Index Trends And Stocks In Action January 19, 2015

The Indian market remained lackluster amid volatile session. Buying interest was seen in Consumer durables, Power and Healthcare stocks. Broader market outperformed the benchmark indices. On daily chart nifty has formed a potential Doji Candlestick pattern along with double top pattern. This hints that market may take a breather before making major moves. For the day, the crucial supply zone to watch out for would be 8545 and 8560 on upside. On downside important support of index is around levels of 8445 and 8410. Market is expected to trade in range with stock specific action. 

Reliance Industries' (BSE Code: 500325) logs 1st profit decline in nine quarters, December quarter net profit dipped by 4.5% to Rs 5,256 crore, after a steep fall in crude oil prices hurt core refining business and margins. The firm’s consolidated revenue fell by 20.8% over the year-ago period to Rs 93,528 crore, which it attributed to a 30% fall in the benchmark crude oil price. Its refining business, which accounted for about 70.7% of total revenue, reported a 24% decline. The disappointment was on account of gross refining margins (GRMs) at USD 7.3 a barrel, largely due to higher inventory losses. While RIL had reported GRMs of USD 7.6 and USD 8.3 a barrel in the year-ago and previous quarter, respectively.

Electrical goods maker V-Guard Industries (BSE Code: 532953) reported 47.4% drop in December quarter net profit at Rs 9.23 crore due to poor sales, write-down around Rs 6.5 crore on its copper inventories and a 50% hike in advertising spends to promote a new water heater the company launched. However, the company still has confidence about sales pick up in the seasonally busy fourth quarter able to meet its full fiscal sales target of Rs 1,800 crore turnovers. For the third quarter ended December 31, 2014, the company has clocked a cumulative turnover of Rs 1,280 crore. Talking about capex plans, the company plans to increase cable capacity at its Coimbatore plant by around 300 tonne per month to 3,600 tonne per month, by investing around Rs 25 crore during the next fiscal.

Piramal Enterprises (BSE Code: 500302) has invested USD 30.65 million (about Rs 180 crore) towards acquiring Coldstream Laboratories Inc, a speciality pharmaceutical contract manufacturer. Coldstream is a specialty pharmaceutical contract manufacturer with an emphasis on clinical trials to commercial-scale manufacturing of sterile liquid and lyophilised parenterals and injectables. It has developed differentiated expertise to formulate and manufacture high potency and cytotoxic compounds, including Antibody Drug Conjugates.

Dalmia Cement (Bharat) (BSE Code: 533309) has invested around Rs 2,000 crore in expanding its business in North East over the past two years. The company currently has three manufacturing plants in the region — one in Meghalaya and two in Assam. In the next 1-2 months, the company will commission one clinkerisation unit in Assam with an installed capacity of one million units.