Index Trends And Stocks In Action 7th August 2013

Indian equity markets were hammered yet again on Tuesday (6th August 2013) as rupee terror continue to torment and dismal quarterly corporate earnings added fuel to fire. The Nifty ended at 5542 down by 143 points. In our last write up we mentioned that if nifty breaks important support zone of 5640-5650 we expect a waterfall decline in the nifty and it would touch level of 5550-5500 and what we witness was in line with our expectation. Going ahead on downside 5500-5450 are important support zone, if we break this level we expect market to see a bloodbath. On upside, we feel 5590 level is big hurdle and second hurdle is around level of 5640.

SpiceJet is in active discussions with Singapore-based budget carrier Tigerair for a possible stake sale even as they are set to sign a code share agreement soon. SpiceJet promoter and media baron Kalanithi Maran may offload up to 24% to Tigerair as the airline faces fall in profits and attempts to retire debt.

The government plans to add a fresh power generating capacity of 88,537 mw in the next five years. The planned capacity comprises of 10,897 mw through hydropower plants, 72,340 mw through thermal and 5,300 through mw nuclear plants, power minister Jyotiraditya M Scindia said.

Some reports suggest that, Foreign lenders have served winding up notice to Shiv-vani Oil & Gas Exploration Services for defaulting on dues to the tune of $84.5 million (around Rs 480 crore). The matter will soon come up for hearing in the Delhi High Court and in London, said two persons familiar with the development. We expect the counter to get impacted negatively.

Cognizant Technology Solutions has beat June 2013 quarter estimates by a wide margin and raised its full year revenue growth forecast, reinforcing its reputation as industry growth leader. The company now expects 2013 earnings of at least $3.96 per share on revenue growth of at least 19 percent to $8.74 billion. It had previously forecast earnings of at least $3.95 per share on revenue growth of at least 17 percent to $8.60 billion. We feel it is a positive news for Indian IT companies.