Index Trends & Stocks In Action For 4th April 2013

The Indian markets snapped the four-session winning streak and fell sharply in the last hour of trading as concerns over the stability of the government raised its head once again. BJP leader L.K Advani hinted at early elections in 2013 triggering a sell-off. At the end of the day, the Nifty closed at 5672, down by 75 points. The Nifty has now closed below its crucial support zone of 5720-5700. Despite the fact that we saw a significant option build up around that level, going ahead 5720 will prove as the immediate hurdle on upside. Even if that is cleared all pull backs to the 5760 zone will be resisted. Only if we see a confirmed close above that level, will we see bulls in full power. On the downside the Nifty has support at 5630 and 5600.

According to media reports, NTPC has refused to sign supply agreement which was combined with Coal India, as it feels that Coal India was supplying inferior quality of coal. It has reported that the world's largest coal producer was supplying rocks and boulders just to meet its supply commitment. NTPC has also reported that it is ready to sign the agreement provided Coal India promises to give a minimum calorific value of coal. On this announcement, we expect to see some volatility in the stock price of NTPC for the day.

L&T Construction has secured an order worth Rs 1400 crore to develop an airside construction project for Abu Dhabi Airports Company. The project consists of a midfield terminal building, airside and landside work. The project is scheduled for completion in 28 months and work will commence in April 2013. On this development, we expect the stock prices of L&T to move upward today.

Reliance Power has received the first disbursement of Rs 2550 crore (USD470 million) from US Exim Bank and offshore commercial bank. This is the part of its USD2 billion loan. It forms a part of its overall financing for 3960 MW ultra mega power at its Sasan project. Sasan UMPP is a pit-head power generating plant in MP. Its first 660 MW unit of the Sasan ultra mega power plant was commissioned last month. On this announcement, we expect the stock of Reliance Power to see some volatility for the day.

Finolex Industries is in talks to set up a forth facility to make pipes in India. Commercial production has begun at its third plant at Masar in Gujarat. During the current fiscal the second phase of the new plant will be commissioned by which it will be adding 50,000 tonnes per annum to the company's current capacity which is around 1,50,000 tonnes. On this announcement, Finolex Industries is expected to see some volatility for the day.

According to media reports, Crompton Greaves along with its consortium partners has bagged a contract of Rs 239 crore for the construction of an offshore HV substation in Netherlands. The company is to design, deliver and install the high voltage offshore substation for the Luchterduinen project. This offshore connection has been regarded as six largest offshore by CG since 2008. On this development, Crompton Greaves is to see some upward movement today.