Stocks In Action For 5th July 2012

Retail stocks may show gains over the news that the FDI in retail would be possible after the presidential elections.

According to Economic Times, the government yesterday extended by another year the 1 percent interest subsidy scheme on housing loans of up to Rs 15 lakhs, where the cost of the house does not exceed Rs 25 lakhs. Earlier, the interest benefit was given on loans of up to Rs 10 lakhs provided the cost of the house did not exceed Rs 20 lakhs. In 2011-12, the government liberalized the scheme and increased the loan limit to Rs 15 lakhs and the cost of the house to Rs 25 lakhs. On the back of this move one may see volatility with a positive bias in housing finance companies like HDFC, LIC Housing Finance, Gruh Finance, etc and also see the realty stock inch higher in today’s trading sessions.

Shares of Shanthi Gears may show positive bias over the news that four companies including Bharat Forge, Triveni Engineering etc are in the race to buy the company.

According to Business Standard, JSW Steel will start operating at its full capacity of 14.3 million tonnes per annum in the next two months on expectations of additional iron ore, a key raw material, from mines in Karnataka. JSW Steel is currently running at 80-85 per cent of its installed capacity due to lower iron ore supplies. On the back of this news one may see volatility in the share price of JSW Steel in today’s trading sessions.

According to Business Standard, the electronic consumer durables’ manufacturing facility of Videocon Group in Manamadurai at Sivaganga is likely to start operations in the next three to four months. The project has been proposed with an investment of around Rs 1,600 crore. “The plant would be ready for operations in the next three to four months. We have so far invested around Rs 700-800 crore for the plant,” the management stated. On the back of this news one may see volatility in the share price of Videocon in today’s trading sessions.

Yesterday, post market hours, KEC International made an announcement on the Bombay Stock Exchange (BSE) that the company has secured orders worth Rs 795 crore. Of this total, its transmission business secured orders worth Rs 600 crore from India and Sri Lanka for the establishment of power transmission lines while the remaining order worth Rs 195 crore is for its power systems business from Kenya for the establishment of substations and underground cables. One may see volatility in the share price of KEC International in today’s trading sessions.

Arihant Superstructures yesterday, post market hours, announced that the company had ambitious plans going ahead. The press release further stated that the company had land bank in hand to provide assured topline CAGR of 50 per cent over the next seven years. Further, the company is planning for backward integration as the way forward. On the back of this news one may see volatility with a positive bias in the company’s share price in today’s trading sessions.

According to Economic Times, state-run oil explorer Oil and Natural Gas Corporation (ONGC) is in final-stage talks to purchase a stake in some of the Canadian oil sand assets owned by Houston-based Conoco Phillips. ONGC is in discussions with bankers to finalize the deal structure and financing procedure for the proposed investment in some of Conoco’s Alberta properties in which the latter is looking to divest a stake. ONGC may invest up to USD 5 billion to purchase a stake in the six Alberta properties which currently produce 12,000 barrels per day of oil and where production can be ramped up to 5,00,000 barrels per day. On the back of this news one may see volatility in the share price of ONGC in today’s trading sessions.

According to media reports, Ashok Leyland has stated that the current market environment for medium and heavy commercial vehicles remains challenging but the company has retained its FY13 sales target to grow at over 14 per cent. The move from the company comes despite the current slowdown in the industry. On the back of this news one may see volatility in the company’s scrip with a positive bias in today’s trading sessions.