India Market Wrap

Ø  INDICES: Sensex -56 at 17151 (-0.33%), NIFTY -21 at 5202 (-0.4%), CNXMIDCAP -60 at 7430 (-0.8%)

Ø  SECTORAL PERFORMANCE: BANKEX -0.44%, AUTO 0.22%, CAPITAL GOODS -0.23%, HEALTHCARE 0.09%, Metal -0.35%, OIL & GAS -0.44%, IT -0.91%, FMCG 0.48%, PSU -1.42%, REALTY -1.33%, Consumer Durables -1.67%, POWER -1.28%

Ø  MARKET BREADTH: 106 Advances, 275 Declines (BSE 500)

Ø  VOLUMES: BSE $0.39bn (-7.4%), NSE $1.99bn (-9.5%), F&O $37.83bn (32.8%)

Ø  TODAY'S GAINERS: HMCL 2.38%, STLT 2.08%, SESA 2%, BHARTI 1.84%, CAIR 1.6%

Ø  TODAY'S LOSERS: WPRO -7.15%, RPWR -3.81%, GAIL -3.28%, IDFC -2.34%, SIEM -2.2%

MARKET COMMENTARY:

Indian benchmarks trim losses but continued its weak trade in red in the late afternoon session as investors lacked conviction to pile up fresh positions. Traders were seen piling up position in Auto and FMCG sector while selling was witnessed in Realty, Consumer Durables and PSU sector. The wave of selling pressure hit the shores of domestic markets after global credit rating agency S&P threatened to downgrade the sovereign bond rating of India by slashing its economic outlook to negative from stable, citing slow progress on its fiscal situation, as well as deteriorating economic indicators. Sentiments went awry after reports surfaced as investors took to across the board position squaring as the lowered outlook jeopardizes India's long-term rating of BBB-, which is the lowest investment grade rating. The market may remain volatile this week as traders roll over positions from the near-month April 2012 series to next-month May 2012 series. The April 2012 derivatives contracts expire on Thursday, April 26, 2012. Also, IT bellwether Wipro was seen trading weak with a cut of around seven percent on posting disappointing quarterly earnings numbers, exerting pressure on the market. On the global front, Asian markets were trading on a mix note while the European markets were trading in green on optimistic note. On the home turf, the market breadth was negative.

NEWS ON TODAYS MOVERS:

Ø  Sesa Goa rose 2.00% after the company at the time of announcement of Q4 results on Tuesday indicated significant potential upside to the existing resource base of 1 billion tonnes of iron ore at its unit it Liberia.

Ø  Wipro collapsed nearly 7.15% after the company said it expects revenue to remain flat sequentially in Q1 June 2012.

Ø  Info Edge (India) rose nearly 0.94% after the company said its board will consider bonus issue of shares on 3 May 2012.

Ø  Dr Reddy's Laboratories rose nearly 1.04% after the company said it launched its generic version of Zyprexa tablets in the US market on 23 April 2012.

Ø  United Spirits surged nearly 8.92% on report Diageo, the world's largest spirits company by value, is looking to pick up a minority stake in the company.

Ø  TCS corrected 1.94%, with the stock sliding on profit booking after Tuesday's 12.83% rally triggered by the company reporting good Q4 March 2012 results..

Ø  LIC Housing Finance traded in green even after net profit fell 19.43% to Rs 253.60 crore on 21.34% growth in total income to Rs 1689.02 crore in Q4 March 2012 over Q4 March 2011.

Ø  HDFC Bank surged 0.89% after the company commented that it has inked a  pact with Wells Fargo.

CORPORATE NEWS:

Ø  Wockhardt launches generic Parkinson’s treatment drug in US

Ø  Cipla and DNDi to launch malarial drug

Ø  IFC plans to invest in subsidiary of Gujarat Fluoro

Ø  KFA employee strike is a grapevine: Mallya

Ø  Timex Group India to add 40 stores in FY13

Ø  Rallis India buys 51% in Zero Waste Agro

Ø  M&M mkt share dipped from 41% in Q1FY12 to 36.5% in Q4FY12

Ø  JM Financial buys additional 1.2 mn shares in IVRCL

Ø  Sasken Communication rallies on buyback approval

Ø  YES Bank beats estimates, Q4 net up 34% at Rs 272 cr

Ø  LIC Housing Finance Q4 PAT down 19.4% QoQ at Rs 254 cr

Ø  Motilal Oswal Q4 net down 15.4% QoQ at Rs 22 cr

Ø  Sesa Goa Q4 net down 21% on higher duties, interest cost

Ø  Wipro Q4 profit up 7.7 pct, meets forecast

Ø  Petronet LNG Q4 net up 18.4% at Rs 245 cr

ECONOMIC NEWS:

Ø  No need for panic after S&P India downgrade: Pranab

Ø  BJP to rake up Bofors issue in Parliament

Ø  S&P revises India outlook to 'negative' from 'stable'

Ø  US opposes total FDI ban in India's tobacco sector