Index Trends And Stocks In Action For 21st August 2013

The Indian equity market recouped after a gap down opening and closed 100 points off from day’s low on Tuesday on back of short covering in banking and FMCG stocks. The sharp recovery in rupee from its record low also helped the market recover.   The gap down opening and recovery from day’s low is a bullish sign. One more bullish sign is that RSI is in oversold and it’s showing positive divergence. This suggests the movement on the upside is likely to continue and we may see pullback up to levels of 5450-5470. On downside 5370 will act as strong support break of this level may take us down to levels of 5320.

Rural Electrification Corporation has sought the Securities and Exchange Board of India approval to raise up to Rs 5,000 crore through tax-free bonds. The funds raised through the issue would be utilised towards general lending operations of the company and other associated business objectives besides repaying the existing loans.  The stock may witness positive move on the bourses.

McNally Bharat will supply and erect balance of plant for Singareni Colliery in Andhra Pradesh. The company has bagged the order worth Rs 973 crore. The plant has to be readied within next 36 months. The order entails a complete package — supply of equipment, appropriate civil work, structural work, and erection and commissioning of the plant for a thermal power project. The news will give positive impetus to the stock.

eClerx Services proposes to buy-back its fully paid-up equity shares upto 600,000 Equity Shares and minimum of 300,000 equity shares at a price not exceeding Rs. 825 per share payable in cash for an aggregate amount of up to Rs. 40.50 crore.

Fortis Healthcare yesterday announced that it has completed divestment of its investment in Fortis Hoan My Medical Corporation VOF PE Holdings Limited and Swindon Limited to Viva Holdings Vietnam (Pte) for a total consideration of USD 80 million (Rs 504 crore). The transaction was completed yesterday i.e. August 20, 2013 and the announcement came after the market hours. The stock is likely to witness some positive momentum today.

A bill to replace the DGCA by a new regulator for the Indian aviation sector, the Civil Aviation Authority (CAA), was introduced in the Lok Sabha. The Civil Aviation Authority of India Bill 2013, which was introduced by Minister of State for Civil Aviation K C Venugopal, would provide the CAA full operational and financial autonomy to regulate all issues concerning civil aviation safety and protect the interests of consumers in a fast-changing aviation scenario. It would be empowered to levy fees and charges under the Aircraft Act 1934 and undertake its own recruitment of professionals, which is currently carried by the UPSC for the Directorate General of Civil Aviation (DGCA).