Index Trend and Stocks in action October 21, 2015

The Indian benchmark indices snapped its three-day winning streak on the back of profit taking and subdued global cues. On the daily chart the index has formed a small body negative candle with small lower and lower wick, this candle suggest that the up-move has come to pause and the bulls are taking a breather after a long run up. Now going forward nifty index has strong support around 8200 levels and if breach this support expect it to re-test levels of 8150 on the downside. On the upside levels of 8300 is proving to be stiff resistance for the index.

BhartiAirtel: BhartiAirtel, the world’s fourth largest telecom service provider by revenue and subscribers, has finally managed to sell 8300 telecom towers in Africa for a sum of $1.7 billion. This will be used to reduce the debt of the company. This deal consists of 60 per cent of the total tower base of Bharti in Africa. Overall the telecom major has 14,000 towers in Africa alone. Debt has been a major issue for the company as its net debt stands at Rs 68,000 crore, a lot of which was incurred to finance the Zain Acquisition in Africa.

Biocon: Biocon reported an over two-fold jump in its consolidated net profit at Rs 306 crore  its second quarter profit, boosted by a one-time gain of Rs 203 crore from selling shares in its research service unit Syngene to the public.

Vedanta: Rating agency Standard and Poor’s lowered its foreign currency long-term corporate credit rating on London listed mining conglomerate Vedanta Resources PLC to ‘B+’ from ‘BB-‘ with a negative outlook, citing weak financial performance expected in the next 12-18 months.

Hero Motocorp: Hero Motocorp report a 1 per cent growth in profits. Revenues were down by 1 per cent to Rs 6837 crore for the quarter ended September, 2015. Total volumes for the quarter declined by 4.4 per cent to 15.7 lakh units on the back of weaker than anticipated rural demand. However, the realization per vehicle was up by 2.7 per cent during the quarter.

ACC: ACC reported a fall of 40 per cent in its consolidated net profit at Rs 115.21 crore for the quarter ended September, 30, hit by weak cement prices in the Northern and Western parts of India. Also the subdued off-take of cement in the monsoon season was also liable for weak prices.