Mid-market commentary Aug 25

Indian markets started off on a positive note but remain subdued on the day of August F&O expiry where Nifty and Sensex hovering at 8660 and 28100 mark with marginal gains. Broader markets slightly outperform with 0.4-0.5 per cent gains. On the global front, Asian markets remained negative and European markets opened flat to negative.

RBI recently issued clarification on norms of S4A allowing bankers to restructure debt of companies in default. The bankers will now be allowed to waive accrued penal interest which is the higher interest rate charged when account becomes NPA.

FMCG sector bounced back again with 0.85 per cent gains driven by Tata Global Beverages and ITC. Tata Global Beverages surged 2.8 per cent after it announced entry into dairy business and ITC surged after it sued Britannia for copying the former’s biscuit packaging. IT on the other hand tumbled half a per cent dragged down by Wipro and Infy falling more than 1 per cent.

It’s the third day of intraday recovery for the Nifty. But the overall trend remains sideways and hence we maintain our view of 8700-8730 as the near term resistance while 8650-8600 followed by 8540 to be the supports for now.

Stocks to watch:
Power Grid Corporation: The stock of Power Grid surged and hit new 52-week high on company’s plan to raise Rs 14000 crore through issuance of bonds in 2017-18.

Jubilant Lifesciences: The stock hit record high after USFDA approval for Felodipine Extended-Release tablets USP of 2.5, 5 and 10 mg used for treatment of hypertension.

Thomas Cook: The company signed MOU with Madhya Pradesh Tourism Development Corporation to educate and promote tourism. .

TCS: The company succeeds in settling its three-year-old lawsuit with US district Orange County for $26 million.

Natco Pharma: The stock of Natco pharma surged 4.5 per cent after it announced receipt of successful Establishment Inspection Report (EIR) from the USFDA for the inspection conducted at its chemical division Chennai.