Sensex climbs 0.7% on SLR cut; Nifty @7416

1. Sensex climbs 0.7% on SLR cut; Nifty @7416
Market Snapshot | 03-06-2014 04:47 PM
Tracing the optimistic trades in global peers, Indian indices spurted at open but traded cautiously and dipped in red
zone ahead of the RBI Bi-monthly monetary policy announcements. Subsequently, bulls were back on D-Street with a
bang as RBI slashed SLR while kept CRR unchanged. Both barometer gauges climbed higher to settle 0.7% up with
Nifty reclaiming 7400 milestone. On BSE sectorial front, Metals index rocked the show by rallying over 5%.
Among global peers, US markets climbed mostly higher with the S&P 500 and Dow Jones Industrial Average closing
at record high levels. Tracking the supportive clues from Wall-Street and cheering the Chinese manufacturing data,
most of the Asian indices edged higher. On the flip side, European indices witnessed weak trades amidst Ukrainian
worries.
Back home, on currency front, Rupee witnessed cautious trades against Dollar ahead of the RBI monetary policy
review and later plunged against Dollar to react to the change in rates. In futures trades, INR hit an intra-day high of
59.31/USD and an intra-day low of 59.6/USD. In spot trades, INR hit an intra-day high of 59.12/USD and an intra-day
low of 59.32/USD. As per RBI reference rates, INR stood at 59.21/USD.
On macro-economic front, Reserve Bank of India, by and large maintained the existing state of affairs in its Second
Bi-Monthly Monetary Policy Statement of FY 2014-15. The apex bank has left the cash reserve ratio (CRR) of
scheduled banks unchanged at 4% and the liquidity adjustment facility (LAF) unchanged at 8%. However, in a bit of
surprise, RBI slashed statutory liquidity ratio (SLR) by 50 basis points from 23% to 22.5% with effect from the fortnight
beginning June 14, 2014. The slash in SLR will inject a sum of over Rs 39000 crore to boost liquidity of Banks.
On commodities front, Gold futures hit 4-month low marking its fifth and longest session of losing streak in past
seven months. Expansion in US manufacturing sector is dragging the yellow metal lower. In futures trades, Gold hit an
intra-day high of Rs 26875 per 10 grams and an intra-day low of 26695 per 10 grams. Furthermore, Government of
India has slashed Gold and Silver import tariffs, to aid the decrease in prices of precious metals amidst softening global
rates. Gold import tariff was slashed to $408 per 10 gram from $424 per 10 gram and Silver import tariff was cut to
$617 per kg from $650 per kg.
Adding a cherry to the cake, the recent rally in domestic currency has lowered import costs resulting in a cut of 1.8% in
Jet fuel price and a slash of Rs 23.5 per cylinder on non-subsidized cooking gas (LPG). This is the third reduction in jet
fuel rates since April amidst declining international oil prices and the strengthening rupee against dollar that has made
imports cheaper.
The output growth of eight core industries that have a weight of 37.9% in the overall Index of Industrial Production (IIP)
has grew by 4.2% in the month of April as compared to 2.5% in March and 3.7% in the same month of previous year.
The eight industries include crude oil, petroleum refinery products, natural gas, fertilizers, coal, electricity, cement and
finished steel. The reason behind the surge was mainly the high production of electricity, fertilizers, cement and coal.
On stock-specific front, metal stocks shined up to 6.7% as Chinese Purchasing Managers' Index spike to 4 month
high at 50.8 in May from 50.4 in April. The rise in manufacturing activity gave a sigh of relief to the metal companies as
China is the world's largest consumer of copper and aluminum.
ZEE Entertainment Enterprises spiked 2.13% on BSE after Reserve Bank of India (RBI) has allowed up to 100% FII
investment from earlier limit 49% of the paid up capital.
IPCA Laboratories jumped 1.5% on BSE as the company has entered into an agreement with US-based
Oncobiologics, Inc. for creation of a two-part alliance for the development, manufacture and commercialization of
biosimilar monoclonal antibody products.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 2003 and 1143 respectively,
while 116 scrips remained unmoved.
The S&P BSE Sensex ended at 24858.59, up 173.74 points or 0.70%. The 30 share index touched a high and a low
of 24892.06 and 24626.97 respectively. 17 stocks advanced against 13 declining ones on the benchmark index.
The CNX Nifty gained 53.35 points or 0.72% to settle at 7415.85. The index touched high and low of 7424.95 and
7342.15 respectively. 30 stocks advanced against 20 declining ones on the index.
S&P BSE Sensex CNX Nifty

2. The S&P BSE Mid-cap index moved up to 8705.06 and gained 0.63% while S&P BSE Small-cap index jumped up by
1.18% to 9305.87.
The broader S&P BSE 500 index increased to 9448.70 (up 0.74%) and CNX 500 index rose to 5956.85 (up 0.76%).
The volatility as denoted by INDIA VIX lost 4.24% at 15.80 from its previous close of 16.50 on Monday.
Sectors in action
On the BSE Sectorial front, Metals (up 5.06%), Real Estate (up 3.15%) and Oil & Gas (up 1.76%) were the top
gainers.
FMCG (down 0.75%), Healthcare (down 0.50%) and Banks (down 0.18%) were the top losers.
The Angels and the Devils
Tata Steel Ltd (up 6.69%), Sesa Sterlite Ltd (up 6.53%), Coal India Ltd (up 5.29%), Oil and Natural Gas Corporation
Ltd (up 4.40%) and Bharat Heavy Electricals Ltd (up 3.48%) were the top gainers on the Sensex.
Dr. Reddys Laboratories Ltd (down 3.15%), GAIL (India) Ltd (down 2.07%), Hindustan Unilever Ltd (down 1.51%), ITC
Ltd (down 1.16%) and Wipro Ltd (down 0.95%) were the top losers on the Sensex.
Benchmark Drivers
Oil and Natural Gas Corporation Ltd (34.83 points), Sesa Sterlite Ltd (28.24 points), Housing Development Finance
Corporation Ltd (26.14 points), Tata Steel Ltd (25.99 points) and Reliance Industries Ltd (25.57 points) were the major
Sensex drivers today.
On the other end Oil and Natural Gas Corporation Ltd (8.83 points), Housing Development Finance Corporation Ltd
(7.29 points), Sesa Sterlite Ltd (7.18 points), Reliance Industries Ltd (7.04 points) and Tata Steel Ltd (6.91 points)
were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7394 for next session. The next support is at 7364 and on upside it has a resistance at
7446 levels.
CNX NiftyCNX Nifty
Eff. DateEff. Date S 3S 3 S 2S 2 S 1S 1 PIVOTPIVOT R 1R 1 R 2R 2 R 3R 3 Actual CloseActual Close
04-Jun-2014 7281 7312 7364 7394 7446 7477 7529 -
03-Jun-2014 7149 7194 7278 7324 7408 7453 7537 7415.85
02-Jun-2014 6987 7053 7141 7207 7295 7361 7450 7362.50
S&P BSE Sensex has a pivot at 24793 with first level of support and resistance at 24693 and 24958 respectively.
S&P BSE SensexS&P BSE Sensex
Eff. DateEff. Date S 3S 3 S 2S 2 S 1S 1 PIVOTPIVOT R 1R 1 R 2R 2 R 3R 3 Actual CloseActual Close
04-Jun-2014 24428 24527 24693 24793 24958 25058 25223 -
03-Jun-2014 23961 24116 24400 24555 24839 24994 25278 24858.59
02-Jun-2014 23946 24055 24136 24245 24326 24435 24516 24684.85
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