Index Trend and Stocks in Action on September 7, 2015

After a relief rally in Thursday trading session, The Indian market resumed its southward journey on Friday with benchmark indices ending with losses of 2 per cent. Despite two-day holiday in China’ stock market; the domestic market saw a sharp correction led by the rate-sensitive Realty, Banking and Auto stocks. On the daily chart the index has formed a big bearish candlestick, this suggest that bear’s will continue to have an upper hand. Now going forward major support the index stands around levels of 7540. On the upside the level of 7700 will act as a stiff resistance for the index. We might see a bounce in the index from lower levels as the index has reached oversold zone.  However, this bounce would be a short-lived phenomenon as market participant are following a sell on rise strategy.

Idea Cellular: Idea Cellular has pursued shareholder approval to raise Rs 10,000 crore through the issue of non-convertible debenture (NCDs) on private placement basis. Telecom Companies have been under immense burden after the latest auction of spectrum as they need to shell out close to $5billion each for the spectrum bids. This bout of fund raising is likely to put severe pressure on the balance sheet of Indian Telecom operators.

IL&FS Transportation Networks: IL&FS Transportation Networks is planning to sell most or its entire operational annuity road projects in an effort to reduce debt before the end of this fiscal year. The company is in early stage talks with international pension funds as well as domestic and foreign private equity firms to divest these assets.

Amtek Auto: More than 80 investors, including Axis Bank, KarurVysya, Syndicate, Corporation Bank and some pension funds watch at a blow of at least Rs 800 crore in their books in the September quarter as long-suffering Amtek Auto may fail to reschedule its payment.

Maruti Suzuki: Maruti Suzuki Indian plans to take approval from minority shareholders on allowing parent Suzuki Motor Corporation to own and invest in the upcoming Gujurat plant.