Stocks In Action For August 30, 2012

State-owned Oil & Natural Gas Corporation is in talks to buy shale gas assets in the U.S. and Canada but the firm’s Iran investments are impeding closure of the deals. OVL sees huge opportunities in American shale gas, which is natural gas trapped in unusually non-porous rocks or shales, and wants to replicate RIL and state gas utility GAIL India  Ltd’s recent successes. The news may add some positive momentum in the stock today.

McNally Bharat Engineering Company, in a BSE filing, has announced bagging a Rs 122-crore contract from Steel Authority of India’s Bhilai Steel Plant. It further stated that, “The company has received an order from the Bhilai Steel Plant for external water system for mills and fire water pump house for a value of Rs 121.75 crore.” Bhilai Steel Plant is India’s sole producer of rails and heavy steel plates and a major producer of structural steel. McNally Bharat Engineering Company is engaged in providing turnkey solutions in the areas of power, steel, aluminium, material handling, coal washing and mineral beneficiation, among others. The scrip may see some upside movement in today’s trade.

Information technology services’ company MphasiS reported 11 per cent rise in consolidated net profit at Rs 209 crore for the quarter ended July 2012. It was Rs 189 crore in the same period a year ago. The consolidated net sales increased marginally to Rs 1,355 crore as against Rs 1,329 crore in July 2011. The company has reported decent numbers for the quarter and we may witness a positive momentum in the stock today.

Deutsche Bank’s report on Infosys has highlighted the fact that the IT company has not made any changes to its near-term business outlook. Deutsche Bank cites Infosys’ CFO V Balakrishnan saying that high exposure to discretionary spending and negative operating leverage are likely to hurt revenue growth and margins in the near term, though a weaker rupee more than offsets the impact of these headwinds. According to him, it could take longer for the company to return to high growth. The report thus advises against investing in the company for short-term outperformance. We may see some pressure on the scrip today.

Orchid Chemicals & Pharmaceuticals will sell its anti-bacterial and Penem business to US based Hospira Inc for about USD 200 million. Company expects to use the proceeds to lower debt and use the money for the future growth. One may see volatility in the stock prices of Orchid Chemicals and Pharmmaceuticals.

Fitch has downgraded Tulip telecom from Junk to Default status as compnay failed to redeem its USD 97 million outstanding FCCBs. One may see negative movement in the share price of Tulip Telecom.