Sensex scores 185 points despite RBI status quo on repo

1. Sensex scores 185 points despite RBI status quo on repo
Market Snapshot | 05-08-2014 04:20 PM
Following a marginally higher start, Indian benchmarks continued to hold their neck above water amidst cautiousness
ahead of the RBI monetary policy review. Subsequently, markets plunged in red post the RBI ditch on slashing key
rates. In noon trades, sentiments turned sanguine tracking the gains in European peers. Both barometer gauges
witnessed sharp recovery to end near the intraday highs. Sensex added 185 points to close above 25900 and Nifty
closed just below 7750. On BSE sectorial front, Realty topped the charts whereas Capital Goods was the sole loser.
Among the global markets, US markets snapped 4-day losing streak to end higher on upbeat sentiments. On the flip
side, Asian and European markets were trading mixed ahead of some crucial economic events.
Coming back to much awaited RBI policy, India’s central banker has announced its 3rd bi-monthly monetary policy on
the expected lines. The apex bank has cut Statutory Liquidity Ratio (SLR) by 0.5% from 22.5% to 22% with effect from
the fortnight beginning August 9, 2014. RBI has kept the repo rate and Cash Reserve Ratio (CRR) unchanged at 8%
and 4% respectively. As per a Business Standard estimate, the SLR cut will free upto Rs 35000 crore liquidity for
lending by banks.
India’s Service sector slowed its pace in July due to slack in new business orders. The HSBC services Purchasing
Managers’ Index (PMI) slipped to 52.2 in July from a 17-month high of 54.4 in June. However, the reading stood above
the 50-mark for the third consecutive month.
On stock specific front, SRF Ltd rallied 9.7% and marked fresh yearly high at Rs 702.45 on BSE after its board
approved for setting up of another specialty chemical plant at company’s Chemical Complex in Dahej, Gujarat, at an
approximate cost of Rs 113 crore. Moreover, company’s Net profit doubled in June quarter of FY15 at Rs 99.47 crore
as compared to Rs 43.81 crore for same period of previous year.
Just Dial ended 1.62% up after hitting new 52 week high at Rs 1894.7 on BSE on plans to expand its footprint in
United Kingdom (UK) and United Arab Emirates (UAE).
TV Today Network slumped 3.75% on BSE after Reliance Capital (1.82% up) offloaded 4.79 lakh shares of the
company through the open market route. The shares were sold on an average price of Rs 154.15 valuing the
transaction to Rs 7.38 crore.
Key Quarterly Results
Power Grid Corporation of India (PGCIL) settled marginally up on BSE after registering a decent growth of 9.24% in
Q1 Net at Rs 1136.51 crore as compared to Rs 1040.34 crore for the same quarter ended a year ago.
Indraprastha Gas Ltd (IGL) slipped 1.56% on BSE despite recording 30.2% jump in Q1 Net at Rs 114.03 crore as
compared to Rs 87.58 crore for same quarter of the previous year.
Punj Llyod plunged 2.4% on BSE after posting a Net Loss of Rs 363.92 crore as compared to a Net Profit of Rs 4.95
crore for the corresponding period of previous year.
Tata Chemicals climbed 3% to mark fresh 52 week high at Rs 376.3 on BSE after June quarter Net mounted 68.8% at
Rs 169.53 crore as compared to Rs 100.43 crore for the quarter ended June in previous fiscal.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 1862 and 1197 respectively,
while 131 scrips remained unmoved.
The S&P BSE Sensex ended at 25908.01, up 184.85 points or 0.72%. The 30 share index touched a high and a low
of 25928.32 and 25562.36 respectively. 20 stocks advanced against 10 declining ones on the benchmark index.
The CNX Nifty gained 62.90 points or 0.82% to settle at 7746.55. The index touched high and low of 7752.45 and
7638.05 respectively. 33 stocks advanced against 16 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 9272.54 and gained 0.82% while S&P BSE Small-cap index jumped up by
1.12% to 10111.27.
The broader S&P BSE 500 index increased to 9878.17 (up 0.77%) and CNX 500 index rose to 6226.45 (up 0.82%).

2. The volatility as denoted by INDIA VIX lost 5.87% at 13.95 from its previous close of 14.82 on Monday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 2.65%), Automobile (up 2.11%) and Metals (up 1.33%) were the top
gainers.
Capital Goods (down 0.15%) was the sole loser.
The Angels and the Devils
Mahindra and Mahindra Ltd (up 3.83%), Oil and Natural Gas Corporation Ltd (up 3.18%), Bajaj Auto Ltd (up 2.71%),
Hindalco Industries Ltd (up 2.68%) and Tata Motors Ltd (up 2.20%) were the top gainers on the Sensex.
Hero MotoCorp Ltd (down 0.86%), Bharti Airtel Ltd (down 0.62%), NTPC Ltd (down 0.42%), ICICI Bank (down 0.39%)
and Bharat Heavy Electricals Ltd (down 0.37%) were the top losers on the Sensex.
Benchmark Drivers
Oil and Natural Gas Corporation Ltd (24.60 points), Mahindra and Mahindra Ltd (24.09 points), Housing Development
Finance Corporation Ltd (23.80 points), Infosys Ltd (23.38 points) and Tata Motors Ltd (20.15 points) were the major
Sensex drivers today.
On the other end Housing Development Finance Corporation Ltd (7.88 points), Infosys Ltd (6.72 points), Oil and
Natural Gas Corporation Ltd (6.20 points), Mahindra and Mahindra Ltd (5.97 points) and Tata Motors Ltd (5.26 points)
were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7712 for next session. The next support is at 7672 and on upside it has a resistance at
7787 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
06-Aug-2014 7558 7598 7672 7712 7787 7827 7901 -
05-Aug-2014 7566 7594 7639 7667 7712 7740 7784 7746.55
04-Aug-2014 7436 7515 7559 7638 7682 7761 7804 7683.65
S&P BSE Sensex has a pivot at 25800 with first level of support and resistance at 25671 and 26037 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
06-Aug-2014 25305 25434 25671 25800 26037 26166 26403 -
05-Aug-2014 25362 25447 25585 25670 25808 25893 26031 25908.01
04-Aug-2014 24936 25197 25339 25601 25743 26004 26146 25723.16
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