Stocks In Action: November 27, 2012

The Central Vigilance Commission (CVC) has forwarded a complaint to the government with regard to alleged irregularities in the award of contracts of NTPC’s coal mine project in Jharkhand to Australian firm Theiss India. This report is currently under examination and would result in volatility in the stock price of NTPC.

US energy giant ConocoPhillips may next month finalise a partnership with state-owned Oil and Natural Gas Corp (ONGC) for exploration of shale gas resources in India, according to Business Standard. The two companies had earlier this year, signed a MoU to jointly explore shale resources in North America and India among other geographies. This is likely to result in an upward movement in the stock price of ONGC.

Jet Airways and SpiceJet have been in talks with Etihad Airways and Air Asia respectively for stake sales. These deals come in after the government recently allowed foreign carriers to buy 49 per cent stake in domestic airlines. This news resulted in an upside in the stocks of Jet Airways and SpiceJet of 10.81 per cent and 12.98 per cent respectively. These stocks are expected to be volatile in today’s trading session as well.

The Opposition softened its stance on the retail FDI issue in the winter session of the Parliament. Trinamool Congress, in an all-party meeting had said that the party is ready for discussions implying that TMC is not insisting on voting. This sent the stock prices of Pantaloon Retail, Shoppers Stop and Trent up by 6.74 per cent, 1.56 per cent and 0.20 per cent respectively. These stocks are expected to remain volatile with the directional movement depending on the developments that take place on this front.

The rupee extended its fall to trade at a level of 55.81-55.82 on account of strong dollar demand from oil refiners. A weakening in rupee is expected to continue due to strong importer demand. This would result in an upswing in the prices of IT stocks, which benefit directly from any depreciation in the rupee.