Index Trends & Stocks In Action For 1st October 2013

The Indian equity market witnessed a sharp correction in the last hour of trade yesterday. Rate sensitive’s dragged the market lower with Bank stocks leading the fall. Metals and Realty added to the woes. The Nifty has broken its range of 100 points and managed to close below the 5800 mark. Going ahead it is likely to be under pressure. We may see a minor bounce back and this should be used for creating short positions. 5680 is an important support for the Nifty with the second support coming around 5640. On the higher side 5780-5820 is a crucial resistance level for the Nifty.

Infosys, India's second largest software services exporter, and software giant IBM have won a 300 million euro (about Rs 2535 crore) contract to develop computer systems for the UK-based bank Williams & Glyn's. The new contract augurs well for a company struggling to make a come back after its founder stepped in to improve matters. The Infosys stock will be worth watching out for in todays trading following these developments.

Shareholders of Cooper Tire and Rubber Co will in all probability approve on Monday the US company's USD 2.5 billion sale to India's Apollo Tyres, in a transaction that is expected to create the world's seventh-largest tyre maker. A green light from Cooper shareholders will bring Apollo one step closer to completing the takeover, although hurdles still remain due to opposition from workers at Cooper's joint venture in China and US Labour issues which could delay the deal. The stock of Apollo Tyres is likely to remain in action following these developments.

Siemens along with Siemens AG has bagged a Rs 271 crore order from RINL (Rashtriya Ispat Nigam Ltd) for the modernization of its blast furnace at the Vishakhapatnam Steel Plant. The news flow augurs well for the stock and could see it remain in action for a better part of today.

In a set back to the pharma sector, the Supreme Court has stayed approvals granted to 162 applications for clinical trials in the country. Reportedly, the apex court has asked the sector regulator to provide evidence that norms for drug related research are being followed. The development is likely to keep pharma stocks in focus particularly the likes of Biocon which are very much in the process of launching new drugs.