Sensex shines 85 points ahead of IIP data; Rail stocks plunge after Railway budget announcement

1. Sensex shines 85 points ahead of IIP data; Rail stocks plunge after Railway
budget announcement
Market Snapshot | 12-02-2014 04:22 PM
Indian indices opened gap up to resume the sanguine trades of previous session cheering gains in global peers. Bulls
retained their hold on D-Street with Sensex gaining over 100 points as the appreciation in Rupee against Dollar
weighed. However, sentiments turned murky as no concrete proposal was announced in UPA’s interim Railway
budget. Benchmarks pared some of their initial gains and ended marginally in green zone ahead of macro-economic
data announcements. Sensex ends 85 points up. On BSE sectorial front, Capital Goods was the top gainer.
Among global peers, US indices spiked over 1% after Janet Yellen’s first testimony. The Fed Chairwoman underscored
to keep interest rates low and continue the stimulus tapering if the economy keeps improving. She further added that
accommodative policy will remain appropriate for a considerable time after the end of asset purchases. Asian and
European indices too traded higher tracking the optimistic sentiments from Wall-Street.
Back home, on currency front, domestic currency extended the winning streak of previous sessions against Dollar after
banks resumed operations post two day strike aiding Dollar inflows. In future trades, INR touched an intra-day high of
62.18/USD and an intra-day low of 62.35/USD. On spot trades, INR made an intra-day high of 62.05/USD and an intraday low of 62.18/USD. As per RBI reference rate, INR stood at 62.12/USD. (Read More)
On macro-economic front, Railway Minister Mallikarjun Kharge presented interim Railway Budget 2014 today in the
Parliament. Railway stocks pared all the earlier gains as no concrete proposal was announced.
Key highlights:
• The plan outlay for FY14 revised downwards to Rs 59,359 crore from Rs 64000 crore. The annual rail plan of Rs
64305 crore pegged for FY15.
• Gross traffic receipt for 2014-15 is pegged at Rs. 160,775 crore - goods receipts Rs. 105,770 crore, passenger
receipts Rs. 45,255 crore.
• Operating ratio for 2014-15 is targeted to improve marginally to 89.8% against 90.8% in the current fiscal.
• Railways to end current year with surplus
• 17 new premium trains, 38 express trains and 10 passenger trains announced for the coming year.
• No change in passenger fares and freight rates.
• In five-year plan period, the targets of 2270 km of new rail tracks and 4556 km of electrification were achieved and
thereby exceeded the plan targets.
Furthermore, the Cabinet Committee on Economic Affairs (CCEA) has again deferred the decision on subsidy for
export of raw sugar for the third time in row due to unresolved differences between Agriculture and Food Ministry on
quantum of subsidy. Food Ministry proposed a subsidy of Rs 2000 per ton on export of four million tons (mt) of raw
sugar for two years whereas the Agriculture Ministry proposed higher subsidy of Rs 3500 per ton. Sugar stocks of
Shree Renuka Sugars, Bajaj Hindusthan, Balrampur Chini Mills and EID parry plunged up to 2.7% on BSE. (What's
Hot)
On stock specific developments, United Spirits slipped 2% on BSE as the company has reportedly cut prices of select
products by 5%-15% in various states. The slash in prices may hurt the operating margins of the company. (Read
More)
PSU major, NTPC has paid Government of India a huge amount of Rs 2473.64 crore as an interim dividend for the
financial year 2013-14. The stock ended 1.2% down on BSE. (Read More)
Motherson Sumi jumped 5% to hit new 52 week high at Rs 231.85 on BSE today. The stock has rallied nearly 30%
since January 30, on registering strong Q3 numbers.
Kothari products was locked at upper circuit of 20% and made a new 52 week high of Rs 465.35 on BSE after the
company’s Board recommended a bonus issue in the ratio of 2:1.
