Index Trends And Stocks In Action For April 07, 2014

Indian Equity market ended in red on Friday as investors and traders chose to booking profit amid slight uncertainty about the near term outlook for the market after strong gains in short term. The Nifty index closed at 6694 losing 41 points. On weekly chart nifty has formed a spinning top candlestick pattern this candlestick is indicative of situation where neither the buyer not the sellers have won for that time period as the market has closed relatively unchanged from where it opened.

When we witness such type of candlestick after a run up in the market it can be an indication of reversal as the indecision in the market is representative of the buyers losing momentum.  Going ahead nifty has to clear its major resistance zone between 6760-6780 for further upside. On downside nifty has strong support around 6650 and next important support is around 6590.

Srei Infrastructure Finance (BSE Code:  523756) has sought market regulator Sebi's approval to raise up to Rs 150 crore through non-convertible debentures (NCDs) for use towards its financial activities. Srei plans to garner Rs 75 crore through secured, redeemable NCDs of face value of Rs 1,000 and would have the option to retain over- subscription of up to Rs 75 crore. The stock may remain in focus in today’s trade.

As part of its USD 2 billion debt raising plan, India's largest telecom firm Bharti Airtel (BSE Code: 532454) is set to tap the overseas bond markets again with USD 400 million issue later this month to repay high cost loans. Bharti will be raising around USD 400 million in the next three-four weeks from an overseas offering. Bankers expect the issue to go through by the end of this month or early next month. The stock may remain in focus in today’s trade.

Dhanuka Agritech (BSE Code: 507717) has drawn up a Rs 50 crore plan for setting up a pesticides formulation facility at Kotputli, Rajasthan.  The management has informed in the public domain that they are investing Rs 50 crore to set up ultramodern facility, having 6,000 litres per annum of liquid and 5,000 MT per annum of powder pesticides formulation capacity at Kotputli. The project will be funded through internal accruals, and the first phase will be ready by January 2015. The stock may remin in limelight in today’s trade.

Dr Reddy's Laboratories (BSE Code: 500124) may invest up to USD 400 million on R&D over 3-4 years in biologics and proprietary products where it sees a wave of big growth going forward. The R&D investments are likely to increase over the coming years. DRL may cumulatively invest in biologics in the range of USD 150 million to USD 200 million and proprietary products in the range of USD 150 to 200 million over next 3 to 4 years till these respective businesses become self- sufficient and cash accretive. The stock may remain in action in today’s trade.

Having extended its stay in South China Sea to promote India's strategic interest, state-owned Oil and Natural Gas Corporation (BSE Code: 500312) is looking for an equity partner to continue exploration for oil and gas offshore Vietnam. ONGC Videsh, the overseas investment arm of ONGC, had in July 2012 reversed its decision to exit Block 128 as Hannoi offered additional data that could help it make future exploration economically feasible and discovering hydrocarbons commercially viable. The stock may remain in focus in today’s trade.

Sun Pharmaceutical Industries said that it will buy generic drug maker Ranbaxy Laboratories, which has hit regulatory snags in its key US market over quality issues, in an all-share deal with total equity value of $3.2 billion.Ranbaxy, India's No 1 drugmaker by sales and 63.4 per cent held by Daiichi Sankyo.is banned from exporting drug ingredients to the United States, while Sun Pharmaceutical's Karkhadi plant is also barred from shipping products by the US Food and Drug Administration.Sun Pharmaceuticalsaid Ranbaxy shareholders will get 0.8 Sun Pharmashares for each Ranbaxy share. It added that the merged company will become the world's fifth-largest specialty generics company and the largest drug firm in India.