Index Trends And Stocks In Action For June 18, 2014

Indian Equity market opened on listless note on mixed global cues and moved in a tight band around till afternoon session. The last hour of trading session was action packed as market rallied above 7600. In our last write up we mentioned on daily chart we have seen gap filling and doji so reversal is on card and what we saw was in line with our expectation. Now going ahead this momentum could continue up to levels of 7680 and if sustains above this level we could get past the life time high. On downside 7570 will act as crucial support levels and next support is around level of 7490.

India's largest two-wheeler maker, Hero MotoCorp (BSE Code: 500182) plans to set up a plant in South India, its sixth overall, to cater to the domestic market and take its overall annual capacity to 12 million units. The plant would have an annual capacity of around 1.5-2 million units. When completed, it will take the company's overall capacity to around 12 million units per annum. The company had earlier set a target of achieving a capacity of 10 million units by 2017. The stock may remain in action in today’s trade.

Government could sell a 5% stake in state-run Steel Authority of India (BSE Code: 500113) with a final decision expected next week. Prime Minister Narendra Modi, who won a landslide election victory last month largely on his promise of economic growth, is expected to speed divestments to bolster revenue generation at a time of weak economic growth. The stock may trade with a positive bias in today’s trade.

Bangalore-based developer Puravankara Projects (BSE Code: 532891) has announced a theme-based villa project on Bannerghatta Road in Bangalore called The Sound of Water. The self-contained city coming up over 20 acres has 209 villas ranging between 3009 sq. ft. and 4723 sq. ft., with an approximate base price of Rs 1.92 crore to Rs 4.15 crore respectively. Puravankara Projects has a presence in Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore and in the United Arab Emirates, Kingdom of Saudi Arabia and Sri Lanka. The mid-segment focussed housing company currently has over 10.05 million square feet of projects launched across Bangalore, Chennai and Mangalore, with an additional 10.32 million square feet slated for launch this fiscal year. The stock may remain in focus in today’s trade.

Shriram Transport Finance (BSE Code: 511218) plans to borrow up to Rs 3,000 crore through non-convertible debentures (NCDs) to support its financing activities. The company has filed a draft offer document for the public issue of 3 crore secured redeemable NCDs of face value of Rs 1,000 each, it said. The proceeds of the issue will be used for financing activities such as lending and investments, for repaying loans and for business operations, including capital expenditure and working capital requirements. The stock may remain in limelight in today’s trade.