Index Trends & Stocks In Action For 25th June 2013

Indian equity markets ended lower on Monday and the rupee continued to remain weak after the US Fed’s decision to gradually reduce its monetary stimulus measures raised worries of outflows by foreign funds. Further the sharp plunge in China’s Shanghai Composite also weighed on market sentiments. The Nifty 50 breached 5600 for the first time since April 16, 2013. Nifty has broken its long term trend line support of 5610 and closed below this along with huge volumes. Now going ahead 5530 will act as key support for nifty. On other hand 5610-5630 will act as resistance for the nifty.

Gujarat Automative Gears has announced an open offer priced at Rs 1137 is at 20% premium at the current market price of Rs 950. Gujarat Automative Gears is a Gujarat based automative component company. Through the open offer, 26% of the total paid up capital of the company will be acquired by a company named Him Teknoforge from Naresh Kothari, the majority shareholder in the company. An upsurge in the stock is expected today.

Banking license, will be issue but no body knows exactly when that will happen. After JM Financial and IDFC, its Edelweiss Financial and SREI Infra who are looking for a banking license. The news sources also tell us that Videocon will also rope in a foreign partner and apply for a banking license. On the back of these new developments, the stocks of Edelweiss Financial, SREI Infra and Videocon would trade in positive.

On the contrary, another NBFC Mahindra Finance, said it will not apply for a banking licence. The shares of Mahindra Finance are expected to show a dip.