Stocks In Action, 16 August 2012

There is speculation over Oil Marketing Companies (OMCs) hiking fuel prices this week. While private retailers like Essar and RIL are reported to do so by this week, government controlled OMCs are waiting for a nod from the government. With the fortnightly review coming up on 16 August 2012, stocks like Essar Oil, RIL, IOC, HPCL, BPCL would see volatility with the directional bias depending on the action over petrol prices. At the same time, Essar Oil announced their Q1 FY13 results post market hours on 14 August 2012, posting a loss of Rs.1400 crore. The scrip is likely to open negative.

Also, if petrol prices are hiked after the review, automobile stocks will see considerable selling pushing auto stocks lower, considering the high sensitivity of the sector to petrol prices.

National Aluminium Company (NALCO) too announced their quarterly results where the topline was in line with street expectations but the bottomline slipped to the highest ever for the company at Rs.441 crore. This result was worse than street expectations of a net profit dropping by 38 per cent. While the company witnessed higher revenue from chemicals and electricity, the core aluminium segment fell. The stock is expected to see volatility with a negative bias.

Unitech ‘s Q1 FY13 results saw a decline in profit by 53 per cent to Rs.46 crore YoY. The consolidated net sales too dropped by 31.5 per cent to Rs.408 crore. The scrip is expected to open negative and trade low throughout the day.

IDFC too posted their Q1FY13 results which were positive with a 21 per cent growth in the net profit with it reaching Rs.380 crore. The Net Interest Income of the company rose by 30 per cent while the non-interest income rose 24 per cent YoY. The stock is expected to see a positive bias in today’s trading session.