Stocks In Action: November 12, 2012

The 2G telecom auction is set to begin today in accordance to which bidders would be auctioning for the 1800 MHz band. This auction would also be determining the price of the 900 MHz band auction that is to be held by the end of March. As per the Department of Telecommunications, the final list of bidders includes Bharti Aritel Limited, Idea Cellular Limited, Vodafone South Limited, Videocon Telecommunications Limited and Teleswings Communications Services Private Limited. The Union Cabinet on Thursday, November 08, 2012 accepted the recommendations made by the Empowered Group of Ministers (eGoM) that one-time charges on airwaves would be levied on GSM-based operators. This would result in volatility in the stock prices of Reliance Communications, Idea Cellular and Bharti Airtel today.

Post market closing on Friday, the following companies announced their quarterly results. These stocks are likely to see volatility in today’s trading session. While the stock prices of ONGC, DB Realty and Unitech are likely to see a downward trend, Lanco Infratech posted better than expected numbers and may see an upward move today.

SAIL stopped mining at one of its major mines, in Joda mining circle due to the expiration of the working permit, which was valid for a period of 2 years after the grant of stage-I forest clearance. The company is now putting efforts to get the stage-II clearance and is hoping for this to work out by the end of the month without witnessing any major delays. However, due to the uncertainty on the situation, stock prices of SAIL are likely to be volatile today.

Omkar Speciality Chemicals said they would incur capital expenditure of Rs 500 crore to increase all round production capacity. According to Pravin S Herlekar, CMD of the company, the commercial production on all these plants is set to commence in 18 months. The company is expected to invest Rs 700 mn over the next two years. With this planned capacity expansion, the stock prices of Omkar Speciality Chemicals would see an upward move today.

Industry body SIAM (Society of Indian Automobile Manufacturers) released data that showed car sales growing at the fastest pace in 22 months, in the month of October. This soar in demand was a result of the festive season. In accordance to the data, 172459 cars were sold in October, higher by 23.1 per cent as compared to the corresponding period in the previous year. At the same time, motorcycle sales grew by 6.7 per cent. This is expected to give an upward boost to the stocks of Maruti Suzuki, Tata Motors, Mahindra & Mahindra, Hero MotoCorp, Bajaj Auto and TVS Motors.

On the results front, among the companies to announce their Q2FY13 results today are Bhushan Steel, DLF, GMR Infra, Jaiprakash Associates, Nestle India and Spicejet. These stocks are likely to see volatility with the directional movement depending on the results they announce.