Stocks In Action For October 10, 2012

According to Business Line, NMDC has lowered iron ore prices by 2 to 11 per cent for October compared to September prices. The public sector undertaking has also decided to fix iron ore prices for domestic customers on a monthly basis from October. On the back of this news one may see volatility with a negative bias in the share price of NMDC in today’s trading session.

According to Business Standard, the oil secretary yesterday said that Reliance Industries-led consortium may have to shut key gas producing fields in the KG-D6 block in 2015-16. Currently, the block is producing 26 million standard cubic meters a day of gas from the D1 and D3 fields. On the back of this news one may see volatility in the share price of Reliance Industries in today’s trading session.

According to Economic Times, Reliance Power has raised external commercial borrowings (ECB) of approximately Rs 1,588 crore to fund its 100 MW solar power project in Rajasthan which is scheduled to be commissioned in May 2013. The company, through its subsidiary Rajasthan Sun Technique, is setting up the solar power plant at a total cost of Rs 2,250 crore, which would be funded through 75 per cent debt and 25 per cent equity. On the back of this news one may see volatility in the share price of Reliance Power in today’s trading session.

According to media reports, GAIL India has hired half of the 5 million tons a year capacity that Petronet LNG  is adding at its Dahej liquefied natural gas (LNG) import terminal. GAIL, which recently struck a 20-year deal to buy 2.5 million tons a year of LNG from Gazprom of Russia, has underwritten the expansion Petronet is doing of the Dahej terminal from 10 million tons to 15 million ton by 2015. On the back of this news one may see volatility in the share price of Gail India in today’s trading session.

According to Economic Times, Sesa Goa has reported lower sales of iron ore in September quarter of 2012 to 0.2 MT compared to 1.6 MT of iron ore sold in the same period last year. According to the reports, the mining ban in Karnataka, temporary restriction on extraction of ore in Goa and effect of monsoons in south Goa affected iron ore operations. Despite the news the stock yesterday closed higher 1.17 per cent to Rs 173 per share and today one may see some volatility in its share price.