Index Trends & Stocks In Action For 13th August 2013
The India equity markets continued with their positive momentum for the second day in a row. On Monday, the Nifty regained its psychological level of 5600 after the central bank announced more measures to support the domestic currency. The index gained 46 points to close at 5612 for the day. In our last write up we had mentioned that a pull back rally will continue and the target could be around 5610-5640 on the Nifty. The performance of the Index yesterday was much in sync with what was expected. An analysis of the daily charts indicates that the Nifty has formed a short term bottom around levels of 5470-5500. The Bank Nifty is forming a base around 9650-9700 levels and therefore, if these levels hold, the market can extend this rally even further. Going ahead, 5670-5710 is an important level which will act as stiff resistance for the Nifty. On the downside, 5565 will be a good support for the Index.
SBI's Q1 numbers have been very disappointing. Its Gross NPAs stood at 5.56% against 4.99% a year ago. Net NPAs also rose to 2.83 per cent against 2.22 per cent in 1QFY13. Sequentially too there is a rise in the NPAs which raises a big concern on the asset quality of the bank. We don’t have to be really explicit on where we expect the stock to head in today’s trading.
State run ONGC, has reported a 34% decline in net profit, missing street expectations due to the higher input costs as well as write offs. Its net profit for Q1 came in at Rs 4016 crore against the expected Rs 4900 crore. Sales declined by 4.3%, but operating margins improved marginally. The weak results would weigh heavily on the stock and hence one can expect some volatility in the counter today.
Muthoot Finance has filed the draft prospectus with market regulator SEBI for a public issuance of secured non-convertible debentures (NCDs) of up to Rs 300 crore. The NCD issue aims at collecting up to Rs 150 crore with an option to retain over-subscription of up to Rs 150 crore. The stock of the company is likely to see some action in today’s trades.
McNally Bharat Engineering Co has received an order worth Rs 156.69 crore for civil construction of ACC’s cement plant at Sindhri, Jharkhand. McNally has to complete the work within the next 12 months. With this, the order book of the company as on date stands at Rs 7210 crore with the current workable orders standing at Rs 4257 crore. Watch this stock which will move in tandem with these developments at least over the next couple of days.
The Government today introduced a bill in the Lok Sabha to replace the ordinance which sought to provide more powers to capital market regulator SEBI. The Securities Laws (Amendment) Bill, 2013, was introduced by Minister of State for Finance Namo Narain Meena. The Bill is to amend the Securities and Exchange Board of India Act, 1992, the Securities Contracts (Regulation) Act, 1956 and the Depositories Act, 1996.