Index trend and stocks in action September 07, 2016

After a long weekend Indian market started the session on a positive note; thereafter market capitalised on the momentum and Nifty went past important psychological level of 8900 mark. The markets got support with surge in Indian rupee against the US dollar on selling of the American currency by exporters and banks amid sustained foreign fund inflows and a weak dollar against other currencies overseas. Nifty opened the session with an upside gap. On the daily chart Nifty formed a strong bullish candlestick pattern, which shows that the bulls were in full force. Now going forward Nifty has resistance in the zone of 9000-9010. On the downside, the zone of 8850-8860 will act as a strong support for the Nifty.

VEDL and Cairn: Shareholders of Vedanta Resources PLC have approved the merger of Cairn India with Vedanta’s Indian subsidiary. This will be one more step towards creating a private sector behemoth in the mining space. Earlier key minority shareholders of Cairn India viz. LIC and Cairn UK had also approved the deal.

SBI: India’s largest bank, SBI, has raised Rs.2100 crore through the launch of perpetual bonds. The funds were raised at an interest rate of 9%. Perpetual bonds, as the name suggests do not have a maturity date and only carry the interest payment liability for the borrower. Typically, perpetual bonds are issued by blue-chip companies in the global market.

NBCC: NBCC has secured orders worth Rs 270 crore from University Grant Commission. The order is for construction of a new building complex for UGC at the Jawaharlal Nehru University Campus in New Delhi.

Aegis Logistics: The company has informed BSE that the Infrastructure India Holding Fund LLC (“IIHF”), which invested in Aegis Logistics in the year 2011 has reduced its stake below the limit prescribed under the said agreement.

Reliance Capital: Reliance Capital has raised about Rs 2,000 crore through non-convertible debentures.