Index Trends & Stocks In Action For 24th January 2013

The Indian markets on Wednesday saw a fight between bulls and bears, which finally ended with minor gains as in last hour of trade as bulls beat the bears. The Nifty closed at 6054, up by 0.10%. In yesterday’s trade it tested the crucial support zone of 6020 and bounced back from there. Volumes witnessed during the pull back were on a higher side. This makes the support levels of 6020 more significant now. Second crucial support for nifty is around levels of 5990. On the upside 6095 will be a hurdle with 6120 being the second hurdle.

Insurance group ING said yesterday that it has decided to exit ING Vysya Life Insurance by selling its 26% stake to domestic partner Exide Industries, according to Business Standard. Exide will also buy a 24% stake from two other promoters, Hemendra Kothari Group and Enam Group. Exide, which currently holds 50% stake has proposed to pay Rs 550 crore for the remaining 50% stake. Exide said, it would look for a new foreign partner for the insurance business. This news is likely to result in increased volatility in the stock prices of Exide Industries.

JSW Energy after posting losses consistently for the last one year has posted net profit of Rs 310.51 crore for the quarter ending December 2012. Net sales increased nearly 33% to Rs 2319.10 crore. Its volumes came in at a net of 110 million units in the quarter under review. It also generated 221 million units under the conversion agreement. Yesterday, stock prices of JSW closed at Rs 73.55 per share, an appreciation of 2.80%. On the back of the results announcement, the stock is expected to remain bullish for the day.

Drug firm Novartis India posted its Q3FY13 yesterday, post market hours. The net profit saw a decline of 24.28% to Rs 29 crore .Net sales of the company expanded to Rs 233.54 crore during the quarter as against Rs 222.32 crore during the same period for the previous year. Novartis yesterday closed at Rs 653.95 per share, down by 0.74%. The unimpressive set of numbers is likely to trigger downward movement in the share price today.

Among the major companies that are to announce their Q3FY13 results today are Vijaya Bank, SKS Microfinance, Sesa Goa, L&T, Granules, Dhanlaxmi Bank, Biocon India, Bharat Gear, Ashok Leyland and Andhra Bank. Stocks of these companies are expected to remain volatile today with the directional trend depending upon the numbers the companies post.