Stocks In Action For October 9, 2012

A report in Business Standard states that Reliance Industries has scaled down investment in the flagging gas fields in KG-D6 block by almost USD 3 billion to USD 5.92 billion due to an unexpected drop in reserves. On the back of this news the stock yesterday tanked by 4.51 per cent to Rs 818.7 per share it may continue with this volatile negative bias in today’s trade also.

According Economic Times, Kingfisher Airlines, in a fresh instance of violation of regulations, has opened ticket bookings on its website from October 13 even as the sector regulator DGCA awaits the airline’s response to a show-cause notice asking why its license should not be cancelled given its several irregularities. On the back of this news one may see volatility with a negative bias in the share price of Kingfisher Airlines in today’s trading session.

According to Economic Times, Neyveli Lignite Corporation has inked a joint venture agreement with an Uttar Pradesh-based government undertaking company for setting up a 1,980 MW coal-based thermal power project in the state at an investment of Rs 11,128 crore. The project is expected to come up in the Ghatampur tehsil of Kanpur Nagar district in which NLC will hold a majority stake of 51 per cent. On the back of this news one may see volatility with a positive bias in the share price of Neyveli Lignite in today’s trading session.

According to Business Line, Tata Power, through its wholly-owned subsidiary Coastal Gujarat Power Ltd, yesterday announced synchronisation of its 800 MW Unit 3 of the country’s first ultra mega power project (UMPP) in Mundra, Gujarat. Tata Power is India’s largest integrated power utility. With this, the total power generation capacity of Tata Power stands at 6,899 MW, reinforcing its position as the largest private power producer in India. On the back of this news one may see volatility in the share price of Tata Power in today’s trading session.

According to Economic Times, insurance and healthcare major Max India may divest around 5 per cent in its life insurance joint venture with Mitsui Sumitomo Insurance to long-term foreign financial investors if the parliament approves the proposed hike in insurance FDI cap to 49 per cent. On the back of this news one may see volatility in the share price of Max India in today’s trading session.

A report in Economic Times states that Corporation Bank is targeting to increase its net interest margin (NIM) up to 2.60 per cent by the December quarter given the softening deposit rates and a pick-up in retail deposit garnering. The Mangalore-headquartered bank had posted a heavy dip in its NIM at 2.29 per cent in the June quarter from 2.75 per cent in the year-ago period due to a jump in its cost of funds. The bank will achieve its 20 per cent credit and deposit growth targets as well. On the back of this news one may see volatility with a positive bias in the share price of Corporation Bank in today’s trading session.

India Oil Corporation (IOC) cut petrol prices by 56 paise/litre due to a stronger rupee. This is likely to boost automobile stocks as similar action may be followed by HPCL and BPCL soon.