Stock In Action For 6th July 2012

According to Business Standard, Alstom Projects India has received an order worth Rs 314 crore from the state-owned Bharat Heavy Electricals Limited (BHEL). As per the contract, Alstom will work with BHEL in designing the boilers and supply pressure parts of the 660 MW supercritical boilers along with pulverisers and air pre-heater components. Yesterday the stock inched higher by 5 per cent and the volatility would continue in today’s trading also.

According to Business Standard, a delay in the southwest monsoon has resulted in NHPC’s output declining by 10 per cent over the past ten days. The majority of NHPC’s power generation capacity is accounted for by plants set up on river banks. A delay in the monsoon takes a toll on the discharge of river water for the plants. According to the report, the management of NHPC said that “average data for the past ten days indicates generation loss of up to 10 per cent owing to the delayed rainfall. This is approximately between 7-8 million units units a day.” On the back of this news one may see volatility in the share price of NHPC in today’s trading session.

According to Economic Times, after successfully acquiring the international operations of a US-based BPO firm and picking up a minority stake in an Indian software firm, Mahindra Satyam has said that it is looking at acquisitions in South and Central America as well as Eastern Europe. Mahindra Satyam was bought by Tech Mahindra Ltd in April 2009 after its founder B Ramalinga Raju confessed to an accounting fraud spread over years, earlier that year. The company has since recovered and is posting healthy profits, signalling signs of return to normalcy. On the back of this news one may see volatility in the share price of Satyam in today’s trading session.

According to media reports, the much-anticipated meeting held yesterday between the management of the crippled Kingfisher Airlines with the consortium of 17 banks, which have a combined stressed exposure of over Rs 7,500 crore to the airline, failed to make any headway. According to bankers, though the airline made a presentation, they could not commit on fresh fund infusion. Bankers, who have over 20 per cent stake in the airline following the last corporate debt restructuring (CDR), also said that they may meet next month. On the back of this news one may see volatility in the share price of Kingfisher Airlines and some of the banks like State Bank of India, IDBI Bank, Punjab National Bank, Bank of India, etc in today’s trading session.

Mcnally Bharat Engineering yesterday made an announcement through the BSE that the company has received an order from the Bihar State Electricity Board for the manufacture, supply, erection, inland transportation and insurance of equipment, materials and mandatory spares for the Ganga Water Supply Package for Barauni Thermal Power Station, Phase I (2x110 MW) and Phase II (2x250 MW) at a price of Rs 115.50 crore. The contractual completion period is 30 months. On the back of this announcement the stock yesterday moved higher by around 4.7 per cent, and we expect some volatility in the stock in today’s trading also.