Stocks In Action For August 22, 2012

According to media reports, Tata Steel will pay about USD 471 million to redeem its foreign currency convertible bonds maturing on September 5, it said on Tuesday. Tata Steel, a unit of diversified Tata Group, was expected to redeem the bonds, issued in 2007, as the equity conversion price of the securities is nearly double the current stock value of the company. According to the reports, the equity conversion price of the bonds was set at about Rs 727 a share. On the back of this news one may see volatility in the share price of Tata steel in today’s trading session.

According to business standard, Larsen & Toubro (L&T) yesterday said that its subsidiary L&T Construction so far has secured orders worth Rs 2,044 crore across various segments in the September quarter of 2012. L&T Construction's infrastructure arm bagged an order worth Rs 781 crore from NTPC Hydro. The company's infrastructure unit bagged another contract worth Rs 645 crore from GMR Infrastructure. The company's buildings and factories arm secured an order worth Rs 360 crore for development of residential towers, which involves construction of 23 multi-storeyed towers. In the area of power transmission and distribution, L&T Construction has won an order worth Rs 258 crore in the UAE for supply and installation of 220/33 kv grid station and related 220 kv cabling and overhead lines work. On the back of this news one may see volatility with a positive bias in the share price of L&T, NTPC and GMR Infra in today’s trading session.

According to business standard, Vedanta group firm Sesa Goa today said it has commissioned the third blast furnace at its pig iron plant at Goa with capacity of 450 kilo tone per annum (KTPA), taking its total production capacity to 0.625 million tonne per annum (MTPA). With commissioning of this plant, company’s pig iron plant becomes the largest producer of low phosphorous pig iron in India. On the back of this news one may see volatility in the share price of Sesa Goa in today’s trading session.

According to media reports, Looking to bolster its overseas foot prints, state-run Bharat Heavy Electricals is actively scouting for acquisition opportunities in Europe and the US markets. At present, the company is executing as many as 24 contracts spread across 19 countries, including Afghanistan, Ethiopia, Indonesia, Sudan, Syria and Vietnam. According to the reports company is actively pursuing acquisition opportunities in Europe and the USA in the areas of core technologies in energy sector, including renewable, transportation and transmission. On the back of this news one may see volatility with a positive bias in the share price of BHEL in today’s trading session.

According to media reports, Centuryply a market leader in Plywood and related products enters the Readymade Home Furniture Business. According to the reports, for the last 3 years the company has been researching the latest trends in Readymade Furniture’s Design at Milan in Italy with a battery of leading upcoming designers. Company plans to open 111 stores with 3.5 million square feet of retail space within the next 3 years with an approximate investment outlay of Rs 100 crores. The company is targeting a revenue of Rs 500 Crores (INR 5 Billion) in the next 5 years. On the back of this one may see volatility with a positive bias in the share price of Centuryply in today’s trading session. 

According to media reports, GAIL India has cut its equity stake in ONGC's Dahej mega petrochemical project to 15.5 per cent after project cost further escalated by 9.5 per cent. GAIL had in 2008-09 picked up 19 per cent stake in ONGC Petro-additions Ltd (OPaL) which is building a mega petrochemical complex at Dahej in Gujarat. The 1.1 million tonnes plant was at that time estimated to cost Rs 12,440 crore but the project cost was in 2010 revised to Rs 19,535 crore. But now Oil and Natural Gas Corp (ONGC), the principal promoter of OPaL, has further revised the cost upward to Rs 21,396 crore with December 2013 set as the commissioning date. On the back of this news one may see volatility with a negative bias in the share price of Gail India and ONGC in today’s trading session.