Index Trends And Stocks In Action November 21, 2014

The Indian markets ended with modest gains amid a volatile trading session. Even though indices managed to recoup early losses toward the end of the session, majority of the sectoral indices ended in the negative territory. On daily chart nifty has formed Hammer candlestick pattern, this candlestick indicates that the prior downtrend is about to end and may reverse to an uptrend or move sideways. On downside 8350 would act as an important support. On upside 8430 and 8472 would act as a resistance level for index.

Tech Mahindra (BSE Code: 532755) will buy out US-based Lightbridge Communications Corporation (LCC) for USD 240 million (over Rs 1,486 crore) in an all-cash deal. The acquisition is expected to close by March 2015. It will help the country's fifth-largest software services firm further strengthen its presence in the rapidly growing telecom and enterprises network market. This is Tech Mahindra's largest acquisition so far. In last two financial years, firm has acquired seven firms, including Satyam Computer Services, Hutchison Global Services and Comviva Technologies. The stock may remain in focus in today’s trade.

Kotak Mahindra Bank's (BSE Code: 500247) acquisition of ING Vysya Bank (BSE Code: 531807) is the country's first ever amalgamation of a profit earning entity post the global financial meltdown in 2008. Post amalgamation, shareholders of ING Vysya Bank will receive shares of Kotak Mahindra Bank in the aforementioned ratio, resulting in change in shareholding of the Kotak Mahindra Bank. The swap ratio indicates price of Rs 790 for each ING Vysya Bank share. Both the stocks may remain in focus in today’s trade.

Hester Biosciences (BSE Code: 524669) has acquired 100% share holding of Gujarat Agrofarm at Rs 52.50 lacs. Gujarat Agrofarm, a company located in Gujarat, is involved in the manufacturing of growth media. This backward integration by Hester aims at securing for itself a source of growth media used in the production of vaccines. The acquisition would enable Hester in saving over Rs 1.50 crores annually towards growth media procurement cost. The stock may remain in focus in today’s trade.