- Indian markets hit record highs but then fell over 2% as global markets also declined, with the Sensex closing over 500 points lower. - The declines were driven by weakness in real estate, power and capital goods sectors as well as losses in major companies like Larsen and Toubro. - Additional negative factors included the government's plans to sell stakes in ONGC and distribution of natural gas supplies between fertilizer companies.

1. Markets tank 2% after hitting record highs; Sensex below 26K
Market Snapshot | 08-07-2014 04:20 PM
Indian Indices marked record highs for the third straight day at 26190.4 and 7808 with Nifty surpassing 7800 milestone
for the first time. However, investor cautiousness coupled with pessimism on global front dragged markets to trade
below water. Markets magnified losses over 2.3% in late trades amidst announcement of first Railway Budget by Modi
Government. Sensex crashed 518 points whereas Nifty tanked to 7623 at the close. On BSE sectorial front, Realty
slumped over 7% to top the laggards.
Among global peers, US markets slipped after hitting record high in previous sessions. Tracking weak cues from
Wall-Street, Asian and European indices too traded mostly in red.
Back home, on currency front, Rupee traded strong against Dollar tracking strength of other Asian currencies. In
futures trades, INR hit an intra-day high of 59.92/USD and an intra-day low of 60.23/USD. In spot trades, INR hit an
intra-day high of 59.68/USD and an intra-day low of 59.98/USD. As per RBI reference rates, INR stood at 59.79/USD.
On commodities front, the yellow metal slipped in red zone on good US job data. In futures trades of August expiry,
Gold marked intra-day high at Rs 27507 per 10 grams and an intra-day low at Rs 27381 per 10 grams.
On macro-economic front, Railway Budget 2014-15 proposed by Railway Minister Sadananda Gowda proposed to
invite private investment in sector via FDI and public-private partnership route to meet the funding requirement of
ambitious plans. Stating that the Diamond quadrilateral project connecting four metros via bullet trains will alone
require Rs 9 lakh crore which cannot be raised by hiking fares alone. He clarified that FDI will only be allowed for
infrastructure projects and not in railway operations.
Gowda pegged passenger earnings to be Rs 44645 crore and freight earnings at Rs 105770 crore. Total receipts for
the current year have been estimated at Rs 164374 crore and expenditure at Rs 149176 crore. The minister
announced to introduce 58 new trains including five Jansadharan trains, five Premium trains, sixAC Express trains, 27
Express trains, eight Passenger trains, two MEMU services and five DEMU services this year. The railway stocks
ended 5-20% down indicating budget pessimism.
To add to the developments on macro front, Government proposed a higher limit for Foreign Direct Investments in
Insurance sector. FDI limit in insurance companies is proposed to be hiked to 49% from an earlier limit of 26%. The
proposal was first proposed by UPA government and is pending in the Rajya Sabha since 2008.
PSU major, Oil and Natural Gas Corporation Ltd (ONGC) slipped 4.23% on BSE on reports of Government plans to
sell 5% to 10% stake in state-run energy to fetch as much as $5.84 billion. The government owns nearly 69% stake in
ONGC.
Ahmednagar Forgings Ltd tumbled 9.6% on BSE after Cresta has offloaded 3.85 lakh shares of the company via open
market route on an average price of Rs 327.26 valuing the transaction to Rs 12.60 crore.
The government may distribute the natural gas from Deepak Fertilizers (down 6.1%) to Bathinda urea plant of state
owned National Fertilizers (down 7.4%) in Punjab. The Department of Fertilizers (DoF) stopped the distribution of gas
to Deepak Fertilizers earlier in May this year and has now sought this gas to be diverted to NFL, a urea manufacturing
PSU.
Shasun Pharmaceuticals rallied 2% to hit fresh 52 week high at 196.7 in otherwise pessimistic trades in market on
successfully completing both US FDA and Mexican COFEPRIS (Mexican Regulatory Authority) inspection at its API
facility at Cuddalore in Tamil Nadu, India.
The market breadth on the BSE closed in negative. Advancing and declining stocks were 832 and 2305 respectively,
while 107 scrips remained unmoved.
The S&P BSE Sensex ended at 25582.11, down 517.97 points or 1.98%. The 30 share index touched a high and a
low of 26190.44 and 25495.04 respectively. 2 stocks advanced against 28 declining ones on the benchmark index.
The CNX Nifty lost 163.95 points or 2.11% to settle at 7623.20. The index touched high and low of 7808.85 and
7595.90 respectively. 4 stocks advanced against 46 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved down to 9210.21 and lost 3.63% while S&P BSE Small-cap index hammered
Real Estate (down 7.16%), Power (down 6.37%) and Capital Goods (down 4.80%) were the top
losers.There was no gainer on BSE sectorial font.

2. The S&P BSE Mid-cap index moved down to 9210.21 and lost 3.63% while S&P BSE Small-cap index hammered
down by 4.19% to 10128.01.
The broader S&P BSE 500 index decreased to 9758.79 (down 2.64%) and CNX 500 index declined to 6152.30 (down
2.68%).
The volatility as denoted by INDIA VIX lost 1.18% at 19.18 from its previous close of 19.41 on Monday.
Sectors in action
The Angels and the Devils
Sun Pharmaceutical Industries Ltd (up 0.69%) and Housing Development Finance Corporation Ltd (up 0.48%) were
the top gainers on the Sensex.
Bharat Heavy Electricals Ltd (down 8.16%), NTPC Ltd (down 5.36%), Tata Power Company Ltd (down 5.04%), Coal
India Ltd (down 4.96%) and Larsen And Toubro Ltd (down 4.35%) were the top losers on the Sensex.
Benchmark Drivers
Larsen And Toubro Ltd (-73.59 points), Reliance Industries Ltd (-64.44 points), ICICI Bank (-51.51 points), State Bank
of India (-41.19 points) and Oil and Natural Gas Corporation Ltd (-34.83 points) were the major Sensex drivers today.
On the other end Larsen And Toubro Ltd (-19.22 points), Reliance Industries Ltd (-17.14 points), ICICI Bank (-13.91
points), State Bank of India (-11.04 points) and Oil and Natural Gas Corporation Ltd (-9.68 points) were the major Nifty
movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7676 for next session. The next support is at 7543 and on upside it has a resistance at
7756 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
09-Jul-2014 7330 7463 7543 7676 7756 7889 7969 -
08-Jul-2014 7727 7741 7764 7778 7801 7815 7838 7623.20
07-Jul-2014 7593 7627 7689 7724 7786 7820 7883 7787.15
S&P BSE Sensex has a pivot at 25756 with first level of support and resistance at 25321 and 26017 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
09-Jul-2014 24626 25060 25321 25756 26017 26451 26712 -
08-Jul-2014 25890 25941 26021 26072 26152 26203 26282 25582.11
07-Jul-2014 25432 25545 25754 25868 26076 26190 26398 26100.08
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