Index Trends & Stocks In Action For 19th March 2013

The Indian markets ended lower yesterday amid weak global cues. Markets were weighed down by selling pressure in rate sensitive shares as traders turned cautious ahead of the RBI policy on Tuesday. The Nifty ended 0.64% down at 5835. Going forward, the Nifty has a crucial support at levels of 5820 and 5790. Expect a mayhem if the Nifty breaches a level of 5790 conclusively.  An immediate hurdle for the Nifty is at a level of around 5880.

Visa Steel has announced its joint venture in India with New York listed SunCoke Energy. The joint entity would be called VISA SunCoke in which the share holding of these companies will be 51% stake of VISA Steel and 49% of SunCoke Energy. To acquire the 49% stake, SunCoke invested approximately Rs 368 crore in the venture. The JV is comprised of a 400000 metric ton per annum heat recovery coke plant and associated steam generation units at Odisha. On this announcement we expect to see some volatility in the stock price of Visa Steel for the day.

Coal India reported yesterday that it has been badly hit by the two-day strike which was called by the trade unions in the month of February. The strike caused an overall production loss of nearly 0.71 million tonnes. Areas with potential for higher production have been identified and proper measures have been taken to ensure un-interrupted production. Due to these disruptions, we expect the stock of Coal India to remain volatile today.

According to the media reports, AGC Networks will be acquiring US-based Transcend United Technologies. The financial details of the transaction are undisclosed. Through this acquisition AGC Networks plans to to expand its footprint in the US. On the back of this development, we expect the stock of AGC networks to see some upwards movement today.

According to media reports, Gerdau an international steel company has acquired remaining stake of its joint venture partner Kalyani Steels at its first plant in India, located in Andhra Pradesh. The financial details of the transaction have been undisclosed. It would also be renaming the venture from Kalyani Gerdau to Gerdau. The plant has an installed capacity of 300000 tonnes of special steels mainly focused on the automotive market. On this announcement, we expect to see some downward movement in the stock prices of Kalyani Steels for the day.