Sensex sinks 208 points as CPI haults easing streak

1. Sensex sinks 208 points as CPI haults easing streak
Market Snapshot | 16-04-2014 04:22 PM
Following a flat opening despite sanguine global cues, markets continued to crawl till afternoon and plunged in red
subsequently on higher retail inflation data. Sensex dived 208 points and Nifty slipped to 6675 at the close. Among
BSE sectorials, Realty topped the laggards.
On global front, US markets edged higher amidst volatile trades for second straight day. Additionally, Asian and
European markets too edged up on China reporting economic growth above street’s expectation.
Back home, on currency front, Rupee lost traction against Dollar amidst pessimistic trades in local equities. In futures
trades, INR hit an intra-day high of 60.30/USD and an intra-day low of 60.53/USD. In spot trades, INR hit an intra-day
high of 60.19/USD and an intra-day low of 60.35/USD. As per RBI reference rate, INR stood at 60.22/USD.
On macro-economic front, raising the stagflation concerns, retail inflation snapped the 3-month easing streak.
Following the disappointing IIP and WPI numbers, Consumer Price Index (CPI) too hurt the D-Street by accelerating to
8.31% from 25 months low level of 8.10% (provisional) in February. However, February Inflation was revised
downwards to 8.03% as against 8.10% earlier. Offering a little solace core inflation, which was hovering around 8% for
past few months has eased marginally to 7.8% in March as compared to 7.9% in February.
On stock specific front, Future Retail rallied 9.6% in the otherwise negative market on reports of company’s plan to
acquire southern supermarket chain Nilgiris.
Crompton Greaves soared to hit its highest level since July 2011 of Rs 188 on reports that the Japanese Hitachi may
buy the promoter's stake in the company.
DCB Bank stock slumped 5.55% on BSE despite getting nod from Board of Directors to raise an amount of Rs 300
crore through issue of shares under QIP. The bank has a rise of 14.57% in Q4FY14 Net at Rs 39.08 crore as
compared to Rs 34.11 crore for the same quarter in the previous year. For FY14, the bank posted a jump of 48.3% in
Net profit at Rs 151.36 crore as compared to Rs 102.06 crore for FY13.
Reserve Bank of India (RBI) has raised the upper limit for Foreign Institutional Investors (FIIs) to purchase stake in
Jubilant FoodWorks from primary market to 55% of the paid-up capital from earlier 49%. The stock ended 2.46% down
on BSE.
United Spirits ended marginally in green on BSE despite the weakness in market as London based Diageo Plc is
bidding again for the company and offered to pay $1.9 billion for an additional 26% stake. The open offer is expected
to open on June 11 this year and close on June 24.
Indusind Bank ended in green zone after its Q4 Net jumped 28.83% at Rs 396.05 crore as compared to Rs 307.4 crore
for corresponding quarter of the previous fiscal. The bank’s net profit for FY14 rose by 32.70% at Rs 1408.20 crore as
compared to Rs 1061.18 crore for FY13.
T he market breadth on the BSE closed in negative. Advancing and declining stocks were 1142 and 1700
respectively, while 146 scrips remained unmoved.
The S&P BSE Sensex ended at 22277.23, down 207.70 points or 0.92%. The 30 share index touched a high and a
low of 22533.61 and 22247.39 respectively. 8 stocks advanced against 22 declining ones on the benchmark index.
The CNX Nifty lost 57.80 points or 0.86% to settle at 6675.30. The index touched high and low of 6748.65 and
6665.15 respectively. 15 stocks advanced against 35 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved down to 7232.76 and lost 1.08% while S&P BSE Small-cap index hammered
down by 1.11% to 7418.22.
The broader S&P BSE 500 index decreased to 8309.41 (down 0.91%) and CNX 500 index declined to 5230.35 (down
0.91%).
The volatility as denoted by INDIA VIX lost 2.26% at 31.16 from its previous close of 31.88 on Tuesday.

2. Sectors in action
On the BSE Sectorial front, FMCG (up 0.63%) and Metals (up 0.19%) were the top gainers.
Real Estate (down 3.87%), Information Technology (down 2.49%) and Capital Goods (down 2.47%) were the top
losers.
The Angels and the Devils
ITC Ltd (up 1.44%), Tata Steel Ltd (up 1.31%), Hindalco Industries Ltd (up 0.86%), Maruti Suzuki India Ltd (up 0.61%)
and ICICI Bank (up 0.35%) were the top gainers on the Sensex.
Tata Power Company Ltd (down 3.61%), Infosys Ltd (down 3.19%), Bharat Heavy Electricals Ltd (down 3.17%), Wipro
Ltd (down 2.90%) and Larsen And Toubro Ltd (down 2.87%) were the top losers on the Sensex.
Benchmark Drivers
Infosys Ltd (-58.40 points), Tata Consultancy Services Ltd (-38.21 points), Larsen And Toubro Ltd (-35.74 points), ITC
Ltd (31.37 points) and Housing Development Finance Corporation Ltd (-29.24 points) were the major Sensex drivers
today.
On the other end Infosys Ltd (-15.01 points), Tata Consultancy Services Ltd (-9.95 points), Larsen And Toubro Ltd (-
9.50 points), ITC Ltd (8.52 points) and Housing Development Finance Corporation Ltd (-7.69 points) were the major
Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 6696 for next session. The next support is at 6644 and on upside it has a resistance at
6728 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
17-Apr-2014 6561 6613 6644 6696 6728 6780 6811 -
16-Apr-2014 6590 6651 6692 6753 6794 6854 6895 6675.30
15-Apr-2014 6704 6723 6750 6770 6796 6816 6842 6733.10
S&P BSE Sensex has a pivot at 22353 with first level of support and resistance at 22172 and 22458 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
17-Apr-2014 21886 22067 22172 22353 22458 22639 22744 -
16-Apr-2014 22034 22225 22355 22546 22676 22867 22997 22277.23
15-Apr-2014 22392 22459 22544 22612 22696 22764 22849 22484.93
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