Index Trends & Stocks In Action For 30th August 2013

Equity Markets ended higher on Thursday following the expiry of August derivative contracts. The market particularly was seen tracking a rebound in the rupee. after the Reserve Bank of India decided to provide dollars directly to oil companies. The Nifty closed at 5409 up by 124 points. In our last write up we had mentioned that buying momentum and the rally could continue and what we witnessed was in line with our expectations. The Nifty is trading at a very crucial level and the zone 5420-5470 is a stiff resistance zone for the index. If it closes above this level we can expect the market to touch around 5650-5700 level in the short term. Intraday, the Nifty will face resistance around level of 5440 and the next resistance is likely to set in around 5470. On the downside support for Nifty is around 5360-5330.

According to reports, India has selected seven banks including Goldman Sachs and Deutsche Bank to manage a 5% government stake divestment in state miner Coal India. At the current market price, the Coal India stake sale will raise about Rs 79 billion for the government, which is struggling with a record high current account deficit, growing fiscal pressures and a slowing economy. The share sale could be launched in October depending on the market conditions. The stock will remain in focus for today.

Reliance Industries yesterday said that it has won an approval from the Directorate General of Hydrocarbons (DGH) to invest USD 3.18 billion in R-Series gas field in the KG-D6 block. RIL and BP have plans to bring the satellite fields in KG-D6 block to production to ramp up the output from this block which has seen a sharp drop in the last few years. The shares of RIL have shown a very robust performance yesterday which is likely to continue today as well.

HDFC Bank has said that it is planning to open 300 new branches and recruit 2000 people in the current fiscal as per its ongoing expansion plan. It has already submitted this plan to the RBI which includes a proposal to open the branches at new locations. The bank has also said that there is enough room for the growth in the banking space and that the entry of the new banks will not impact its growth prospects. The stock should remain in focus today.

The government is open to giving 100% stake to private parties in six select airports, including Kolkata and Chennai. The Civil Aviation Ministry will issue a Request For Qualification (RFQ) document in a few days for Chennai and Lucknow airports. The RFQ for the other four -- Jodhpur, Guwahati, Ahmedabad and Kolkata--would be issued in the next few weeks.