Index trend and stocks in action August 23, 2016

Indian benchmark Indices got off to a sluggish start in tandem with the pessimistic sentiments prevailing in Asian markets. Thereafter, Nifty failed to show any kind of enthusiasm due to lack of encouraging leads. Selling pressure accelerated in the afternoon session. However, Nifty bounced back from the lows and ended with a loss of 37 points. On the daily chart Nifty has formed a ‘Small Bearish’ candle, and this candle is formed when the underlying asset trades lower; but within a defined range, throughout the session. Over the past 5-6 trading sessions, Nifty has been moving in the band of 8600-8700 levels. As long as Nifty moves within this range, the trend remains choppy. Now going forward, key support for Nifty stands at 8590-8600 and breach of this support will give a trending down move up to levels of 8530-8500. On the upside, key hurdle for the bulls stands at 8700-8735.

HPCL: Hindustan Petroleum (HPCL) has announced a 30% growth in net profits for the first quarter ended June 30, 2016. Gross refining margins (GRM) for HPCL  have come in weak at $6.83/bbl, substantially lower than the $8.56/bbl reported in the corresponding period last year. Revenues for the quarter are lower by 5.8% at Rs.51,661 crore. Like most Indian companies, HPCL has also seen a sharp improvement in the operating margins this quarter. The company also has announced a bonus in the ratio of 2:1.

Union Bank of India: State-owned Union Bank of India has raised Rs 1,000 crore through bonds for funding business growth.

Reliance Infrastructure and Birla Corp: Anil Ambani owned Reliance Infrastructure has completed the sale of its 100 per cent shareholding in Reliance Cement Company (RCCPL) to Birla Corporation, the flagship company of the MP Birla Group. The acquisition will take the total cement capacity of Birla Corp from 9.8 million tonnes per annum (MTPA) to 15.4 (MTPA).  

Hotel Leelaventure: Hospitality chain, Hotel Leelaventure said it is seeking shareholders' nod to sell properties in Chennai and Delhi to pay off debt.