Stock In Action - 22nd October 2012

According to media reports, Aviation regulator Directorate General of Civil Aviation (DGCA) has suspended the flying licence of beleaguered Kingfisher Airlines, for failing to come up with a viable plan for its financial and operational revival and resolve the impasse with its employees over payment of their salary dues. On the back of this news one may see a sharp southward move in the share price of Kingfisher Airlines in today’s trading session.

According to media reports, Bajaj Auto September quarter net profit grew by 2 per cent to Rs 741 crore on YoY basis which was due to higher other income, while its core motorcycle and CV business hit the speed bumps. Company’s revenue was down 4 per cent to Rs 5,139 crore.  Bajaj Auto sold 10.49 lakh vehicles in the quarter which is down by 10 per cent in the year ago quarter. On the back of this news one may see volatility in the share price of Bajaj Auto in today’s trading session.

According to economic times, ONGC inaugurated a Rs 6,060 crore facility on India's biggest oil field to replace a massive platform that was gutted in a devastating fire over seven years ago, killing 22 people and costing its then Chairman his job. According to reports, the commissioning of Mumbai High North Process Platform will help the company raise output from offshore Mumbai High fields by 9,000 barrels a day to 206,000 bpd. On the back of this news one may see volatility in the share price of ONGC in today’s trading session.

According to economic times, Fair trade regulator Competition Commission's investigation arm has completed its probe into the alleged cartelization in the steel industry. On the back of this news one may see some volatility with a negative bias in the share price of listed Steel companies in today’s trading sessions. 

According to business standard, Reliance Capital, the financial services arm of Anil Ambani-led Reliance Group, has been one of the major aspirants of the new banking licences to be granted by the Reserve Bank. While the process of granting new banking licences have been underway for quite some time, the government has recently indicated that a framework could be put in place soon for allowing new players in this business. On the back of this news one may see volatility in the share price of Reliance Capital in today’s trading session.

Further today one has to watch out for companies like HDFC, Bank of Baroda, Cairn India, L&T, Syndicate bank, Tata Coffee etc which are going to declare their September quarter numbers of 2012. On the back of result announcement one may see volatility in the respective companies share price.