Stock In Action For 3rd September 2012

According to media reports, two coal blocks including one given to Congress MP Naveen Jindal's JSPL face the prospect of de-allocation as their cases would be under special focus at the meeting of inter-ministerial panel. The Coal Ministry has advised the IMG to do "due diligence" and record all specific reasons for recommending de-allocation including in these two specific cases. On the back of this news, one may see volatility with negative bias in the shares of JSPL in today’s trade.

According to business standard, Global banking major HSBC is looking to offload its entire 4.46% stake in private sector lender Karnataka Bank, after having exited from three other Indian lenders Axis Bank, Yes Bank and Federal Bank. HSBC had invested in all these banks as part of its investment portfolio and began selling these shares about three months ago. HSBC has garnered an estimated Rs 2,800 crore through sale of its shares in Yes Bank, Axis Bank and Federal Bank, while its current holding of 83.99 lakh shares (4.46% stake) in Karnataka Bank is worth about Rs 70 crore as per current market valuations. On the back of this news one may see some pressure in Karnataka bank’s share price in today trading session.

According to economic times, State-run Rashtriya Chemicals and Fertilisers (RCF) has lined up a capex of Rs 6,300 crore to be spent over the next five years to fuel its expansion and is also considering to invest in Canadian potash mines. According to media reports, company has planned a capex of Rs 6,300 crore over the next five years for our capacity expansion plans. On the back of this news one may see volatility in the share price of RCF in today’s trading session.

According to business standard, Realty major Unitech expects a sales realisation of Rs 400 crore over the next 2-3 years from a new premium housing project in Noida. Unitech, the country's third largest realty firm, launched a seven-acre housing project 'Exquisite' in Noida last week. According to media reports, company will develop 312 luxury apartments in this project. We expect to generate sales-booking of Rs 400 crore over a period of 2-3 years from this project. The price of apartments would be about Rs 1.2 crore and the size of the flats would be ranging from 2205-2450 sq ft. On the back of this, one may see volatility in the share price of Unitech in today’s trading session.

According to media reports, Steel Authority of India (SAIL) today said its production increased by 7% in August to 1.16 million tonnes (MT). SAIL produced 1.16 MT of crude steel recording a growth of 7% in August 2012 over the corresponding period of last year. This assumes added significance considering the fact that world over the production levels have stagnated for last couple of months. On the back of this one may see volatility in the share price of SAIL in today’s trade.