Stock In Action 3rd August 2012

Glenmark Pharma announced its result for the june quarter 2012. The company posted the weak result and sappointed the street by its first quarter numbers as consolidated net profit fell by 62.5% year-on-year to Rs 78.3 crore in the quarter, which was far lower than forecast of Rs 131 crore. Consolidated net sales increased 19.8% to Rs 1,040 crore from Rs 868 crore year-on-year, which was almost in-line with analysts' expectations of Rs 1,028 crore. The share rose just 0.36% to close at Rs 387.60 amid huge volumes yesterday. And we may continue to see some negative pressure on the stock today as well.

As per business standard After Vedanta Resources plc and Engineers India Ltd, state-owned Oil India Ltd has evinced interest in taking a stake in Hindustan Petroleum Corp Ltd's planned nine million tonnes a year refinery in Rajasthan. Cash-rich OIL is keen to take up to 10-15% stake in refinery HPCL plans to build near the Barmer oil finds of Cairn India. HPCL is to hold 51% stake in the $4 billion project while state-owned engineering consultancy firm EIL would take 5%. However, HPCL is not keen on giving anything more than 16.96% to ONGC. This being equivalent to the stake that ONGC has allowed HPCL to hold in Mangalore Refinery and Petrochemicals Ltd. We may see some volatility in the stock today.

AS per the BSE filing Satyam Computer Services Ltd , which is in the process of a merger with parent Tech Mahindra Ltd , reported an 56.4 percent rise in quarterly profit, beating expectations after winning orders including a key contract from a metals and finance company. Profits for the first quarter ended June 30 rose to Rs 35.2 crore from Rs 22.5 crore in the year-earlier period. The scrip may see some positive momemtum today.

Ashok Leyland A commercial vehicle manufacturer yesterday announced the sales figure for the month of July 2012. The company posted a 25% jump in the July sales at 9785 units’ vs that of 7834 units in the same period last year. Further Sales of commercial vehicle (excluding its latest small commercial vehicle Dost) declined by 11% to 6,982 units, as against 7,834 units sold during the same month of last year.  The scrip may see positive momentums today.

According to business standard, the massive electricity grid failure earlier this week, that left a majority of India in darkness, has impacted the volumes of power generation companies. The worst power black-out in the world hit their revenues by an estimated Rs 550 crore in two days. The companies affected by the grid collapse were state-owned power generator NTPC Ltd, Nuclear Power Corporation of India Ltd (NPCIL) and Neyveli Lignite Corporation (NLC) in the central sector. On the back of this news one may see volatility with negative bias on NTPC in today’s trade.

For today, watch out for stocks like Abbott India, Jet Air India, Marico, Moser Baer, Sun TV, TV Today, City Union bank, BGR energy, SKS Microfinance, United bank etc as these companies are going to announce their June quarter numbers. One could see some volatility in the above mentioned share price in today’s trade.