Sensex sheds 137 points ahead of Budget; Nifty below 7600

1. Sensex sheds 137 points ahead of Budget; Nifty below 7600
Market Snapshot | 09-07-2014 04:20 PM
After yesterday’s bloodbath, Indian indices started marginally up but soon plunged in negative terrain. Markets
zigzagged in red and green amidst the announcements of economic survey report and pessimistic global cues. Both
barometer gauges shed over half a percent at the close ahead of Union Budget 2014-15. Sensex lost 137 points and
Nifty was 7585 at the close. On BSE sectorial front, Auto topped the laggards.
Among global peers, US markets continued the southward journey on sell off in tech stocks. Additionally, Asian and
European markets too slid tracing the pessimistic cues from Wall-Street.
Back home, on currency front, Rupee was trading strong against Dollar tracking the recovery in local equities. In
futures trades, INR hit an intra-day high of 59.9/USD and an intra-day low of 60.17/USD. In spot trades, INR hit an
intra-day high of 59.67/USD and an intra-day low of 59.94/USD. As per RBI reference rates, INR stood at 59.73/USD.
On commodities front, the yellow metal strengthened amidst weakness in global equities. In futures trades of August
expiry, Gold marked intra-day high at Rs 27698 per 10 grams and an intra-day low at Rs 27545 per 10 grams.
On macro-economic front, Finance Minister Arun Jaitley tabled the economic survey for 2013-14 in Parliament
today. Economic Survey says:
Indian economy is likely to grow between 5.4 to 5.9 % in FY15.
FY15 Current Account Deficit may limit to 2.1% of GDP.
Inflation has eased, but still above comfort level. High inflation constrains RBI to cut rates. WPI inflation likely
to moderate by the end of 2014.
Industry growth may revive in next 2 years.
To boost manufacturing, the government will set up sixteen national investment and manufacturing zones
(NIMZs) out of which eight will be along the Delhi Mumbai Industrial Corridor.
Raising Tax – GDP ratio and reforming subsidies are must to attain fiscal objectives. Proposes new Fiscal
Responsibility and Budget Management law with teeth.
Aggregate demand of export Goods climbed 5% Vs 4.7% year on year.
Implementation of Central GST could be first step towards GST.
MNREGA has created labor shortage and raised wages.
On stock-specific front, Claris Lifesciences rallied 3.3% on BSE on getting nod from US Food and Drug
Administration (USFDA) for the inspection it conducted at API plant.
Multi Commodity Exchange of India Ltd spiked 1.36% on BSE after ace investor Rakesh Jhunjhunwala bought nearly
2% stake in the company on an average price of Rs 664 amounting to Rs 66 crore.
IndusInd Bank’s Q4 Net jumped 25.75% to Rs 421 crore as compared to Rs 334.8 crore in the same quarter of
previous fiscal. The stock ended 1.65% down on BSE.
The market breadth on the BSE closed in negative. Advancing and declining stocks were 953 and 2150 respectively,
while 107 scrips remained unmoved.
The S&P BSE Sensex ended at 25444.81, down 137.30 points or 0.54%. The 30 share index touched a high and a
low of 25683.97 and 25364.77 respectively. 11 stocks advanced against 19 declining ones on the benchmark index.
The CNX Nifty lost 38.20 points or 0.50% to settle at 7585.00. The index touched high and low of 7650.10 and
7551.65 respectively. 18 stocks advanced against 32 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved down to 9077.36 and lost 1.44% while S&P BSE Small-cap index hammered
down by 1.82% to 9944.15.
The broader S&P BSE 500 index decreased to 9681.35 (down 0.79%) and CNX 500 index declined to 6104.00 (down
0.79%).

2. The volatility as denoted by INDIA VIX lost 5.16% at 18.19 from its previous close of 19.18 on Tuesday.
Sectors in action
On the BSE Sectorial front, Oil & Gas (up 0.84%), FMCG (up 0.81%) and Consumer Durables (up 0.45%) were the top
gainers.
Automobile (down 2.43%), Power (down 1.69%) and Real Estate (down 1.60%) were the top losers.
The Angels and the Devils
Oil and Natural Gas Corporation Ltd (up 1.77%), ITC Ltd (up 1.67%), GAIL (India) Ltd (up 1.26%), Hindalco Industries
Ltd (up 1.21%) and Tata Steel Ltd (up 0.78%) were the top gainers on the Sensex.
Bajaj Auto Ltd (down 3.12%), Coal India Ltd (down 2.97%), Maruti Suzuki India Ltd (down 2.70%), Mahindra and
Mahindra Ltd (down 2.54%) and Tata Power Company Ltd (down 2.47%) were the top losers on the Sensex.
Benchmark Drivers
ITC Ltd (36.16 points), Tata Consultancy Services Ltd (-35.72 points), Tata Motors Ltd (-23.73 points), Larsen And
Toubro Ltd (-20.03 points) and Infosys Ltd (-16.70 points) were the major Sensex drivers today.
On the other end ITC Ltd (9.20 points), Tata Consultancy Services Ltd (-8.74 points), Tata Motors Ltd (-6.58 points),
Larsen And Toubro Ltd (-5.06 points) and Mahindra and Mahindra Ltd (-4.82 points) were the major Nifty movers
today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7596 for next session. The next support is at 7541 and on upside it has a resistance at
7640 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
10-Jul-2014 7443 7497 7541 7596 7640 7694 7738 -
09-Jul-2014 7330 7463 7543 7676 7756 7889 7969 7585.00
08-Jul-2014 7727 7741 7764 7778 7801 7815 7838 7623.20
S&P BSE Sensex has a pivot at 25498 with first level of support and resistance at 25312 and 25631 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
10-Jul-2014 24993 25179 25312 25498 25631 25817 25950 -
09-Jul-2014 24626 25060 25321 25756 26017 26451 26712 25444.81
08-Jul-2014 25890 25941 26021 26072 26152 26203 26282 25582.11
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