Of gains and losses in the Indian stock market

Apr 28, 2014, 08:29 IST | Alex K Mathews

Thanks to investments from abroad the Indian markets saw some highs. But they ended up closing low as there was no major profit booking

In the last week, the Indian markets were seen making fresh highs each day on the back of strong buying witnessed by the foreign institutional investors.

But the lack of any major trigger and profit booking made the markets shed some of its gains. Nifty closed at 6782 with a flat note on a weekly basis. Nifty has support at 6732 and 6594 and Nifty has resistance at 6800 and 6880. If Nifty spot closes below 6732 one should reduce long positions.

Tinplate came out with a strong number, where the net profit rose 117.15 per cent. The net profit for the company stood at Rs 18.61 crore in the quarter that ended March 2014 as compared to Rs 8.57 crore in same period last year.

Sales of the company rose 10.24 per cent to Rs 289.41 crore for the quarter under review as compared to Rs 262.53 crore during the previous quarter that ended March 2013.

For the full year, the net profit rose 122.46 per cent to Rs 62.80 crore in the year that ended March 2014 as against Rs 28.23 crore in the previous year. The sales for the same period rose 20.57 per cent to Rs 1048.99 crore as compared to R 870.04 crore in the previous year.

Granules India in the week came out with a strong number, where the net profit was seen up around 90.33 per cent. The company’s consolidated net profit for the quarter that ended March 31, 2014 stood at Rs 23.62 crore as compared to Rs 12.41 crore for the corresponding period last year.

The total income during the period under review increased to Rs 317.47 crore from Rs 204.38 crore in a year ago period. For the entire year, the company posted a 131 per cent increase in the profit at Rs 75.23 crore and also a revenue growth of 43.36 per cent at Rs 1095.86 crore as compared to Rs 764.37 crore and Rs 32.56 crore respectively.

During the quarter January March, LIC lowered its exposure in 15 blue chip companies for over Rs 6300 crore. At the same time the state owned insurer increased its stake in 12 Sensex companies for over Rs 13,000 crore.

The companies in which LIC decreased its stake includes, Reliance, WIPRO, TCS, Infosys, Tata motors, ONGC, Gail, Maruti, ICICI Bank, HDFC, Sun pharma, HeromotoCorp, SSLT L&T and Dr Reddy’s.

On the other hand, increase in the stake in companies Bharti Airtel, BHEL, NTPC, HDFC Bank, Axis Bank, Coal India, ITC, Cipla, Hindalco, Bajaj Auto, SBIN and M&M.

Due to the parliamentary elections, the stock exchanges remained closed on Thursday last week and thus the April expiry was shifted to Wednesday 23, 2014. For April expiry, rollover for Nifty stood at 55 per cent against 54 per cent in the previous month.

The largest rollovers were seen in the counters like JSW Steel (92 per cent), UPL (91 per cent) and Aurobindo pharma (91 per cent). The lowest rollovers were in the stocks like rural electrification (53 per cent), GSK Cons (57 per cent) and M&M (61 per cent).

This week earnings may also play a vital role in the markets. The Major earnings in the coming week includes Bata India, HUL, Tata sponge, SKS micro, GodrejCP, KPIT, Bharti Airtel, IDEA, Bajaj Corp, Alembic pharma, Dabur, Jindal Steel, Ceat LTD, TVS motors, Federal Bank, Advanta, Polaris, DHFL, PFIZER, Grasim, SSLT, Geomteric, Hexaware and Alstom T&D.

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 alex@geojit.com. 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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