Index Trends And Stocks In Action For 9th July 2013

The Indian equity markets slumped this Monday after strong US jobs data fuelled concerns that the US Federal Reserve might taper down its stimulus programme soon. The rupee touching a fresh all-time low further spoiled sentiment. Traders and investors cut positions in rate-sensitive stocks amid fears that the central bank may not cut interest rates at its policy meeting.

Going ahead, the Nifty has strong support at levels of around 5770. Second support will come in at levels of around 5740. At the same time, 5820 will act as a major hurdle for the Nifty. If we sustain above this level, the Nifty may touch levels of 5850.

Shoppers Stop has informed that it has opened a new Shoppers Stop store in Agra taking its total tally of stores to 61 stores.  Some upward movement can be expected in the stock today.

Life Insurance Corporation of India has increased its stake in Infosys which is schedules to announce its Q1 results on Friday this week. LIC’s stake in the company was at 5.96% in the March quarter which by June quarter stands increased at 6.72%. In the December quarter, we had observed that LIC had raised its stake in the company, post which it came out with a good set of numbers, ultimately hitting a upper circuit on the result day.  The stock may show some gains on the back of this news. The fall of the rupee and re-entry of Narayan Murthy may be reasons behind LIC raising its stake in the company.

Infrastructure major Punj Lloyd will construct a residential complex for the Delhi Police at an estimated cost of Rs 1,300 crore at Dheerpur in the National Capital. The project, being developed on public-private partnership (PPP) mode, will have over 5200 residential units, three schools and some commercial space, and will be maintained by Punj Lloyd for 25 years. Volatility can be expected in the stock prices of Punj Lloyd.

Hinduja flagship company Ashok Leyland will launch the passenger carrier version of its small commercial vehicle 'Dost' in the current fiscal year. Dost is a light commercial vehicle (LCV) developed jointly by Ashok Leyland and its partner Nissan Motor Co. through their equal joint venture. It was launched commercially in India in 2011. Despite being launched only in 11 states, Dost is the second largest selling product in its segment, with a pan India market share of 18.5%, Hinduja said, adding exports of the vehicle have begun. Upward movement is expected in the stock prices of Ashok Leyland today.