Index Trends & Stocks In Action For 2nd July 2013

The Indian equity markets ended on a positive note near the day’s high on the back of buying interest in heavyweights like Reliance, Maurti Suzuki and DLF. Global markets also boosted investor sentiment. The Nifty ended the day higher by 57 points at 5899.

Going ahead, the markets will face some resistance at levels of around 5920-5930. If we sustain this level we may rally up to levels of 5970. On the other hand, the markets will find support at levels of around 5870 and 5850.

Tata Motors announced its June 2013 sales numbers post market hours yesterday. The company reported a decline of 18% in total sales, year-on-year. Its commercial vehicle sales were down 10% and its passenger vehicle sales were lower by 31.5%. The decline in the sales of Tata Motors has been faster than the rest of the industry. Stock prices are expected to witness some downward pressure.

Liberty Shoes is eyeing 25% growth in sales in the current financial year on the back retail expansion. The company, which had net sales of Rs 362.86 crore last fiscal, plans to open 75 more stores in this calendar year, in addition to 25 stores opened in the first half of 2013. The stock may see some upward movement today.

VE Commercial Vehicles reported a decline of 18.75% in the sales of Eicher branded products in June 2013, on a yearly basis. It saw a decline of 19.58% in the sales of light commercial vehicles and 29.63% in the sales of heavy commercial vehicles. Stock prices of Eicher Motors are expected to be weighed upon.

Moody’s downgraded Tata Power’s outlook to negative from stable. Tata Power is likely to see some selling today resulting in downward movement.