Index Trends And Stocks In Action January 16, 2015

The Indian market reclaimed the golden level of 28,000 on Sensex clocking its biggest single day gain in over 15 months. The RBI governor gave a huge surprise to market participant as he announced a much awaited rate cut of 25 bps with immediate effect following a slew of positive macro-economic data. Finally index broke its major supply zone of 8410-8465 along with huge volume. The momentum oscillator RSI has managed to get past levels of 60 and now trading at 65 odd levels. Other momentum oscillator have turned positive and indicating good momentum ahead. Going forward index will face resistance around in zone of 8550 to 8600. On downside important support is around levels of 8455 and 8380. 

Tata Consultancy Services (TCS) (BSE Code: 532540) on Thursday missed Street estimates, posting a 5.1% year-on-year increase in net profit for the quarter ended December 31 to Rs 5,444 crore. On a sequential basis, net profit and revenues rose 2.9% each. The company’s operating margin came in at 27% for the December quarter versus 29.7% in the December 2013 quarter and 26.84% in the September quarter. Its operating profit rose 4.6% over the previous year to Rs 6,624 crore. This represented a 3.6% rise over the sequential quarter.

The troubles of ailing SpiceJet (BSE Code: 500285) may finally be over. The airline’s co-founder Ajay Singh has signed an agreement with Sun Group Chairman Kalanithi Maran as well as KAL Airways, who control 53% stake in the airline to take over ownership and control of the low-cost carrier. Financial details were not available. The transfer is part of the scheme to restructure and revive the airline. Singh so far owned about 5% in SpiceJet.

After surprise rate cut by the RBI, there's is more good news in store for Indian investors. Data shows that December 2014 trade gap at 10-month low and may be heading towards a trade surplus. Trade deficit during December fell sharply to USD 9 billion from USD 16.8 billion in November 2014. While exports for the month came in at USD 25.40 billion from USD 25.96 billion in November, imports declined to USD 34.83 billion from USD 42.82 billion in the previous month.

In Q3FY15, HSIL (BSE Code: 500187) posting a 157% growth in net profit at Rs 30.29 Cr as against Rs 11.8 Cr on YoY basis.  Net Sales grew by 26 per cent of Rs 455.5 Cr as against Rs 361.3 Cr on YoY basis. EBITDA grew by 56 per cent of Rs 95.11 Cr as against Rs 60.8 Cr with EBITDA margin improve by 440 bps to 21% as against 16.6% on YoY basis.

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