Stock In Action: December 14, 2012

According to media reports Berger Paints is looking at doubling its turnover to around Rs 7000 crore in the next four years. The Kolkata-based paint major, which enjoys a market share of 20 per cent, is expecting to garner another four per cent of the market in the next four years. It is also carrying out expansion to increase capacity from 24000 tonnes per month to 44000 tonnes per month in 2012-13. The stock is likely to trade with a positive bias today as the market absorbs its future plans and reacts to them.

JSW Steel yesterday reported its crude steel production for the month of November 2012, which grew by 0.33 per cent to 6.03 lakh tonnes (LT) on a YoY basis. Also, there are reports that a shortage and inferior quality of iron ore in e-auctions has led to the capacity utilisation of its steel plant at Karanataka's Vijayanagar district going down to 70 per cent. You could expect this stock to remain fairly volatile in today’s trading session in reaction to this piece of news.

Business Standard yesterday reported that Claris Lifesciences will invest Rs 900 crore it receives after it divests an 80% stake of its infusion business. The money will be spent on various initiatives, including growth of business and pre-payment of debt. Out of the total proceeds of around Rs 900 crore it plans to utilise Rs 300 crore (33.33 per cent) for organic and inorganic growth of the speciality injectables business, Rs 300 crore (33.33 per cent) towards paying a special interim dividend or buying back its shares and the remaining Rs 300 crore (33.34 per cent) towards prepaying some of the company's debts. On the back of this news one may see volatility with a positive bias in the share price of Claris Lifesciences in today's trading session.

Reliance Industries (RIL) has shut its seventh well on the KG-D6 gas block due to high water and sand ingress as it awaits regulatory nod to carry out urgent work to plug the problem responsible for a drastic fall in the output. The shutting of the seventh well saw its output decline from D1&D3 fields to 19.02 million standard cubic meters per day from about 20 mmscmd a month ago. The stocks is likely to trade very volatile with a largely negative bias today.

Moser Baer Projects is reported said to have received the final approval from the Central Electricity Authority for its 120 MW Miyar hydro plant in Himachal Pradesh. The construction of this plant is expected to start in April next year. An integrated power company, Moser Baer Projects Private Ltd (MBPPL) has interests in solar, hydro and thermal generation areas, among others. The project would see an investment of about Rs 900 crore and would be funded through a debt:equity ratio of 75:25. On the back of this news one may see volatility with a positive bias in the share price of Moser Baer in today's trading session.