIR -1.25%, HCLT -0.81%, KMB -0.31%, MM -0.24%, RIL -0.23%

MARKET COMMENTARY:

Stock markets in India gradually edged up in Tuesday afternoon trades after the sharp freefall they suffered from the high point of the day. Investors seem to be buying the frontline blue chip counters. The stock markets showed a kneejerk reaction to the higher than expected rate cut by Indian central bank as the benchmarks spurted to the day’s high levels within seconds. This was RBI’s first interest rate reduction in three years and the move is likely to spur growth that has slowed markedly due to relentless monetary tightening. The rate cut has come in the backdrop of lower than expected growth in industrial production and slight moderation in March WPI inflation, however concerns remained that the inflationary pressure would reignite due to volatile international crude oil prices and the depreciating Indian rupee. Meanwhile, the Indian markets even went on to outperform all its Asian peers which traded on a pessimistic note as the optimism over better than expected US retail sales data was countered by the concern of spreading European sovereign-debt crisis after the cost to insure Spanish and Portuguese debt advanced. The European markets though, after a flat start managed to capitalize on the momentum and supported sentiments in local markets. PSU and Metal counters remained the top gainers in the space with around a percent gains each. The upside in local markets also was capped due to profit booking in rate sensitive counters. Moreover, the broader markets traded on a positive note around with the market breadth in favor of advances.

NEWS ON TODAYS MOVERS:

Ø Hexaware Technologies traded flat nearly 0.79%, with the stock extending Monday's 5.27% gains triggered by the company entering into an agreement with the Indroyal Group to provide IT solution.

Ø Reliance Capital rose nearly 5.89% on bargain hunting after the stock fell 13.88% in the preceding seven sessions to Rs 347.20 on 16 April 2012 from a recent high of Rs 403.15 on 3 April 2012.

Ø Coal India rose nearly 3.21% on reports the company's board on Monday, 16 April 2012, agreed to sign fuel-supply agreements with nearly 50 thermal power units commissioned between April 2009 and December 2011.

Ø Mindtree jumped 8.39% after consolidated net profit rose 13.7% to Rs 68.90 crore on 1.2% growth in total revenue to Rs 525.70 crore in Q4 March 2012 over Q3 December 2011.

Ø Banks rose by 0.02% to 1.97%, after the central bank cut key interest rates on Tuesday, 17 April 2012, for the first time in three years by an unexpectedly sharp 50 basis points.

Ø Siemens surged nearly 1.23%, with the stock gains triggered by the company's announcement that it will amalgamate Siemens Power Engineering --a 100% subsidiary of Siemens AG, Germany

Ø Real estate firms rose by 0.53%to 3% after the central bank cut key interest rates on Tuesday, 17 April 2012, for the first time in three years by an unexpectedly sharp 50 basis points.

Ø TCS rose 1.97% on bargain hunting after the stock fell 10.18% in the preceding eight sessions to Rs 1,070.05 on 16 April 2012 from a recent high of Rs 1,191.35 on 2 April 2012.

Ø Tata Power surged nearly 1.07% after company said its unit gets certified for Quality Environment, OHS Management Systems

CORPORATE NEWS:

Ø Dabur crosses $1 bln turnover

Ø Essar Oil in talks with SBI for loan

Ø Max India and Mitsui Sumitomo enter Joint venture

Ø I-T issues notice to Bharti for nonpayment of TDS dues

Ø CIL agrees to sign fuel supply pact

Ø Crude import bill widened on India's trade deficit

Ø ABB to invest Rs250 cr to build new facilities in India

Ø KFA in discussion with DIAL for rescheduling dues

Ø Damodaran joins Hindalco Board as Independent Director

Ø Avaya wins 5-year contract with Bharti Airtel

Ø RBI rate action to help revive investment: Pranab

ECONOMIC NEWS:

Ø CAG raps Maha Govt for opacity in selection of Lavasa project

Ø India unlikely to opt for arbitration to settle Oman gas price dispute

Ø Mumbai developers asked to pay 3 yrs property tax in advance

Ø First rate cut in 3 years, repo rate cut by 50 bps