Stocks In Action For September 25, 2012

As per media reports, Pune-based Innovative Industries Ltd (IIL) yesterday said that it has inked a pact to acquire a majority stake in Innovative Technomics Pvt Ltd (ITPL) for Rs 23 crore. IIL has inked an agreement to acquire 51 per cent stake in ITPL that makes high-voltage soft starters and testing equipment catering to the domestic and international markets. The company has said that this acquisition was considered in view of the fact that it would offer immense potential in the synergy of ITPL’s business and its contribution in diversifying its product offerings in the niche engineering space. The stock may see some positive momentum in today’s trade.

Car manufacturer Maruti Suzuki has said that said it is targeting to reduce its forex exposure by nearly 65 per cent to USD 600 million by March 2015 for which it is working with its vendors to reduce imports. Besides, the company is looking out for new markets to increase the exports of its products to mitigate the impact of unfavourable foreign exchange fluctuations. The measure has been taken to reduce the forex losses. In a statement to the media, the company has stated that the adverse currency movements are affecting its profits. “We are trying to reduce our net forex exposure to USD 0.6 billion by fiscal 2014-15 from about USD 1.7 billion,” the note said. This is a positive move by the company and thus we may see some upside in the stock today.

State-owned Oil & Natural Gas Corporation (ONGC) said that it will start producing natural gas from a block that sits next to Reliance Industries’ flagging KG-D6 field in the Bay of Bengal by 2016-17. The company has found 4.85 trillion cubic feet of gas reserves in nine gas discoveries it has made in the Krishna-Godavari basin block KG-DWN-98/2. The block is targeted for production by 2016-17 and a peak production of 22 million standard cubic meters per day is envisaged. This will no doubt prove beneficial for the company in the long run. The stock may therefore see some positive movement today.

According to a news report in Business Standard, Cairn Energy is selling nearly 153 million shares of Cairn India for between Rs 317.90 and Rs 328.30 per share. This was revealed by a company source on condition of anonymity. The scrip closed at Rs 345.95, down by 1.23 per cent yesterday, and may continue to see some downward pressure today as well.

Afte the positive news on the power sector, one may see positive trades in the power stocks today. We expect NTPC, Tata Power, JSW Energy, Lanco Infra, Coal India, Power Grid to show gains today.