Index trend and stocks in action February 05, 2016

The Indian market snapped three days losing streak and ended above 7400 mark. The markets had opened higher, owing to positive trade in the Asian Market. However, most of the gains fizzled out in the second half of the trading session and indices ended with marginal gains. On the daily chart the index has managed to fill the gap which was created on 3rd February, 2016. Now going forward immediate support for the index is placed at 7350 and if the index trades below this support level, it is likely to dip to levels of 7280-7200. On the upside, Nifty needs to stay above level of 7480 and next target level would be 7550. However, crossing and sustaining above 7480 levels would be a tough task as the index is not gathering enough strength to close above this supply zone.

Tata Steel: Tata Steel, the country’s largest steel producer reported a loss consolidated loss of Rs 2127 crore fort the quarter ended 31st December, 2015, almost twice the loss the street had anticipated. Even steel revenues for the quarter fell nearly 18 per cent to Rs 26,821. Sales from European operations stood at 3.35 million tonnes result in an EBITDA loss of Rs 675 crore.

Reliance Infra: ADAG led Reliance infra has signed the agreement to sell its unlisted cement business to Birla Corporation for a total consideration of Rs 4800 crore. In dollar terms, the procurement by the MP birla group flagship is pegged at about USD 140 per tonne, while the industry estimates the cost of building a new cement plant at less than $110 a tonne. Reliance infra has been trying to hive off its non-core assets to reduce some of its debt.  This deal will help to reduce some of its debt and their interest cost on an annual basis.

Bajaj Auto: Bajaj Auto reported lower revenues, but higher profits for the quarter ended 31st December, 2015. Revenues declined by 1.6 per cent to Rs 5565 crore while the profits were up by 4.7 per cent. Sales volume in December declined by 3 per cent to 9.51 lakh units due to slowdown in export demand.

Cairn India: The battle between Cairn a subsidiary of UK-based Vedanta group and the government over export of surplus oil from the Rajasthan oil filed continues. The ministry of petroleum and natural gas informed the Delhi High Court that its empowered committee of secretaries has decided against granting permission to Cairn India to export oil from its Barmer Oil and gas block in Rajasthan.

M&M Financial: M&M Financial gets SEBI approval for setting up asset management unit.