Index Trends And Stocks In Action For 11th June 2013

The Indian markets saw a volatile trading session on Monday with the markets changing direction several times over the day. IT stocks were in the limelight as the rupee fell by a whopping 90 paise to hit a new life time low of Rs 58.96 to the dollar in the late noon trades. At the end of the day, the Nifty ended on a flat note, down by 3 points at 5878. In our last write up, we mentioned that we are expecting a minor bounce back in the Nifty and what we predicted turned to be true. Going forward, the key level for bulls is 5850. If the markets sustain below this level, we can see levels of 5820-5780. On the higher side, 5910- 5940 will act as resistance for the Nifty.

Jagson Airlines has informed the stock exchange that it will restart its airlines. As per the BSE filings, the company has appointed a few crew members and engineers to start operational activities. The current share price of the company is Rs 2.57 and the counter is illiquid at the moment but the news is likely to be seen positively. Due to the less liquidity in the counter, the stock is undergoing periodic call auction. Hence there are specific times in the day when one can buy the stock. Due to some positives in the aviation sector, the management may have taken this decision.

Yesterday rupee hit all time low which may well be negative for the economy. For pharma companies like Lupin, Dr. Reddy’s Lab, Sun Pharma, etc this news is positive as they derive nearly 75% of the revenues from exports. It would also be positive for IT majors like TCS, Infosys, Wipro and HCL Tech. The news on the other hand is highly negative for companies like Tata Power and Adani Power who import coal from Indonesia.

State-owned Oil and Natural Gas Corp (ONGC) jumped its own embargoes to announce a USD 2.5-billion buyout of Videocon Industries stake in a giant Mozambique gas field.

The Supreme Court today refused to stay the National Green Tribunal (NGT) order allowing Sterlite Industries to recommence operation of its copper smelting plant in Tamil Nadu's Tuticorin district under the supervision of an expert committee, said Business Standard.