Index Trends & Stocks In Action For 10th May 2013

The Indian markets on Thursday ended lower as traders and investors preferred to book profits in sector such as metal, banks and real-estate. The Nifty closed at 6050, down by 19 points. In our last write we mentioned that it’s time for bulls to take rest and in yesterday’s session we saw the bulls getting tired and the market ending on in the negative zone.

The Nifty, for the first time in the last 15 trading sessions closed below the previous day’s close.  This gives an indication that market may see some correction. On daily charts nifty has formed a bearish engulfing candlestick which supports the fact that the Nifty may see some correction. Going ahead, on the downside, 6020 will act as a key support level. On the upside, the Nifty may face resistance at levels of around 6090-6125.

With gas output from its flagship KG-D6 fields dipping to an all-time low, Reliance Industries Chairman Mukesh Ambani has said the company will invest over USD 5 billion in "a series of projects" to reverse the trend. RIL and its British partner BP plc have submitted to the government plans to bring to production satellite fields in the eastern offshore KG basin block to raise output that has plummeted to less than 16 million standard cubic meters per day from about 64 mmscmd achieved three years ago. Stock prices of RIL are likely to see some upward movement today.

Fair trade regulator Competition Commission is probing into allegations of anti-competitive practices against five entities related to the pharmaceutical industry, including drug maker Cipla. The complaint has been filed against the five entities for allegedly engaging in anti-competition practices in granting stockist licence for medicines in Himachal Pradesh. This may add to downward pressure on the stock prices of Cipla today.

Enterprise data services provider Tulip Telecom has received formal approval for restructuring its debt by the Empowered Group of the Corporate Debt Restructuring (CDR) Cell. The company’s domestic lenders, a consortium of 13 banks and financial institutions, approved its CDR package, which includes a 30-month moratorium on principal and 18-month moratorium on interest, Tulip said in a statement. The stock is expected to remain volatile today.

HT Media said that its Board will consider the proposal for buy-back of equity shares on the meeting scheduled to be convened on May 14, 2013. This is likely to result in volatility in the share prices of HT Media today.

GTL Infra announced its Q4FY13 numbers post market hours yesterday. In Q4FY13, its revenues increased by 2.64% to Rs 143.32 crore, on a yearly basis. However, it announced an operating loss of Rs 217.6 crore in Q4FY13 as compared to an operating profit of Rs 6.68 crore in Q4FY12. Its net loss widened to Rs 437.85 crore from Rs 76.96 crore in the corresponding quarter in the previous year. Stock prices of GTL Infra are likely to see downward movement today.

Among the major companies to announce their Q4FY13 numbers are Apollo Tyres, Ashok Leyland, Balrampur Chini, Central Bank, Claris Lifesciences, Cummins India, Essar Oil, GIC Housing, Graphite India, NTPC, Prozone CSC, Punj Lloyd, Reliance Communication, Sobha Developers and Varun Shipping. These stocks are expected to remain volatile through the day with the market direction depending on the results they post.