"NaMo show" continues; PSU stocks shine

1. "NaMo show" continues; PSU stocks shine
Market Snapshot | 23-05-2014 04:23 PM
Amid earning reports of Indian corporate giants SBI and ITC, D-Street stretched “Modi rally” on persistent buying by
domestic and foreign investors on expectations of reviving business and economic growth of the country. Indian
indices spurted at open taking cues from global optimistic trades. Berserk benchmarks shot up 1.3% with Nifty trading
above crucial level of 7300. Markets settled near intraday highs with Sensex soaring 319 points to settle at 24693.
About 740 BSE listed stocks hit fresh 52 week high today. Among BSE sectorials, Power Index topped the charts.
Among global peers, US markets climbed higher ignoring the disappointing jobless claims and existing home sales.
Additionally, Asian and European markets too joined the crew by edging up.
Back home, on currency front, domestic currency extends the appreciation against Dollar on a report mentioning that
finance ministry was working on a proposal to cut fiscal deficit. In futures trades, INR hit an intra-day high of 58.4/USD
and an intra-day low of 58.59/USD. In spot trades, INR hit an intra-day high of 58.36/USD and an intra-day low of
58.55/USD. As per RBI reference rates, INR stood at 58.48/USD.
On stock specific front, country’s automobile bellwether, Maruti Suzuki India zoomed 5.32% to hit fresh 52 week high
at Rs 2392.25 on BSE as the company is targeting to achieve a growth of 9-10% in FY15, double the estimated
industry growth of 4-5%.
Reliance Communications (RCOM) spiked 4.07% on BSE as the company is in talks to sell a 50% stake in its
undersea cable business to Hong Kong's Citic Telecom for $500 million to $600 million in order to raise funds to pay
debt.
SpiceJet rolled 12.83% up on BSE as the company may sell its overseas slots to Qatar Airways.
FMCG giant, Colgate Palmolive (India) gained marginally on commencing commercial production of toothpaste at its
new manufacturing facility set up at Sanand in state of Gujarat.
Deepak Nitrite extended its rally by 7.5% on BSE as the company is planning to raise funds for expanding its capacity
and repay its debt.
Key Quarterly Results
Country’s public sector bellwether, State Bank of India (SBI) jumped 9.7% on BSE as the bank’s gross non-performing
assets (NPA) fell 4.95% and Net NPAs declined 2.57% in March quarter. However, bank’s Q4 Net plunged 7.83% to
Rs 3040.74 crore as compared to Rs 3299.22 crore for the same quarter in the previous year.
ITC registered 18.42% growth in Q4 Net at Rs 2278 crore as compared to Rs 1927.9 crore in the same quarter in the
previous year. The stock ended marginally down on BSE.
Ashok Leyland zoomed 13.67% to hit 4.5 year high at Rs 34.45 on BSE after recording robust growth of 142.21% in
Q4 Net at Rs 363.4 crore as compared to Rs 150.03 crore for the same quarter in the previous year.
Jain Irrigation Systems rallied 10.6% to make new 52 week high at Rs 123.7 on BSE after the company’s Q4 Net
spurted 94.7% to Rs 81.6 crore as compared to Rs 41.9 crore for the same quarter in the previous year.
Cummins India’s Q4 Net slipped 24.8% to Rs 141.8 crore as compared to Rs 188.54 crore for the same quarter in the
previous year. The stock ended 4.85% up on BSE.
The market breadth on the BSE closed in positive. Advancing and declining stocks were 2281 and 903 respectively,
while 111 scrips remained unmoved.
The S&P BSE Sensex ended at 24693.35, up 318.95 points or 1.31%. The 30 share index touched a high and a low
of 24745.86 and 24470.78 respectively. 22 stocks advanced against 8 declining ones on the benchmark index.
The CNX Nifty gained 90.70 points or 1.25% to settle at 7367.10. The index touched high and low of 7381.00 and
7293.90 respectively. 36 stocks advanced against 14 declining ones on the index.
S&P BSE Sensex CNX Nifty
The S&P BSE Mid-cap index moved up to 8668.32 and gained 1.76% while S&P BSE Small-cap index jumped up by

2. The S&P BSE Mid-cap index moved up to 8668.32 and gained 1.76% while S&P BSE Small-cap index jumped up by
1.87% to 9128.04.
The broader S&P BSE 500 index increased to 9398.36 (up 1.43%) and CNX 500 index rose to 5923.65 (up 1.41%).
The volatility as denoted by INDIA VIX lost 0.73% at 17.71 from its previous close of 17.84 on Thursday.
Sectors in action
On the BSE Sectorial front, Power (up 3.66%), Oil & Gas (up 2.16%) and Capital Goods (up 2.15%) were the top
gainers.
Consumer Durables (down 0.82%) and FMCG (down 0.47%) were the top losers.
The Angels and the Devils
State Bank of India (up 9.69%), Tata Power Company Ltd (up 6.33%), Maruti Suzuki India Ltd (up 5.32%), NTPC Ltd
(up 4.39%) and Oil and Natural Gas Corporation Ltd (up 3.68%) were the top gainers on the Sensex.
Hindalco Industries Ltd (down 2.03%), HDFC Bank (down 1.63%), Infosys Ltd (down 1.31%), ITC Ltd (down 0.77%)
and Hindustan Unilever Ltd (down 0.22%) were the top losers on the Sensex.
Benchmark Drivers
State Bank of India (94.88 points), Reliance Industries Ltd (54.74 points), HDFC Bank (-29.16 points), Larsen And
Toubro Ltd (29.03 points) and Oil and Natural Gas Corporation Ltd (28.68 points) were the major Sensex drivers
today.
On the other end State Bank of India (24.38 points), Reliance Industries Ltd (14.21 points), Larsen And Toubro Ltd
(8.35 points), Oil and Natural Gas Corporation Ltd (7.78 points) and HDFC Bank (-7.46 points) were the major Nifty
movers today.
Pivot, Supports and Resistance Levels
CNX Nifty is now pivoted at 7347 for next session. The next support is at 7314 and on upside it has a resistance at
7401 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
26-May-2014 7227 7260 7314 7347 7401 7434 7488 -
23-May-2014 7188 7223 7250 7285 7311 7346 7373 7367.10
22-May-2014 7130 7168 7211 7249 7291 7329 7372 7276.40
S&P BSE Sensex has a pivot at 24637 with first level of support and resistance at 24527 and 24803 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
26-May-2014 24252 24362 24527 24637 24803 24912 25078 -
23-May-2014 24094 24210 24292 24409 24491 24607 24689 24693.35
22-May-2014 23900 24028 24163 24291 24426 24554 24689 24374.40
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