India Market Wrap

Ø  INDICES: Sensex -157 at 16026 (-0.97%), NIFTY -46 at 4861 (-0.93%), CNXMIDCAP -46 at 6857 (-0.66%)

Ø  SECTORAL PERFORMANCE: BANKEX -1.51%, AUTO -0.79%, CAPITAL GOODS -1.21%, HEALTHCARE -0.51%, Metal -1.83%, OIL & GAS -0.56%, IT 0.15%, FMCG -0.89%, PSU -1.01%, REALTY -1.23%, Consumer Durables 0.11%, POWER -1.45%

Ø  MARKET BREADTH: 146 Advances, 343 Declines (BSE 500)

Ø  VOLUMES: BSE $0.33bn (17.05%), NSE $1.63bn (15.29%), F&O $22.33bn (25.45%)

Ø  TODAY'S GAINERS: HCLT 1.71%, TTMT 1.24%, TCS 1.23%, SAIL 0.99%, BHEL 0.87%

Ø  TODAY'S LOSERS: TPWR -5.49%, SESA -5.23%, MSIL -4.54%, STLT -4.01%, RPWR -3.68%

MARKET COMMENTARY:

Indian equities came under pressure for a second consecutive trading session of the week, as continued weakness in the rupee raised fears of more outflows from FIIs.  Domestic markets failed soar in tandem with the rally in global markets as domestic concerns marred investors’ appetite for riskier asset classes like equities. Though, the beaten down sectoral gauges of last session IT and technology have moved higher but the rate sensitive that were the top gainers are suffering sharp profit taking. Power sector too has given up its last session gains. On the global front, though the European markets made a bit hesitant start but have gathered momentum on speculation that China and the euro area will do more to bolster economic growth. Sentiments in Asian markets remained sanguine since the start of trade tracking overnight rally in US markets as investors resorted to bargain hunting amid some supportive developments from the meeting of group of eight (G8) nations and hopes that world’s second largest economy China would employ further stimulus measures to spur growth of the global growth machine. Back home, the beleaguered the rupee slipped below the 55.25 per dollar mark, hitting a four-month low against the greenback, as the widening trade and current account deficits weighed on the Indian currency. which started on a positive note went ahead to touch fresh historical lows in the session and weighed down investors’ morale. On the sectoral space, buying was evident in the Healthcare and Consumer Durables supported the benchmark indices. On the flipside, the falls in high beta Realty, Banking and Power sectors by more than a percent each exerted pressure on the bourses. Moreover, the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø  ABB rose 1.99%, after the company said it won an order worth around Rs 175 crore from NTPC to build two substations in Maharashtra.

Ø  National Aluminium Company fell 1.89% after net profit fell 7.6% to Rs 282.10 crore on 1.9% decline in net sales to Rs 1753.41 crore in Q4 March 2012 over Q4 March 2011.

Ø  Gitanjali Gems rose 0.34% after consolidated net profit rose 37.32% to Rs 487.25 crore on 33% growth in net sales to Rs 12498.30 crore in the year ended 31 March 2012 over the year ended 31 March 2011.

Ø  State-run oil marketing companies rose 0.3% on reports the government will provide Rs 38500 crore as cash subsidy to state-run oil companies for January-March 2012 quarter. .

Ø  Reliance Industries declined 0.63% after the company said to seeks loan of $1 bn to fund expansion

Ø  Thomas Cook (India) rose 2.54% after the company said its parent Thomas Cook Group plc has reached an agreement with a subsidiary of Fairfax Financial Holdings to sell its 77% stake in the company to the latter.

Ø  Sun Pharmaceutical Industries fell 3.48% on profit booking after the stock rose 2.21% in the preceding two sessions to Rs 593.05 on 21 May 2012 from a recent low of Rs 580.25 on 17 May 2012.

Ø  Power Finance Corporation rose 0.51% after net profit rose 34.69% to Rs 818.30 crore on 40.44% increase in total income to Rs 3,684.29 crore in Q4 March 2012 over Q4 March 2011.

Ø  Bhel rose 0.87%, extending Monday's 2.51% rise triggered by the company bagging a contract from NTPC.

Ø  Tata Communications fell 0.45% after the company reported consolidated net loss of Rs 260.94 crore for Q4 March 2012, higher than net loss of Rs 156.51 crore in Q4 March 2011.

CORPORATE NEWS:

Ø  Suven Life Sciences gets four patent approvals

Ø  RIL ropes in Phillips 66 technology for Jamnagar plants

Ø  Genpact inks finance, accounting deal with Dr Reddy's

Ø  PFC Q4 net up 35% at Rs 820 cr

Ø  Venus Remedies gets patent in South Africa for antibiotic

Ø  Nalco's net profit Rs 849 cr in 2011-12

Ø  Tata Comm Q4 net loss widens to Rs 261 cr

Ø  The Coal India-ICVL story: Missed opportunitie

Ø  Apollo Tyres expands capacity of S Africa units by 20-30%

Ø  Thomas Cook India sells stake to Fairbridge for Rs 817 cr

Ø  Swiss Re may buy 26% in L&T's proposed health insurance JV

Ø  Wockhardt cons Q4 net loss at Rs191.64

Ø  PFC cons Q4 net profit surges by 16%

Ø  Dr Reddy's launch Lansoprazole capsules in US market

Ø  Bajaj Auto to boost capacity by 25% to match up with competition

Ø  PSU OMCs in demand on likely oil subsidy

Ø  M&M to infuse Rs500 cr, aims to recapture 2wheeler mkt

Ø  RBI will continue take steps to stabilise rupee: Gokarn |

Ø  ABB bags Rs175 cr order from NTPC

Ø  RIL seeks loan of $1 bn to fund expansion

Ø  Tata Motors to raise funds via bonds: Source

Ø  RINL files draft prospectus for IPO

ECONOMIC NEWS:

Ø  Presidential polls: Sangma appeals to political parties