Stocks In Action: December 05, 2012

BEML said yesterday that it has bagged orders worth Rs 523 crore from Saudi Arabia and from the Indian Railways. The heavy engineering is to supply 600 coaches, 72 Alternating Current Electrical Multiple Unit coaches and 64 Mainline Electrical Multiple Unit coaches to the Indian railways for a sum of Rs 450 crore. For Saudi Arabia, the company would be supplying 30 dumpers. The stock price of BEML is expected to see an uptrend today.

Bank of America Merrill Lynch downgraded its rating on Hero MotoCorp yesterday from buy to underperform. A muted domestic sales outlook was the reason it cited for the downgrade. Share prices of Hero dropped by 0.56% yesterday. On account of the downward revision and owing to poor sales for November 2012 wherein the company’s sales volume declined by 6.42%, the stock prices of Hero are likely to be pressured today.

There has been increasing speculation over whether steel companies have raised prices. Media reports suggest an increase by Essar Steel and SAIL and a likely increase by Tata Steel. The average price raise has been said to be around Rs 1500 per tonne effective from December 01, 2012. On account of this, the stock prices of Essar Steel, SAIL and Tata Steel are likely to see volatility with an upward bias today.

The stock price of GMR Infra is expected to be volatile today due to the issue surrounding its operations in Maldives. With both the governments involved in talks about the case, the issue has been escalating. There were heavy volumes in the scrip yesterday and the stock price tanked 2.04%. Volatility is expected to continue in the stock price of GMR Infra today as well.

The outcome of the parliamentary voting on allowing foreign retail chains to set shop in India would be out today. Revolving around the outcome, retail stocks are expected to be volatile today. Investors can keep an eye on the stock prices of Pantaloon Retail, Shoppers Stop and Trent for directional movement to capture for intraday gains.