Mid market commentary Aug 02

Indian markets opened on a positive note, saw a sharp rise in the morning tick itself, but retreated to trade flat to positive again. Nifty is hovering around 8650 while Sensex is trailing at 28000 mark. Investors await the GST bill which is likely to be tabled in the Rajya Sabha on Aug 03.

On the whole, consolidation continues for the fourth session today and hence we maintain our view of 8720-8750 as the immediate resistances. On the downside, 8620-8590 to act as the immediate support.

On the sectoral front, FMCG has remained 2 per cent up with heavyweight ITC surging 3.4 per cent. On the contrary Media has tumbled 0.7 per cent after Sun TV dropped 2.3 per cent. On the stock specific front, apart from ITC, Maruti and Hero Moto Corp are the top gainers; while HDFC leads as the loser with 2 per cent and more losses.

Stocks to watch:

BPCL: The company is mulling to raise 500 million USD for CAPEX requirements through sale of its treasury shares via block deals.

IDFC: The stock of IDFC has surged more than 6 per cent where it said it may carry out reverse merger with IDFC Bank for shareholders’ benefit. RBI has announced norms for ‘on tap’ licensing of private sector banks.

Lupin: Lupin’s Japanese subsidiary Kyowa Pharmaceutical Industry has signed a strategic asset purchase agreement with Shionogi & Co., to book the sales of the 21 products. Kyowa in turn will pay 15.4 billion Yen.

Banco Products: Banco Products has announced Q1 results wherein its net profit stands at Rs 40.65 crores which has increased by 46 per cent YOY. The stock of Banco has surged 14 per cent.

Sun Pharma: The company has received USFDA approval to launch its generic drug Glumetza Metformin Hydrochloride's extended release tablets 500 mg and 1000 mg through a subsidiary.