Index trend and stocks in action May 12, 2016

Indian market got off to a disappointing start as the indices breached the psychological level in the early moments of trade, since investors remained jittery as India and Mauritius agreed to amend a three-decade old treaty, thereby imposing capital gains tax on investments routed through Mauritius from next fiscal onward. After opening with a downside gap, Nifty held on to the important support of around 7780 smartly, which is also its 200-day EMA. Now going forward, level of 7900-7930 will act as a strong resistance zone. On the downside, the level of 7780 will act as a strong support level. If this level is breached its likely to touch levels of 7730-7680.

Kotak Mahindra Bank: Kotak Mahindra Bank announced 9.6 per cent higher net profits at Rs 696 crore while revenues for the quarter were up by 5 per cent at Rs 1857 crore. Net interest margins (NIMs) were marginally higher at 4.35 per cent in the quarter. The Gross NPAs of the bank had marginally gone up from 2.3 per cent to 2.36 per cent. This quarter the bank has made provision of Rs 200 crore for doubtful assets.

IOC: The Employee Offer of Indian Oil Corporation got extraordinary response from the employees as nearly 40 per cent of the employees participated in the offer. Employees grab this opportunity of employee offer and applied for 53.17 per cent of 1,21,39.762 shares offered for allotment. This is highest ever employee participation in disinvestment process of any company post OFS. The government expects to realize Rs 237 crores.

Cairn: In the well-known Cairn India case on retrospective taxation, Cairn Energy PLC has agreed to pay 15 per cent of the disputed amount of Rs 10,247 crore. In its latest budget, the finance minister had included a facility wherein companies could pay 15 per cent of the outstanding dues till the time the actual case was decided.

Titan: Titan Eyeplus is set to launch two satellite lens manufacturing facilities in Noida and Mumbai. The investment would be around Rs 4-5 crores for each unit. The new manufacturing facilities will enable the company to reduce delivery time and processing time.

Banking Stocks: The Bankruptcy Bill was passed in the upper house, without too many complications. The bill was already passed in Lower House. The bill is critical for banks and industry so that a quick and speedy exit policy can be ensured.

Wipro: IT major Wipro announced a strategic partnership with software vendor Etiya to enable communication service providers deliver digital services.

Tyche Industries: Tyche industries received USFDA approval for its API manufacturing facility located in Andhra Pradesh.

Jubilant Life Sciences: Jubilant Life Sciences and Cyclopharm mutually agree to terminate term sheet for Technegas licensing agreement.