India Market Wrap

Ø  INDICES: Sensex -67 at 16480 (-0.4%), NIFTY -25 at 4975 (-0.5%), CNXMIDCAP -78 at 7055 (-1.09%)

Ø  SECTORAL PERFORMANCE: BANKEX -1.89%, AUTO -0.96%, CAPITAL GOODS -0.31%, HEALTHCARE -0.08%, Metal -2.06%, OIL & GAS -1.31%, IT -0.17%, FMCG 2.69%, PSU -1.79%, REALTY -2.99%, Consumer Durables -0.18%, POWER -1.84%

Ø  MARKET BREADTH: 109 Advances, 384 Declines (BSE 500)

Ø  VOLUMES: BSE $0.38bn (-4.34%), NSE $2.05bn (-0.16%), F&O $21.61bn (-10.09%)

Ø  TODAY'S GAINERS: ITC 5.73%, RBXY 4.17%, TCS 2.07%, BJAUT 1.9%, HCLT 1.65%

Ø  TODAY'S LOSERS: JPA -5.23%, DLFU -4.19%, KMB -3.95%, SBIN -3.69%, RPWR -3.25%

MARKET COMMENTARY:

Indian benchmarks witnessed through a volatile trading session on Wednesday as  equity indices slipped-back below the psychological 16,500 (Sensex) and 5,000 (Nifty) levels in early noon trades. The frontline indices showed mild recovery in late morning trades and traded in an extremely tight range just above the previous closing levels. However, nervous market participants turned jittery in early noon trades following the European stock markets which after a flat to positive opening, slipped into the negative terrain 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 the chances for a coalition slim. Stock markets across the Asian region went back to their losing ways with most equity indices traded lower by half to one percent. Political uncertainty in Greece intensified concerns over Europe's onerous financial trouble and undermined investors’ morale. Deepening the feeling of instability a staunch leftist is likely to stitch together a coalition government with the aim of tearing up Greece's bailout agreements, a move that would spark a dangerous escalation of the Euro-zone debt crisis. Back home, the concerns from money market showed little signs of dying down as the anemic rupee slipped closer to 54 against the US dollar despite recent measures from the central bank to support the beleaguered currency. Meanwhile, the broader markets overall traded on a negative note with moderate cuts of around half a percent with the market breadth in favor of declines.

NEWS ON TODAYS MOVERS:

Ø  Asian Paints rose 1.46% after consolidated net profit rose 39.48% to Rs 259.48 crore on 29.5% increase in net sales to Rs 2538.70 crore in Q4 March 2012 over Q4 March 2011.

Ø  Lanco Infratech declined 1.54 even after the company it received an order from the Supreme Court to resume development on a township project in Hyderabad.

Ø  Glenmark Pharmaceuticals rose nearly 3.30% after consolidated net profit rose 32.5% to Rs 150.36 crore on 34.1% growth in revenue to Rs 1065.86 crore in Q4 March 2012 over Q4 March 2011.

Ø  Tribhovandas Bhimji Zaveri traded 7.50% discount over initial public offer price of Rs 120 per share.

Ø  Emami surged 3.85% after consolidated net profit rose 32.6% to Rs 72.37 crore on 15.3% growth in net sales to Rs 403.55 crore in Q4 March 2012 over Q4 March 2011.

Ø  Public sector oil marketing companies traded firm on anticipations of fuel price hike after finance minister Pranab Mukherjee on Tuesday called for a combined effort to bring down fuel subsidies.

Ø  Reliance Industries fell 1.87% on reports the firm has reduced estimates for proven gas reserves from its Indian blocks by 6.7% to 3.67 trillion cubic feet.

Ø  Bajaj Hindusthan fell 4.41%, with the stock extending Tuesday's 3.08% slide triggered by the company reporting poor Q2 earnings.

Ø  Punjab National Bank fell nearly 2.10% after ratio of net non-performing assets increased to 1.52% at 31 March 2012 from 0.85% at 31 March 2011.

Ø  Shriram Transport Finance Company rose 1.17%, with the stock recovering on bargain hunting after 6-day 12.37% slide.

Ø  ITC trades higher on the bourses with 5.73% after company has hiked cigarette prices by 5-16 percent, a move that comes close on the heels of the Union Budget proposing a hike in excise duty of cigarettes by 15 percent.In the Union Budget 2012, the finance minister introduced an ad valorem component in cigarette (length greater than 65mm) in addition to the existing specific duty, 10 percent ad valorem excise duty will be levied on 50 percent of maximum retail price (MRP) which is 5 percent of MRP.

CORPORATE NEWS:

Ø  PNB Q4 net rises 19% at Rs 1,424 cr

Ø  Fire at M&M Nasik plant, operations suspended

Ø  Tata Metaliks allots Rs 100 cr shares to Tata Steel

Ø  ICICI Bank raises foreign currency deposit rates

Ø  Union Bank of India Q4 up 29% at Rs 773 cr

Ø  PNB Q4 net rises 19% at Rs 1,424 cr

Ø  Air India may move court against pilots' strike

Ø  Lanco gets Supreme Court nod for township project

Ø  Union Bank Q4 cons net profit declines by 15%

Ø  Maruti ups prices of diesel DZire by Rs12K

Ø  Glenmark Pharma Q4 net profit at Rs148.23 cr

Ø  Emami Q4 cons net profit up by 32%

Ø  Telenor reports Rs530 crore loss on Uninor blows

ECONOMIC NEWS:

Ø  Govt ups excise duty on cigarette

Ø  IRDA puts pension product approvals on hold

Ø  AI agitation enters 2nd day, 3 more flights cancelled