New records reached

As India awaits the results of the 2014 Lok Sabha elections, the markets were seen showing impressive signs

For most days in the last week, the markets saw down movements on the back of profit booking and mixed cues from the global front. But coming to the end of the week, the markets rebounded which lead the markets to another life time high. Nifty closed at 6858 and was seen crossing the 6800 level for the first time ever. On a weekly basis, it was around 1.9 per cent.

Domestic markets
Ajanta Pharma in the last week posted over two fold increase in its net profit on the back of robust sales in the domestic markets. The net profit stood at R 70.09 crore for the fourth quarter that ended March 31, 2014 as compared to Rs 27.09 crore during the same period last fiscal.

Net sales of the company rose to Rs 301.14 crore for the same period as compared to Rs 249.21 crore in corresponding period of 2012-2013. For the year that ended March 31, 2014 the company posted a consolidated net profit of Rs 233.88 crore as compared to Rs 112.11 crore in the earlier fiscal.

For the year that ended March 2014, the net sales rose to Rs 1178.29 crore against Rs 920.14 crore. The board of the company has also recommended a dividend of R 10 per equity share on the face value of Rs 5 per share.

The consolidated net profit of GATI rose 83 per cent to Rs 13.80 crore for the quarter that ended March 31, 2014 from Rs 7.50 crore in a year ago period. The logistics firm’s turnover has also increased by 20 per cent to R 386.50 crore in the quarter under review from the last year period.

The company has an equity capital of Rs 17.45 crore and the face value is Rs 2. The company’s consolidated earnings before interest, taxes depreciation and amortisation rose 4 per cent to Rs 32.20 crore in March 31, 2014 over the same period last year.

New government
With hopes of a stable government at the centre, the foreign institutional investors remained buyers for the last eight months. According to SEBI, the FIIs bought shares worth R 74985 crore and sold stocks for Rs 65383 crore, which results in a net inflow of Rs 9602 crore ($1.6 billion) for the month of April.

In the last year, the foreigners invested around Rs 32377 crore ($5.3 billion) in Indian equities. They invested Rs 20077 crore in March, Rs 1404 crore in February and Rs 714 crore in January. Last month, FIIs withdrew Rs 9185 crore ($1.51 billion) from the debt markets.

FED meeting
In the FED’s meeting, the chair said that the US economy is still in need of support and the ECB said the central bank is ready to cut the interest rates in next month in order to support the economy. Also with the Ukraine tension easing and a surprise trade surplus data from China also adds to the booster pack.

For the US markets in this week, the data are Export/Import price index, retail sales, inflation and core inflation rate. Retail sales, industrial production and house price index will be the major event for the Chinese markets.

Rupee is slightly positive and it is likely to test 59.60 and support at 60.40 against the dollar. For the short term players they can buy 1000 call option of Reliance, 430 call options of Tata motors, 490call option of BPCL, Tata steel 430 call option and SBI 2200 call options are advisable.

Alex K Mathews is the author of Financial Services And Systems, as well as Option Trading: Bear Market Strategies published by Tata McGraw Hill. He is also the technical and derivatives research head of Geojit BNP Paribas Financial Services Ltd.

The author may have a vested interest in investments he has recommended. Feel free to e-mail him at Geojit BNP Paribas has membership in, and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

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