Stocks In Action For 17th August 2012

According to media reports, The National Stock Exchange of India will include Lupin and UltraTech Cement in place of Steel Authority of India (SAIL) and Sterlite Industries India with effect from September 28, 2012. The exchange has also made an announcement of 10 other stocks like Bata India, Crompton greaves, GMR Infra, IFCI etc which would be replacing the existing stocks like Educomp Solution, Indian bank, Lanco Infratech, Cummins India etc in the Nifty Midcap 50 Index. On the back of this news one may see a positive movement in the shares which are included in the Index and a negative move in the shares which are been replaced.  

Tata Consultancy Services (TCS) announced that it would acquire 100 per cent equity of Computational Research Laboratories (CRL), a wholly owned subsidiary of Tata Sons for a sum of Rs.188 crore. CRL is a start up firm in the area of High Performance Computing (HPC) and TCS intends to offer integrated HPC applications and Cloud services to customers. The stock price of TCS is expected to move upward in today’s trading session.

Maruti Suzuki India Limited (MSIL) announced the part reopening of its Manesar plant to be effective from Tuesday, 21 August 2012. It would start producing 150 cars a day, which is a tenth of the production capacity at the plant. Though the commencement is partial, it brings in some momentum in the production. The scrip is expected to see an upward move in tomorrow’s opening.

Claris Lifesciences announced that it has noticed the Close Out letter from the FDA which states that it has completed its evaluation of the firm’s corrective actions in response to the warning letter and that the violations contained in the warning letter have been addressed. The stock touched the upper circuit in yesterday’s trading session indicating continual volatility in today’s trading.

Cairn India announced that it acquired a 60 per cent stake in an oil and gas exploration block on the west coast of South Africa from Petro SA. The block has an existing gas discovery and has identified oil and gas leads and prospects, as per media reports. Cairn India is expected to be volatile today with an upward bias.

Tractor manufacturer HMT will be announcing their Q1 FY13 results today. The stock is expected to be volatile in today’s trading session with the directional bias depending on the announcement.

According to business standard, State-run Oil and Natural Gas Corporation (ONGC) will shortly farm out nearly 26 per cent stake in its KG-DWN-2004/6 block in the Krishna-Godavari basin to Japan’s Inpex Corporation. ONGC is the operator of the block with 60 per cent stake. After the deal, ONGC will hold 34 per cent stake in the block. Its other partners in the block Gujarat State Petroleum Corporation, Hindustan Petroleum Corporation, Oil India and GAIL which hold 10 per cent stake each. On the back of this news one may see volatility in the share price of ONGC in today’s trading session.