Stocks In Action For July 25, 2012

According to media reports, in a government move to approve 14 FDI proposals worth Rs 1,584.11 crore, Bajaj Finserv, which was seeking the government’s approval to issue and allot equity shares directly and through subsidiaries under a ‘rights issue’ to carry out business relating to NBFC activities, has been given the go-ahead. The financial services’ provider firm proposes to bring in FDI worth Rs 100 crore. The stock may see some volatility with an upward trend.

Jindal Steel & Power Limited, which stepped out of the USD 2.1 billion Bolivia venture, is now caught up in a legal fix with the government with the nation initiating criminal proceedings against the executives of the company. Failure to invest in accordance with the contract has been at the crux of these legal proceedings, say media reports. The company on the other hand has countered the allegations by pointing out inadequate gas supplies. The stock may witness volatility today and in the coming days till the matter becomes clear.

On the results’ front, Jubilant Industries reported a net loss of Rs 10.04 crore in Q1FY13. This is an improvement considering the Rs 16.52 crore losses in Q1FY12. However, the net sales of the company rose by 7.09 per cent. The stock may see a negative directional bias for the day.

Shriram Transport’s results for Q1FY13 displayed growth in net assets under management by 16.10 per cent from Rs 37,954.74 crore in Q1FY12 to Rs 44,064.25 crore. The net interest income too increased by 5.36 per cent. However, the net profit of the NBFC declined by 3.19 per cent YoY. The company expects things to pick up in the second half of FY13, currently affected by the slump in automobile demand over the last two quarters. The stock will be volatile today.

The stock price of IRB Infrastructure has been weak on account of the confusion prevailing in Maharashtra over the toll issue. This weakness is expected to continue in today’s trading session as well.

Some of the major companies announcing their Q1FY13 results today include Biocon, GTL Infrastructure, HCL Tech, IndiaBulls Real Estate, Jyothy Lab, MRF, Novartis, Power Grid Corp, Raymond, SRF, Tata Teleservices, Vijaya Bank, Yes Bank and Zensar Tech. These stocks will see volatility with a bias dependent on the results they post.