Index Trends And Stocks In Action For June 03, 2014

Indian Equity market witness a splendid ride up north with investors and traders indulging in some hectic buying almost across the board, encouraged by some upbeat economic data and a firm trend in global market. The Nifty settled at 7362 gaining around 132 points. In our last write up we mentioned 7290 will act as resistance on upside and if index sustains above 7290 it will touch 7350 and this was in line with our expectation.

Now going forward after index has hurdle around levels of 7385 on upside once index manages to clear this level the bulls will come in force and try to reclaim life time high figures after decent consolidation and correction. However much will depend on RBI policy guidance, if market gets a cut in rate it will be festivity for the bulls. On downside 7290 will act as support in case of any unfavorable outcome in the policy.

Foreign institutional investors can now invest up to 100 per cent of the paid up capital in Zee Entertainment Enterprises (BSE Code: 505537). Earlier investment limit for FIIs in the company was 49%. RBI said that decision came after the company passed resolutions at its Board of Directors' level and shareholders agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. The stock may remain in action in today’s trade.

Hinduja Group company Ashok Leyland (BSE Code: 500477) has reported a 8.73% decline in total sales in May 2014, selling 6,632 units. The city-based commercial vehicle maker had sold 7,267 units during the same month of the previous year. For the period April-May 2014, total sales declined by 15% to 12,529 units from 14,754 units sold during the same period of the previous year. The stock may trade with a negative bias in today’s trade.

Electrical products major Surya Roshni (BSE Code: 500336) is entering the home appliances market and eyes Rs 100 crore revenue in two years. Surya Roshni is the leading Indian lighting company in the country. Its latest offering of fans has received good response from retailers as well as customers nationwide. The stock may remain in limelight in today’s trade.