Index Trend And Stocks In Action November 09, 2015

The much-awaited Bihar poll results are out and Nitish Kumar led Mahagathbandhan scored a stunning win, resulting in a major blow to the Modi led Bharatiya Janata Party. On the daily chart the Nifty index has continued its sequence of lower top, lower bottom pattern and this indicates that the market has been under selling pressure. It’s likely that the Indian benchmark indices open with a gap down and the nifty index will breach its major support level of 7900 decisively in the opening tick itself. The panic sell-off may take nifty up to the levels of 7700-7750. However, if the support zone of 7700-7750 is not retained expect further selling up to levels of 7640.

Tata Steel: Tata Steel Europe’s second largest steel producer has written to its suppliers asking for an immediate 10 per cent reduction in their prices and demanding deeper cuts in the long run. In letter they have mentioned a long term price reduction of 30 per cent on all purchases. The letter comes amid a crisis in Britain’s steel sector.

Godrej Properties: The Mumbai based property developer Godrej Properties has cut its net debt by Rs 700 crore in the quarter ended September, 2015. They have managed to monetize their commercial properties in Mumbai, Kolkatta and Chandigarh. Now the total debt for the company stands at Rs 2200 crore, which is lowered by 25 per cent. The single biggest deal was the sale of 4.35 lakh square feet office space at Godrej BKC to Abbot Laboratories.

Essar Steel: Debt laden Essar Steel has appointed ICICI Securities and SBI Capital Markets as advisers to help it sell a stake in the business. The company is suffering along with much of the industry from the impact of Chinese oversupply and decline in the prices, and the group has already announced plans to raise funds by selling some of its non-core assets.

Sun Pharmaceuticals: Drug major Sun Pharma reported a 46 per cent decline in its consolidated net profit to Rs 1,106.66 crore for the quarter ended 30^th September, 2015 due to lower sales growth, volatile currency movements and supply constraints.Sun Pharma’s US Sales, which accounts for 48 per cent of its total business, fell by 28 per cent due to delays in requisite approvals.

Andhra Bank: Andhra Bank’s net profit for the quarter ended 30^th September, 2015 grew by 74 per cent to Rs 251 crore on the back of low deposit cost and higher net interest margin. The Bank’s net profit during the same quarter last fiscal was Rs 144 crore.