Stocks In Action For September 13, 2012

Aurobindo Pharma yesterday said that it has received final approval for Escitalopram Oxalate tablets. The product had earlier received tentative approval and it is now ready to be launched. These tablets are indicated for the treatment of depression associated with mood disorders. The product has a market size of about USD 2.8 billion according to IMS. The shares of Aurobindo Pharma yesterday closed with a loss of 1.3 per cent. However, in today’s trading we expect some positive movement.

Yesterday there was an indication that the country is moving towards allowing foreign direct investment in the aviation sector. This led to a significant jump in the aviation stocks and we expect the momentum to continue. The stocks to watch out for include Kingfisher Airlines, Jet Airways, Spice Jet, etc.

According to Economic Times, Reliance Industries is planning a new gas well and the conversion of two sick oil wells into gas wells in the KG-D6 basin. The stock was up by 0.9 per cent at the closing hour yesterday and we may see a further upside in the scrip today.

Yesterday some of the banks announced a cut in interest rates with Andhra Bank slashing interest rates on retail loans. The move could send the consumer durables and auto stocks up today as this may be a harbinger of the banks easing the way for the demand to go up during the forthcoming festive season.

In the wake of Coal India’s chairman S Narsing Rao stating that the company is lining up a capex of Rs 400 billion over the next fives years, its shares could edge higher today. Earlier the chairman had said that the company is looking to develop 100 coal mine projects that could help improve its production.