Mid Market Wrap

Market Commentary:

Ø Asian stocks and emerging-market currencies rose as a decline in oil eased concern that inflation pressure will derail economic stimulus policies.

Ø Back home, sentiments turned bullish in the morning trade. The Sensex showed nice rebound, gaining nearly 300 points now on the back of support from every sector except technology.

Ø The overall market breadth has made a strong start. The broader indices were outperforming benchmarks.

Ø Anil Dhirubhai Ambani group' stocks topped the buying list among Nifty 50 stocks. Reliance Infrastucture shot up 8%; Reliance Communications was up 6.4% and Reliance Power gained 5%.

Ø The rupee appreciated by 5 paise to trade at Rs 49.17 per dollar today on increased foreign capital inflows.

Ø For Nifty Mar Futs, we expect upside to be capped at 5475-5495.

* INDICES: Sensex +290 at 17736 (1.66%), NIFTY +92 at 5373 (1.74%), CNXMIDCAP +210 at 7562 (2.86%)

* SECTORAL PERFORMANCE: BANKEX 3.29%, AUTO 2.92%, CAPITAL GOODS 2.75%, HEALTHCARE 1.21%, Metal 3.21%, OIL & GAS 1.39%, IT 0.25%, FMCG 0.02%, PSU 2.47%, REALTY 4.34%, Consumer Durables 3.22%, POWER 3.07%

* MARKET BREADTH: 462 Advances, 37 Declines (BSE 500)

* TODAY'S GAINERS: RELI 8.02%, RCOM 6.37%, JPA 6%, RPWR 5.59%, TTMT 5.58%

* TODAY'S LOSERS: TCS -1.77%, BPCL -1.07%, CAIR -0.73%, HCLT -0.66%, ITC -0.57%

Pre Open Thoughts: Keep the Faith!

Pre Open Thoughts: Keep the Faith!

Ø Faith is the bird that feels the light when the dawn is still dark. Will the faith for Tuesday’s rally continue…? like the five previous weeks when the frontline indices had galloped on Tuesdays.

Ø The start today is likely to be positive, though most global markets not budging much amid thin trading volumes. The undercurrent is hit by worries over rising oil prices. The trade and current account deficits too are widening. All this calls for continued caution.

Ø The RBI holds its next policy meeting on March 15, a day before the Union Budget. The release of Q3 GDP data is scheduled tomorrow

Ø There is also considerable uncertainty over the outcome of state polls and its impact on the political equation at the Centre. The result of the UP election is particularly crucial. A favorable verdict here for the Congress could embolden it to revive pending reforms. On the flip side, an adverse mandate in UP might force it to maintain status quo on economic measures.

Ø The sell-off in local markets in the last few sessions appeared even more discouraging comparing to the global trends. FII flows seem to be still positive. That could mean sideways consolidation for a few days.

Ø According to systems we had advised caution and we feel that the glumness of February series F&O contract expiry session likely to get spilled over.

Ø For Nifty 5600 remains to be major resistance level now and on down side 5200 should act as a major support levels after we broke a crucial support of 5400 in yesterday’s session.

Ø The FIIs were net buyers of Rs 3.29bn in the cash segment on Monday while the domestic institutional investors (DIIs) were net sellers at Rs 6.99bn, as per the provisional figures released by the NSE.

India Market Wrap

* INDICES: Sensex -478 at 17446 (-2.67%), NIFTY -148 at 5281 (-2.73%), CNXMIDCAP -237 at 7352 (-3.12%)

* SECTORAL PERFORMANCE: BANKEX -3.97%, AUTO -3.32%, CAPITAL GOODS -3.56%, HEALTHCARE -0.54%, Metal -4.86%, OIL & GAS -3.07%, IT -2.08%, FMCG 0.29%, PSU -2.78%, REALTY -5.29%, Consumer Durables -3.42%, POWER -4.03%

* MARKET BREADTH: 55 Advances, 444 Declines (BSE 500)

* VOLUMES: BSE $0.51bn (-12.83%), NSE $2.71bn (-43.78%), F&O $20.49bn (15.36%)

* TODAY'S GAINERS: ITC 1.38%, BPCL 0.5%, SUNP 0.17%, DRRD 0.05%, CIPLA -0.11%

* TODAY'S LOSERS: SESA -10.08%, RPWR -7.68%, SAIL -7.65%, RELI -7.42%, TATA -6.96%

MARKET COMMENTARY:

Indian benchmarks witnessed selling carnage and continued to trade its weak trade in red in the today session and closed near the lowest point of the day. The carnage on the street continued hitting their lowest level in more than three weeks due to absence of buying on depressing global developments and lack of significant positive upside triggers. Investors fretted over spillover risks from the European region while heightened geopolitical tensions between the nuclear ambitious Iran and the West too dented investors’ morale. Traders were seen piling up positions in FMCG sector while selling was witnessed in Metal, Realty and Power sector. Market participants were also seen growing increasingly nervous amid worries that the longest rally in international crude oil prices in two years would not only multiply India’s fiscal woes but also adversely impact global economic growth. On the global front, Asian markets were trading on a mix note while the European markets were trading in red on pessimistic note. Back home, the market breadth was in favor of declines.

