Index Trends & Stocks in Action For 23rd May 2013

The Indian markets fell on Tuesday amid a range-bound trading session, weighed down by Larsen & Toubro after the company reported disappointing fourth quarter numbers. The Nifty ended at 6095, down by 20 points. Going ahead, we feel 6070 will be a crucial support for it. If we slide below this level, we may touch levels of 6040 on the Nifty. On the higher side, the Nifty faces resistance at levels of around 6120-6140.

Shares of Dr. Reddy's Lab are expected to go up on the back of the fresh fall in rupee. The company derives 85% of its revenues from the export market. The fall in rupee thus makes prospects of increased revenues higher. The company also beat market expectations in the Q4 results making foreign brokerage houses turn bullish on the stock. We expect positive movement in the stock today.

Shares of Thermax are expected to trade lower on account of a disappointing set of Q4 numbers, which came after market hours yesterday. The company has reported 13% decline in its topline to Rs 1468 crore. Its net profit declined by 11% to Rs 115 crore. Its EBITDA margins however have shown an improvement of 40 basis points to 11.39%. Its total order book by 31st March 2013 stood at Rs 4878 crore which is flat compared to its order book by end of FY12. Overall, a negative trend is expected on the stock today.

LIC Housing Finance is planning to raise Rs 5 billion (USD 90.44 million) in 5-year bonds at 8.34%. Axis Bank is the sole arranger to the deal. Stock prices of LIC Housing Finance are expected to remain volatile today.

The government has allowed a new type of four-wheelers called 'quadricycles' to ply on roads as public transport within city limits. The development can bring positive vibes for Bajaj Auto which last year had unveiled the quadricycle codenamed RE60, which is powered by a 200 cc petrol engine with a top speed of 70 kilometre per hour (kmph) and with a mileage of 35 kilometre per litre (kmpl).

Mukesh Ambani Reliance Industries controlled Jio Infocomm is planning to roll out 4G wireless broadband services in West Bengal by March, 2014 and planning to infuse Rs 3,000 crore into the state. Upward movement can be expected in the stock prices of RIL today.