India Market Wrap

Ø  INDICES: Sensex +82 at 16913 (0.48%), NIFTY +27 at 5114 (0.54%), CNXMIDCAP +25 at 7240 (0.34%)

Ø  SECTORAL PERFORMANCE: BANKEX 0.8%, AUTO 1.23%, CAPITAL GOODS 3.87%, HEALTHCARE -0.13%, Metal 1.57%, OIL & GAS -0.51%, IT -0.04%, FMCG -0.72%, PSU 0.46%, REALTY 0.68%, Consumer Durables 1.45%, POWER 1.82%

Ø  MARKET BREADTH: 311 Advances, 181 Declines (BSE 500)

Ø  VOLUMES: BSE $0.39bn (-19.57%), NSE $2.21bn (2.84%), F&O $25.73bn (22.89%)

Ø  TODAY'S GAINERS: BHEL 6.03%, RPWR 5.44%, BPCL 5.17%, LT 4.86%, DLFU 4%

Ø  TODAY'S LOSERS: CAIR -2.51%, HCLT -2.2%, JPA -2.18%, DRRD -1.85%, RIL -1.48%

MARKET COMMENTARY:

Global risk aversion seemed to be taking its toll on stock markets in India in the Monday morning trades as the frontline equity indices got decimated by another close to two percentage points at the initial start but later key Indian equity benchmarks recovered smartly in the mid-afternoon trade after Finance Minister Pranab Mukherjee said in the parliament that GAAR will be implemented from next year. Meanwhile, there was some respite for market participants on the currency front, following the announcement made by the Finance Minister on GAAR, as the rupee recovered after initial losses against the US dollar in the late morning trade due to fresh selling of the American currency by banks and exporters. On global front the US markets went for sharp sell-off over the weekend on getting lower than expected jobs number, making it their worst weekly closing of the year so far. Concerns also exacerbated over the European debt crisis after French and Greek voters ousted respective incumbent parties in a backlash against austerity measures aimed at battling the euro zone crisis. Moreover, the broader markets traded on a bleak note the market breadth was in favor of advances towards the end.

NEWS ON TODAYS MOVERS:

Ø  Grasim Industries surged nearly 4.13% after consolidated net profit fell only 8% to Rs 808.78 crore on 12.6% increase in net sales to Rs 7205.80 crore in Q4 March 2012 over Q4 March 2011.

Ø  Corporation Bank rose 4.46%, with the stock recovering on bargain hunting after 2-day 5.61% fall.

Ø  Cairn India tumbled 2.51%,as crude futures fell to the lowest level in 4 months after European elections stoked speculation that austerity efforts will be derailed. .

Ø  Public sector oil marketing companies rose by 1.03% to 2.30% after crude oil price declined sharply.

Ø  Bosch surged nearly 3.65% after net profit rose 22.38% to Rs 335.82 crore on 10.23% growth in total income to Rs 2311.81 crore in Q1 March 2012 over Q1 March 2011.

Ø  Bhel surged nearly 6.03% on bargain hunting after the stock tumbled 18.56% in the preceding thirteen sessions to Rs 214.10 on 4 May 2012, from a recent high of Rs 262.90 on 17 April 2012.

Ø  Bank of Baroda shed 1.03%, with the stock extending Friday's 5.99% slide triggered by the bank reporting 11.72% fall in profit before tax at Rs 1196.51 crore in Q4 March 2012 over Q4 March 2011.

Ø  Aviation firms rose by 5.39% to 10.79%  on hopes that state-run oil marketing companies may cut jet fuel prices after crude oil price declined sharply.

Ø  Glenmark Pharmaceuticals fell 2.44%, with the stock sliding on profit booking after 3-day 4.88% gains after the company said its subsidiary has secured US approval for Lamotrigine tablets in various strengths.

Ø  HDFC rose 0.56% after net profit rose 16.13% to Rs 1326.14 crore on 29.23% rise in total income to Rs 4891.03 crore in Q4 March 2012 over Q4 March 2011.

CORPORATE NEWS:

Ø  HDFC announced div of INR 11.

Ø  United Phos board OKs buyback

Ø  Bosch Q1 net profit surges by 22%

Ø  Andhra Bank Q4 net profit up by 8%

Ø  L&T opts French co Keolis for Hyderabad metro

Ø  Allahabad Bank Q4 cons net profit up by 29%

Ø  Grasim Industries Q4FY2012 results better than estimates

Ø  BHEL-ISG receives NTPC order

Ø  Govt to take up 49 FDI requests on May 09

Ø  Godrej Prop to expand redevelopment proj in Mumbai

ECONOMIC NEWS:

Ø  Mukherjee says proposes to amend gaar proposals

Ø  Mukherjee says gaar deferred by 1 year

Ø  Mukherjee says will reply to finance bill discussions tomorrow

Ø  India cuts cap gain tax for foreign investors, pe to 10% vs 20%