Index Trends & Stocks In Action for 1st February 2013

According to media reports, DLF has sold a 150 MW wind turbine project at Kutch in Gujarat to Bharat Light and Power for Rs 282.30 crore, in line with the company’s strategy to exit from non-core businesses. Overall DLF has an installed capacity of 227 MW of wind power plants in four states. Besides Gujarat it has wind turbine projects in Rajasthan (34 MW), Tamil Nadu (33 MW) and Karnataka (11MW). These projects would be sold in phases in the near future. On the back of this, stock prices of DLF are expected to see upward movement today.

Larsen & Toubro (L&T) has secured orders worth Rs 1401 crore in the current month from various business segments, spread across India and overseas. It has bagged orders worth Rs 605 order for the month of January 2013 from the power transmission and distribution business alone. Meanwhile, the transportation infrastructure business has overall secured orders worth Rs 320 crore. On these developments seen for the month of January 2013, we expect the stock of L&T to trade with an upward bias for today.

The government yesterday fixed the floor price of Oil India at Rs 510 per share, which is at a 5% discount to yesterday’s closing of Rs 539.20 per share. Through this OFS (offer for sale) the government will divest 10% of its holding in the company. The issue will be opened today. This is likely to create added volatility in the stock prices of Oil India starting today.

Tata Power has reported that its 25 MW solar project in Gujarat has been registered under the United Nations Clean Development Mechanism. This movement by the company would allow them to trade carbon credits from the plant. This will eventually give the company the potential to earn from the renewable energy project. It is also planning to add 150-200 MW of wind and 50 MW of solar power capacity every year. On the back of these developments that have taken place at Tata Power, we expect the stock price of Tata Power to see some upward movement for the day.

For today, one can keep an eye on stocks like Karur Vysya Bank, IDFC, HCC, Marico, TVS Motor Company, Bharti Airtel, Adani Enterprises, Corporation Bank, State Bank of Bikaner and Jaipur, Jet Airways (India) and Piramal Life Sciences as these companies are to announce their Q3FY13 results during the day. One could thus expect to see volatility in the prices of these stocks with the directional trend depending upon the numbers they come up with.