Stocks In Action For October 3, 2012

The shares of Kingfisher Airlines may show volatility in today’s trades on the back of news that the company may resume operations on October 4, 2012 and has also paid off the salaries of half of its employees for the month of March. Yesterday its CEO met the Directorate General of Civil Aviation (DGCA) and said that the negotiations with banks and tax authorities were going on to ensure that all the employees get their due salaries. The DGCA however has said that it is not satisfied with the assurance of Kingfisher Airlines.

The shares of Bajaj Auto may show some decline in today’s trades over the news that its September 2012 sales of bikes were down by 15 per cent. Its exports fell by 6.12 per cent in September 2012. Its three-wheeler vehicle sales were also down by 3.53 per cent. The share price has recently seen positive sentiment which may break today. Share of Mahindra and Mahindra may also some losses on the back of the recent sales data.

On the other hand, the shares of Maruti Suzuki may show some gains as it has started pre-launch bookings of its new car Alto 800. The car is expected to hit the market by October 16. The website of the Alto 800 has received 9,190 visitors showing their interest in the car. The Alto 800 model is expected to be priced higher than the existing Alto model and hence the increasing interest will be seen positively by the markets.

We also expect NTPC to show some gains in today’s market over the news that the compnay will revisit the foreign markets to raise more debt (about USD 700 million) by 2013. The compnay has recently issued FCCBs of USD 500 million at the coupon rate of 4.75 per cent. The government’s recent decision to reduce withholding tax on the ECBs of the infrastructure sector companies prompted NTPC to issue the FCCBs. Besides, it is also planning to expand its distribution business after the government’s power sector reforms. On the back of this good news, one can expect some gains in the stock today.