Stocks In Action For 11th July 2012

Yesterday SIAM lowered the car sales growth forecast numbers to 9-11 per cent from 10-12 per cent as expected earlier. The lower growth would mainly be due to the weak macro economic scenario in the country. The cost of car ownership has gone up by 2-4 per cent while at the same time the per capita income has also gone down. Fuel prices and interest rates have increased, thereby resulting in lower demand. In the wake of this news, the auto stocks may show some negative bias.

The pilots of the beleaguered Kingfisher Airlines have again gone on strike. According to news reports, this led to the cancellation of five flights. Kingfisher is now operating with 15 airlines instead of 64. The stock is trading near its historic low and it may show some losses today as well. Meanwhile, the SBI has also said that the fast recovery of the USD 1.4 billion debt of Kinfisher is unlikely. It has stated that recovery is difficult unless the company gets an equity dose. This will also keep the stock of Kingfisher down.

IndusInd Bank yesterday reported a 31 per cent growth in net profit to Rs 236 crore for the first quarter of the current fiscal. The bank reported 24 per cent rise in net interest income. However, the net interest margin was down to 3.22 per cent from 3.41 per cent. The stock yesterday lost marginally and erased all the previous intraday gains. The stock may show negative trades today.

Innoventive Industries, post market hours, announced that it has been granted a patent for its Cold Pilgering technology. The technology leads the company to make quality tubes with enhanced characteristics in a most energy-efficient and cost-effective manner. The stock on this news may show positive trades today.

Post the market hours, Grasim Industries said that it has restarted production at two of its plants. It had temporarily suspended full production at its staple fiber plant at Nagda and by half at its Chlor-Alkali plant. The water supply has been good now and production has gradually been restarted. Full production is expected to be restored by July 12, 2012. The stock may show positive action today on the back of this news.