The Indian stock market had a volatile day on the budget announcement day, initially climbing over 1.5% after some industry friendly measures were announced but then paring all gains to settle 0.25% lower as real estate stocks rallied on infrastructure development proposals while auto stocks fell. Key highlights of the budget included a fiscal deficit target of 4.1% for FY15, income tax exemption limit raised, and increased allocation for roads, ports, defense and textile clusters.

1. D-Street ends zigzag ride in red on Budget day; Realty rocks
Market Snapshot | 10-07-2014 04:20 PM
DStreet had a spasmodic ride on the keenly awaited maiden budget day of Modi Government. Indian indices made a
flat start and continued to crawl near the previous close. Sentiments dampened after Arun Jaitley started the budget
announcements. However, the barometer gauges took a U-Turn to climb over 1.5% in noon trades after Finance
Minister made some industry friendly and common man friendly announcements. Subsequently, due to last minutes sell
off, benchmarks pared all the gains to settle 0.25% down.
On BSE sectorial front, Realty rocked the show backed by announcements made by FM in union budget whereas
Auto was the top loser.
Among global peers, US markets edged higher after the FOMC minutes revealed that policy makers decided to end
the Fed’s bond purchases by October if the economy stays on track. Asian indices too traded mostly in green,
however, European markets were trading in deep red.
Back home, on currency front, Rupee traded mixed on the budget day. Following a strong start, the domestic
currency took a U-turn to trade weak against Dollar. In futures trades, INR hit an intra-day high of 59.78/USD and an
intra-day low of 60.24/USD. In spot trades, INR hit an intra-day high of 59.58/USD and an intra-day low of 60.02/USD.
As per RBI reference rates, INR stood at 59.88/USD.
On commodities front, the yellow metal glittered over 3% ahead of the minutes of US Federal Reserve's June policy
meet due later in the day. In futures trades of August expiry, Gold marked intra-day high at Rs 28550 per 10 grams and
an intra-day low at Rs 27500 per 10 grams.
On macro-economic front, Finance Minister Arun Jaitley tabled the first budget of Modi Government. Key highlights
of the budget are:
Total estimated expenditure stands at Rs 17,94,892 crore out of which Non-Plan expenditure estimates for the
Financial Year are Rs 12,19,892 crore.
Gross Tax receipts will be Rs 13,64,524 crore. Non Tax Revenues for the current Financial Year will be Rs
2,12,505 crore and capital receipts other than borrowings will be 73,952 crore.
Fiscal deficit for FY15 will be 4.1% of GDP and Revenue deficit will be 2.9 per cent of GDP. 3.6% Fiscal
Deficit target for FY16 and 3% for FY17.
Tax Exemption Limit raised from Rs 2 lakh to Rs 2.5 Lakh (Rs 3 lakh for senior citizens). Increase the
investment limit under section 80C of the Income-tax Act from Rs1 lakh to Rs 1.5 lakh. Housing Loan Interest
exemption Limit raised from Rs 1.5 lakh to Rs 2 lakh.
Investment allowance at the rate of 15% to a manufacturing company that invests more than 25 crore in any
year in new plant and machinery.
Allocated Rs 229000 crore for the current financial year for Defense sector. FDI in defense is proposed to
49%.
Raise FDI limit in insurance to 49%
Allocating 11,635 cr for 16 new Port and developing existing ports & harbors.
To announce new Ship Building Policy this fiscal.
Allocated Rs 37,880 crores for roads via NHAI and State Roads. Rs 14,389 crore for Pradhan Mantri Gram
Sadak Yojana.
Stocks of Breweries & Distilleries companies like United Spirits, United Breweries and Radico Khaitan climbed 2.27%,
0.05% and 3.57% respectively as FM proposed to cut basic customs duty on methyl alcohol to 5%.
Textile companies stocks of Bombay Rayon Fashions and Mandhana Industries jumped 4% and 2% on BSE after
Finance Minister has allocated Rs 200 crore for 6 more textile clusters in Rae Bareily, Lucknow,Surat, Bhagalpur.
Bata India spiked 3.7% on BSE as Finance Minister Arun Jaitley proposed to reduce excise duty on Footwear.
Thomas Cook India spurted 3.45% on BSE as Jaitley announced to introduce e-visa, automatic permissions in 9
airports to boost tourism.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 1712 and 1292 respectively,
while 102 scrips remained unmoved.
The S&P BSE Sensex ended at 25372.75, down 72.06 points or 0.28%. The 30 share index touched a high and a
low of 25920.46 and 25117.00 respectively. 13 stocks advanced against 17 declining ones on the benchmark index.
The CNX Nifty lost 17.25 points or 0.23% to settle at 7567.75. The index touched high and low of 7731.05 and
7479.05 respectively. 25 stocks advanced against 24 declining ones on the index.
On stock-specific front, realty stocks were on roll on getting a slew of proposals for infrastructure
development in the country. Stocks of DLF, Housing Development and Infrastructure Ltd, Indiabulls Real
Estate, Mahindra Life space Developers, Prestige Estates rallied up to 9.5% on BSE.

2. S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 9132.18 and gained 0.60% while S&P BSE Small-cap index jumped up by
0.76% to 10019.97.
The broader S&P BSE 500 index increased to 9690.62 (up 0.10%) and CNX 500 index rose to 6105.20 (up 0.02%).
The volatility as denoted by INDIA VIX lost 12.20% at 15.97 from its previous close of 18.19 on Wednesday.
Sectors in action
On the BSE Sectorial front, Real Estate (up 4.96%), Power (up 1.12%) and Metals (up 0.94%) were the top gainers.
Consumer Durables (down 3.11%), Automobile (down 0.91%) and Information Technology (down 0.89%) were the top
losers.
The Angels and the Devils
Hindalco Industries Ltd (up 3.16%), Tata Power Company Ltd (up 2.72%), GAIL (India) Ltd (up 1.54%), Coal India Ltd
(up 1.50%) and Housing Development Finance Corporation Ltd (up 0.91%) were the top gainers on the Sensex.
Hero MotoCorp Ltd (down 3.99%), Tata Consultancy Services Ltd (down 2.06%), Bharti Airtel Ltd (down 1.71%),
Mahindra and Mahindra Ltd (down 1.44%) and State Bank of India (down 1.31%) were the top losers on the Sensex.
Benchmark Drivers
Tata Consultancy Services Ltd (-33.67 points), ICICI Bank (-16.54 points), Housing Development Finance Corporation
Ltd (15.89 points), State Bank of India (-13.13 points) and HDFC Bank (-12.07 points) were the major Sensex drivers
today.
On the other end Tata Consultancy Services Ltd (-7.90 points), ICICI Bank (-4.71 points), IDFC Ltd (4.52 points),
HDFC Bank (-3.88 points) and State Bank of India (-3.56 points) were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7593 for next session. The next support is at 7454 and on upside it has a resistance at
7706 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
11-Jul-2014 7202 7341 7454 7593 7706 7845 7958 -
10-Jul-2014 7443 7497 7541 7596 7640 7694 7738 7567.75
09-Jul-2014 7330 7463 7543 7676 7756 7889 7969 7585.00
S&P BSE Sensex has a pivot at 25470 with first level of support and resistance at 25020 and 25823 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
11-Jul-2014 24216 24667 25020 25470 25823 26274 26627 -
10-Jul-2014 24993 25179 25312 25498 25631 25817 25950 25372.75
09-Jul-2014 24626 25060 25321 25756 26017 26451 26712 25444.81
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