Index Trends And Stocks In Action September 24, 2015

After a nervous start, The Indian Benchmark Indices recovered all its losses and managed to end in green. Rate sensitive stocks like Banking and Realty, led the recovery followed by Pharam and FMCG stocks. On the daily chart the index has formed a potentially Bullish Piercing candlestick pattern, which suggests bulls are back in the action. Now going forward the level of 7885 is likely to act as a stiff resistance and next resistance is around level of 7935. On the downside level of 7800 and 7760 will act as a strong support level. Today being expiry of the September series market is likely to trade with high volatility.

Larsen & Toubro: Chairman of L&T A M Naik, the company is planning to undertake a major plan to restructure its businesses by hiving off all non-core business. The primary focus for L&T will be to increase its ROE, which is a big hurdle for a company engaged into multiple businesses. The big challenge here is to dilute its stake in low profit businesses and hive off minority stakes in segments that are not central to the business plan of L&T. The company is into 70 different businesses and manufactures a wide range of products ranging from metro trains to submarines to nuclear parts apart from its core focus on engineering, procurement and construction.

Coal India: Coal India may revise its five-year capital expenditure due to land acquisition issues. The firm has to acquire 20,000 acres to meet its annual output target of 908 million tonnes by 2019-2020. For this, it has fixed a capex estimate of Rs 60,000 crore over next five years. Now the final capex amount will eventually depend on the proposed land bill, which seeks higher compensation.

SKS Microfinance: SKS Microfinance announced a 1.25 per cent reduction in interest rate from 22 per cent to 20.75 per cent with effect from 1st October for all future disbursals. This is the third rate cut since October, 2014.

Aban Offshore: Aban offshore is planning to reduce its debt by 10 per cent this year. The company move an enabling resolution to get shareholder’s approval to raise funds through depositary receipts and qualified institutional placements.

Shree Renuka Sugars: The Mumbai-based company has said it is planning to entirely exit from the National Commodity & Derivatives Exchange (NCDEX) as part of a approach to sell all its non-crore assets. It has put its remaining 5 per cent stake for sale, with MotlialOswal appointed as adviser for the deal.