Index Trends & Stocks In Action For 25th March 2013

The Indian markets fell for the sixth consecutive trading session on Friday, to their lowest closing in four months. The markets were dragged down by political instability, doubts over the prospects of future rate cuts and global markets which hovered near their lowest in nearly three months due to uncertainty over Cyprus. The Nifty closed 7 points lower at 5651. The markets continue to remain in the grip of the bears. The momentum oscillators on daily and weekly charts are both in support of the bears. Going forward, the market may remain choppy owing to two trading holidays, the March derivatives expiry and global news. Immediate support for the Nifty would be at level of around 5610-5600. Whereas, resistance for the Nifty stands at 5700-5730.

Suzlon Energy is to hit the overseas bond market. It  has planned to raise USD 650 million to prepay its forex debts. With this, Suzlon Energy will be the first domestic company under CDR to do so. The recent Rs 9500 crore corporate debt restructuring did not include forex loans. The money which will be collected is not to go the company treasury but to the 19 member consortium of the domestic lenders. On this announcement, we expect the stock of Suzlon energy to remain volatile today.

Tata Consultancy Services (TCS) is on the verge of bagging a systems integration contract of worth Rs 1100 crore from the Indian Post as a part of the latter’s drive to modernise its technology infrastructure, according to media reports. This five year deal would make TCS accountable for overall implementation of India Post 2012, a multi faceted IT automation programme. On this development, we expect the stock of TCS to be positive for the day.

According to media reports, SKS Microfinance has completed two more securitization transactions aggregating to Rs 115 crore. With this, it also marks the completion of its 10th securitization transaction aggregating to Rs 981 crore in FY13. Securitization is a process of pooling loans and turning them into marketable securities that can be sold to investors. On this development from the company, we expect the stock of SKS Microfinance to be volatile for the day.

According to media reports, Indian power projects are seen to be in danger in Sri Lanka and Bangladesh due to the probable wrest of China. One such instance is NTPC’s stalled plans to build a 500 MW plant in Sri Lanka. This project has turned up in favour of a Chinese tie-up. Similarly there is uncertainty over NTPC’s projects in Bangladesh. On this note, we expect that the stock of NTPC to trade in with a downside bias for today.

Polylink Polymers (India) is to hit the market today with its Offer for Sale (OFS) with an offer size of 635000 shares at a face value Rs 5 each and at a floor price of Rs 3.50. Stock prices of Polylink Polymers (India) are likely to see volatility during the day.