Index Trends And Stocks In Action For July 18, 2014

Indian Equity market ended with modest gains on Thursday extending its winning streak to third consecutive trading session. Positive cues from the international market and some relief from the rain gods have cheered the mood on the street. In our last write up we mentioned that Nifty index will move in narrow band and what we saw in today’s trading session was in line with our expectation, market moved in narrow band. Now going forward the Nifty index will face resistance around levels of 7690 and 7710. In any case the bulls should not close breach the levels of 7580, if it does than the momentum which the index has gained in last couple of trading session would come to end and we could slide down to levels of 7535.

Riding on sustained growth in its key markets and industry segments, Tata Consultancy Services (BSE Code: 532540) has registered a 45% jump in its first-quarter net profit, beating the street estimates. The bottomline was also boosted by a one-time gain of Rs 490 crore. TCS’ consolidated net profit increased to Rs 5,568 crore during the quarter ended June 30, from Rs 3,839.5 crore in the corresponding year-ago period. Net revenue rose 22.9% to Rs 22,111 crore (Rs 17,987 crore). The US, Europe, UK and India markets grew by over 5%. The stock may trade with a positive bias in today’s trade.

Protests by contract workers at Britannia Industries (BSE Code: 500825) plant in Shakurpur in Delhi entered its 11th day. This labour impasse has brought production to a halt, raising concerns about its impact on the company’s financials and compelling the company to seek remedial measures. The Shakurpur plant is a multi-product, multi-category plant that produces the NurtiChoice range, dairy products and biscuits amongst others. Nearly 300 contract workers engaged in a sit-in protest that began on July 7, alleging that Britannia retrenched some contract workers without prior notice and without settling their dues. The number of contract workers protesting, however, has halved to 150 as workers moved on to seek work at other places. The stock may trade with a negative bias in today’s trade.

Glenmark Pharmaceuticals (BSE Code: 532296) plans to set up its first manufacturing facility in the US at an estimated investment of over Rs 500 crore to cater to the North American market. The proposed facility would house three units to produce oral solids, injectables and topicals and begin production by the end of the current fiscal. The stock may remain in limelight in today’s trade.