Index trend and stocks in action April 12, 2016

The Indian market after a positive start, entered into a negative territory in the mid-morning trading session. However, Nifty bounced by over 100 points in the second half, led by Telecom stocks which got a small re-rating after Airtel acquired Aircel’s 4G spectrum. Stock from the Banking sector and even the Information Technology sector saw some rapid buying. Nifty managed to hold on to its important support of the 7500 level and staged a smart rally closing above 7650 mark. Now going forward the levels of 7730-7780 could offer a strong resistance for the market. If the index manages to sustain above this hurdle its likely to start its momentum on the upside and likely to touch levels of 7850 and 7970. On the downside, the level of 7580 is a key support area and next support is placed around 7500. We expect market to play in the range of 7520-7750 in the coming trading session and IT bellwether earnings could provide some sort of direction to the index.

Lyka Labs: Lyka Healthcare, a wholly owned subsidiary of Lyka Labs has launched two domestic marketing divisions in the name of ENSPAN and CERABELLE. Enspan would be marketing critical and  Anaesthesia related range of products; and Cerabelle would be marketing Dermatology and Cosmetology related range of products.

Tata Steel: Tata Steel finally completed the sale of its UK Steel unit to Greybull Capital. The fund will be investing Euro400 million into the steel facility in UK. The UK operation of Tata Steel has nearly $700 million of debt. Under the agreement, all the current employees of Tata Steel will stand transferred to Greybull.

HDFC: LIC has raised its stake in private mortgage firm HDFC to over 5 per cent. LIC has purchased 10 lakh shares or 0.063 per cent from the open market. The shares were purchased on 7th of April.

Ajmera Realty: Ajmera Realty plans to develop 10,000 affordable homes in the next 10 years in the Mumbai Metropolitan Region (MMR). This is a part of the commitment made under the Memorandum of Understanding (MoU) signed by the developer’s association MHCI-CREDAI with the Maharashtra Government for developing one lakh affordable houses.

Tata Chemicals: Tata Chemicals said its fertiliser plant at Haldia will be shut for over five weeks in the period of September to October due to interruption of ammonia supply.

Hindustan Zinc: Anil Agarwal led Hindustan Zinc paid the government about Rs 3,000 crore as a special dividend. HZL declared special golden jubilee dividend of Rs 24 per equity share of Rs 2 each for 2015-16.