Stocks in Action For 9th July 2012

As per the Media reports ONGC Tripura unit would start releasing gas tomorrow to the ONGC-Tripura Power Corporation (OTPC) for the first phase of the 726.6-MW gas-based power project at Palatana in Gomati district.  This is positive news and we may some positive momentum in the stock today.

In a statement given to the Media SAIL Chairman CS Verma has said that except its Burnpur plant all the other 72000 crore expansion plan is more or less running on their time schedule. "As Burnpur is concerned, there could not be any second opinion. Burnpur is delayed more than a year. The delay is due to unexpected molten debris at the plant site, which expanded the scope of work of the project," Verma said. The debris could not be found when soil testing was done at the 100-year old site.  The delay has also led to Rs 2,000-crore cost overrun for the company which would now have to fork out Rs 16,408 crore for increasing the plant capacity by three million tonnes per annum (mtpa). We advice investors to avoid the scrip as metal industry will face the brunt of slowdown and monsoon in the near term.

As per the media release State-owned Engineers India Ltd (EIL) has bagged a Rs 720 crore contract to provide engineering consultancy services to Bharat Petroleum Corp Ltd's Kochi refinery expansion project. The project involves enhancing crude oil refining capacity of the refinery from the present level of 9.5 million tonnes per annum to 15.5 million tones. The scrip may see some positive momentum.

Vedanta in one of the media statements showed the interest in new Rajasthan refinery. Close on the heels of Hindustan Petroleum Corp Ltd (HPCL) reviving the Rajasthan refinery project, London-based mining group Vedanta has evinced interest in taking a small stake in the 9 million tonnes a year project. Vedanta Group Chairman Anil Agarwal met Rajasthan Chief Minister Ashok Gehlot to discuss the issue of the proposed refinery in the state.