Index Trends & Stocks In Action For 14th January 2013.

The Indian markets opened tracking firm global cues and terrific Q3 earnings from IT major Infosys on Friday.  They opened with a gap up but strong selling was witnessed in the second half of the day. At end of the day the Nifty managed to hold on to levels of 5950 and closed down by 0.29% at 5951.Going forward, vital levels to keep an eye on for the Nifty will be 5930 and 5890. On higher side it may face resistance at 5980-6020.

India’s largest shipbuilder ABG Shipyard has planned an investment of Rs 5000 crore in Gujarat. Its intention is to build a Greenfield shipyard in three phases along the Gujarat coastline. The company has submitted its proposal to the state government during the ongoing Vibrant Gujarat Gobal Investors Summit 2013. This project is likely to generate employment for about 4500 individuals. Apart from this, ABG has also planned to expand its facilities at Dahej and Magdalla in three phases with an estimated investment of Rs 2000 crore. The stock is expected to remain in focus today following these announcements.

The Essar Group will invest Rs 14000 crore in the Gujarat’s port sector and water supply projects. This investment has a potential to generate 1500 jobs directly and indirectly. We expect a positive movement for the stocks in this group.

GAIL India plans to spend Rs 9000 crore in capital expenditure over the next fiscal. Most of this will be used to complete the ongoing projects of the company. The amount will used for laying more pipelines and expansion of its petrochemical project at Uttar Pradesh. The Company also aims to bring in gas from its Sabine Pass fields in the US.  The stock of GAIL is likely to see an upward movement today.

Gujarat State Fertilizer & Chemicals (GSFC) has announced a strategic investment of approximately USD 45 million in Canada-based karnalyte Resources to insure potash import for Indian farm sector fertilizer needs. We expect the stock of GSFC to remain volatile for today.

Bhushan Steel is reportedly commissioning its 3 million tonnes capacity by March at its Odisha plant. This will increase its total steelmaking capacity to 5.2 million tonnes. The capacity expansion was originally estimated to be completed in October last year. Bhushan Steel will continue to be in the limelight following these announcements.

Of the companies that are to announce their Q3FY13 results today, are TCS, Muthoot Finance, Shree Ganesh Jewellery, Shalimar paints and Petronet LNG. All these stocks are likely to remain in the limelight today.