Index Trend And Stocks In Action December 16, 2015

The Indian markets continued to move up-ward for the second day in a row led by value buying in the Auto, FMCG, Healthcare and Oil & Gas stocks. The Nifty index has managed to close above levels of 7700 and now going levels of 7730 will act as a stiff resistance for the index.  If the index managed to cross above this resistance level expect it to re-test levels of 7800. On the downside, immediate support for the index is placed around levels of 7660. The downswing will gather fresh momentum once this support is breached decisively. The daily 14-day RSI has managed to cross its 9-day average and is quoted at 40 levels.

Larsen & Toubro: Engineering major Larsen & Toubro (L&T) has informed that Canada Pension Plan Investment Board (CPPIB) has invested Rs 1,000 crore in its infrastructure arm L&T IDPL. This is the second tranche of investment made by CPPIB’s in L&T Infrastructure development projects.

LIC Housing Finance: In a BSE filing, the housing finance company has intimated that it is buying Nomura’s 19.3 per cent stake in LIC Nomura Mutual Fund. The deal has been secured at Rs 27.36 crore.

Nestle India: The Supreme Court sought the Centre’s response to a plea of Swiss packaged food market Nestle against an order for testing of 16 more samples of Maggi noodles in connection with the governments of Rs 640 croresuit against the company for alleged unfair trade practices.

Sugar Stocks: The lower house of parliament LokSabha passed the Sugar Cess (Amendment) Bill. This bill effectively raises the sugar cess from Rs 25/quintal to Rs 200/quintal. The government said it will help cane-growers who are in crisis as it can facilitate rehabilitation and modernisation of sugar factories.

IOC, BPCL and HPCL: Petrol price has been slashed by 50 paisa and diesel prices has been slashed by 45 paisa per litre. Petrol will cost Rs 59.98 in the Capital I.e. Delhi as against Rs 60.48 per litre.