Key Quarterly Results
Tata Steel tumbled 4% on BSE despite posting a spike of 45% in Q3FY14 Net at Rs 1518.7 crore as compared to Rs
1046.4 crore in the corresponding quarter of the previous year. On consolidated basis, the group’s Net stood at a profit
of Rs 503.24 crore for the quarter as against a loss of Rs 763.06 crore in corresponding quarter last fiscal. (Featured
Result)
State owned Bharat Petroleum Corporation (BPCL) gained 1.5% on BSE despite reporting a Net loss Rs 1088.94
crore in Q3FY14 as compared to Net profit of Rs 1647.57 crore for the same quarter in the previous year. (Read More)
Another Oil and Gas major, Hindustan Petroleum Corporation Ltd (HPCL) dropped 1.7% on BSE after recording a
crash of 1279% in Q3FY14 at a Net loss of Rs 1734 crore as compared to a Net profit of Rs 147 crore in the same
period of previous fiscal. (Result)
GMR Infrastructure registered a Net loss of Rs 441.09 crore in Q3FY14 as compared to Net loss of Rs 217.45 crore
for the same quarter in the previous year. On standalone basis, the company’s Net loss widened to Rs 30.14 crore as
compared to Net loss of Rs 12.52 crore for Q3FY13. The stock ended 1% up on BSE. (Result)

2. Fortis Healthcare dipped 1.35% on BSE after posting a sharp fall in Q3 consolidated Net at Rs 389.09 crore as
against Rs 705.03 crore in same quarter of the previous fiscal.
VA Tech Wabag climbed 5.6% to touch fresh yearly high at Rs 638.9 on NSE after the company’s consolidated
Q3FY14 Net doubled to Rs 21 crore as against Rs 10 crore in Q3FY13. (Result)
T h e market breadth on the BSE closed in negative. Advancing and declining stocks were 1326 and 1378
respectively, while 148 scrips remained unmoved.
The S&P BSE Sensex ended at 20448.49, up 85.12 points or 0.42%. The 30 share index touched a high and a low of
20516.60 and 20427.23 respectively. 17 stocks advanced against 13 declining ones on the benchmark index.
The CNX Nifty gained 21.30 points or 0.35% to settle at 6084.00. The index touched high and low of 6106.60 and
6077.40 respectively. 26 stocks advanced against 24 declining ones on the index.
S&P BSE Sensex
CNX Nifty
The S&P BSE Mid-cap index moved up to 6357.75 and gained 0.00% while S&P BSE Small-cap index jumped up by
0.04% to 6349.09.
The broader S&P BSE 500 index increased to 7502.46 (up 0.22%) and CNX 500 index rose to 4711.95 (up 0.26%).
The volatility as denoted by INDIA VIX lost 6.44% at 17.43 from its previous close of 18.63 on Tuesday.
Sectors in action
On the BSE Sectorial front, Capital Goods (up 1.51%), Oil & Gas (up 1.27%) and Banks (up 0.95%) were the top
gainers.
Metals (down 1.33%), FMCG (down 0.85%) and Real Estate (down 0.32%) were the top losers.
The Angels and the Devils
ICICI Bank (up 3.11%), GAIL (India) Ltd (up 2.57%), Oil and Natural Gas Corporation Ltd (up 2.50%), Larsen And
Toubro Ltd (up 1.72%) and Bharat Heavy Electricals Ltd (up 1.48%) were the top gainers on the Sensex.
Tata Steel Ltd (down 4.05%), Maruti Suzuki India Ltd (down 1.67%), Dr. Reddys Laboratories Ltd (down 1.62%), ITC
Ltd (down 1.46%) and NTPC Ltd (down 1.21%) were the top losers on the Sensex.
Benchmark Drivers
ICICI Bank (40.38 points), ITC Ltd (-30.61 points), Reliance Industries Ltd (24.64 points), Housing Development
Finance Corporation Ltd (17.18 points) and Larsen And Toubro Ltd (16.48 points) were the major Sensex drivers
today.
On the other end ICICI Bank (10.16 points), ITC Ltd (-7.33 points), Reliance Industries Ltd (6.52 points), Housing
Development Finance Corporation Ltd (4.60 points) and Larsen And Toubro Ltd (4.07 points) were the major Nifty
movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 6089 for next session. The next support is at 6072 and on upside it has a resistance at
6101 levels.
CNX Nifty
Eff. Date
13-Feb-2014
12-Feb-2014
11-Feb-2014
S3
6043
6021
6002
S2
6060
6037
6024
S1
6072
6050
6039
PIVOT
6089
6066
6061
R1
6101
6079
6076
R2
6119
6095
6098
R3
6130
6107
6112
Actual Close
6084.00
6062.70
S&P BSE Sensex has a pivot at 20464 with first level of support and resistance at 20412 and 20501 respectively.
S&P BSE Sensex
Eff. Date
13-Feb-2014
12-Feb-2014
11-Feb-2014
S3
20322
20234
20164
Follow us on
S2
20375
20292
20238
S1
20412
20327
20286
PIVOT
20464
20385
20360
R1
20501
20421
20408
R2
20553
20479
20483
R3
20590
20515
20531
Actual Close
20448.49
20363.37
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