Stocks In Action For 12th July 2012

According to a report in Economic Times, Mahindra & Mahindra has halted development work on a pick-up truck aimed for the U.S. market. This is due to certain legal disputes and failure to get the required certification. Mahindra & Mahindra sells tractors in the United States but not passenger vehicles. It had been working on the development of a pick-up truck version of its popular Scorpio utility vehicle since 2006, spending about USD 100 million. The company has now said that the plan has been scrapped. The stock may show negative bias today.

According to news reports, Coal India is expected to finish its fuel supply pact by the end of this month, which is a positive sign for the fuel-crippled power sector. This may lead to some positivity in the power stocks, especially of NTPC.

Private mortgage company HDFC yesterday announced its Q1 results in which it has reported 19 per cent growth in net profit. The results were as per the street expectations. Its net interest income also increased by 19 per cent during the same period. The non-performing loans increased a bit which is why the stock has reflected negative bias. Since the result was as expected, the stock may trade on a flat note today.

Strides Arcolab yesterday announced its entry into Canada’s injectable market through a JV with a Canadian company called Jamp Pharma. The JV will launch 40 products in the next two years. Most of these products have already received approvals. The stock may therefore show some positive strength today.

IT stocks may show high volatility as the heavyweights Infosys and TCS will declare their Q1 results. Analysts foresee little growth in their performance. Infosys is expected to show muted growth and also take a cut on its full year guidance. As such, the shares of Infosys may come under pressure.

CHD Developers, after market hours, informed investors that it has acquired 7,000 shares of Empire Realtech Private Limited. Empire Realtech holds 12.34 acres of licensed land for residential group housing at Sector 106, Dwarka Expressway, Gurgaon. We expect positive movement in the scrip of CHD Developers today.

Positive movement may be seen in the shares of Great Eastern Shipping since its subsidiary has taken delivery of a Platform / ROV Support Vessel (ROVSV).

Essar Port may also show positive trades because Paradip Coal Berth has received the final environmental and forest approvals yesterday as per a BSE filing.