Index Trends And Stocks In Action September 09, 2014

The Indian market hit fresh historic highs on Monday, courtesy recent sharp fall in crude oil prices it slipped below $100 mark. Banking, Capital goods, Oil, Metal, Information Technology and FMCG stocks ended on firm note. Besides several large cap stocks, there was hectic buying seeing in broader market the mid cap index surged as high as 1.3% and the Small cap index surged 2.11%. Today index opened gap up and that sustained and managed to end at day’s high level. So this is sign of bullishness. We expect market to continue its upward march up to levels of 8220-8250. On downside important support for index is 8120 and 8025.

Cipla (BSE Code: 500087) on Monday announced a commercial collaboration with UK-based S&D Pharma to distribute its products in the Czech Republic and Slovakia. Under the collaboration, it will sell its respiratory product portfolio in both Czech Republic and Slovakia through a Cipla-owned sales force managed by its commercial head while S&D Pharma will physically distribute all products, including respiratory products. S&D Pharma represents global pharmaceutical companies and manages the promotion and distribution of their products in Central Europe. The stock may trade with a positive bias in today’s trade.

Aditya Birla Chemicals (BSE Code: 500057) has acquired Jayshree Chemicals's caustic soda business for Rs. 212 crore. Jayshree's chlor-alkali division has capacity of 57,000 tonnes per annum located at Ganjam in Odisha. It also has about 1,600 acres of salt works in Andhra Pradesh. It expects the acquisition to increase its total caustic soda capacity to about 355,000 tonnes per annum, and plans to fund the deal through internal accruals and debt. The stock may trade with a positive bias in today’s trade.

A talk between the contract labours’ organisations in Neyveli Lignite Corporation (BSE Code: 513683), the management and the Labour Department officials in Chennai to settle the issues of the contract workers has failed. The stock may trade with a negative bias in today’s trade.

SKS Micro finance, TVS Motor, Eicher Motors, Motherson Sumi Systems and Mindtree; these five additional securities would be available for F&O trading with effect from September 10, 2014. These stocks may remain in focus in today’s trade.