Stocks In Action: December 06, 2012

According to media reports the government is looking to infuse Rs 4000 crore in the State Bank of India. Diwakar Gupta, CFO, SBI has reportedly said that "We have given various options and it is the call of the government to decide how they would like to infuse the equity”. There are also reports of the government looking at infusing capital in other Public sector banks (PSBs), however the quantum of the same is yet to be finalized. On the back of this news one may see volatility with a positive bias in the share price of SBI and other PSBs in today's trading session.

Economic Times reports that Jindal Steel and Power (JSPL) is scouting for coal properties in other geographies like South Africa and Mozambique. This comes very close on the heels of the company terminating its USD 2.1 billion mining and steel venture in Bolivia over fuel supply issues In July 2012. JSPL is also building a 6000 MW hydro power project in Arunachal Pradesh, the first unit of which is likely to be commissioned by 2020. These pieces of data are likely to keep the stock of JSPL in quite a volatile mode for today.

Larsen & Toubro (L&T) group's wholly-owned subsidiary, L&T Power has bagged an order worth Rs 732 crore from the Nuclear Power Corporation (NPCIL) for its Rajasthan atomic power project. The company will have to supply, install and commission the balance of turbine island package for two new 700 mw capacity units, reports the Economic Times. The package also includes civil work for the turbine halls, electrical bays and transformer yard. Following these reports, you could expect a good amount of action in the L&T stock with a positive bias today.

According to Business Standard, Reliance Industries has completed the sale of its 25% stake in an oil block in Yemen to Indonesia's Medco Energi for around USD 90 million. Accordingly RILs Dubai-based subsidiary Reliance Exploration and Production DMCC signed the completion documents for divestment of its 25% working interest in Yemen's Block-9 to Medco Yemen Malik. This news flow is likely to keep the RIL stock in quite in action today.

According to business line, TVS Motor Company yesterday launched its premium executive deluxe 125 cc motorcycle, Phoenix 125 in Andhra Pradesh. It plans to sell at least 20000 units of this in the country per month. The report further said that the company is offering this bike in two variants priced at about Rs 51000 for the drum brake model and Rs 53000 ex-showroom for the disk brake range. On the back of this news one may see volatility in the share price of TVS Motor in today's trading session.

According to Business Line, Tata Motors is looking to source more auto components from Korea that are both good in quality and more cost-effective than those imported from the US, Europe and Japan. It is also reported that to offset the rising labour cost in Korea, the Indian auto major is actively encouraging Korean auto parts makers to set up base in India. This development is likely to lend volatility to the Tata Motors stock today.