Stocks In Action: November 7, 2012

Tata Power may see some selling on the bourses today since the company has reported loss of Rs 83 crore against expectation of profit of Rs 275 crore. Its shares had gained by 0.9 per cent yesterday but the disappointing result may lead the scrip price to take a fall.

Hi-Tech Gears may see some decline in its share price in the wake of the company having reported disappointing results. Its topline witnessed a sharp decline from Rs 121 crore to Rs 103 crore and its net profit also tumbled from Rs 9.35 crore to Rs 3.29 crore on a YoY basis. The company has also shown a fall in its operating profits. We expect some sell-off on the bourses.

Gujarat Alkalies & Chemicals may show some gains on the back of its good results. The company has registered sequential as well as yearly growth in its revenues. Its net profit grew by 78 per cent to Rs 66 crore in the September quarter. The company also said that the margins have improved on the back of improved realisations for certain chemicals. Also, its expansion plans are being implemented as scheduled. As such, we can expect a rise in its share price today.

Glenmark Pharma, which declined yesterday, may show some gains today on the back of a resolved patent litigation with one of the U.S.-based pharmaceutical companies. It has already posted handsome growth in its net profit and hence one can expect the growth momentum to continue.

Investors should trade cautiously in the shares of Cipla which yesterday rose to a 52-week high due to robust Q2 numbers. There could be some profit booking today.

Oil India Corporation reported a 22.86 per cent drop in net sales to Rs 2921.84 crore and a 16 per cent drop in net profit to Rs 954.57 crore, on a YoY basis. Considering segment wise results, the company reported a decline in revenues from crude oil and from LPG and an increase in natural gas trading revenues. The stock price of Oil India Corporation is likely to see a downside today.

Among the major companies to announce their Q2FY13 results today are Bharti Airtel, Cadila Healthcare, Emami, Gulf Oil Corporation, Indraprastha Gas, Kingfisher Airlines, Nitco, NMDC and Tata Motors. These stocks are likely to see volatility today with the market direction depending on the results they announce.