Stock In Action For 19th July 2012

As per the news by Business standard Hyderabad-based Dr Reddy's Laboratories is betting big on the biosimilars segment and expects to enter developed markets soon, even as it awaits approvals for filings in 20 new countries. As per the report, DRL's biosimilars business recorded revenues of Rs 125.8 crore in FY2012, a growth of 51 per cent over FY2011. With 177 biosimilars and copy biologics, oncology is currently the largest target therapeutic area for development and marketing of biosimilars. Also yesterday said that it has launched Atorvastatin calcium tablets, a bioequivalent generic version of Lipitor tablets in the US market. The scrip will see positive movement post this news in today’s trade.

According to business standard, one person was killed and at least 90 were injured on Wednesday in a clash between workers and the managerial staff at Maruti Suzuki India’s Manesar plant, forcing stoppage of work. The incident comes within a year of the workers’ settlement with the management. The Manesar unit rolls out the company’s best-selling Swift and DZire cars. The company would face some serious headwinds going ahead as there is inventory pile up affecting the companies in the sector coupled with the Maruti labour strike issue would further affect the growth prospects. On the back of this one may see volatility with a negative bias in the share price of the Maruti in today’s trade.

According to business standard, Larsen & Toubro (L&T)’s electrical and automation business is expected to grow 15 per cent this year, contributing as much as Rs 4,600 crore in revenue. For the current financial year, the company has forecast 15-20 per cent growth in order inflows, backed by increased focus on international markets. On the back of this one may see volatility in the share price of the L&T in today’s trade.

Aurionpro Sloution yesterday post market made an announcement on the exchange that aurionpro Solutions Acquires Enline plc, the leading U.K. - based Oracle Identity Management systems implementer. On the back of this one may see volatility in the share price of the Aurionpro solution in today’s trade.

According to media reports, The Cabinet Committee on Economic Affairs (CCEA) is likely to consider today a proposal for disinvesting government's 10.82% stake in Steel Authority of India. SAIL's share sale is proposed to be conducted through auction route or offer for sale and is expected to garner Rs 4,000 crore to the government kitty. The government currently holds 85.82% stake in SAIL. On the back of this one may see volatility with a positive bias in the SAIL share price in today’s trade.

Bajaj Holdings yesterday post market made an announcement on the exchange of their June quarter numbers. The Company has posted a net profit from ordinary activities after tax of Rs. 522.60 million for the quarter ended June 30, 2012 as compared to Rs. 588.20 million for the quarter ended June 30, 2011. Total Income has decreased from Rs. 777.30 million for the quarter ended June 30, 2011 to Rs. 710.30 million for the quarter ended June 30, 2012. On the back of dismal numbers one may see volatility in the share price with a negative bias in Bajaj Holding share price in today’s trade.

As per the media News The government yesterday said discussions are on with Reliance Industries and its partner BP Plc which have warned of further drop in KG-D6 gas output in the absence of investments approvals by the Oil Ministry, and maintained that it would take 'right approach' and 'suitable decision' on the issue. The Oil Ministry had hit back yesterday saying it had not approved annual spending because the Mukesh Ambani firm had denied CAG access to its books. The scrip may see some pressure on back of the news.

As per the Media reports the Cabinet is likely to consider a proposal tomorrow for extending by another year the term of Justice M B Shah Commission, which is probing the issues of illegal mining of iron and manganese ore. The The Cabinet in all likelihood would take up Mines Ministry's proposal to give a year's extension to the one-man Justice M B Shah Inquiry Commission. Justice Shah needs some more time to visit 6-7 states including Odisha, Jharkhand, Chhattisgarh, Karnataka and Madhya Pradesh to complete the inquiry. We may see some movement in the Metal and mining stocks like Sesa Goa, JSW steel etc.

Also investors should watch out for stocks like Dish TV India, Dr Reddy’s Labs, Hero MotoCorp, Kotak Mahindra Bank, L&T Financial Holdings, NIIT Tech, Hindustan Media, DB Corp and Ajanta Pharma as these companies are scheduled to announce their June 2012 quarter numbers.