Index Trends And Stocks In Action September 25, 2014

The Indian market saw a high volatile day and continued its losing streak for second consecutive trading session. Sentiment worsened after the Supreme Court said that allocation for all coal blocks were cancelled expect for four government-run non-joint venture allotments. However this panic reaction led market to an intraday low of 7950, indices staged a smart comeback. The recovery was led by defensives like Pharma and FMCG stocks. Nifty index has seen massive liquidation of position at higher levels. The volatility in last couple trading sessions suggests that the bear’s have upper hand at the moment. Now, the index lies very close to the major support zone of 7930 and 7870. This is the last support area for the bulls, once broken decisively; the short-medium term uptrend would be under threat. On upside nifty is likely to face resistance around levels of 8050 and 8120.  

State Bank of India’s (BSE Code: 500112) board on Wednesday approved splitting the bank’s equity shares of face value Rs 10 each into 10 equity shares of face value Rs 1 each. Besides SBI, the banks that have announced stock splits (or sub-division of shares) in the last few months are: Jammu & Kashmir Bank, Axis Bank, ICICI Bank and Punjab National Bank. A split of shares is usually undertaken when the stock price rises to a high level, making it pricey for investors to acquire. Further, higher number of shares outstanding can result in greater liquidity for the stock. In the last one year, the share prices of India’s largest bank have jumped 51%. The stock may remain in focus in today’s trade.

Gulf Oil Corporation (BSE Code: 506480) will seek shareholders’ nod to pass a special resolution that will enable the company to raise up to Rs 600 crore. The company’s annual general meeting slated to be held later this week will place the special resolution to mop up Rs 600 crore either through an offer of foreign currency convertible bonds or qualified institutional placement or any other mechanism. It would also seek permission to list such securities in India and abroad. The stock may remain in focus in today’s trade.

Unitech (BSE Code: 507878) and UCP get (Board of Approval) BoA approval for stake sale in 5 SEZs. Both companies are jointly developing five special economic zones and one IT Park in Gurgaon, Noida and Kolkata. UCP and realty major Unitech are jointly developing five special economic zones (SEZs) and one IT Park in Gurgaon, Noida and Kolkata. In these six projects, UCP holds 60% stake and Unitech 40%. Unitech would get about Rs 1,500-2,000 crore from selling its 40% stake in four SEZs projects and also about 10% direct stake in UCP. The proceeds would be utilised to reduce debt. The stock may remain in focus in today’s trade.

Astral Poly Technik (BSE Code: 532830) will remain in focus on Today, as the company has fixed September 25 as ex-date for the proposed stock split. The plastics - pipes/tubes - maker proposes to subdivide each share of face value Rs 2 to two shares of face value Rs 1 each. The stock, which closed on Wednesday at Rs 805, will start trading at around RS 400. The stock has risen four-fold in the last one year. Those who buy it on Thursday will not be entitled to the stock-split.