NEWS ON TODAYS MOVERS:

Ø UCO Bank lost nearly 7.45%,after the bank said it will convene an Extra-ordinary General Meeting of the shareholders on 23 March 2012 to consider preferential allotment of equity shares to Government of India and LIC.

Ø Sesa Goa lost nearly 10.08%, Sterlite Industries (India) also lost 2.45%, after Vedanta Resources Plc group announced merger of Indian subsidiaries and proposed consolidation and simplification of group structure.

Ø Glenmark Pharmaceuticals fell and recovered towards the close with loss of nearly 0.22% after its US subsidiary issued a voluntary nationwide recall in the US for 7 lots of its oral contraceptive Norgestimate and Ethinyl Estradiol tablets due to a packaging error.

Ø ABB lost 2.79% intraday and recovered and closed with a gain of 0.74%,the slide was triggered by the company stating at the time of announcement of Q4 December 2011 results that its profit margin will remain under pressure.

Ø Fertilizer companies traded on a mix note after a group of ministers approved a revised investment policy offering incentives to fertilizer companies to expand and set up urea plants.

Ø Banking shares fell 1.61% to 6.51% on reports the Intelligence Bureau has warned that the proportion of bad loans on the books of Indian banks could double on account of "restructured" loans.

Ø Orchid Chemicals & Pharmaceuticals fell nearly 0.17% on reports the company would repay foreign currency convertible bonds worth $167 million tomorrow, 28 February 2012.

Ø Oracle Financial Services Software lost nearly 1.63%, after the company clarified that it is neither aware of any delisting plan nor it has received or issued such communication in this regard.

Ø Adani Ports gained nearly 0.67% after the company commented on receiving receives LOI from Kandla Port Trust

CORPORATE NEWS:

Ø McNally Bharat bags Rs66.42 cr orders

Ø Alstom T&D gets order from Power grid worth Rs64.80 cr

Ø Subex receives RBI OK to extend maturity of FCCB

Ø KFA in talks with 2 foreign airlines to rescue carrier

Ø ONGC Assam asset registers record gas sales

Ø ONGC spending Rs26K cr to develop 10 oil clusters

Ø NTPC to invest Rs24K cr in Andhra thermal power plant

Ø SBI decides to slash interest on education loan by 1%

Ø MCX IPO at top end of range, price set at Rs1032 a share

Ø RIL US arm raises $500 mn via bond issue

Ø SBI will not consider any fresh loans to KFA

Ø Glenmark recalls oral contraceptive tablets in US

Ø Govt likely to use disinvestment proceeds to revive PSUs

Ø EGoM meet on ONGC divestment cancelled

Ø Sterlite, Sesa Goa decline on merger plan

ECONOMIC NEWS:

Ø Govt asks PSU banks to cut loan rates by March

Ø GoM to decide on green signal for captive coal blocks

Ø Textiles Min seeks enhanced budget allocation of Rs24,597 cr

Ø Union Budget 2012: CII asks FM not to hike excise, service tax

Mid Market Wrap

Market Commentary:

Ø Asian stocks fell, paring a record 10th weekly gain, and South Korea’s won weakened on concern rising energy costs will hurt economic growth. Oil declined for the first time in eight days.

Ø The Indian equity markets have made the positive start but, slipped into the red as participants engaged in profit-booking amid concerns that rising crude prices in global markets could revive inflation worries.Rate sensitives, capital goods and metals stocks were reeling under pressure. Index heavyweights Reliance and Infosys too were down. Nifty was trading near 5350 level.

Ø Sesa Goa and Sterlite Industries declined while Cairn India rose after Vedanta Resources Plc group on Saturday, 25 February 2012, announced the merger of its Indian subsidiaries.

Ø The overall market breadth has made a negative start. The broader indices too were bleeding badly.

Ø The rupee opened weaker on Monday as higher global oil prices bolstered demand for dollars from refiners. The rupee was at 48.97 to the dollar.

Ø From Intra-day perspective, in our view Nifty is trading very close to its support at 5390-80 level. On the upside, it can face resistance at 5450-60 level.

* INDICES: Sensex -230 at 17694 (-1.28%), NIFTY -76 at 5353 (-1.4%), CNXMIDCAP -174 at 7415 (-2.29%)

* SECTORAL PERFORMANCE: BANKEX -2.32%, AUTO -1.85%, CAPITAL GOODS -3.57%, HEALTHCARE -0.14%, Metal -3.36%, OIL & GAS -0.59%, IT -0.59%, FMCG 0.88%, PSU -1.92%, REALTY -4.13%, Consumer Durables -1.53%, POWER -3.13%

* MARKET BREADTH: 80 Advances, 418 Declines (BSE 500)

* TODAY'S GAINERS: CIPLA 1.69%, BPCL 1.58%, ITC 1.22%, BHARTI 0.8%, HUVR 0.76%

* TODAY'S LOSERS: SESA -9.62%, IDFC -4.83%, BHEL -4.82%, JSP -4.44%, HNDL -4.26%

regards