Stock In Action - 7 December 2012

The Economic Times reports that  NTPC has tied up borrowing facility worth Rs 600 crore with the Jammu & Kashmir Bank (J&K), making it the 100th term loan agreement for the company in the last 13 years. This loan has a tenure of 15 years and will be utilised to part finance capital expenditure. Currently, the power producer has an installed capacity of 39674 MW and over 16000 MWs is under construction. Both NTPC and J&K Bank are likely to witness a good action on the bourses today.

Maruti Suzuki India, today said it will increase prices of its vehicles across all models by up to Rs 20000 from January due to increasing pressure on its margins owing to currency fluctuation. Adverse foreign exchange movement had an overall negative impact of Rs 350 crore for the company during the September quarter of 2012 on a YoY basis. On the back of this news one may see the stock of Maruti Suzuki may witness a good amount of volatility in today's trading.

Reliance Industries (RIL) has secured USD 2.1 billion loan from Export-Import Bank of the United States (US EXIM) for its mega petrochemicals complex in Jamnagar, reports the Economic Times. This makes RIL, India's biggest borrower in the overseas market, with fresh loans exceeding USD 6 billion this year. With this credit facility, RIL has raised USD 4.5 billion or half of the debts from export credit agencies of the US, Italy and Germany for its USD 12-billion Jamnagar project. The expansion of the Jamnagar refinery is an ambitious project aimed at doubling RILs revenues by 2017. The stock is expected to continue being in action even today, on the back of these news reports.

According to reports in Business Standard, Visa Steel, which went into a corporate debt restructuring (CDR) programme two months ago, is looking for a strategic investor in its core long steel business. According to company and industry sources, since Visa Steel’s problem is because of the shortage of iron ore, the company is looking to align with an iron ore supplier so that it could secure raw material provisions. This development is likely to keep the stock in action for today.

Business Standard also reports that Power Finance Corporation (PFC) plans to raise up to Rs 4590 crore through tax-free bonds by March 2013. The proposed issue is part of its plan to garner Rs 5000 crore by way of issuing tax free securities in the current fiscal (2012-13). Out of the total target, Rs 410 crore has already been raised. On the back of this news one may see a good amount of volatility in the share price of PFC in today's trading session.