Index Trends & Stocks In Action For 21st January 2013

Markets on Friday ended at fresh two-year high with the Sensex closing above magical mark of 20000 mark for the first time after 6^th January, 2011. Optimistic economic data from the US and China fuelled hopes of a recovery in the global economy. The Nifty closed on a positive note at 6064 up by 25 points. Going forward on the higher side the Index may face some resistance at around 6090-6110 while Support levels for the Nifty stand at around 6035-6000 levels.

Dalmia Cement intends to invest Rs 1800 crore for the purpose of expansion over the next two years. The company would be investing Rs 1300 crore for its upcoming 2.5 million tonne green field project at Belgaum, in Karnataka. It recently acquired Meghalaya-based Adhunik Cement investing nearly Rs 560 crore in it and increased its stake in Calcom Cement in Assam. With all these developments coming to the notice of the market, expect the stock to remain firmly in action with a positive bias for today.

L & T finance is in its final stage of the negotiations to buy Morgan Stanley’s wealth management business in India. The deal would be finalized in a month. The company has taken to the acquisition route for growth, making three buyouts last year in the mutual fund, housing finance and auto finance segments. The stock is expected to remain in focus today following the newer developments on the acquisition front by it.

JK cement is planning to raise funds from institutional investors for funding its long term growth plan including capital expenditure. The company is likely to do a QIP (qualified institutional placement) of upto Rs 200 crore. It is also gearing up to make its first international foray with the setting up of a greenfield dual process white cement-cum-grey cement plant in the free trade zone (FTZ) at Fujairah, UAE to cater to the GCC and African markets. We expect the stock of JK Cement to remain in the limelight for the day.

Ashok Leyland is planning to increase its dealership. It intends having 500 dealers across the country by the end of 2013. The company has currently around 440 dealers. It has begun a ramp up of its dealerships in Gujarat by launching new ones in Rajkot, Jamnagar and Morbi in the Saurashtra region. It is also planning to open three new dealerships in Gujarat at Vadodara and Ahmedabad. We expect the stock to remain in focus for the day.

IDBI Bank has proposed to raise Rs 555 crore by issuing preference shares to the government and up to Rs 2500 crore from institutional investors. The government infused about Rs 20117 crore in public sector banks during 2010-11, and Rs 12000 crore in 2011-12. This development can lend a whole lot of volatility to the IDBI Bank during the course of the day.

Among companies to be watched for today are Asian Paints, Geometric, HDFC, Jublicant, Shree cement and Zensar Technologies among others, as they announce Q3FY13 results.