1. Sensex tanks 255 points on sluggish global cues; Nifty @6001
Market Snapshot | 13-02-2014 04:21 PM
Tailing the weakness in global markets, Indian indices tumbled in red after making a positive start. Sentiments
remained dampened as IIP contracted for third straight month, raising further worries over economic situation. Reports
of retail inflation dropping to two years low levels, also could not lure investors to indulge in fresh buying activities.
Benchmarks extended fall to end near day’s low by tanking 1.3%. Sensex crashed 255 points and Nifty ended just
above 6K. On BSE sectorial front, Bankex topped the laggards.
Global Markets
Among global peers, US indices paused the largest four session rally in more than a year after Senate passed an
extension of the US borrowing limit into March 2015. Tracking the weakness in Wall-Street, Asian and European
indices too witnessed selling pressure and remained in negative terrain.
Forex Markets
Back home, on currency front, Rupee took a breather from appreciation of two consecutive sessions amidst weakness
in local equities. In future trades, INR touched an intra-day low of 62.53/USD and an intra-day high of 62.07/USD. In
spot trades, INR touched an intra-day low of 62.42/USD and an intra-day high of 62/USD. As per RBI reference rate,
INR stood at 62.27/USD. (Read More)
Macro-Economics
On macro-economic front, the annual rate of inflation, based on the Consumer Prices Index (CPI) dipped in January to
a surprisingly two years low levels belying street expectation. CPI for January plunged to 8.79% as against 9.87% in
December, backed by fall in food prices. The street had an expectation of 9.4%. Inflation rates (provisional) for Rural
and Urban areas for January stood at 9.43% and 8.09% respectively. However, Core inflation that excludes temporary
price volatility, stood at 8% in January, which is not a comfortable level for RBI. (Read More)
On the other hand, Industrial activity continued to slide in December at -0.6% in December 2013 as against -1.3% in
November 2013. IIP data contracted for the third consecutive month raising the concerns over industrial scenario of the
economy. Poor performance on manufacturing that has the highest weightage of 75% in IIP, stood as the prime villain.
Analysts opined that the slump in domestic demand is dragging industrial output.
Citing the contraction in IIP, India Inc asked RBI to slash key rates and also demanded the government to take
important steps to recuperate manufacturing. "We are especially concerned about the performance of the
manufacturing sector, which continues to be in the red even as the mining output shows muted growth rates during the
month," Confederation of Indian Industry CII Director General Chandrajit Banerjee said. RBI is in a state of quandary as
it has to deal with rising core inflation and negative IIP simultaneously.
Adding to the worries of economic slowdown, a report from United Nations named World Economic Situation and
Prospects 2014 said that the Government is unlikely to meet fiscal deficit target of 4.8 per cent of the GDP in the
current fiscal due to low growth and high subsidy. The report added “Given the weak growth momentum in the region
and the difficulties in raising tax revenues and curbing expenditure growth, fiscal deficits will remain substantial in the
near term”.
Moving further, despite of no remarkable announcements, India Inc has given thumbs up to Interim Rail Budget 2014. It
termed ‘Railway Budget 2014’ as a step in the right direction appreciating the budget’s focus on modernization and
expansion of the country's vast rail network without touching the passenger fares and freight rates. (Read More)
Sugar Subsidy
After deferring three times, the Cabinet Committee on Economic Affairs (CCEA) finally approved a subsidy of Rs 3333
per ton for export of raw sugar. This move will boost the sugar exports and will help the industry to pay debts to
sugarcane farmers. Sugar stocks gained up to 5% today. (What’s Hot)
On stock specific front, Credit Analysis and Research (CARE) soared 3.8% on BSE after getting nod for raising the
limit of investment by Foreign Institutional Investors (FIIs) to 74% of the paid up equity share capital. (Read More)
DB Realty plunged 4.5% to hit fresh 52 week low at Rs 48.2 on BSE after company’s Board approved for the scheme
of amalgamation of its own subsidiaries viz. Gokuldham Real Estate Development Company and Real Gem Buildtech.
