India Market Wrap

Ø INDICES: Sensex +34 at 17392 (0.2%), NIFTY +10 at 5300 (0.19%), CNXMIDCAP +28 at 7700 (0.37%)

Ø SECTORAL PERFORMANCE: BANKEX -0.1%, AUTO 1.52%, CAPITAL GOODS -0.27%, HEALTHCARE 1.01%, Metal 0.75%, OIL & GAS 0.77%, IT 0.07%, FMCG -0.53%, PSU 0.1%, REALTY -0.97%, Consumer Durables 0.46%, POWER 0.46%

Ø MARKET BREADTH: 256 Advances, 232 Declines (BSE 500)

Ø VOLUMES: BSE $0.45bn (-11.83%), NSE $2.13bn (-14.17%), F&O $20.3bn (-37.52%)

Ø TODAY'S GAINERS: ACC 3.39%, ACEM 2.91%, CAIR 2.9%, HCLT 2.8%, TTMT 2.79%

Ø TODAY'S LOSERS: RCOM -2.36%, DLFU -2.07%, ITC -1.81%, IDFC -1.79%, AXSB -1.27%

MARKET COMMENTARY:

Stock markets in India cooled a lot from high point of the day in today’s trades with the frontline equity indices facing severe resistance around crucial levels. The benchmark gauges got off to a promising start a day after rallying over a percent on the back of RBI’s stunning bigger-than-expected repo rate cut. The better than expected earnings announcement from technology major HCL Tech too lifted overall market sentiments and also injected some life in IT and TECH counters which were on the southward trajectory since bellwether Infosys’ weak quarterly result and a gloomy guidance. However, the psychological 17,500 (Sensex) and 5,350 (Nifty) levels proved as stern resistances as the key indices could not claw beyond those levels, instead drifted to lower levels. The European markets were playing a bit of spoilsport as they opened on a weak note after their biggest gain in more than four months in the previous session. On the other hand, the Asian markets continued to trade with vigor after healthy US corporate earnings, successful Spanish debt sale and strong German economic sentiment survey and support the domestic markets. Back home, market participants grew a bit worried over the quantum of rate cut by RBI fearing that it would reignite inflationary pressure. In addition, a gauge of consumer price inflation indicated just that the rate of price rise has surged to 9.4% in March as compared to 8.33% in February 2012. But, the automobile index, welcomed the RBI decision to cut key lending rates by 50 basis points as it surged over a percent amid expectations that the move will boost buyers’ sentiments. The Metal and Power counters remained other leading gainers in the space while the defensive FMCG pocket remained the lone loser with a quarter percent cut. Moreover, the broader markets traded on a weak note but the market breadth was in favor of advances.

NEWS ON TODAYS MOVERS:

Ø HCL Technologies rose 2.8% after consolidated net income rose 5.2% to Rs 602.50 crore on 0.6% decline in revenues to Rs 5215.60 crore in Q3 March 2012 over Q2 December 2011.

Ø Sun Pharmaceutical Industries rose 2% after the company said the US Supreme Court has ruled in favor of its subsidiary in a patent litigation against Novo-Nordisk over its generic version of diabetes drug -- Prandin

Ø Godrej Properties rose 0.8% after the company said it has entered into an agreement for developing a new residential project in approximately 1.36 acres of land at Alipore in Kolkata.

Ø Cairn India rose 2.9% as crude oil futures traded near the highest level in two weeks after the IMF boosted its growth outlook and a Spanish debt sale raised more than planned, easing concern of curb in crude demand

Ø ITC fell 1.8% on profit booking after the stock rose 9.86% in the preceding six sessions to Rs 246.15 on 17 April 2012 from a recent low of Rs 224.05 on 9 April 2012.

Ø Gail (India) rose 0.5% after the company said APGDC has signed Project Framework Agreement with GDF Suez LNG UK, for jointly setting up a Floating Storage and Regasification Unit in Andhra Pradesh.

Ø Bharat Electronics rose 1.4% after the company said its board would meet on 25 April 2012 to consider buyback of shares.

Ø HDFC Bank galloped 1.4% on posting 30% jump in Q4 net profit jump, in its net profit of Rs 1453.08 crore for the fourth quarter ended March 31, 2012 as compared to Rs 1114.71 crore for the same quarter previous year. The bank’s total income has increased to Rs 8880.02 crore for the quarter under review from Rs 6724.31 crore for the corresponding quarter previous year, up by 32.06%.

Ø BHEL trades in fine contour on the bourses maker, has won the ‘SCOPE Meritorious Award 2010-11’ for Best Practices in Human Resource Management. The President of India presented the award to the company in the presence of Union Minister of Heavy Industries & Public Enterprises. The award was presented as a part of the celebrations of the third Public Sector Day.

CORPORATE NEWS:

Ø SpiceJet gains as DGFT approves to import ATF directly

Ø Shasun Pharma revenue crosses Rs1K-cr mark

Ø RIL asks SC to appoint arbitrator in gas dispute

Ø HDFC Bank FY12 cons net profit up 31%

Ø LIC lowers stake in RIL

Ø Bharti Airtel rebrands B2B biz as airtel biz

Ø Sun Pharma :US SC rules in favor of its unit

Ø Punjab & Sind Bank cuts home, auto loan rates

Ø ITC captures RIL as most influential stock

Ø Saint-Gobain hits upper circuit on delisting buzz

Ø LIC ups stake in Pipavav to over 5%

Ø GIC in talks to acquire stake in GVK’s Hancock coal

Ø IFCI Q4 net profit declines by 6% in Mar 2012

ECONOMIC NEWS:

Ø RBI removes prepayment charges on home loans

Ø Fuel retailers threaten to hike petrol prices

Ø New telecom policy to be in place by May: Govt.

Ø PM directs fresh round of talks in FDI aviation case