Index Trends & Stocks In Action For 8th April 2013

The Indian markets declined on Friday to their lowest close since the governments “Big Bang” reforms announcements in September. Political instability and concerns that FII’s would exit some of their holdings led to the markets cracking that bad. The Nifty ended at 5553 down by 21 points. In our last write up we had mentioned that the trend will be downwards on a short term basis. We may see a trend reversal only if we sustain above levels of 5760 on the Nifty. Going forward, important support for the Nifty stands at 5520 and 5480. On the up side it will face resistance around level of 5560 and 5600.

SAIL is about to enter into an joint venture with KIOCL, to set up  a three lakh tonne a year coke oven plant  and also a 25 MW power plant at an estimated investment of Rs 500 crore. This plant will be set up at Mangalore in Karnataka for which work is likely to start in the current quarter. The output of the plant will be sold in the open market. An Agreement to put this into action will be signed in the current month We expect to see some volatility in the stock price of SAIL following this news today.

According to media reports, the Securities Appellate Tribunal (SAT) will hear Reliance Industries appeal which against the SEBI today. It involves a case where the market regulator is probing the alleged violation of trading norms in the sale of the shares of the company’s subsidiary RPL in 2007. The stock of Reliance may see some volatility as clarity emerges on this case today.

Petronet LNG intends to raise Rs 600 crore in debt via NCDs to fund the expansion of its Dahej LNG terminal in Gujarat. The Company is planning to raise its capacity at Dahej to 15 million tonnes. it has also entered in to an long term tolling arrangement  for 2.5 million tonnes capacity with GAIL and 2.25 million tonnes with GSPC. The stock of Petronet LNG is likely to react positively to these developments.

Aditya Birla Nuvo has reported that the company has planned to divest its carbon black business to group company SKI Carbon Black (India) for Rs 1451 crore. The move is likely to help the company raise capital to fund its growing Financial Services and Agri businesses.  The company will hence hold its carbon black business under one roof as a precursor to a global listing. The scrip will see some volatility following these developments.