Stocks In Action

Dr Reddy's Laboratories, has said that the USFDA has lifted a ban on its manufacturing unit in Mexico. Company is now expecting to start shipping the products from this Mexican facility to US. The US drug regulator had issued a warning letter to the company's manufacturing unit at Cuernavaca in June last year saying DRL had violated manufacturing standards. This had resulted in stoppage of all the shipments from this facility to US. This news will have a positive impact on the stock of the company.

Troubled with labor issues, countries top four wheeler manufacturing company, Maruti Suzuki has reported 23% fall in the net profit in the June quarter of this fiscal. This was primarily on account adverse exchange rate fluctuations in rupee and Yen. Net sale for the quarter was up 28%. After issues in Manesar plant, there is also news that the company may start construction of new plant in Gujarat soon. On this news we expect stock to show high volatility.

According to news in Business Standard, Nestle India, has bought 30 acre land in Gujarat and expects to set up its 9^th plant in the country. This earmarks the direct competition with the Gujarat based milk products company Amul. We expect positive action in the Nestlé’s stock price.

Shares of Strides Arcolab may show positive trades. On Friday the stock was down as company reported loss in the standalone statement. There was also drop in the consolidated top line. This however has been due to the sale of its Australian business operations in the last year. The net profit on the consolidated level was up 31% to Rs 90 crore. After the subsequent conference call we understand all is well and we expect the positive momentum in the stock.

HDFC has also posted rise of 25% in its consolidated net profit to Rs 1275.86 crore. Company has come under pressure from one of the leading international brokerage house on its accounting policies. The positive results may show some gains in HDFC shares.

The news articles have reported that NTPC power generation has been hit severely due to the inadequate coal supply in three of its power plants. This news could drag the share price of the countries largest power generator.