Index Trends And Stocks In Action For 25th October 2013

Indian equity markets closed with marginal loss for the second consecutive session on profit booking after hitting 21,000 mark on intraday basis. Nifty today crossed its major hurdle of 6220 on intraday basis but could not manage to hold on this level for long time and bear pushed it to lower levels. Now again nifty has been pushed to range of 6100-6200. For intraday nifty will face resistance around levels of 6195-6225. On down side nifty has strong support of 6120-6075.

State-run transmission utility Power Grid Corporation expects to launch the follow on public offer (FPO) anytime next month. The government could get about Rs 1900 crore from the process, while the company will garner about Rs 6000 crore from the sale of fresh equities. Expect the stock remain subdued in medium term.

Federal Bank got FIPB approval for hiking foreign shareholding limit in the bank to 74%. Since the proposal involved foreign investments of about Rs 1,400 crore, it would also require clearance of the Cabinet Committee of Economic Affairs (CCEA). Stock is likely to keep its upward momentum alive.HDFC Bank raised USD500 million from an overseas bond sale programme as part of its USD 2 billion medium-term bonds sale plan. The funds were raised by offering a coupon (a periodic interest payment) rate of 3%. The three-year unsecured senior bonds received an over-subscription of more than four times at $2 billion from over 150 investors.

Andhra Pradesh Paper Mills (APPM), a group company of International Paper has announced that it will manufacture HP premium copier paper using Colorlok technology. Recently, the company has installed a new sheet machine at its Rajahmundry plant in Andhra Pradesh. Since 1996 International Paper is an exclusive partner of HP for manufacturing of its copier range. The sales of APPM are expected to improve with this new product. Hence, the stock of APPM is expected to move up.

Jet Airways is expecting to sale its USD 334 million stake to Abu Dhabi’s Etihad by the end of the year. The company is waiting for the approval from antitrust regulator for this deal. Both companies have significant synergies as Commercial Corporation between the two airlines would lead to cost efficiency which in turn can improve the profit of both companies.  Stock of the company is expected show some movement.