Double digit retail inflation drags markets in red; IIP beats expectation

1. Double digit retail inflation drags markets in red; IIP beats expectation
Market Summary
12-Mar-2013
Following a cautious start in green, markets dived to trade in red as double digit retail inflation for February dashed the
hopes of a rate cut. Even, better than anticipated Jan IIP data could not lift the sentiments. A recovery post European
opening could not sustain momentum as Sensex lost 81 points at the close while Nifty shed 0.48% of its value. Rate
sensitives bore the brunt of investors wrath.
Globally, Dow Jones touched fresh high at the level of 14448.06 for the fifth day on the back of better-than-expected
economic data and positive signs by Federal Reserve for policies. (News)
Back home, beating street expectation, IIP (Index of Industrial Production) for the month of January 2013 rose to 2.4%
as against a contraction of 0.5% (revised) in December 2012. On the other hand, Consumer Price Index, a measure of
Retail Inflation edged higher in February 2013 to 10.91% versus 10.79% in the previous month. It rose for fifth month in
a row. (News)
Sugar stocks were in limelight today on talks of Sugar decontrol. Stocks like Dhampur Sugar Mills, Shree Renuka
Sugar, Balrampur Chini and Bajaj Hindustan gained 4.44%, 3.04%, 1.33% and 2.90% respectively on BSE. (What’s
Hot)
Berger Paints had hit a fresh 52 week high at Rs 212.75 on BSE after the company decided to acquire architectural
operations of Sherwin Williams Paints. The stock closed 3.89% down on BSE. (News)
Core Educations dipped 3.26% on BSE after credit rating firm Moody’s downgraded the company from “B1” to “B2.
(News)
Tata Power lost 3.12% on BSE after the stock was downgraded “underperform” by Credit Suisse.
MMTC rose 7.17% on BSE as the Empowered Group of Ministers (EGoM), headed by Finance Minister P
Chidambaram deferred the offer-for-sale to offload 9.33% stake in the company. Earlier the stock touched 52 week low
at Rs 280.25 ahead of the meeting. (News)
Aanjaneya Life care had hit fresh 52 week low at Rs 232.10 and closed 4.99% down on BSE on deferment of issue of
Foreign Currency Convertible Bonds (FCCBs). (News)
T h e market breadth on the BSE closed in negative. Advancing and declining stocks were 1244 and 1717
respectively, while 132 scrips remained unmoved.
The S&P BSE Sensex ended at 19564.92, down 81.29 points or 0.41%. The 30 share index touched a high and a
low of 19697.84 and 19505.75 respectively. 9 stocks advanced against 21 declining ones on the benchmark index.
The CNX Nifty lost 28.25 points or 0.48% to settle at 5914.10. The index touched high and low of 5952.00 and
5893.65 respectively. 13 stocks advanced against 36 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved down to 6460.31 and lost 0.63% while S&P BSE Small-cap index hammered
down by 0.53% to 6317.65.
The broader S&P BSE 500 index decreased to 7407.21 (down 0.48%) and CNX 500 index declined to 4636.90 (down
0.52%).
The volatility as denoted by INDIA VIX gained 6.18% at 15.13 from its previous close of 14.25 on Monday.
Sectors in action
On the BSE Sectorial front, FMCG (up 0.49%) and Automobile (up 0.08%) were the top gainers.
Consumer Durables (down 1.99%), Power (down 1.36%) and Real Estate (down 1.24%) were the top losers.

2. The Angels and the Devils
Hindustan Unilever Ltd (up 1.16%), Tata Motors Ltd (up 0.96%), Jindal Steel and Power Ltd (up 0.62%), ITC Ltd (up
0.59%) and Reliance Industries Ltd (up 0.45%) were the top gainers on the Sensex.
Tata Power Company Ltd (down 3.12%), Bharti Airtel Ltd (down 2.13%), Bharat Heavy Electricals Ltd (down 2.12%),
HDFC Bank (down 1.79%) and Bajaj Auto Ltd (down 1.55%) were the top losers on the Sensex.
Benchmark Drivers
HDFC Bank (-26.49 points), Infosys Ltd (-19.02 points), ITC Ltd (11.48 points), Bharti Airtel Ltd (-10.83 points) and
ICICI Bank (-10.64 points) were the major Sensex drivers today.
On the other end HDFC Bank (-6.39 points), Infosys Ltd (-4.05 points), Housing Development Finance Corporation Ltd
(-3.45 points), ICICI Bank (-3.06 points) and Bharti Airtel Ltd (-2.71 points) were the major Nifty movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 5920 for next session. The next support is at 5888 and on upside it has a resistance at
5946 levels.
CNX Nifty
Eff. Date S3 S2 S1 PIVOT R1 R2 R3 Actual Close
13-Mar-2013 5829 5862 5888 5920 5946 5978 6005 -
12-Mar-2013 5884 5907 5925 5948 5966 5989 6006 5914.10
11-Mar-2013 5832 5857 5902 5927 5971 5997 6041 5942.35
S&P BSE Sensex has a pivot at 19590 with first level of support and resistance at 19481 and 19673 respectively.
S&P BSE Sensex
Eff. Date S3 S2 S1 PIVOT R1 R2 R3 Actual Close
13-Mar-2013 19289 19397 19481 19590 19673 19782 19865 -
12-Mar-2013 19429 19516 19581 19668 19733 19820 19885 19564.92
11-Mar-2013 19310 19394 19539 19622 19767 19851 19995 19646.21
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