Index Trends And Stocks In Action September 10, 2014

The Indian market seems to have taken a breather on Tuesday amid profit booking witnessed in Realty, IT, Oil & Gas, Banking and Capital goods stocks. On other hand buying was seen in FMCG, Power, Healthcare and the consumer durables stocks. Even the broader market ended with gains outperforming the benchmark indices. Meanwhile, the Supreme Court, in a hearing on the coal block allocation case today issued notice to CBI director Ranjit Sinha in the coal scam. The apex court has sought explanation from Sinha on some allegations in the scam. On daily chart nifty has formed double bottom kind of pattern around levels of 8125-8126. So as long as bull manages to hold level of 8100-8125 there is no threat to the uptrend. Market may move sideways for couple of trading and consolidate and post consolidation would continue to move up and head towards levels of 8220-8280 in short term.

Biocon (BSE Code: 532523) agreed to buy a 7.7% stake in its research services business from a unit of GE Capital for Rs 215 crore. The buyback is being executed by Biocon Research, a wholly owned subsidiary of Biocon. GE Capital had invested Rs 125 crore during end of October 2012 and is making a healthy exit. GE had during that time valued Syngene at a post-money valuation of Rs 1625 crore. This move to buyback the stake held by GE Capital comes even as there is flux in the plans by Biocon to take this research arm public. The stock may trade with a positive bias in today’s trade.

IRB Infrastructure (BSE Code: 532947) won the contract to operate and maintain Mumbai Pune Expressway and old Mumbai Pune highway four additional years till 2023. The concession period for the project is over eight years and the company will be allowed to collect toll for four years beginning 2019. IRB's previous contract to operate the two roads runs till 2019. IRB will pay an upfront premium of Rs 1,000 crore to the Maharashtra State Road Development Corporation and carry out capital works including widening of old Pune highway, road over bridges and flyovers worth over Rs 687 crore. The company is expecting 4-5% in traffic in key projects and expects revenue growth with commencement of tolling on additional road projects. The stock may trade with a positive bias in today’s trade.

ICICI Bank (BSE Code: 532174) has approved the sub-division of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of Rs 2 each. The bank did not give a reason for the stock split, but companies typically split their stocks to keep prices attractive for retail investors. The stock may trade with a positive bias in today’s trade.

Lanco Infratech (BSE Code: 532778) planned to sell power projects to raise Rs 5000 crore ($825 million) and pay down its debts of Rs 15000 crore. Company has been negotiating with its lenders to restructure its debts since last year, has been seeking to sell assets to strengthen its balance sheet and return to profitability. The stock may remain in focus in today’s trade.

Jubilant Life Sciences (BSE Code: 530019) said its shareholders have approved raising Rs 2,000 crore through redeemable non-convertible debentures (NCDs) on a private placement basis or rights basis in one or more tranches. The stock may trade with a positive bias in today’s trade.The company added that the borrowing through debentures will be within the above overall borrowing limit of Rs 5,000 crore. The stock may remain in focus in today’s trade.