- Indian stock benchmarks fell slightly despite a rise in the services PMI, with the Sensex closing down 0.21% and the Nifty down 0.18% - The services PMI rose to 50.2 in May, indicating expansion in the key services sector for the first time in 11 months - Several pharmaceutical and materials companies saw share gains, while IT companies declined

1. Benchmarks plunge 0.2% despite robust rise in Services PMI
Market Snapshot | 04-06-2014 04:19 PM
Following a spurt at start, Indian indices plunged in the early morning deals amidst soft global cues. Benchmarks
continued the lackluster trades with several failed attempts to trade above water. Both barometer gauges slipped
further shrugging off the jump in May Services PMI and settled near intra-day low levels. On BSE sectorial front, IT
was the top loser.
Among global peers, US markets broke a 3-day winning streak to end marginally lower shrugging off the better-than-
expected monthly car sales and rise in factory orders data. Tracking the weak cues, Asian and European indices too
traded mostly in red zone.
Back home, on currency front, Rupee took a U-turn and turned northwards after touching 3-week low in previous
session on robust Services PMI reading. In futures trades, INR hit an intra-day high of 59.40/USD and an intra-day low
of 59.68/USD. In spot trades, INR hit an intra-day high of 59.20/USD and an intra-day low of 59.45/USD. As per RBI
reference rates, INR stood at 59.33/USD.
On commodities front, the yellow metal continued the southward journey on some mixed economic data from China.
In futures trades of June 05 expiry, Gold marked intra-day high at Rs 26799 per 10 grams and an intra-day low at Rs
26654 per 10 grams.
On macro-economic front, the activity in Indian services sector gauged by HSBC services Purchasing Managers’
Index (PMI) witnessed first expansion in 11 months in the month of May. Services PMI rose to 50.2 in May from 48.5 in
the previous month marking a reading above 50 mark that separates growth from contraction. Service sector
represents around 60% of Indian GDP and hence the expansion indicates some signs of retrieval and steadiness in
the economy.
On stock-specific front, Welspun Corp jumped 13.8% to mark fresh 52 week high at Rs 100.4 on BSE as the
Welspun Group acquired entire stake held by Mulheim in the company at Rs 85.25 per equity share via a block deal on
BSE.
Pharmaceutical major, Biocon climbed 2.6% on BSE after expanding tie up with NYSE listed Bristol-Myers Squibb for
five more years for drug discovery and development collaboration in India.
Suven life Sciences spurted 7.6% on BSE after getting product patent from USA for the treatment of disorders
associated with Neurodegenerative diseases.
National Mineral Development Corporation (NMDC) rose 5.45% on BSE after hiking iron ore lumps prices for June by
7%. In addition, it has also upped the iron ore fine prices for the month under review by 8.6%.
Orbit Corporation soared 8.4% on BSE after Morgan Stanley Asia Singapore PTE bought 1240000 shares of the
company at Rs 22.25 per share on June 3, 2014. On the other hand, IFCI sold 800000 shares of Orbit Corporation at
Rs 20.68 per share.
National Fertilizers rallied 10% on BSE after recording a dip in Net Loss for Q4FY14 at Rs 9.8 crore versus Rs 107.04
crore for Q4FY13.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 2215 and 986 respectively,
while 114 scrips remained unmoved.
The S&P BSE Sensex ended at 24805.83, down 52.76 points or 0.21%. The 30 share index touched a high and a
low of 24925.90 and 24773.93 respectively. 15 stocks advanced against 15 declining ones on the benchmark index.
The CNX Nifty lost 13.60 points or 0.18% to settle at 7402.25. The index touched high and low of 7433.30 and
7391.35 respectively. 25 stocks advanced against 25 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 8865.94 and gained 1.85% while S&P BSE Small-cap index jumped up by
1.96% to 9488.71.
The broader S&P BSE 500 index increased to 9476.77 (up 0.30%) and CNX 500 index rose to 5972.85 (up 0.27%).

2. The volatility as denoted by INDIA VIX lost 1.46% at 15.57 from its previous close of 15.80 on Tuesday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 1.55%), Capital Goods (up 1.25%) and Metals (up 1.17%) were the top
gainers.
Information Technology (down 1.27%), Oil & Gas (down 1.26%) and FMCG (down 0.23%) were the top losers.
The Angels and the Devils
Hero MotoCorp Ltd (up 3.57%), Hindalco Industries Ltd (up 3.48%), Hindustan Unilever Ltd (up 2.26%), Tata Steel Ltd
(up 2.06%) and Bajaj Auto Ltd (up 1.56%) were the top gainers on the Sensex.
Tata Consultancy Services Ltd (down 1.92%), Oil and Natural Gas Corporation Ltd (down 1.87%), Bharti Airtel Ltd
(down 1.59%), Reliance Industries Ltd (down 1.54%) and Housing Development Finance Corporation Ltd (down
1.14%) were the top losers on the Sensex.
Benchmark Drivers
Reliance Industries Ltd (-34.74 points), Tata Consultancy Services Ltd (-27.88 points), Larsen And Toubro Ltd (18.92
points), Housing Development Finance Corporation Ltd (-17.88 points) and HDFC Bank (-17.81 points) were the major
Sensex drivers today.
On the other end Reliance Industries Ltd (-9.55 points), Tata Consultancy Services Ltd (-6.94 points), Larsen And
Toubro Ltd (5.33 points), Housing Development Finance Corporation Ltd (-4.98 points) and Infosys Ltd (-4.79 points)
were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7409 for next session. The next support is at 7385 and on upside it has a resistance at
7427 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
05-Jun-2014 7343 7367 7385 7409 7427 7451 7469 -
04-Jun-2014 7281 7312 7364 7394 7446 7477 7529 7402.25
03-Jun-2014 7149 7194 7278 7324 7408 7453 7537 7415.85
S&P BSE Sensex has a pivot at 24835 with first level of support and resistance at 24745 and 24897 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
05-Jun-2014 24593 24683 24745 24835 24897 24987 25048 -
04-Jun-2014 24428 24527 24693 24793 24958 25058 25223 24805.83
03-Jun-2014 23961 24116 24400 24555 24839 24994 25278 24858.59
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