Index trend and stocks in action May 20, 2016

In a proactive move, Indian markets kicked off on a negative note tracking Asian markets that fell due to the possible interest rate hike by FED in June policy review. Europe too slumped following the hawkish view by Janet Yellen for June policy. To add to it markets saw a consolidation breakdown after SEBI announced more tightening norms for P notes holders besides the KYC to be discussed in the meeting on Friday, to that effect. Benchmark indices plunged more than a per cent where Nifty closed below 7800 at 7783 while SENSEX closed at 25400 shedding 300 points. PSU Banks remained the lead draggers of the markets with 3.7 per cent losses. All other sectors closed in red. Only the defensives IT and Pharma remained flat to negative tracking Dollar appreciation. Going forward we maintain our view of 7770 as the support on a closing basis. If Nifty hits below the said level, it can touch 7700-7680 levels too. On the upside, 7800-7830 will act as a immediate resistance followed by 7880 mark.

SpiceJet: SpiceJet has reported profit of Rs 73.2 crore in Q4FY16 after taking a one-time expense of Rs 173 crore “towards stabilising and improving the reliability of its fleet”. The company had reported a profit of Rs 22.52 crore in the year-earlier quarter. Revenue has risen 86% to Rs 1,475 crore in the three months ended March 31, from Rs.791 crore a year earlier.

Pidilite Industries: Pidilite Industries has reported a 48.97% increase in standalone net profit at Rs 115.04 crore for the March quarter. The company's total income from operations also has increased 12.26 per cent to Rs 1,086.91 crore during the January-March quarter as against Rs 968.13 crore a year ago.

Gujarat State Petronet: Gujarat State Petronet has posted a net profit of Rs 99.71 crore for the quarter ended March 31, 2016 compared with Rs 67.1 crore for the quarter ended March 31, 2015. Total income has decreased from Rs 250.26 crore for the quarter ended March 31, 2015 to Rs 244.99 crore for the quarter ended March 31, 2016.

Sobha: Realtor Sobha has posted 41.3% drop in net profits to Rs 36.1 crore on higher provisioning for taxes; while revenue has grown 9.66% to Rs 558.5 crore on better sales of its properties. The company has approved buyback of up to 22.75 lakh shares of the company from existing shareholders for about Rs 75 crore i.e. it would buyback these shares at Rs 330 per share, which is higher than Thursday's closing price of Rs 305.50 per share.