India Market Wrap

Ø  INDICES: Sensex -367 at 16546 (-2.17%), NIFTY -114 at 5000 (-2.23%), CNXMIDCAP -107 at 7133 (-1.48%)

Ø  SECTORAL PERFORMANCE: BANKEX -2.84%, AUTO -2.4%, CAPITAL GOODS -3.44%, HEALTHCARE -0.88%, Metal -1.67%, OIL & GAS -0.78%, IT -2.62%, FMCG -2.45%, PSU -0.57%, REALTY -1.32%, Consumer Durables -1.07%, POWER -2.52%

Ø  MARKET BREADTH: 103 Advances, 390 Declines (BSE 500)

Ø  VOLUMES: BSE $0.39bn (1.23%), NSE $2.05bn (-7.19%), F&O $24bn (-6.73%)

Ø  TODAY'S GAINERS: Coal 1.89%, HNDL 1.82%, GAIL 1.52%, SAIL 0.65%, HUVR 0.21%

Ø  TODAY'S LOSERS: JPA -7.91%, RPWR -6.19%, RCOM -5.72%, TCS -5.7%, JSP -5.07%

MARKET COMMENTARY:

Indian benchmarks weaken further to continue its trade in red in the late afternoon session as conservative investors started selling frontline blue chip counters. Besides nervous market participants resorted to largely across the board profit booking following the disappointing start for European stock markets as the uncertainty over European debt trouble was far from over since Greek leaders were busy in cross-party talks to form a government, and with the chances for a coalition slim, a new set of elections is likely. Traders were seen piling up position in FMCG, PSU and Realty sector while selling was witnessed in IT, and Capital Goods (CG) sector. Besides, lot of activity has been noticed in Realty stocks as on May 7,  the finance minister announced a roll-back of the proposal for tax deduction at source (TDS) of 1% on the sale of immovable property. On the global front, the Asian markets were trading in green barring Shanghai Composite and Hang Seng while the European markets were trading in red on pessimistic note. On the home turf, the Indian market continued to be under pressure as a result, the market breadth has also weakened.

NEWS ON TODAYS MOVERS:

Ø  IT stocks fell by 3.57% after US-based tech major Cognizant Technology Solutions on Monday, 7 May 2012, lowered its revenue guidance for 2012.

Ø  Reliance Industries fell 1.07% after oil minister, S. Jaipal Reddy, reportedly said today, 8 May 2012, that output from the company's KG-D6 block is projected to decline further in 2014-15.

Ø  DLF traded in green, on report the company plans to sell a majority stake in its life insurance joint venture to India's HCL Group for about Rs 500 crore.

Ø  IRB Infrastructure Developers rose 0.59% on bargain hunting after the stock tumbled 30.24% in the preceding four sessions to Rs 119.70 on 7 May 2012 from a recent high of Rs 171.60 on 30 April 2012.

Ø  L&T fell 3.67% to, with the stock sliding on profit booking after Monday's 4.78% rally, after the company said its overseas joint venture firm has secured a large contract from Sadara Chemical Company.

Ø  Shriram Transport Finance Company tumbled 6.45% after consolidated net profit fell 3.78% to Rs 328.78 crore on 12.03% growth in total income to Rs 1583.37 crore in Q4 March 2012 over Q4 March 2011.

Ø  Kotak Mahindra Bank fell 3.74% after consolidated net profit rose 6.01% to Rs 520.92 crore on 43.10% increase in total income to Rs 4363.59 crore in Q4 March 2012 over Q4 March 2011.

Ø  Hindalco Industries rose 1.82% after net profit jumped 42% to Rs 639.99 crore on 15.89% increase in total income to Rs 7807.57 crore in Q4 March 2012 over Q3 December 2011.

CORPORATE NEWS:

Ø  Jubilant in talks with more intl food retailers for india: kaul

Ø  Eclerx services agrees to acquire us-based kpo co. agilyst

Ø  Hcl Infosystems names jaitley president of enterprise solutions

Ø  Aban offshore signs contract for deployment of jack-up rig

Ø  Aban offshore sees revenue from deployment of $26.46m  :aban in

Ø  Gokarn says economic instability affecting india's growth

Ø  * Dena bank fy12 net 8.03 bln rupees vs 6.12 bln         :dbnk in

Ø  MEENA: india state-run banks bad loans rise to 2.84% in fy12

Ø  * Bajaj Hindustan 2q net 87.8 mln rupees vs 728.2 mln    :bjh in

Ø  Kotak Mahindra bank declares dividend of 0.6 rupee-shr  :kmb in

Ø  Kotak Mahindra bank fy12 net 10.9 bln rupees vs 8.18 bln

Ø  Shriram transport finance 4q profit 3.2b rupees vs 3.42b

Ø  Shriram transport to pay final dividend of 4 rupees-shr

Ø  Hindalco industries 4q profit 6.4 bln rupees vs 7.08 bln

Ø  TRAI to hike price for 2G spectrum 8 times.

Ø  RIL D6 gas output may slip to 20 mscmd: Oil Min

Ø  PNGRB refuses marketing margin; +ve for GAIL and PLNG

Ø  DLF mulls to sell insurance JV to HCL

Ø  Air India flights cancelled as 100 pilots refuse to work

Ø  L&T Group Co. bags Saudi Chemicals order

ECONOMIC NEWS:

Ø  India sees kg-d6 natural gas output at 28 mcmd in 2012-13

Ø  India sees kg-d6 natural gas output at 24 mcmd in 2013-14

Ø  India 2011-12 sugar consumption may total 21.5 mln tons: isma

Ø  India may have 4m tons of sugar for exports from 2011-12 output

Ø  U.S. sees india as partner in broad pressure on Iran: clinton

Ø  India junior fm palanimanickam comments in a parliament reply

Ø  Rbi's Gokarn says India’s fy13 growth may be `slightly better'