Index Trends And Stocks In Action September 26, 2014

The Indian market ended lower on Thursday. Sentiments worsened after government announced that it had deferred the much-awaited decision on new pricing guidelines till 15th November.  Barring the IT, Pharma and Select telecom stocks all other major sectoral indices ended in red. The realty index continued to fall sharply, the index declined about 3 per cent followed by Metals, Oil & gas, power and banking index. In our last write up we mentioned if bear’s pierce the level of 7930 it’s likely to touch level of 7870 and this was in line with our expectation as nifty index almost touched level of 7877. Now going forward nifty has support in range of 7822-7840. If bulls fail to defend this support level than its likely index would see a correction up to levels of 7750 in short term. On upside nifty will face resistance around levels of 7930 and 7985. 

Adani Enterprises’s (BSE Code: 512599) plans to build a new USD 16 billion coal mine are a step closer after the Federal government approved a new 310km railway that will link the operation to the port. The North Galilee Basin Rail project was given the green light by Federal Environment Minister Greg Hunt, who placed 23 conditions on the proposal. The stock may remain in focus in today’s trade.

JSW Energy (BSE Code: 533148) had agreed to buy three operating power plants from Jaiprakash Power Ventures (BSE Code: 532627), as it looks to expand its portfolio beyond coal and lignite-based plants. JSW Energy has inked a binding memorandum of understanding (MoU) with JP Power to acquire three plants of 1,891 MW capacity. These include 300 MW Baspa-II and 1091 MW Karcham Wangtoo hydro electric plant and 500 MW Bina thermal power plant. Both the stocks may remain in focus in today’s trade.

Asian Paints (BSE Code: 500820) will reportedly set up Rs 2,400 crore plant in Karnataka with manufacturing capacity of five lakh kilo litre per day (KLPD) capacity. The project would be rolled out in two phases - with manufacturing capacity of four KLPD and two lakh KLPD respectively. Asian Paints with a turnover of Rs 12,700 crore operates in 17 countries and has 23 paint manufacturing facilities in the world servicing consumers in over 65 countries. The stock may remain in focus in today’s trade.