Index Trends And Stocks In Action For April 15, 2014

Indian Equity market on Friday opened in red on back of negative cues from the global peers. However in second half index managed to recover from day’s low and ended with marginal loss of 20 points at 6776. IT and Healthcare were in top gear. In our last write up we mentioned 6760 -6728 is strong support zone and our anticipation of this support range had been fairly accurate as the intraday low had been very close to the levels we mentioned. Going forward Nifty has strong resistance around levels of 6795 and next resistance is around level of 6822. On downside important support for Nifty is around 6740 and next support is around 6710.

Ranbaxy Laboratories (BSE Code: 500359), set to be merged with Sun Pharmaceutical Industries (BSE Code:  524715), might again have to pay a hefty penalty to the US authorities for alleged violations at its Toansa factory in Punjab. The facility is currently banned from supplying products to the American market. An administrative subpoena issued recently to Ranbaxy's active pharmaceutical ingredient (API) manufacturing unit in Toansa has been triggered through an investigation into alleged fraud and violation of manufacturing norms. Ranbaxy Laboratories may witness volatile trade in today’s session.

Lupin (BSE Code: 500257) is voluntarily recalling 9,210 bottles of its antibiotic drug Suprax, used to treat bacterial infections, in the US market, according to the US Food and Drug Administration (USFDA). According to information available on the USFDA Web site, Lupin Pharmaceuticals Inc, the US-based unit of the company, is recalling two lots of Suprax as the “product did not meet specifications on total impurities at the nine-month stability station”. The company is recalling 4,038 bottles of Suprax in the first lot and 5,172 bottles of the drug in the second lot in the US market. The stock may remain volatile in today’s trade.

The board of directors of MindTree (BSE Code: 532819) would consider an issue of bonus shares at its meeting on April 16. In its filings with the stock exchanges MindTree, said the board would consider issue of bonus shares apart from the audited financial results for the quarter and year ending March 31, 2014, and any dividend payment.  The stock may remain in focus in today’s trade.

Crisis-hit Financial Technologies (India) (BSE Code: 526881) has received non-binding bids from 9 top corporates for buying its 24% stake in MCX  (BSE Code: 534091), and would shortlist the bidders by April 25. FTIL is making all efforts to complete the proposed sale of its stake in MCX by April 25 and has called for a Board meeting on that day to finalise the bidders. Jignesh Shah-promoted FTIL has to reduce its stake in MCX to 2% from the current 26% to comply with the regulatory norms following the NSEL payment crisis of Rs 5,600 crore. The stock may remain in action in today’s trade.

Gruh Finance (BSE Code: 511288) on April 12, has reported a 16.7% growth in fourth quarter (January-March) net profit at Rs 73.6 crore as against Rs 63.06 crore in a year ago period. Net interest income of the company grew 23.8% to Rs 106.49 crore from Rs 86 crore during the same period. For the year ended FY14, the housing finance company has reported net profit of Rs 176.96 crore, a growth of 21% compared to previous year. The board of directors of the company has recommended payment of dividend for the financial year 2013-14 of Rs 3 per share. The board also recommended the issue of bonus shares in the ratio of 1 equity share for every 1 equity share held. The stock may witness buying interest in today’s trade.