Index trend and stocks in action May 27, 2016

The Indian market extended its winning streak for the third day in a row, as market participants indulged in buying heavyweight stocks at alluring valuations. Sentiments got a boost as private climate forecaster Skymet said that monsoon rains are expected to be 109 per cent above the long term average, compared with its earlier estimate of 105 per cent.  In addition, stellar quarterly numbers posted by L&T showed indications of revival in the Indian economy, which further boosted sentiments. Nifty has convincingly breached its resistance zone of 7980-8000 along with decent volumes. Once it breached this zone, there was no looking back for the bulls and Nifty registered a fresh high for Calendar year 2016. The momentum is likely to continue as RSI is in rising mode and not yet in overbought territory. However, it’s likely to face some resistance around levels of 8120. On the downside, important support will be around levels of 7980-8000 zone. 

BPCL: State-owned BPCL's net profits have dropped by 10.6 per cent to Rs 2549 crore for the quarter ended March 31, 2016 owing to weak oil prices. Sales for the quarter are also down about 14 per cent to Rs 44,197 crores. The gross refining margins (GRMs) of BPCL for the current fiscal stand at $6.59/bbl as against $3.62/bbl in the previous fiscal.

Jet Airways: Jet Airways has seen a turnaround from a loss to a profit in the Q4. Jet Airways has reported a net profit of Rs 397 crore as compared to a loss of Rs 1729 crore in the corresponding quarter last year i.e. Q4. Its total income in Q4 is up marginally 3.6 per cent but the real bug story for Jet Airways was the benefit they derived from lower ATF prices.

ONGC: ONGC profits for Q4 standalone profit have jumped over 3-fold to Rs 4416 crore compared to December quarter. The spurt in profits was largely driven by other income and extraordinary items.

M&M Finance: Mahindra & Mahindra Finance which recently launched its Rs 1000 crore bond issue has seen an oversubscription of nearly 2 times with applications worth Rs 1924 crore pouring in. The 10-year bond offered a 9 per cent annualised yield, which was seen as highly attractive in a market where rates are on their way down.

RPG Life sciences: RPG Life Sciences, part of RPG Group, engaged in manufacturing and marketing of pharmaceutical products, announced that the board of directors of the company has approved the sale and transfer of its Biotech Unit on a slump sale basis to M/s Intas Pharmaceuticals.

State Bank of India: The largest bank in India, will report its financial result for the Q4 ended on  March 31, 2016.

Tata Chemicals: Tata Chemicals has reported a net profit of Rs 242.24 crore for the quarter ended on March 31, 2016. The company had registered a net loss of Rs 74.17 crore for the corresponding period a year ago.

Dr. Lal Pathlabs: One of the leading diagnostic chains in the country Dr. Lal Pathlabs will announce its earnings for the fourth quarter ended on March 31, 2016.