Index Trends & Stocks In Action For 26th September 2013

Indian Equity markets witnessed a choppy session on Wednesday ahead of September series expiry. The Nifty fell more than 70 points in intraday trades but recovered three-fourth of losses in the last hour trades. The 50-share NSE benchmark lost 18 points to close at 5873. Going ahead Nifty will face resistance around level of 5925 and if we sustain above this level we may see a rally up to level of 5950-5970. On downside nifty has strong support around levels of 5820 and 5790. We expect market to be volatile on the expiry day.

Maruti Suzuki has said that it will increase the prices of its entire range of models by up to Rs 10000 from October first week. The company has been wanting to raise the prices of cars for some time as their input costs went up severely, mainly on account of weakening of rupee. The quantum of price increase will vary according to different models and fuel specifications. One may see some positive bias on the stock today.

HCL America Inc (HCLA), a wholly owned subsidiary of software company HCL Technologies, has won a multi-year multi-million dollar contract to modernise unemployment insurance services in the US states of Wyoming, Colorado, Arizona and North Dakota.HCLA was selected through a highly competitive process where it demonstrated its managed cloud-as-a-service solution. Investors may see some gains in the stock today.

ONGC Videsh Ltd, the overseas arm of Oil and Natural Gas Corp (ONGC), reportedly is in talks to acquire oil and gas blocks in Kazakhstan. The company lost a deal to acquire giant Caspian sea oil field deal to China National Petroleum Corporation but the new deal talks would be seen positively by the market.

British telecom major Vodafone is planning to buy out stakes held by its Indian partners, including that of led Piramal Healt¬hcare in Vodafone India to gain complete control of the country's second largest telecom operator. Vodafone raised its stake to 74 per cent in Vodafone Essar by buying shares of Essar in 2011. Piramal Healthcare which has over Rs 5000 crore in Vodafone India would emerge as a beneficiary entity and hence one may expect some gain in its share price.

The stocks of the companies / NBFCs who have applied for a new bank license may shown some gains today on the back of the RBI’s comments that the apex bank wants wider participation and that it can ease the initial capital requirement if it fails to find fit and proper candidate to set up a new bank.