Index trend and stocks in action August 05, 2016

Indian benchmark indices opened with an upside gap of around 50 points owing to the clearance of the GST bill in the Rajya Sabha; and Nifty saw a sharp downward movement in the early part of the session. The opening upside gap was filled and in the end Nifty ended with minor gains. On the daily chart Nifty has formed a ‘Hammer’ like candlestick pattern, which indicates that the bulls were able to counteract the bears, but were not able to bring the price back to the price exhibited at the opening. Now going forward crucial support for Nifty is placed around 8480 levels, and the downside breakdown of this support will indicate that the short term top has been formed and it will open up for correction up to levels of 8330 in the short term. On the upside, the zone of 8600-8630 will act as a resistance zone.

Suzlon: Indian wind turbine manufacturer Suzlon expects to exit Debt Restructuring by March 2017. Over the last few years, the company has been reeling under a major debt crisis after some bad overseas acquisition decisions. Back in 2007, Suzlon had purchased RePower of Germany for $1.56 billion. However, the financial crisis in 2008 severely dented the demand for alternate energy products. This resulted in Suzlon defaulting on its FCCBs in 2012 and officially entering Corporate Debt Restructuring (CDR) in 2013. Suzlon has benefited substantially from the focus on alternative energy laid by the current Modi government and looks ripe for a turnaround.

JM Financial: Financial Services firm JM Financial said it will raise Rs 1,000 crore by issuing non-convertible bonds. The shareholders of the company had approved to raise the amount in a consensus at the annual general meeting held on August 2.

Larsen & Toubro: As a part of larger strategy to restructure its business, Larsen & Toubro will soon shift all its operational road assets into a new entity and invite other pension funds to invest in it.

SAIL: India’s largest steelmaker SAIL said 1,038 employees have taken up its Voluntary Retirement Scheme (VRS), which will have a one-time financial impact of Rs 213 crore on the firm.

Oil India & ONGC: State-owned oil producers Oil India and ONGC paid a total of Rs 1,450 crore to the Assam government as royalty dues for Crude Oil mined in the state.

Fortis Healthcare: Fortis Healthcare’s board has given an in-principle nod for the demerger of its diagnostics business. The demerger, on which a committee will take a decision on August 19, is an opportunity to unlock value, says CEO Bhavdeep Singh.