Stocks In Action: December 20, 2012

Pharma major Lupin has received the USFDAs approval to market the generic version of Drospirenone and Ethinyl Estradiol Tablets. Bayer, the innovator of this product, markets it under the brand name Yasmin. As per IMS data, the drug had an annual sale of USD 275 million in the US. Following this development, we expect some positive movement in the share price of Lupin today.

The Reliance Power counter is expected to remain volatile after its offer for sale yesterday was oversubscribed. The company received 24.05 crore bids against 15.2 crore shares that were on offer. The floor price was however set at a 3% discount to its market price. Yesterday its shares lost 0.4% to close on Rs 98.10 per share on the National Stock exchange. The promoters have been reported to have made a good amount from the stake sale.

ONGC which yesterday surged 3% on the news that US-based ConocoPhillips is in talks with the company to pick up a stake in its ultra deep water blocks. News reports also suggest that ONGC Videsh along with Russian company Rosneft is set to explore two blocks in Russia jointly. This could further lend a positive bias to the stock today.

State run transmission utility Power Grid’s board has approved two transmission projects worth Rs 252 crore. Of this the 'Northern Region System Strengthening Scheme – XXVII' will attract Rs 96 crore of investment and will be operational within 20 months. The second project would see an investment of Rs 156 crore to improve the Transformers in norther region. This is expected to be completed in the next 22 months. We expect some positive action in the Power Grid shares today.

L&T may also show some gains on the new orders of Rs 1009 crore that its construction arm has received. These are the orders from various customers and the company has not disclosed the name of the clients.