Stocks In Action: November 16, 2012

Tata Motors said yesterday announced its global sales (including Jaguar Land Rover) figures posting a YoY growth of 6 per cent to 100660 units in October 2012. Global wholesales of all commercial vehicles, all passenger vehicles and Tata passenger vehicles were higher by 19 per cent, lower by 5 per cent and lower by 17 per cent as compared to October 2011. Global wholesales for Jaguar Land Rover were higher by 7 per cent YoY, at 27897 vehicles. This is likely to result in increased volatility in the stock price of Tata Motors today.

Reliance Industries (RIL) has been given a nod to drill a well as part of the $1.529 billion plan to develop four satellite gas fields around the now flagging main fields in the eastern offshore KG-D6 block, according to Business Standard. D-19 is one of the four satellite gas field whose optimised field development plan (OFDP) was approved in January this year. This is expected to result in an upward trend in the stock prices of RIL today.

GMR Infra had reported a nearly three-fold widening in the net loss to approximately Rs 180 crore in Q2FY13. The stock yesterday saw a downfall of 4.91 per cent. The company said yesterday that it has close to Rs 1500 crore pending from two entities, Air India and Tamil Nadu government. The company also said it’s in talks with these entities over revering dues to minimise further impact on the financials of GMR Infra. The company also has a debt of around Rs 35000 crore which it plans to mellow down by the end of the fiscal. These statements by the management are likely to maintain the volatility seen in GMR Infra.

Kingfisher Airlines has been making news for not having paid their employees the salaries for the month of May. It has now sought more time to submit a comprehensive revival plan to the aviation regulator DGCA. According to media reports, the airline has been holding discussions with all its stakeholders including the Airports Authority of India and its lenders. On the salary front, employees threatened to chalk out an action plan by next week if they did not receive their salaries by November 17, 2012. This is likely to add to volatility in the stock prices of Kingfisher Airlines.

Oil Marketing Companies (OMCs) announced a cut in petrol prices effective today. Exclusive of taxes, petrol prices were cut by 95 paise in Delhi making the revised price Rs 67.24. This is likely to cause volatility in OMC stocks. Investors can thus keep an eye on the stock prices of Oil India Corporation, HPCL and BPCL.