Index Trends & Stocks In Action For 12th April 2013

The Indian markets ended higher for the second consecutive trading session yesterday with benchmark indices hitting their one-week high on the back of positive cues from foreign markets and buying witnessed in Software counters ahead of Infosys’ results. The Nifty gained 35 points and closed at 5594. It made an attempt to cross the barrier of 5610-5630, but bears pulled back the Nifty below the 5600 mark once again. Going ahead, 5630 will be a key level on the Nifty. The main trigger for the markets will be the Infosys results coupled with IIP numbers and Inflation data that come in today. We expect a highly volatile trading session. If cues from these triggers turn out to be better than expected, we might see the Nifty breaking through 5630. Support for the index will come in at 5570-5540.

Shares of pharma major Dr Reddy's Labs may remain volatile over the voluntary recall of its muscle relaxant drug tizanidine. The recall is due to the illegible labelling on the bottles containing the tables of tizanidine. As per the US drug regulator, Over 117,000 bottles are being recalled by the company. The drug recall is of class III type and hence there will be no ban on the drug by the US FDA.

According to media reports, LT Foods is entering the packaged wheat Atta segment. It has recently launched packaged Atta in the US markets under the Royal brand and is expecting to launch another brand called Devaaya soon. Packaged Atta market is estimated to be worth over Rs 3000 crore and is growing at the rate of more than 10% annually. The company has also set up a 40000 tonne flour mill unit in Bhopal. Considering these developments, one can expect some positive trading in the stock.

PFC has diversified its operations in the energy value chain. As per its filing to the stock exchange, the company has financed a total of 9 projects related to power transmission, railway sidings and coal mines. As the situation in the power sector has not improved significantly, diversification seems a right strategy for the company. Investors may see some positive trades in the stock.

PTC India Financial Services sanctioned loans to 9 projects aggregating to more than Rs 1000 crore with 50% sanction to infrastructure facilities like development of private railway sidings, and development and operations of coal mines. It has also sanctioned sums for financing a mega size power transmission project and a hydro power project. It also announced that it would continue to support power sector projects with consistent efforts towards expanding and diversifying in the energy value chain. The stock prices of PTC India Financial Services are likely to see some upward movement today.

Today is the set date for the Offer for Sale (OFS) by the promoters of Berger Paints. At a floor price of Rs 185 per share, the promoters of Berger Paints, Citland Commercial Credits, Wang Investments and Finance, Bigg Investments and Finance, Vinu Dhingra and Kuldip Singh Dhingra are off-loading 0.54% of the share capital (18,72,222 shares) on a separate window of the BSE from 09:15 AM to 03:30 PM. Expect some volatility in the stock prices of Berger Paints today.