Stock In Action For 18th July 2012

According to business standard, Reliance and its partner BP on Tuesday dropped a bombshell, saying KG-D6, the country’s biggest gas discovery, might stop production in 2015 if the government did not approve its long-pending investment proposals and revised capital expenditure plans. On the back of this news one may see volatility with a negative bias in the share price of RIL in today’s trading session.

According to business standard, Indian cement makers have stopped sharing their sales statistics with industry body Cement Manufacturers’ Association (CMA) as an immediate implication of the competition watchdog’s decision to impose a hefty penalty of Rs 6,300 crore on companies last month. According to the reports UltraTech, Jaiprakash Associates, Shree Cements, India Cements and Madras Cements, among others, have not yet provided their production and dispatches numbers for June. On the back of this news one may see a volatility with a negative bias in the share price of the above mentioned cement companies in today’s trade.

According to business standard, Jindal Steel & Power’s (JSPL’s) showcase $2.1-billion Bolivian venture, the largest proposed investment by an Indian company in South America. Jindal Steel Bolivia Ltd (JSB), a subsidiary of JSPL, on July 16 terminated the contract signed with the Bolivian government for an investment of $2.1 billion for the El Mutun mines. On the back of this news one may see volatility with positive bias in the share price of JSPL is today’s trading session.

According to economic times, Tata Motors, once the country's second biggest passenger vehicle maker, earlier lost its position to Hyundai a few years ago and it has now slipped further and fallen behind fellow Indian player Mahindra & Mahindra (M&M). M&M, which is a leader in the utility vehicles and SUV space, has been growing rapidly over the last few months. M&M has moved to the third position in the Indian passenger vehicle market, riding on higher demand for its vehicles, including the newly launched XUV500 SUV. Maruti Suzuki remains the market leader. On the back of this news one may see volatility in share price of Tata Motors with a negative bias and M&M with a positive bias in today’s trade.

According to economic times, HCL Technologies' BPO arm has bagged a large outsourcing contract - which some analysts estimated at $200 million from Citibank to roll out a new process of the bank scheduled to commence in August. HCL will set up back-end processes for loans, financial products and customer service. The company will hire about 800 employees for the work and the process has already started in June. On the back of this news one may see volatility with a positive bias in the share price of HCL Tech in today’s trading session.

According to business standard, Successive increases in power rates are likely to add Rs 700 crore to the revenue of RP-Sanjiv Goenka Group’s flagship company CESC. Company has revised rates upwards in many of the states several times in the past. On the back of this news one may see volatility with a positive bias in the share price of CESC in today’s trading session.

Investors should watch out for stocks like CRISIL, Bajaj Auto, Honeywell Auto, Sagar Cements, and Shalimar Paints, as these companies are scheduled to announce their Jun 2012 quarter numbers. One could see some volatility in the above mentioned share price in today's trade.