Index Trends And Stocks In Action March 20, 2015

Indian benchmark indices ended in negative terrain for a second consecutive session, retreating from earlier gains of as much as 1.2% as investors and traders felt domestic markets had already seen good run-up and head room for upward movement is limited. End of the day action has formed a big bearish candle with more than average volumes; this indicates bears have upper hand. The pullback rally has halted at 8788 and it failed to close above its hurdle of 8780 this hints that bulls are in weak position and long unwinding has been witness at higher levels. Now going forward 8600 level is very crucial level for the bulls, if this level is breached next important support is around 8530. On upside 8665 and 8710 will act as stiff resistance.

Shares of Ajanta Pharma (BSE Code: 532331) will split from face value of Rs 5 to Rs 2 on Friday (Today). That means, shares that are currently trading at around Rs 3,075 will start trading in the range of Rs 1,210-1,230 post-split. Those buying the shares from Friday will not receive the split shares. At the end of December 2014, promoters held 73.15% stake in the company while about 14,850 small investors owned 14.84%. Mathews India Fund controls 3.05% in the pharma major.

The Reserve Bank yesterday allowed Zicom Electronic Security Systems (BSE Code: 531404) to raise the limit of investment by NRIs and persons of Indian origins to up to 24% of the company’s paid up capital.

Shares of NTPC (BSE Code: 532555) will remain in the limelight as Friday (Today) is the ex-date for bonus debentures. For every share held in NTPC, one bonus debenture of face value Rs 12.50 will be allotted. The coupon rate payable on the debenture will be decided each year. Those buying NTPC shares from Friday will not be entitled to receive bonus debentures. The bonus debentures will be redeemed in three instalments – Rs 2.5 in the eighth year, Rs 5 in the ninth year and Rs 5 in the 10th year.

Building solutions provider Everest Industries (BSE Code: 508906) is planning to make operational its first overseas unit at UAE by December this year or January 2016. Built at around Rs 100 crore, the facility will manufacture boards and panels. It will cater to the company’s exports in West Asian and African nations. Currently, exports contribute around Rs 200 crore towards the company’s turnover.