Index Trends And Stocks In Action for 29th January 2013

Yesterday, the Indian markets ended a lackluster session of trade on a flat note. Momentum was seen in rate-sensitive stocks ahead of the RBI policy meet. At the same time, profit-booking was witnessed in the Oil & Gas sector. The Nifty closed flat at 6075 forming a doji candlestick pattern in a range-bound trading session. This makes the high and low of the day very significant. Based on that, 6095 will form as the immediate hurdle. Above that, the next hurdle is 6120. On the down side 6060 and 6010 are two major support levels.

Suzlon Energy has signed a contract for 21.75 MW project with Sri Kumarswamy Mineral Exports (SKMEPL), Bellary, Karnataka. The project is set to be commissioned in the districts of Dindigul and Tirunelveli of Tamil Nadu by the end of March 2013. SKMEPL has an existing installed capacity of 29.25 MW from wind energy projects developed by Suzlon, operating in sites across Karnataka, Tamil Nadu and Maharashtra. This new order will augment the existing renewable energy portfolio. Resulting out of the order bagging by Suzlon, we expect some upward movement in its stock prices today.

GlaxoSmithKline(GSK) and Hyderabad-based Biological E have set up a joint venture to develop a six-in-one vaccine for poilo and other infectious diseases. This 50:50 JV would be for the research and development of this product. The transaction is expected to complete by 2013. The partnership reinforces the commitment of both the companies to support the World Health Organization global polio eradication programme. We expect the stock of GSK remain in focus for the day today.

Vadilal Industries is set to sell its flavored milk ‘Power Sip’. It has decided to launch the new product in Uttar Pradesh over the next couple of months. It reported have been motivated to do so, after getting an overwhelming response from the states of Gujarat and Madhya Pradesh. Vadilal will sell Power Sip in a 180 ml bottle priced at Rs 18 a piece in three flavours. Owing to the new product launch and its response, stock prices of Vadilal Industries are likely to see an upswing today.

V-Guard, as a part of diversification has forayed into home appliances. The company which earlier launched induction cooker tops is now planning to launch mixer grinders. The company is expecting business of around Rs 150-200 crore from home appliances. The induction cooker tops market is estimated to be around Rs 1,200 crore and in the next 4-5 years V-Guard expects to garner around Rs 150-200 crore from this segment. For now, V-Guard is looking at importing these products from China. Going forward, in a year or two, it will consider setting up an assembling in Himachal Pradesh. We expect some upward movement in the stock prices of V-Guard today.

Among the major companies to announce their results today are Binani Industries, Blue Dart Express, Century Textiles & Industries, Crompton Greaves, L&T Finance Holdings, Oracle Financial Services Software, Pidilite Industries, Shoppers Stop, Sterlite Industries and Torrent Pharmaceuticals. These stocks are expected to remain volatile for the day with the directional trend dependent on the results they announce.