Index Trends & Stocks In Action For 19th June 2013

The Indian markets ended lower on Tuesday snapping a two-day winning streak as investors turned cautions and booked profit in financials. The Nifty ended down by 36 points at 5814. We had mentioned in our last write up that 5870 will act as major hurdle for the bulls and we witnessed exactly the same yesterday. The Nifty saw profit booking around levels of 5863 and went on to end near the day’s low. Going ahead the Index will find support around levels of 5790 and 5760, whereas, it will face hurdles around levels of 5845-5870.

The promoters of Religare Enterprises would be diluting their shareholding in the company to 49% to enable it to qualify for applying for banking license under the guidelines for licensing of new banks in the private sector. Stock prices of Religare Enterprises are expected to be volatile today.

GAIL and Shipping Corporation of India (SCI) signed a MoU to cooperate for transportation of 5.8 MTPA LNG sourced by GAIL from Sabine Pass and Cove Point terminals in the US. The deal would include SCI assisting GAIL in the charter hiring of LNG ships and GAIL assisting step-in right to SCI in the ownership of LNG ships. Stock prices of GAIL and SCI are likely to see some upward movement today.

Infrastructure financing company IDFCs board has approved a proposal to seek licence from the RBI for setting up a bank. The board of the company at its meeting has approved a resolution for making an application to the Reserve Bank of India (RBl) for obtaining a banking licence. The stock of the company is likely to remain in action following this development.

Water treatment player Va Tech Wabag in a joint venture with Pratibha Industries has bagged Rs 262 crore order from Melamchi Water Supply Development Board, Nepal. The scope of the work comprises construction of a water treatment plant at Sundarijal, Nepal with an initial capacity of 85MLD. The stocks of both these companies are likely to remain in action for today.