Index Trends And Stocks In Action November 07, 2014

The Indian market yet again scaled higher closing at record highs. Banking stocks were in lime light as the index gains about 1.4% followed by Healthcare, IT and Capital goods. After a strong up-move the index is taking some breather. RSI has entered in to overbought territory. Now going forward index will face resistance at level of 8380-8400. On downside important support of index is place around 8280 and 8240.

Finolex Industries (BSE Code: 500480) is planning to expand its product portfolio by entering into the water supply and water equipment business.  The company is spending over Rs 16 crore for this venture. Its non-pipe business will touch Rs 1,500 crore in the next two years. Also, as a part of this, the company is planning to increase its capacity of the PVC pipes and fittings plants by 40 per cent to 320,000 tonnes through an additional capital expenditure of Rs 90 crore spread over three years. Finolex is eying USD 1 billion (apporx Rs 6,000 crore) turnover in the next five years. Finolex is also planning to launch new technology products related to water. The stock may remain in focus in today’s trade.

Cadila Healthcare (BSE Code: 532321) reported a 52% rise in net profit to Rs 278 crore in 2Q FY15 on the back of a 21% rise in total operating income. Total operating income posted of Rs 2,108 crore, up by 21% from Rs 1,747 crore in the corresponding quarter of the previous year. During the quarter, the company’s business in the US posted sales of Rs 802 crore registering a growth of 68%. The company received approval for six new products from the USFDA and four products were launched in the US market. In the domestic formulations market, the company launched 16 new products, including line extensions, of which six products were the first to be launched in India. The stock may remain in focus in today’s trade.

Ashok Leyland (BSE Code: 500477) reported a net profit of Rs 120.68 crore in Q2 FY15as against a net loss of Rs. 25.05 crore for the corresponding quarter a year ago. Net sales rose 26.20% to Rs 3,217.67 crore in Q2 FY15 as against Rs 2,549.62 crore in the year-ago period. For the first half of FY15, Ashok Leyland posted a net profit of Rs 72.73 crore as against a loss of Rs 166.80 crore in the same period last year. Net sales of the company increased 15.91% to Rs 5,695.48 crore compared to Rs 4,913.43 crore a year ago. The stock may remain in focus in today’s trade.

Cummins India’s (BSE Code: 500480) net profit increase by 39.77%in Q2FY15 to Rs 202.40 crore from Rs 144.81 crore in the same quarter previous year. Net sales for the quarter rose 22.66% to Rs 1144.10 crore, compared with Rs 932.7 crore for the prior year period. The stock may remain in focus in today’s trade.

Dhanuka Agritech (BSE Code: 507717) reported 30% rise in net profit Q2 FY15 at Rs 41.73 crore on account of increase in revenues. It had clocked net profit of Rs 32.05 crore in Q2 FY15. Its revenue increased to Rs 283.26 crore in Q2 of the current fiscal as against Rs 253.44 crore in the year-ago period, up 11.77%.