India Market Wrap

Ø  INDICES: Sensex -151 at 17151 (-0.87%), NIFTY -51 at 5188 (-0.97%), CNXMIDCAP -86 at 7358 (-1.15%)

Ø  SECTORAL PERFORMANCE: BANKEX -1.74%, AUTO -2.43%, CAPITAL GOODS -0.71%, HEALTHCARE -0.17%, Metal -1.75%, OIL & GAS -0.65%, IT 0.37%, FMCG -0.32%, PSU -1.45%, REALTY -1.43%, Consumer Durables -0.03%, POWER -1.36%

Ø  MARKET BREADTH: 116 Advances, 379 Declines (BSE 500)

Ø  VOLUMES: BSE $0.35bn (5.24%), NSE $1.87bn (3.57%), F&O $15.2bn (15.4%)

Ø  TODAY'S GAINERS: HUVR 2.29%, WPRO 2.07%, RCOM 1.06%, TCS 0.97%, HDFCB 0.75%

Ø  TODAY'S LOSERS: HMCL -7.65%, AXSB -4.07%, IDFC -3.35%, MSIL -3.22%, TATA -2.98%

MARKET COMMENTARY:

Indian benchmarks trimmed their gains further in the late afternoon session as investors started booking profits in the frontline blue chip counters. Sentiments remain bleak across the Asian region as investors pondered over the disappointing employment reports from the US and Euro-zone intensifying concerns over slowing down global economic recovery. Traders were seen piling up position in IT, and Health Care sector while selling was being witnessed in Auto, Bankex and Metal sector. Banking stocks were trading under pressure after RBI’s recent Basel III guidelines as it mandates the banks over up-keeping of their total capital adequacy ratio at 9 percent, higher than the minimum recommended requirement of 8 percent. In the scrip specific development, aviation firms SpiceJet, Kingfisher Airlines and Jet Airways (India) were seen trading weak in red after reports emerged that the Parliament is unlikely to take a decision on the 49% foreign direct investment in the ongoing session. On the global front, the Asian markets were trading on a mix note while the European markets were trading in green on optimistic note. Investors are eagerly awaiting an interest rate decision from the European Central Bank due later in the day. Besides, Spain was in focus today as it will attempt to raise up to €2.5 billion in three- and five-year paper. On the home turf, the market breadth was negative.

NEWS ON TODAYS MOVERS:

Ø  Pantaloon Retail (India) rose 1.07% ahead of its board meeting today, 3 May 2012 to consider fund raising plan.

Ø  KPIT Cummins Infosystems lost around 1.90% on back of profit booking after, Wednesday's 20% rally triggered by the company issuing strong FY 2013 guidance at the time of announcement of FY 2012 results.

Ø  Hero MotoCorp lost 7.65% on profit taking after the company reported steady earnings at the fag end of the day's trading session on Wednesday, 2 May 2012.

Ø  Kansai Nerolac Paints fell 0.31% after net profit declined 23.8% to Rs 44.90 crore on 28% increase in net sales to Rs 662.50 crore in Q4 March 2012 over Q4 March 2011.

Ø  Hindustan Unilever rose 2.29%, with the stock extending Wednesday's 2.07% gains triggered by the company reporting strong Q4 earnings.

Ø  Jindal Steel & Power fell 2.18%, with the stock sliding on profit booking after 3-day 4.7% gains triggered by the company reporting decent Q4 earnings.

Ø  ACC slipped marginally by 0.49% to Rs 1225.25 after production rose 5.33% to 2.17 million tonne in April 2012 over April 2011.

Ø  IRB Infrastructure Developers tumbled  nearly 10.81% after the company's chairman reportedly confirmed a media report of being investigated for possible involvement in a murder case.

CORPORATE NEWS:

Ø  Hcl technologies partners with Siemens

Ø  Elecon engineer gets order valued at 113m rupees  

Ø  Kingfisher airlines owes 2.8b rupees to airports authority

Ø  Oriental bank of commerce to cut bplr by 25 bps from may 14

Ø  Shiv-Vani oil completes acquisition of offshore jack-up rig

Ø  Marico 4q profit 697 mln rupees vs. 716.2 mln      

Ø  Marico to pay second interim dividend of 0.40 rupees-shrs

Ø  Carborundum plans to investment Rs200 cr

Ø  KG-D6 gas EGOM cuts gas supplies to NFL

Ø  Siemens Metals bags BMM Ispat mill order

Ø  HCL Tech signs deal with Siemens PLM Soft

Ø  Irb infrastructure says executives agreed for lie test  :Irb in

Ø  Aventis Pharma 1q profit 401 mln rupees vs. 506 mln

Ø  Piramal healthcare 4q group loss 386.8m rupees vs. 2.02b profit

Ø  Piramal healthcare declares dividend of 17.5 rupees-shrs

ECONOMIC NEWS:

Ø  Indian companies invested $2.67b overseas in April: Rbi

Ø  Telecom industry tariffs not increased in last 2-3 yrs: Kapoor

Ø  India Trai recommendations may raise subscriber costs upto 100%