Index Trends And Stocks In Action December 24, 2014

The Indian market snapped its winning streak as profit taking at higher level in Banking, Capital good, Metal and IT stocks forced the index pare gains and slip into the negative zone. Nifty opened on flat note and made several attempt to move up above its 61.8 percent retracement level of the high low range of 8626-7961 levels. Going forward index has strong support around levels of 8220 and 8180. On upside 8330 and 8365 will act as a stiff resistance for the bulls. We expect market to trade volatile as derivative settlement for December series is due today.

UltraTech Cement (BSE Code: 532538) has decided to acquire two cement units of Jaiprakash Associates (BSE Code: 532532) with a combined capacity of 4.9 million tonnes per annum (mtpa) in Madhya Pradesh for an enterprise value of Rs 5,400 crore (around USD 860 million). The cement plants also include captive power plants with a combined capacity of 180 MW. Both the stocks may remain in focus in today’s trade.

Fulford India (BSE Code: 506803), a Merck & Co Inc subsidiary, has transferred its consumer care business to Bayer Pharmaceuticals Private Ltd. Bayer AG has globally acquired the consumer care business from Merck & Co. As part of the global transaction, the consumer care products like Alaspan, Polaramine, Tinaderm marketed by Fulford (India) have been transferred to Bayer Pharmaceuticals Private Ltd. Bayer will completely take over the marketing and distribution of the consumer care products with effect from January 1, 2015.

KDDL’s (BSE Code: 532054) subsidiary Ethos, has raised Rs 7.25 crore by way of issue of compulsorily convertible cumulative preference shares on preferential allotment basis. KDDL also invested Rs 25 lakh through the issue. Ethos, a retailer of luxury watches, will use the funds for expansion. The stake of KDDL in Ethos after the conversion of preference shares will go down to 70.24% from 73.28%.