India Market Wrap

Ø  INDICES: Sensex +4 at 17134 (0.02%), NIFTY +2 at 5191 (0.03%), CNXMIDCAP -21 at 7369 (-0.28%)

Ø  SECTORAL PERFORMANCE: BANKEX 0.16%, AUTO 0.13%, CAPITAL GOODS -0.34%, HEALTHCARE 0.07%, Metal -0.83%, OIL & GAS -0.23%, IT 0.67%, FMCG -0.84%, PSU -0.84%, REALTY -0.83%, Consumer Durables 1.44%, POWER -0.08%

Ø  MARKET BREADTH: 202 Advances, 292 Declines (BSE 500)

Ø  VOLUMES: BSE $0.37bn (-16.18%), NSE $1.89bn (-18.83%), F&O $16.22bn (-55.23%)

Ø  TODAY'S GAINERS: ICICIBC 2.31%, HNDL 2.19%, HCLT 2%, SIEM 1.69%, AXSB 1.6%

Ø  TODAY'S LOSERS: SAIL -3.07%, RCOM -2.69%, Coal -2.27%, ACC -1.95%, IDFC -1.88%

MARKET COMMENTARY:

Indian benchmarks weakened further in today’s trade as investors lacked conviction to add fresh positions. Traders were seen piling up position in IT, TECH and Consumer Durables sector, while selling was being witnessed in Realty, Metal and PSU sector. Besides, investors are also closely watching India Inc's Q4 March 2012 and year ending March 2012 (FY 2012) earnings for the further direction. Banking sectors were buzzing on reports that the Cabinet has cleared the much awaited Banking Law (Amendment) Bill. IT counters Infosys, TCS and Wipro were trading in green but are under pressure since Standard & Poor's Ratings Services had revised the rating outlooks on them to negative from stable. In the scrip specific development, Hindustan Construction Company (HCC) slipped after company reported a higher than expected net loss for the fourth quarter of FY12. ICICI Bank rallied amid heavy volumes post the bank reported quite better than expected numbers for the fourth quarter of FY12. Heavyweight, Reliance Industries was trading weak in red after the company reported natural gas production from its eastern offshore KG-D6 fields dropped to less than 34 million standard cubic meters a day. On the global front, all the Asian markets were traded in red barring Seoul Composite, while the European markets recovering from their initial fall were trading in green on optimistic note. Standard & Poor's has cut its credit rating on Spain by two notches, reviving worries over the debt-stricken country. S&P, citing expectations Spain's finances will deteriorate even more than previously thought due to the recession and the country's ailing banking sector, downgraded Spain to BBB-plus with a negative outlook, saying the situation could deteriorate further unless strong measures were taken at a European level.

NEWS ON TODAYS MOVERS:

Ø  Idea Cellular declined nearly 2.76% after company’s consolidated net profit rose by only 18.91% to Rs 238.98 crore on 6.46% increase in net sales to Rs 5,344.66 crore in Q4 March 2012 over Q3 December 2011; stock closed 2.75% lower to 81.

Ø  United Spirits fell 1% on profit booking after the stock rose 14.69% in the preceding two trading sessions to Rs 782.40 on 26 April 2012 from a recent low of Rs 682.20 on 24 April 2012.

Ø  Essar Oil surged by 4.7% after the company said it has renewed a major product sale and purchase agreement with Bharat Petroleum Corporation.

Ø  Hindustan Construction Company tumbled by 5.8% after the company reported net loss of Rs 54.17 crore in Q4 March 2012 as against net profit of Rs 22.61 crore in Q4 March 2011.

Ø  Indiabulls Financial Services rose 4.4% after consolidated net profit rose 28.19% to Rs 302.58 crore on 45.22% growth in total income to Rs 1121.69 crore in Q4 March 2012 over Q4 March 2011.

Ø  ICICI Bank rose 2.3% after net profit rose 30.97% to Rs 1901.76 crore on 29.62% increase in total income to Rs 11,403.10 crore in Q4 March 2012 over Q4 March 2011.

Ø  Development Credit Bank rose 1.4%, with the stock recovering on bargain hunting after 8-day 12.41% slide.

CORPORATE NEWS:

Ø  Suzlon gets wind power project from UK’s Eoxis

Ø  Dena Bank looks to empanel creative agencies in Mumbai

Ø  Yes Bank reduces ATM expansion

Ø  ICICI Bank Q4 cons net profit up by 15%

Ø  Air India close to lease 2 major buildings in Mumbai, Delhi

Ø  FII stake in KFA up marginally during last quarter

Ø  Biocon Q4 cons net profit decline marginally

Ø  DLF in talks with 3 real estate cos to sell Mumbai land

Ø  RIL KG-D6 fields gas prodn slips

Ø  Sesa Goa to begin exploration in Liberia this week

Ø  RIL to sign GSPA with NTPC and 10 gas distribution cos

Ø  Strides Arcolab acquires Sterile Formulations facility

Ø  ONGC to set up more urea, power plants

Ø  MRF begins prodn at Rs900-cr for a plant in Tamil Nadu

ECONOMIC NEWS:

Ø  Govt may allow cable operators to raise FDI limits

Ø  India Banks: Cabinet passes Banking Amendment Bill