Index Trends And Stocks In Action August 26, 2014

Indian Equity market after hitting new high, the indices pared all its gains on Monday after metal and power stocks tumble as Supreme Court verdict on coal blocks allocation. Stocks of companies that had received coal block allocations plunged. Jindal steel closed down 15 per cent, Hindalco closed down 10 per cent and Tata Steel closed down by 5 per cent. Barring defensive likes FMCG, Health care, IT and Auto index all other major sectoral indices ended with losses. In our last write up we mentioned nifty is likely to remain choppy and this was in line with our expectations as index moved in nagging range. Going forward nifty will face strong supply in range of 7920-7970, unless and until the bulls manage to close above this supply zone nifty is expected to move in narrow range. On downside index has strong support around levels of 7850. Further below the support level of 7850, it’s likely to test major support of 7810.

Shree Cement (BSE Code: 500387) will acquire the 1.50 million tonnes (mt) cement grinding unit of Jaiprakash Associates  (BSE Code: 532532), at Panipat, Haryana, for Rs 360 crore. The cost of acquisition is subject to adjustment for any indebtedness and net working capital taken over as of the closing date. The Jaypee Group is selling most of its cement assets to reduce its debt of Rs 60,000 crore. In September, Jaypee sold its Gujarat cement plant to UltraTech Cement for Rs 3,800 crore. Both the stocks may remain in focus in today’s trade.