Index Trends And Stocks In Action For July 21, 2014

Indian Equity market ended with modest gains on Friday with the Nifty index managing to close above the 7650 mark. Going forward the momentum on the upside it’s likely to continue and index is likely to touch levels of 7735 and this is important level if Nifty takes resistance around this level we can see some retracement up to levels of 7670-7650. On other hand if Nifty manages to sustain above 7735 than bulls will come regain fresh momentum and it will try to touch next resistance level of 7765.

Mukesh Ambani-led Reliance Industries(BSE Code: 500325) reported a consolidated net profit of Rs 5,957 crore for the first quarter of the current financial year versus Rs 5,237 crore, up 13.7% on YoY basis. This was way above the street estimates. The Q1 consolidated sales were reported at Rs 104,640 crore as against Rs 97,503 crore YoY. The Q1 petrochemicals EBIT margin came in at 7.33% versus 7.5% YoY. The refining EBIT margin was 3.89% versus 3.22% YoY. The stock may remain in action backed by satisfactory results.

Crompton Greaves (BSE Code: 500093) is considering demerging its consumers products business into a separately listed company in what is seen as a prelude to an eventual sale of equity in the business. Thapar's Avantha Group is believed to have held informal talks with bulge bracket private equity funds such as TPG Capital and Carlyle. Crompton would use such funds to reduce its debt. The consumer goods business makes fans, appliances and lighting products and is one of the firm's oldest businesses. The stock may remain in focus in today’s trade.

Suzlon Energy (BSE Code: 532667) is looking to set up a manufacturing plant in Brazil and make the nation a hub for exporting to Latin American countries. The plant, expected to be open in 18 months, will have initial capacity of 400 megawatts a year. The stock may remain in limelight in today’s trade.

Bajaj Finance (BSE Code: 500034) has decided to walk out of the construction equipment (CE) financing business due to muted profitability prospects, a top official has said. The CE portfolio which the company is carrying is not too large and will fully mature in the next 15-20 months. The stock may remain in action in today’s trade.