India Market Wrap

Ø  INDICES: Sensex -320 at 16831 (-1.87%), NIFTY -102 at 5087 (-1.96%), CNXMIDCAP -143 at 7215 (-1.94%)

Ø  SECTORAL PERFORMANCE: BANKEX -3.17%, AUTO -1.81%, CAPITAL GOODS -3.74%, HEALTHCARE 0.24%, Metal -2.51%, OIL & GAS -1.65%, IT -1.03%, FMCG -1.1%, PSU -2.49%, REALTY -2.46%, Consumer Durables -2.05%, POWER -2.46%

Ø  MARKET BREADTH: 64 Advances, 433 Declines (BSE 500)

Ø  VOLUMES: BSE $0.48bn (35.08%), NSE $2.13bn (13.83%), F&O $20.8bn (36.82%)

Ø  TODAY'S GAINERS: CIPLA 2.63%, WPRO 0.62%, SUNP 0.29%, TTMT 0.28%, ACC 0.13%

Ø  TODAY'S LOSERS: RPWR -5.11%, RCOM -4.96%, BHEL -4.93%, PNB -4.69%, HMCL -4.61%

MARKET COMMENTARY:

Third straight session southbound journey of Indian stock markets continued as there were absolutely no domestic triggers to take the markets higher. Apart from the gloomy global tidings, the exacerbating concerns over depreciating Indian rupee have taken the center stage, prompting investors to take profits off the table. Benchmark indices have nosedived to the lowest levels in around three and half a month, the 50-share frontline index Nifty has breached its 200 day moving average of 5,119.88. The Indian rupee crashed to Rs 53.82 against the US dollar and is gradually closing in to all-time low levels as modest intervention by the country’s central bank yesterday failed to stem the rupee’s slide. The immediate trigger for the decline has been a rising dollar demand from importers, but a deteriorating macroeconomic situation, years of policy uncertainty and decades of fiscal mismanagement, coupled with renewed risk-aversion among global investors is leading to weak foreign fund inflows, which is in turn widening the country’s budgetary deficit and further corroding its currency’s value. Investors also fretted over weak cues from Asian markets which mostly followed the overnight fall in US markets on the back of disappointing economic reports and weakness in commodities. The European bourses too are exhibiting somber trends ahead of a crucial US jobs data and a potentially tumultuous weekend for European politics, which sees elections in France and Greece. Back home, the Capital Goods counter got bludgeoned by over two and half a percent and remained the top laggard in the space while the rate sensitive banking and Realty pockets too bore the brutal brunt of hefty position squaring and plummeted by over two percent. Amid the across the board carnage, the defensive Healthcare counter managed to keep its head above the water with moderate gains of around half a percent. Moreover, the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø  Great Eastern Shipping Company slumped 1.72%despite the company’s consolidated net profit jumped 263.5% to Rs 39.19 crore on 36.7% growth in net sales to Rs 822.28 crore in Q4 March 2012 over Q4 March 2011.

Ø  United Phosphorus lost 5.63%, with the stock sliding on profit booking after 2-day 9.3% rally triggered by the company's announcement that its board will meet on 7 May 2012 to consider share buyback proposal.

Ø  ICICI Bank fell 2.82% after the private sector bank's American depository receipt or ADR lost 4.85% to settle at $31.81 on the New York Stock Exchange on Thursday, 3 May 2012

Ø  IRB Infrastructure Developers lost another 13.99%, extending Thursday's 10.9% slump triggered after the company clarified to media reports of its chairman being investigated for possible involvement in a murder case.

Ø  Titan Industries fell 2.19% ,with the stock sliding on profit booking after 2-day 5.45% gains triggered by the company reporting strong Q4 earnings.

Ø  Godrej Consumer Products rose traded flat , with the stock extending 3-day 7.62% rally triggered by the company reporting strong Q4 earnings.

Ø  Hero MotoCorp lost another 4.61% extending Thursday's 7.69% slide triggered after the company reported a fall in core operating profit margin at the fag end of the day's trading session on Wednesday, 2 May 2012.

Ø  Essar Oil surged 3.68%, with the stock recovering on bargain hunting after 2-day 5.14% slide.

Ø  Bank of Baroda tumbled 6.08%,after the bank at the time of announcement of Q4 results reported 11.72% fall in profit before tax at Rs 1196.51 crore in Q4 March 2012 over Q4 March 2011.

Ø  Reliance Industries fell 1.68%,after the oil ministry reportedly hiked the penalty it wants to impose on the company and its British partner for falling natural gas output from KG-D6 fields

CORPORATE NEWS:

Ø  Indian Rlys to pause on container terminal access charge hike

Ø  Corporation Bank Q4 cons net profit up by 7%

Ø  Bank of Baroda Q4 net profit surges by 17%

Ø  US transportation dept slaps $80K fine on Air India

Ø  RIL penalised Rs6,600 cr for KG-D6 field

Ø  BEML chief trapped in fraud case; stock dips

Ø  Govt to infuse Rs30K cr in Air India

Ø  ONGC Tripura plant to run by May end

Ø  DoT may put more 2G spectrum on auction

Ø  Piramal Healthcare marks 16% rise for Q4FY12

Ø  Corporation bank 4q profit 3.51b rupees vs. 3.45b  

Ø  Corporation bank to pay 20.5 rupees-shrs dividend  

Ø  Niit technologies 4q revenue 4.44 bln rupees vs. 3.16 bln

Ø  Niit technologies to pay dividend of 8 rupees-shrs

Ø  Ultratech April cement production 3.29 mln tons, up 1.72%

Ø  Gail india expects u.s. gas prices to recover, Tripathi says

ECONOMIC NEWS:

Ø  India working on plan to export wheat from state reserves

Ø  Indian cos raise $3.84 bln from overseas: RBI

Ø  India's nuclear power awaiting regulatory approval for loading

Ø  India sets march 2017 as new deadline for freight link: solanki

Ø  India dedicated freight rail link to miss dec. 2016 deadline

Ø  Mukherjee: india to fast-track policies to ensure faster growth

Ø  Mukherjee : confident' of 8%-10% annual growth in coming years

Ø  India to focus on domestic-demand recovery, Mukherjee says

regards

Jatin Padharia
+912261544569
+919867336999