Actions in focus: HDFC Bank, Laurus Labs, Lakshmi Vilas Bank, Larsen & Toubro

With domestic markets at their highest ever levels, investors turned to accounting gains, resulting in a strong sell-off in the domestic equity markets yesterday. Technical analysts say immediate support is at 12,800 levels for Nifty. If the index manages to stay above it, it could start to gain again, however, a drop below these levels could indicate a change in trend. “Holding Nifty at immediate support at 12800 levels in the next 1-2 sessions could open up possibilities for a rebound to the upside in the market and also further to the upside in the near term,” said Nagaraj Shetti, technical research analyst at HDFC Securities.

Analysts are now advising a “buy on the downs” strategy. “According to the broader market formation, until the market does not break above the 12500 levels, the short-term trend of the market will remain corrective in nature. The strategy should be to buy on dips. The 12850 and 12550 levels act as important support for the index, while on the higher side, 12980 and 13050 would be obstacles for the index, ”said Shrikant Chouhan, Executive Vice President of Equity Technical Research at Kotak Securities.

Lakshmi Vilas Bank: The troubled private sector lender will merge with DBS Bank India starting tomorrow and the bank’s shares and bonds listed on the stock exchanges will be canceled. In the last seven days, Lakshmi Vilas Bank’s shares have plunged 50%.

HDFC Bank: The largest private sector lender hit a new record on Wednesday when its market capitalization crossed the Rs 8 lakh crore mark. The bank’s shares have gained 16% in the last month.

Larsen and Toubro: L&T Construction, the construction arm of L&T, has landed a great deal. The value of such a contract would be between Rs 2,500 million and Rs 3,000 million. L&T will build India’s longest road bridge over the Brahmaputra river connecting Dhubri in Assam with Phulbari in Meghalaya.

Laurus Labs: Laurus Labs informed the exchanges on Wednesday that it has entered into a definitive agreement with Eight Roads Ventures and VenturEast Proactive Fund and VenturEast Life Fund III, to acquire a 72.55% stake in Richcore Lifesciences Private Limited, a biotechnology company, subject to the fulfillment of the conditions precedent, by way of cash consideration of Rs 246.67 million.

Union Bank of India: The bank said it will hold an Extraordinary General Meeting on December 30. The meeting was convened to obtain shareholder approval for raising share capital up to Rs 6,800 crore during this fiscal year through a public issue.