Stocks In Action For September 11, 2012

According to media reports, Reliance Industries’ flagging KG-D6 gas field may see larger than previously projected drop in production as the company shut eight wells due to water and sand ingress. The company, before the beginning of the current fiscal, had projected an output of 27.6 million standard cubic meters per day for 2012-13. This, as per its own projections, was to further dip to 22.6 mmscmd in 2013-14 and then to 20.4 mmscmd. The production has fallen by about 1 mmscmd since July and at this rate the output may be less than the projected output by the end of the current fiscal. We may see some pressure on the stock today.

Business Standard has reported that the United Bank of India (UBI) plans to leverage its business relationship with the state governments to expand its low-cost deposit base. The public sector bank has already opened 1,20,000 salary accounts of government employees in West Bengal in the past six months. The state-run lender has maintained its CASA deposit mix above 40 per cent for the last eight quarters even as most of the other banks have witnessed a decline of 3-6 per cent in CASA deposits during this period. The bank closed the April-June quarter with a CASA ratio of 40.3 per cent. The initiative by the bank will help the company to increase its CASA in the coming quarter. We may see some positive momentum in the stock.

Opto Eurocor Healthcare Limited (OEHL), a subsidiary of Bangalore-based medical devices maker Opto Circuits (India) Ltd, has launched its first Sirolimus Drug Eluting Stent (DES), E-MAGIC® Plus. The launch follows approval from the Drug Controller General of India (DCGI) to sell and market the product in India. With the launch of E-MAGIC® Plus, Opto Circuits has become one of the few global players to offer DES products with a choice of two drug coatings. The Sirolimus DES market is estimated to be worth Rs 800 crore annually in India. On the back of the news we may see some positive momentum in the stock.

As per media reports, Welspun Energy Ltd has tied up finances to set up a 50 MW solar power project in Rajasthan. Announcing the financial closure for the project, the company said it has secured long-term project funding of Rs 355 crore from a consortium of lenders comprising three public sector banks and one infrastructure finance firm. Welspun had in January this year signed a power purchase agreement (PPA) with NTPC Vidyut Vyapar Nigam Ltd – the power grading arm of state-owned power producer NTPC. The 50 MW solar project in Rajasthan is expected to be commissioned in the first quarter of 2013. The financial closure for the project is positive news and we expect the scrip to gain momentum today.