Index Trends And Stocks In Action March 24, 2015

Indian benchmark indices continued its downward course for fourth straight day on back of selling in banking stocks.  The broader market ended with deeper cuts. The Midcap index slipped 0.8 per cent and Small Cap index declined 0.6 per cent.  The end of the day action formed a small bear candle with good volumes this indicates bears are still continuing their momentum. Going forward important support 8480 is key support level for index. If index manages to hold on to this level expect pullback rally up to levels of 8635-8680. On upside 8635 is major resistance for the bulls.  

Shares of Aarti Drugs (BSE Code: 524348) will turn ex-bonus on Tuesday (Today). The company, which has strong presence in the anti-diarrhoea and anti-inflammatory segments, is rewarding its shareholders with a 1:1 bonus issue of shares. However, investors buying the shares from Tuesday will not receive the bonus shares. Shares will start trading in the range of Rs 660-680 from Tuesday.

Shares of GMR Infrastructure (BSE Code: 532754) will remain in focus at the bourses, as the company plans to raise RS 1,400 crore through a rights issue, the subscription for which kicks off on Tuesday. It has already secured Rs 1,250-crore funding to subscribe to the proposed rights issue from KKR Capital Markets India and its co-investors. Eligible equity shareholders will get three equity shares for every 14 equity shares held in the company as on March 12. The offer price is fixed at Rs 15.

Fair trade watchdog CCI has given its approval to the proposed merger of Chennai-based Shasun Pharmaceuticals (BSE Code: 524552) with drug maker Strides Arcolab (BSE Code: 532531). Under the proposed deal, Shasun will amalgamate with Strides in an all-stock transaction. The combination of Strides and Shasun would create a company with a turnover of Rs 2,500 crore, placing the combined entity among the top 15 listed drug makers. Shashun shareholders would receive 5 equity shares of Strides for every 16 shares held by them in Shasun. Based on the exchange ratio, Shasun shareholders would own 26% of the combined entity.

Sun Pharma (BSE Code:524715) and Ranbaxy (BSE Code: 500359) have got approval from the Competition Commission for sale of seven brands to Emcure Pharma to comply with the fair trade watchdog's conditional nod for their USD 4 billion merger.  Despite sale of these products, the merger would create India's largest and the world's fifth largest drugmaker.