Stocks In Action: October 11, 2012

Indusind Bank yesterday reported its September 2012 quarter numbers, reflecting that the net profit of the bank grew by 30 per cent to Rs 250.25 crore on a YoY basis. On a sequential basis the net interest margin increased by 3 basis points to 3.25 per cent. However, the gross NPA increased by 6 basis points to 1.03 per cent and the net NPA increased by 2 basis points to 0.29 per cent. On the back of this news the share price of the bank dipped by 2.6 per cent and it may witness further volatility in today’s trading also.

According to Business Line, SAIL has stated that the domestic steel demand will go up further from 6.6 per cent witnessed during the period of April to August with the onset of the festival season. The government’s thrust on infrastructure development in the ongoing Five Year Plan with investments of USD 1 trillion is going to provide a huge boost to this demand. On the back of this news one may see volatility in the share price of SAIL in today’s trading session.

According to media reports, GVK Power & Infrastructure cleared a major hurdle for an AUS$ 10 billion coal project in Australia, winning the federal government’s approval for the construction of a new export terminal in Queensland. The green light allows GVK and its Australian partner - the country’s richest person Gina Rinehart - to expand the Port of Abbot Point for the planned alpha coal project. On the back of this news one may see volatility with a positive bias in the share price of GVK Power in today’s trading session.

According to Business Line, Shoppers Stop Ltd (SSL) will decide about accessing FDI after studying the policy announcement made by the government but this would be limited to its high-end HyperCity stores’ format. Further, the company, which has 160 stores at present under different formats, would ramp up the number to 190 stores in the next three years with an investment of about Rs 350 crore. On the back of this news one may see volatility in the share price of Shoppers Stop in today’s trading session.

According to Business Line, Karnataka Bank wants to double its business in the next three years with the help of business process re-engineering (BPR). In this regard, the bank has engaged KPMG Advisory Services (P) Ltd for BPR implementation. The BPR initiative will be rolled out across its 510 branches and is aimed at high-quality growth across its assets, liabilities, products and services. On the back of this news one may see volatility in the share price of Karnataka Bank in today’s trading session.