The market declined sharply in response to the budget announcements. The Nifty fell over 100 points to close below 5700 and the Sensex dropped 290 points to its lowest close of the year. Key sectors like banks and power suffered heavy losses. Globally, markets were positive but the Indian budget failed to impress investors.

1. Market thumbs down the budget…Nifty plummets below 5700
Market Summary
28-Feb-2013
Following a gap up start tracking positive global cues, markets surrendered the early gains and edged lower as the
session progressed on budget disappointments and F&O expiry. Nifty lost a ton to close below 5700. Sensex also
thrashed by 291 points to close at CY2013's lowest level. Amid secular sell-offs, power sector suffered the heaviest
blow as BSE Power crashed 4.29%.
Globally, U.S., Asian and European indices all exhibited firm trends on positive U.S. economic data.
Back home, Finance minister Mr P Chidambaram presented UPA government’s last Union Budget. The key highlights
are:
Fiscal Deficit achieved for FY12-13 - 5.2%, Fiscal Deficit target for FY2013-14 - 4.8%
Budget Estimates (BE2013-14): Total Budget estimates - Rs 16.44 lakh crore, Gross market borrowings - Rs 6.29 lakh crore,
Total subsidy bill - Rs 2.31 lakh crore (including Rs 65000 crore petroleum subsidy & Rs 85000 crore food subsidy)
Current Account Deficit is a worry; Need USD 75+ billion to bridge CAD this year and may be next year too.
Tax slabs and rates unchanged; ‘Super- rich tax’ introduced - 10% surcharge on tax on taxable income in excess of Rs 1 crore a
year; Companies earning more than 10 crore - 5 to 10% surcharge
Securities Transaction Tax (STT) on equity futures reduced from 0.017% to 0.01%.
Commodities transaction tax (CTT) of 0.01% introduced on non-agri commodity futures.
Dividend Distribution Tax (DDT) surcharge increased from 5% to 10%
A PSU bank for women by women with initial capital of Rs 1000 crore
Simplifying norms for FII entry.
DTC Bill to be introduced in Budget Session of Parliament
Defence allocation - Rs 203,672 crore
Infrastructure focus: Infra debt funds & bonds will be encouraged; Road projects adding up to 3,000 km covering states such as
Gujarat, Madhya Pradesh, Maharashtra.
Allocation to education increased to Rs 65867 crore.
Proposed Inflation index bonds and inflation index NSC.
The eligibility income limit to invest in Rajiv Gandhi Equity Savings Scheme (RGESS) increased from Rs 10 lacs to 12 lacs.
In case of first home loan of up to Rs 25 lacs, interest of upto Rs 1 lac entitled for additional deduction.
On company front, Suzlon Energy plunged to touch new 52 week low at Rs 13.55 and closed 33.81% down on BSE as
the promoter have sold 10.995 crore shares which comprises 6.19% of the paid up capital of the company. (News)
Maruti Suzuki fell 3.74% on BSE as the stock is to be removed from MSCI India index by the close of trade today.
(News)
Core Education continued the downfall for fourth day and touched new 52 week low at Rs 54.10. The stock closed
9.04% down on BSE.
The market breadth on the BSE closed in negative. Advancing and declining stocks were 884 and 2005 respectively,
while 112 scrips remained unmoved.
The BSE Sensex ended at 18861.54, down 290.87 points or 1.52%. The 30 share index touched a high and a low of
19322.28 and 18793.97 respectively. 5 stocks advanced against 24 declining ones on the benchmark index.
The S&P CNX Nifty lost 103.85 points or 1.79% to settle at 5693.05. The index touched high and low of 5849.90 and
5671.90 respectively. 7 stocks advanced against 42 declining ones on the index.
Sensex Nifty
The BSE Mid-cap index moved down to 6302.78 and lost 2.46% while Small-cap index hammered down by 1.97% to
6206.22.
The broader BSE 500 index decreased to 7163.69 (down 1.87%) and S&P CNX 500 index declined to 4477.50 (down
1.99%).

2. The volatility as denoted by INDIA VIX lost 8.44% at 14.86 from its previous close of 16.23 on Wednesday.
Sectors in action
On the BSE Sectorial front, Consumer Durables (up 0.85%) and Information Technology (up 0.47%) were the top
gainers.
Power (down 4.29%), Banks (down 3.59%) and Capital Goods (down 3.39%) were the top losers.
The Angels and the Devils
Tata Consultancy Services Ltd (up 2.14%), Bharti Airtel Ltd (up 0.62%), Tata Motors Ltd (up 0.49%), Sun
Pharmaceutical Industries Ltd (up 0.40%) and Bajaj Auto Ltd (up 0.35%) were the top gainers on the Sensex.
State Bank of India (down 5.80%), Tata Steel Ltd (down 4.04%), ICICI Bank (down 3.86%), Maruti Suzuki India Ltd
(down 3.74%) and Larsen And Toubro Ltd (down 3.17%) were the top losers on the Sensex.
Benchmark Drivers
ICICI Bank (-57.37 points), State Bank of India (-46.16 points), HDFC Bank (-38.66 points), Reliance Industries Ltd (-
35.05 points) and Housing Development Finance Corporation Ltd (-31.53 points) were the major Sensex drivers today.
On the other end ICICI Bank (-14.79 points), State Bank of India (-12.00 points), HDFC Bank (-9.89 points), Housing
Development Finance Corporation Ltd (-9.53 points) and Reliance Industries Ltd (-9.32 points) were the major Nifty
movers today.
Pivot, Supports and Resistance Levels
S&P CNX Nifty is now pivoted at 5738 for next session. The next support is at 5627 and on upside it has a resistance
at 5805 levels.
S&P CNX Nifty
Eff. Date S3 S2 S1 PIVOT R1 R2 R3 Actual Close
01-Mar-2013 5449 5560 5627 5738 5805 5916 5983 -
28-Feb-2013 5690 5720 5758 5788 5827 5857 5895 5693.05
27-Feb-2013 5637 5693 5727 5783 5817 5873 5908 5796.90
Sensex has a pivot at 18993 with first level of support and resistance at 18663 and 19191 respectively.
Sensex
Eff. Date S3 S2 S1 PIVOT R1 R2 R3 Actual Close
01-Mar-2013 18135 18464 18663 18993 19191 19521 19720 -
28-Feb-2013 18814 18906 19029 19121 19244 19336 19460 18861.54
27-Feb-2013 18580 18779 18897 19095 19213 19412 19530 19152.41
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