Index Trends And Stocks In Action February 12, 2015

The Indian markets continued its winning streak for the second successive trading session. The broader market outperformed the benchmark indices as it soared about 2 per cent each. Technically, the Nifty index opened with a gap up and moved in a tight band for the rest of the day. Nifty is yet to complete the gap which was created on 9th February, 2015. Now going forward index needs to sustain above 8650-8660 for fresh momentum on the upside. If index fails to cross this resistance in coming trading session expect a corrective phase up to levels of 8560-8480. 

Tech Mahindra (BSE Code: 532755) and its sister company Mahindra Finance are in talks with the Reserve bank of India to open a payment bank and applied for a licence with the central bank. Further, the company is too in close dialogue with the World Bank Group member IFC for a partnership in this venture. The minimum investment requirement by the RBI will be much larger than Rs 100 crore, according to the company officials.

Grasim Industries (BSE Code: 500300) announced its proposed merger of Aditya Birla Chemicals (India), an Aditya Birla Group Company with Grasim. The swap ratio approved by the Board is 1 share of Rs 10 each of Grasim for every 16 shares of Rs 10 each of ABCIL. The proposed merger will consolidate Aditya Birla Group’s Chlor – Alkali business into Grasim and strengthen its existing portfolio of viscose staple fibre, caustic soda and allied chemicals in Standalone company. The merger will enable the geographical diversification for Grasim through the addition of ABCIL’s manufacturing facilities spread across the country. 

Public sector undertaking, Power Grid Corp (BSE Code: 532898) announced 18 per cent increase in its net profit to Rs 1229 crore for December 2014 quarter against a net profit of Rs 1042 crore in the corresponding period last year. The company’s revenue from operations stood at Rs 4354 crore in December 2014 quarter against Rs 3685 crore during the same period last year.