Index Trends & Stocks In Action For 3rd April 2013

The Indian markets rose for the fourth day in row. The Sensex reclaimed an important mark of 19,000 after two weeks on sustained buying amid a firming global trend. The upsurge was led by trend-setter Reliance Industries and Pharma major Sun Pharmaceuticals on reports of a price hike for drugs. The Nifty closed at 5748, up by 43 points. In our last write up we had mentioned that the Nifty faces a stiff resistance around levels of 5725-5730, once it cleared this zone, it went on to hit a two-week high of 5755. On an intraday basis, the immediate hurdle for the Nifty comes at 5760 and on clearance of that, it could test 5800 levels. On the downside, support for the Nifty comes in at the 5720 level.

According to media reports, Reliance Jio Infocomm (RJI), owned by Mukesh Ambani has signed an agreement with Reliance Communication's to share its optic fibre network. RJI will be paying Rs 1200 crore to RCom as indefeasible right to use (IRU) fees for the network. This is the very first business transaction between the two brothers after they came back following the spat that broke out on the death of Dhirubhai Ambani. RCom zoomed 17.08 per cent yesterday while RIL went up by 2.28 per cent. RCom is likely to continue soaking in the limelight of this development even today.

Sterlite Industries has been fined Rs 100 crore by the Supreme Court for flouting green norms at its Tuticorin plant in Tamil Nadu. The Tamil Nadu Pollution Control Board has passed an order asking the company to shut its plant at Tuticorn as locals have complained of breathing problems there. The stock is likely to see a volatile trade today following this development.

Kilburn Engineering has bagged an order worth USD 7.1 million from Samsung Engineering of Korea. The order is for the supply of a carbon pellet making and drying plant. In another development, it has recevied an order worth Rs 8 crore from Symtech India for supply of conveyor dryers and rotary oven. The stock of Kilburn will surely ride high on these developments in today’s trade.

MOIL has raised prices across its product portfolio by 9% for the April – June 2013 quarter to cash in on rising demand. There has been an increase in domestic demand and the company has hiked the raw material prices in line with increase in global rates, said MOIL’s Managing Director G P Kundargi to the media. MOIL is India’s largest manganese ore producer with a capacity of about 1.1 million tonnes. The price raise it has announced will be effective from April 01, 2013 and will significant translate into topline growth. Stock prices of MOIL are expected to see significant upside movement today.