Index Trends And Stocks In Action For July 03, 2014

It was a fantastic trading session for Indian Equity markets on Wednesday, as the indices ended at fresh life time highs, with investors and traders indulging in some hectic buying through the day, on anticipation that the government will come out with a growth oriented budget next week. Another reason to cheer was the rainfalls which finally come down in most of India.

In our last write up we mentioned that once the Nifty index crosses hurdle of 7655 it would be one way up rally and Nifty will hit new highs. This was in line with our expectation. Now going forward Nifty could face resistance in zone of 7756-7770, but once this zone is take out decisively, we are likely to see further up move that would help it touch level of 7920-7990 in short term. On downside 7645 will act as strong support for index and any dips around these levels would be good opportunity to build long positions.

Reliance Capital (BSE Code: 500111) has begun the process of unlocking value from investments in non-core sectors to focus on its key financial services businesses. The company, which announced the merger of its global film and media business held through Reliance MediaWorks with Prime Focus, said discussions are under way for more such deals outside the financial services segment. The stock may remain in focus in today’s trade.

L&T Construction, subsidiary of Larsen & Toubro (BSE Code: 500510) has bagged new orders worth Rs 2,002 crore across various business segments during June. The heavy civil infrastructure segment secured orders worth Rs 1,547 crore, which includes an order from Goa State Infrastructure Development Corporation for the design and construction of a cable stayed bridge across river Mandovi at Panaji. The stock may remain in limelight in today’s session.

Infrastructure builder Jaiprakash Associates (BSE Code: 532532) launched a share sale to institutional investors to raise up to USD 250 million. The company is selling shares in the indicative price band of 70.27 rupees (USD 1.18) to 74 rupees a piece. The stock may trade with a positive bias in today’s trade. 

Tech Mahindra (BSE Code: 532755) has formed a joint venture with Midad Holding to provide IT and ITeS solutions in Saudi Arabia. Midad will hold 51% stake in the JV firm (to be called Tech Mahindra Arabia), while Tech Mahindra will hold the remaining 49% share. The stock may remain in action in today’s trade.

Succeeding in its second attempt to gain controlling stake in United Spirits (BSE Code: 532432), world's largest liquor maker Diageo Plc has acquired an additional 26% shares in India's largest alcoholic beverages company for Rs 11,448.91 crore. UK-based Diageo paid Rs 3,030 for a share of United Spirits, more than double of Rs 1,440 it offered in the previous bid last year. The stock may witness buying activity in today’s session.