Index Trends And Stocks In Action 8th August 2013

The India equity markets ended lower this Thursday, tracking the negative trend seen on most of the Asian bourses. The US economy has been showing signs of recovery and fears of the US Federal Reserve soon scaling back stimulus have been gripping the markets. The 50-share Nifty fell 23 points to close at 5519. Now the markets are at a very important level. If we break the level of 5450-5500, we may head to lower levels. Going ahead, for intraday 5470 is an important level and the next support comes in at 5450. On the upside, 5570 will act as stiff resistance and above that 5620 will be crucial.

Ranbaxy has again reported a quarterly loss. For the quarter ended June 30, 2013, the company reported flat revenue growth. The market was expecting sequential improvement in the performance and hence the stock had shown some rise yesterday. The company also posted lower-than-expected improvement in its EBITDA margins. The street largely expected the company to report a profit for the quarter but the since the company took an impairment loss, the quarter witnessed a loss of Rs 517 crore. The stock should shed some points today.

Apollo Hospitals yesterday said that it will add 430 beds in the current year which will boost its topline going ahead. The company has also said that the EBITDA of the old hospitals grew at 16% while that of the new ones grew at 12%. It has said that the new beds will add to the EBITDA as well as to the topline when they come on stream. The stock should react positively on this news.

Larsen and Toubro (L&T) won an order worth Rs 646.56 crore for equipment supply and construction of 28 mega lift irrigation projects in Tel river basin by the water resources department of Odisha government. These projects are expected to be completed within 30 months from the date of signing of the agreement. Stock prices of L&T are likely to see some upward movement today.

BNP Paribas and Macquarie Bank picked up more than 12 lakh shares of Strides Arcolab for over Rs 66 crore through open market transactions. While BNP Paribas picked up 5.03 lakh shares for an average price of Rs 759.72 per share, Macquarie bought 3.5 lakh shares for an average price of Rs 799.97 per share. On account of this buying, post the company’s tentative approval for the anti-AIDS combination drug, we may see some an extension of gains today as well.