Index Trends And Stocks In Action For June 13, 2014

Indian Equity market recouped most of the previous session losses to end up near record highs powered by gains in HDFC, TCS and Sun Pharma. Small and mid cap stocks were also seen back in demand, helping sentiments improve. Nifty gained 23 points and ends at 7649. In our last write up we mentioned we could continue to trade in the range of 7570-7680 and what we saw was in line with our expectation. Now going forward the most crucial level for the Nifty index is around 7685-7700, only if index maintains strength above this zone we can expect to test level of 7739. On the downside the most critical zone would be 7570-7560. In case of any eventual fall below this zone expect index to touch major support level of 7504.

Tata Motors (BSE Code: 500570) reported 5.14% decline in global sales, including that of Jaguar Land Rover (JLR), to 77,575 units in May. The company had sold 81,783 units in the same month last year. In the passenger vehicles category, the global sales last month were at 48,414 units, as against 43,142 units in May 2013, up 12.2 per cent. The stock may trade with a negative bias in today’s trade.

Low-cost carrier SpiceJet (BSE Code: 500285) will add capacity on its four existing routes by adding bigger aircraft and introducing additional flights from June 15. The airline is adding capacity on Bangalore-Mangalore, Chennai-Madurai, Bangalore-Hyderabad and Delhi-Lucknow sectors, which will now be catered by the 189-seater Boeing 737 aircraft. The stock may remain in focus in today’s trade.

State-owned Indian Overseas Bank (BSE Code: 532388) has requested the government to provide a capital support of Rs 3,500 crore during the current fiscal.  Last fiscal, the government infused Rs 1,200 crore in the bank to enhance its capital base. The board has also permitted the bank to issue equity shares of Rs 10 each to Qualified Institutional Buyers by way of Private Placement, up to an extent of not exceeding Rs 1,200 crore out of the shortfall in the Tier I Capital requirement of Rs 3,500 crore assessed by the bank. The stock may remain in limelight in today’s trade.

India's largest textile machine manufacturer Lakshmi Machine Works (BSE Code: 500252) has opened a new plant in the industrial hub, gaining a foothold in the world's biggest textile market of China. The new plant, which was built with an outlay of USD 29 million, will be a major boost to LMW's plans to consolidate in both Indian and Chinese markets. The stock may witness some buying activity in today’s trade.