Index Trends And Stocks In Action October 17, 2014

The Indian market moved in a tight range till noon, amid lackluster trades. And then, with European markets starting off on a weak note, the mood turned quite bearish and stocks across the board were seen stumble under pressure till the closing bell. In our last write up we gave a hint that index is on verge of breakdown and it was in line with our anticipation. Now that the index has breached its strongest support of 7800 on closing basis, the medium term trend of market has turned bearish.  The major support for index is placed around levels of 7650-7670. On upside 7820 will act as a stiff resistance for the bulls.

Hero MotoCorp (BSE Code: 500182) reported 58.62% increase in its net profit at Rs.763 crore for the second quarter ended 30 September, riding high on robust sales. The company had posted a net profit of Rs.481 crore during the same period of previous fiscal. Turnover of the company rose 20.76% to Rs.6,915 crore for the second quarter, as against Rs.5,726 crore during the same period of previous fiscal year, Hero MotoCorp said in a statement. In terms of volumes, the company’s total sales during the quarter stood at 16,92,593 units, up 19.5% from 141,627 units sold in the same period of previous fiscal. The stock may remain in focus in today’s trade.

TCS (BSE Code: 532540) reported net profit for Q2FY15 grew 13% on Y-o-Y basis to Rs 5,568 crore and on a Q-o-Q basis it rose to 4.55%. Revenue for the quarter was up 7.7% on a y-o-y basis and 5.3% on Q-o-Q to at Rs 23,816 crore. While dollar revenue growth was 6.4% at USD 3,929 million compared to USD 3,694 million on sequential basis. The company further added that about 20,350 employees were added to the total headcount in this quarter which stood at 313,757. Besides, the company has announced the merger of CMC (BSE Code: 517326), a subsidiary firm, as per the amalgamation scheme. Shareholders of CMC will receive 79 equity share of Rs 1 each of TCS for 100 equity shares of Rs 10 each of CMC. Both the stocks may remain in focus in today’s trade.

Crompton Greaves (BSE Code: 500093), on a consolidated basis, has posted a 21% rise in net profit at Rs 70 crore for the quarter ended September 30 against Rs 58 crore in the same quarter last year. It has declared an interim dividend of 20% i.e.  40 paise/sh.  Total Income has increased from Rs 1816 crore to Rs 1952 crore. The board approved the scheme of demerger of the consumer products business unit from itself into a wholly owned subsidiary i.e. Crompton Consumer Products Ltd. The board also approved a definitive agreement for sale of a portion of its land at Kanjurmarg (in Mumbai) of about eight acres to Evie Real Estate for Rs 302.26 crore. The stock may remain in focus in today’s trade.

Insecticides (India)(BSE Code: 532851) has informed BSE that a meeting of the Board of Directors of the company will be held on October 30, 2014 to consider and recommend on issue of Bonus Shares and to declare a 2Q FY15 result. The stock may remain in focus in today’s trade.