India Market Wrap

Ø  INDICES: Sensex +111 at 17207 (0.65%), NIFTY +22 at 5223 (0.42%), CNXMIDCAP -19 at 7490 (-0.25%)

Ø  SECTORAL PERFORMANCE: BANKEX -0.26%, AUTO 0.04%, CAPITAL GOODS -1.29%, HEALTHCARE -0.35%, Metal 0.52%, OIL & GAS -0.03%, IT 3.34%, FMCG 0.35%, PSU 0.19%, REALTY 0.01%, Consumer Durables 0.08%, POWER 0.53%

Ø  MARKET BREADTH: 221 Advances, 268 Declines (BSE 500)

Ø  VOLUMES: BSE $0.42bn (10.15%), NSE $2.18bn (22.69%), F&O $28.4bn (-8.52%)

Ø  TODAY'S GAINERS: TCS 12.21%, WPRO 4.21%, SAIL 4.04%, TPWR 3.04%, HCLT 2.96%

Ø  TODAY'S LOSERS: ACEM -4.62%, LT -2.81%, ACC -2.36%, KMB -1.95%, AXSB -1.81%

MARKET COMMENTARY:

The Indian benchmarks  gained strength-to-strength and traded near the high points of the day in the afternoon trade. The sector that was pulling the markets higher was IT after the better than expected numbers of sector heavyweight TCS which was trading up by over 12%, the company’s profit were reported higher by 19% for the quarter, while the full year standalone profit surged by 45%. The numbers encouraged the other majors of the sector. However, there was heavy selling pressure seen in the telecom stocks as the TRAI has proposed a near tenfold increase in the price of 2G spectrum as compared to the 3G. But, justifying the prices set for spectrum allocation, TRAI Chairman J S Sarma said that the recommendations are aimed at liberalising spectrum and enabling operators to take up any technology. Power, consumer durables, and metals too have moved higher, while capital goods sector, down by about half a percent was the laggard. Though the Asian markets showed a mixed trend but the European markets made a positive start despite all the concerns and have supported the domestic markets to move higher. However back home the broader markets didn’t showed much enthusiasm and traded flat. The market breadth was partially in favor of declines.

NEWS ON TODAYS MOVERS:

Ø  TCS spurted 12.21% after consolidated net profit, as per Indian GAAP, rose 3.3% to Rs 2895 crore on 0.4% rise in revenues to Rs 13259 crore in Q4 March 2012 over Q3 December 2011.

Ø  Telecom stocks fell by 2.27% after telecom regulator proposed higher-than-expected base price for auctioning 2G airwaves freed by the cancellation of 122 mobile phone permits by the Supreme Court in February 2012.

Ø  Tata Sponge Iron lost 3.22% after net profit fell 65.8% to Rs 14.65 crore on 7.3% decline in net sales to Rs 177.69 crore in Q4 March 2012 over Q4 March 2011.

Ø  Maruti Suzuki India fell nearly 1.00% on reports workers at the company's Manesar plant have demanded a raise in their basic salaries ahead of the scheduled wage negotiations with the management.

Ø  Mahindra & Mahindra Financial Services rose nearly 0.86% after consolidated net profit jumped 46.4% to Rs 242.39 crore on 47.6% growth in total income to Rs 891.48 crore in Q4 March 2012 over Q4 March 2011.

Ø  HCL Technologies surged nearly 2.96% after the company it has been selected as a key software development partner by GridPoint, an established leader in smart energy solutions.

Ø  Mangalore Refinery and Petrochemical rose nearly 1.62% on bargain hunting after the stock fell 8.04% in the preceding four sessions to Rs 61.75 on 23 April 2012 from a recent high of Rs 67.15 on 17 April 2012.

CORPORATE NEWS:

Ø  PTC India Financial raises $25 mn

Ø  Sun Pharma gets USFDA approval for Zyprexa tablets

Ø  Union Bank revisies of base rate by 15 bps

Ø  HCL Tech signs deal with GridPoint

Ø  Greaves Cotton in talks for diesel engine supply

Ø  Asian Paints to increase capacity at Haryana plant

Ø  EdServ ties up with Amazon.com to offer educational applications

Ø  Tata Sponge dips on posting poor Q4 nos

Ø  Coromandel to buy UB stake in MCFL

Ø  Tata Motors signs agreement with DRB-Hicom Bhd

Ø  M&M Fin Srvs FY12 cons net profit up 30%

Ø  IDBI Bank Q4 PAT jumps 49% to Rs 771 cr

Ø  Persistent Systems Q4 PAT up at Rs 41.2 cr

Ø  TCS Q4 net up 23% YoY at Rs 2,932.4 crore

Ø  Ultratech Q4 net up 19%, expect margin pressures ahead

Ø  Mahindra Finance Q4 net up 34% on higher loan growth

Ø  Geometric Software Q4 PAT down 40% QoQ at Rs 12.7 cr

Ø  Polaris financial 4q net 611.4 mln rupees vs 575.8 mln  :pol in

Ø  Bajaj corp 4q net 340.5 mln rupees vs 268.9 mln

Ø  Idea cellular had sought clarificaiton on license cancellation

Ø  Sbi says kingfisher air needs to raise more equity capital

Ø  Bharat forge venture wins 15.7 bln rupee order from ntpc

Ø  Bharat electronics fy12 provisional net before tax 9.75b rupees

Ø  Bharat forge venture with alstom wins 15.7b rupees of order

Ø  Coal india signs accord with government on production target

Ø  Coal india sets sales target of 474.70 mln tons in 2012-13

Ø  Tata motors got requests to convert some overseas bonds

ECONOMIC NEWS:

Ø  India March Crude Oil Output Declines 2.9% to 3.2m Tons

Ø  India court says not giving time beyond sept. 7 for 2g auction

Ø  India top court asks govt to start 2g auction process aug. 31