India Market Wrap

Ø  INDICES: Sensex -77 at 16216 (-0.47%), NIFTY -21 at 4908 (-0.43%), CNXMIDCAP -63 at 6923 (-0.9%)

Ø  SECTORAL PERFORMANCE: BANKEX -1.61%, AUTO -0.65%, CAPITAL GOODS 0.34%, HEALTHCARE 0.78%, Metal -0.55%, OIL & GAS -1.69%, IT 0.24%, FMCG 0.28%, PSU -0.91%, REALTY -1.27%, Consumer Durables 0.36%, POWER -0.79%

Ø  MARKET BREADTH: 144 Advances, 353 Declines (BSE 500)

Ø  VOLUMES: BSE $0.34bn (-4.77%), NSE $1.66bn (-3.93%), F&O $13.31bn (-42.26%)

Ø  TODAY'S GAINERS: RBXY 2.22%, BPCL 1.93%, LT 1.88%, BJAUT 1.85%, SESA 1.2%

Ø  TODAY'S LOSERS: CAIR -4.49%, PNB -2.82%, SAIL -2.74%, RPWR -2.71%, RELI -2.58%

MARKET COMMENTARY:

There is no end in sight to the ongoing selloff in the Indian equities at the moment, as the Government continues to dither on key reforms and the central bank is running out of options to shore up the markets. The outcome is deteriorating economic fundamentals, weak business environment, pressure on corporate earnings, FII outflows and further dent in India's credibility. The Indian stock markets continued to trade under pressure in the late noon session, the impressive numbers of the capital goods major Larson & Toubro (L&T) had helped to pare the losses a bit, but the rise in inflation numbers along with weak global cues weighed down the sentiments. Apart from the capital goods, the defensive sectors Healthcare (HC), Fast Moving Consumer Goods (FMCG) along with Consumer Durables and IT sector are keeping their head in the green, while Oil & Gas, and the rate sensitive’s’ banking, realty and metal were the laggard of the late trade. The global cues too remained sluggish and most of the Asian markets were trading in red, while the European indices have made a panicking start with most of the indices trading lower by 1.5-2.5%.Meanwhile Moody's cut its rating for state-run Life Insurance Corp of India (LIC) two weeks after it put the country's largest portfolio investor under review for a downgrade over its high exposure to sovereign debt and lack of revenue sources outside of India. Moody's also downgraded the financial strength ratings (BFSR) of ICICI Bank, HDFC Bank and Axis Bank. Moreover, the broader markets traded on a pessimistic note with sharp cuts while the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø  Mahanagar Telephone Nigam lost 3.08% after the company reported net loss of Rs 1374.45 crore in Q4 March 2012, higher than net loss of Rs 1099.58 crore in Q4 March 2011.

Ø  Essar Oil fell 3.76% after the company reported net loss of Rs 515 crore in Q4 March 2012, compared with a net profit of Rs 321 crore in Q4 March 2011.

Ø  Divi's Laboratories surged 7.29% after consolidated net profit rose 24% to Rs 217 crore on 50% growth in total income to Rs 722 crore in Q4 March 2012 over Q4 March 2011.

Ø  JSW Ispat Steel fell 2.90% after the company reported net loss of Rs 141.29 crore in Q3 March 2012, compared with net profit of Rs 70.42 crore in Q3 March 2011.

Ø  Infrastructure Development Finance Company fell 1.99% , with the stock sliding on profit booking after 3-day 6.56% rally triggered by the company reporting strong FY 2012 results.

Ø  Adani Power tumbled 3.74% after the company reported net loss of Rs 290.16 crore in Q4 March 2011, compared with net profit of Rs 174.32 crore in Q4 March 2011.

Ø  Oracle Financial Services Software fell 3.05% after consolidated net profit fell 48% to Rs 194 crore in Q4 March 2012 over Q4 March 2011.

Ø  L&T rose 1.88% ,after the company said recurring profit after tax, adjusted for exceptional items, jumped 24.8% to Rs 1877 crore on 21.1% growth in gross revenue to Rs 18646 crore in Q4 March 2012 over Q4 March 2011.

Ø  Reliance Industries plunges near 52-week low level by 2.28%, stocks of the company has been in eye of storm ever since the Oil Ministry hiked the penalty it wants to impose on Mukesh Ambani owned Reliance Industries (RIL) and its British partner BP plc for diminishing natural gas output from KG-D6 fields, by 18 percent to $1.46 billion.

CORPORATE NEWS:

Ø  BHEL bags order from Rajya Vidyut Utpadan Nigam

Ø  L&T Q4 cons net profit marginally up by 5%

Ø  Adani Ports Q4 cons net profit at Rs1102.07 cr

Ø  Air India strike enters 7th day, 14 flights cancelled

Ø  Moody downgrades 3 blue chips banking stks

Ø  Union Bank of India to revise BPLR

Ø  Chambal Fertilisers Q4 net profit at Rs93.18 cr

Ø  RIL arm revenue grows to Rs7,599 cr

Ø  ONGC gears up to take a call on CBM soon

Ø  DLF set to start its own fire brigade

Ø  Govt notifies free sugar exports

Ø  JSW Steel Q4 net dips 10% to Rs 752 cr

Ø  JSW Steel expects higher sales in FY13

ECONOMIC NEWS:

Ø  Mumbai home prices fell 9.1 % between March 2011-12: Knight Frank

Ø  Inflation jump means India monetary easing hard: Rangarajan

Ø  No plan to revamp FCI: govt

Ø  April Inflation at 7.23% versus 6.89% in March