(Read More)
Key Quarterly Results
Coal India slipped 4% on BSE after company’s consolidated Net reported 11.40% fall in Q3FY14 Net proit at Rs 3894
crore as compared to Rs 4395.11 crore for the same quarter in the previous year. However, on standalone basis, the
company posted over five and a half fold jump in Net profit for the quarter at Rs 9597.77 crore as compared to Rs
1696.92 crore for Q3FY13. (Featured Result)
2. Tata Communications slumped 3.85% on BSE despite registering a spike of 108% in Q3FY14 at Rs 140.58 crore for
the quarter as compared to Rs 67.60 crore for the same quarter in the previous year. On consolidated basis, the
group’s Net profit stood at Rs 36.51 crore for the quarter as compared to Net loss of Rs 201 crore for Q3FY13.
(Result)
Pharmaceuticals major, Cipla tanked 7.7% on BSE after recording 23.03% fall in Q3 Net at Rs 260.77 crore as
compared to Rs 338.78 crore for the same quarter in the previous year. On the consolidated basis, the group’s Net
dropped 16.45% at Rs 284.31 crore for the quarter as compared to Rs 340.31 crore for Q3FY13. (Result)
Sun Pharmaceutical ended marginally in green after reporting 15.7% rise in Q3 Net at Rs 85.8 crore as compared to
Rs 74.2 crore for the same quarter in the previous year. (Result)
PSU major, Indian Oil Corporation tanked 5% on BSE after company Q3 Net witnessed a sharp fall of 128.9% in Q3 at
a loss of Rs 961.4 crore as against a profit of Rs 3331.9 crore for the same quarter in the previous year. (Result)
The market breadth on the BSE closed in negative. Advancing and declining stocks were 919 and 1657 respectively,
while 157 scrips remained unmoved.
The S&P BSE Sensex ended at 20193.35, down 255.14 points or 1.25%. The 30 share index touched a high and a
low of 20503.86 and 20164.67 respectively. 4 stocks advanced against 26 declining ones on the benchmark index.
The CNX Nifty lost 82.90 points or 1.36% to settle at 6001.10. The index touched high and low of 6094.40 and
5991.10 respectively. 5 stocks advanced against 45 declining ones on the index.
S&P BSE Sensex
CNX Nifty
The S&P BSE Mid-cap index moved down to 6304.78 and lost 0.83% while S&P BSE Small-cap index hammered
down by 1.05% to 6282.49.
The broader S&P BSE 500 index decreased to 7408.01 (down 1.26%) and CNX 500 index declined to 4650.00 (down
1.31%).
The volatility as denoted by INDIA VIX gained 2.12% at 17.80 from its previous close of 17.43 on Wednesday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 0.39%) was lone gainer.
Banks (down 2.11%), Capital Goods (down 2.06%) and Oil & Gas (down 1.84%) were the top losers.
The Angels and the Devils
Tata Consultancy Services Ltd (up 1.42%), Mahindra and Mahindra Ltd (up 1.16%), Sesa Sterlite Ltd (up 0.69%) and
Sun Pharmaceutical Industries Ltd (up 0.60%) were the top gainers on the Sensex.
Cipla Ltd (down 7.70%), Bharat Heavy Electricals Ltd (down 3.50%), Coal India Ltd (down 3.39%), Oil and Natural Gas
Corporation Ltd (down 3.29%) and Hindalco Industries Ltd (down 3.19%) were the top losers on the Sensex.
Benchmark Drivers
Housing Development Finance Corporation Ltd (-32.73 points), HDFC Bank (-27.56 points), ICICI Bank (-24.17 points),
ITC Ltd (-22.87 points) and Larsen And Toubro Ltd (-21.90 points) were the major Sensex drivers today.
On the other end Housing Development Finance Corporation Ltd (-8.36 points), HDFC Bank (-7.19 points), ITC Ltd (5.88 points), Larsen And Toubro Ltd (-5.69 points) and Reliance Industries Ltd (-5.41 points) were the major Nifty
movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 6029 for next session. The next support is at 5963 and on upside it has a resistance at
6067 levels.
