Index Trends And Stocks In Action For August 21, 2014
Indian Equity market halted its upswing and ended the session on negative note. Profit booking was seen in Auto, Banking, FMCG, Capital goods, Oil & Gas and the Metal stocks. On the other hand, bucking the negative trend were the Pharma, Realty and Power Stocks. The Mid-cap index closed flat, while the Small-Cap index outperformed the benchmark indices. In our last write we mentioned the index might take breather and it did so. Now going forward the most critical level for the Nifty index on downside would be 7820, if bears manage to pierce this level we can see profit booking up to levels of 7730. On the upside 7930-7940 will act as a barrier for the bulls. Nifty is likely to continue this consolidation and is expected to in range of 7820-7940 for couple of trading session.
Reliance Industries (BSE Code: 500325) it has entered into agreements to long haul US-produced ethane to feed its cracker at the Jamnagar refining and petrochemical complex in Gujarat. The cracker will be commissioned in the second half of 2016. It will nearly double its ethylene production capacity to 3.3 million tons a year. Reliance Industries is implementing a project to source 1.5 million tons per annum of ethane from US to feed its crackers. And the another news is the oil ministry is considering ordering Reliance Industries to stop selling KG—D6 crude oil to its Jamnagar refinery and instead sell it to Chennai Petroleum Corp Ltd (CPCL) at lower rates. The stock may witness higher volume in today’s trade
Esaar India (BSE Code: 531502) is planning to focus on Micro Housing Finance to the tune of Rs.250 crores. It is an NBFC registered with RBI is foraying into micro housing finance sector in a big way. Company has chalked out ambitious plan to make a mark in the huge potential that India's Micro Housing finance sector offers. Company's main objective will be to provide housing finance for lower income households (mostly in the informal sector) in urban India. The company is in the process of raising funds for the venture and is seeing lot of interest from the investor community. The company will exclusively focus on providing mortgage solutions to the financially excluded and informal income earners in urban India. The stock may trade with a positive bias in today’s trade.
Mahindra & Mahindra (BSE Code: 500520) launched the Arjun Novo, a tractor built on a new platform developed in-house. The high horsepower tractor is available in 52 and 57 HP. Priced at Rs. 7.35 lakh in Maharaja, the Novo also comes in an air-conditioned version at Rs. 9.5 lakh. The new tractor replaces the existing Mahindra Arjun 605DI. Exports will start in six months. The stock may remain in focus in today’s trade.