Index Trends And Stocks In Action October 14, 2014

The Indian market opened negative on back of weak global cues and disappointing macro-economic data saw the nifty fall below 7800 mark. However, the fall was short lived as market recoups early losses amid gains in the Banking, IT and Metal stocks. Once again the nifty index managed to bounce back from the level of 7800. This is not the first time, but thrice it did in last couple of weeks. Now given the way this support level of 7800 has held on it this bearish scenario, this is the positive signs. Now going forward nifty will face hurdle around levels of 7940, if this is takeout expect good short covering rally and it will help index to levels of 7980 and 8020. On downside support for index is around level of 7840 and 7800. 

Reliance Industries (BSE Code: 500325) reported a 1.7% rise in net profit in Q2 FY15. However, on a consolidated basis, topline decline by 4.3% at Rs 1,13,396 crore against Rs 1,18,439 crore in Q2 FY14. Its gross refining margin, or profit from each barrel of crude oil refined, was USD 8.30 per barrel in Q2 FY15 versus USD 7.70 per barrel year ago. The company spent Rs 45,000 crore as capital expenditure in H1 FY15 and another Rs 60,000 crore would be spent in Q2 FY15. The stock may remain in focus in today’s trade.

The Rs 300-crore show-cause notice issued by the National Pharmaceutical Pricing Authority to Novartis (BSE Code: 500672), involving its pain-killer Voveran, has strained an already uneasy relationship between the industry and its price regulator. The NPPA show-cause to the multinational was allegedly for overcharging consumers and Novartis has two weeks to respond. But as one industry representative, speaking on conditions of anonymity, points out Voveran’s total revenues were  Rs 225 crore, while the penalty slapped on it was Rs 300 crore. The stock may remain in focus in today’s trade.

Shares of DIC India (BSE Code: 500089) will see high activity on the bourses, as the delisting offer from DIC Asia Pacific Pte (promoter) begins on Today. The offer, which ends on October 20, is aimed at mopping up 25.29 lakh shares (or 28.25% stake) of the company. The floor price is fixed at Rs 174 a share but the promoter said it will not pay over Rs 260 a share. But, given the current market price of the scrip at Rs 600, the outcome of the open offer remains to be seen. The stock may remain in focus in today’s trade.