Index Trends And Stocks In Action February 09, 2015

The Indian markets continued its losing streak for sixth straight session on back of dismal corporate earnings and nervousness ahead of the state election in Delhi. The broader market declined nearly a per cent. Technically, index is trading near important support level as defined by 50-day EMA. The zone of 8600-8640 is crucial support zone of index. If bulls fail to defend this level expect a fresh phase of correction in index. On other hand, if bulls manage to defend important support zone of 8600-8640 expect a pullback rally up to levels of 8700-8740.

VA Tech Wabag (BSE Code: 533269) has reported a 35% drop in net profit on a consolidated basis for the third quarter of the current year against the comparable previous quarter. The company in water and wastewater treatment has reported a net profit of Rs 14.08 crore (Rs 21.66 crore) on a total income of Rs 619.41 crore (Rs 589.30 crore) for the quarter ended December 31, 2015. The board has decided to issue bonus shares on a 1:1 basis to enhance liquidity in the stock market. Order intake during the quarter was Rs 665 crore taking the order book to Rs 6,973 crore.

Apollo Tyres (BSE Code: 500877) reported a 45.5% fall in net profit at Rs 184.24 crore in the third quarter of financial year 2014-15 compared with Rs 338.01 crore in the corresponding period last fiscal. The total income for the company fell 12.76% at Rs 3,104.82 crore compared with Rs 3,559.32 crore in the corresponding period last fiscal. As per company management, it has maintained profit margins, despite accounting for all charges related to the rescue plan of South African subsidiary i.e. uncompetitive cost structure in the South African market, along with the continuous labour unrest and related issues. While it continues with trading operations in South Africa, it is time to move forward and explore newer territories for the next phase of growth.

La Opala (BSE Code: 526947) has reported a 26% growth in net profit at Rs 13.89 crore for the third quarter of the current year against the comparable previous quarter. The total income for the company grew 10.3% at Rs 63.19 crore compared with Rs 56.98 crore in the corresponding period last fiscal.