Stocks In Action For July 27, 2012

Yesterday, post market hours, Bata India announced its June quarter numbers of 2012. The company has posted a net profit of Rs 526.520 million for the quarter ended June 30, 2012 as compared to Rs 409.890 million for the quarter ended June 30, 2011. The total income has increased from Rs 4,356.480 million for the quarter ended June 30, 2011 to Rs 5,104.910 million for the quarter ended June 30, 2012. On the back of this news one may see volatility with a positive bias in the shares of Bata India in today’s trade.

According to Business Standard, the board of Tips Industries has approved the buyback of its shares at a maximum price of Rs 90 per share through an open market purchase. The buyback is for a maximum amount of Rs 8 crore, which is within 10 per cent of the paid-up equity capital and free reserve of the company as on March 31, 2012. On the back of this news the stock yesterday rallied by 3.81 per cent to Rs 61.25 per share and one may see volatility with a positive bias in today’s trading session also.

According to Business Standard, Reliance Industries and its British partner BP Plc have revised downwards the investment required for developing the MA oilfield in the predominantly gas-rich KG-D6 block by USD 276 million to USD 1.96 billion. The field has, however, not performed as predicted since it started production in September 2008 and is producing less than half of the estimated peak output of 20,000 barrels of oil per day due to water and sand ingress in its wells. On the back of this news the stock is likely to witness some pressure and may move southwards in today’s trade. 

According to Economic Times, auto major Mahindra & Mahindra yesterday launched a new version of its sedan ‘Verito’ in both petrol and diesel options, priced between Rs 5.27 lakh and Rs 7.14 lakh (ex-showroom, Delhi). The new Verito is more expensive by Rs 7,000 to Rs 19,000 across different variants than the earlier model. While launching the model, the company said that the car will compete with rivals like Maruti Suzuki’s D’Zire and Toyota Kirloskar Motor’s Etios. D’Zire is currently available between Rs 4.88 lakh and Rs 7.35 lakh, while Etios is sold at Rs 5.14-8.23 lakh. On the back of this news one may see volatility in the M&M share price in today’s trade.

J K Lakshmi posted its Q1FY13 results yesterday and reported a more than two-fold profit figure of Rs 55 crore as compared to Rs 22.75 crore posted in Q1FY12. This healthy increase was also coupled with a robust 23 per cent growth in sales volume over the corresponding quarter in the previous year. The topline of the company grew by 35 per cent on the back of this growth in volumes. The sales of J K Lakshmi Cement reached Rs 597 crore in Q1FY13 from Rs 441 crore in Q1FY12. The stock prices of this company are expected to see an upward trend today.

One could watch out for banking stocks today as most of the banks such as ICICI Bank, Bank of India, Union Bank of India, Dena Bank, Central Bank of India and PNB are going to announce their June quarter numbers today. Other companies like Aditya Birla Money, Alstom T&D, CESC, GHCL, Grasim Industries, IRB Infra, Jindal Saw, Nestle India, NTPC, REC, Strides Arcolab, Trent, United Spirits, etc are going to post their June quarter numbers. One could see some volatility in the share price of the above mentioned stocks in today’s trading session.