Stock In Action For 20th July 2012

According to media reports, The cabinet has decided to slap 21% duty on imports of power equipment, mainly to protect domestic companies from cheap Chinese shipments. The Cabinet has approved 5% basic customs duty, 12% counter-veiling duty and 4% special additional duty on import of power gear. The above news is positive for BHEL and L&T and we could see the stocks reacting positively in today's trade. Further according to BHEL Chairman, Indian manufacturers will face difficulties in importing a few materials as they are not available in country. So the net benefit will reduce to some extent.  

As per the Media News, Tata Power has completed construction of the second 800 MW unit of its flagship Mundra ultra mega project in Gujarat, taking the company's overall capacity to over 6,000 MW. The country's largest power producer said in the media that it has synchronized the second 800 MW of 4,000 MW Mundra Ultra Mega Power Project (UMPP). And post the synchronisation of unit 2, the thermal power generation capacity of Tata Power stands at 5,247 MW and the generation through clean sources such as hydro, wind and solar stands at 852 MW. Meanwhile, Tata Power said the Mundra project would use 1.7 million tonnes of less coal annually. This is positive news for the company and we may see some positive movement in the scrip today.

According to business standard, to reduce its mounting debt, DLF, the country’s biggest real estate company, is set to sign a deal with Mumbai-based Lodha Developers for selling one of its showcase non-core assets — the 17-acre National Textile Corporation (NTC) land in Mumbai. The deal is estimated at Rs 2,500-2,700 crore. Lodha Developers has already paid Rs 500 crore in advance. It would pay the remaining sum after signing the memorandum of understanding with DLF, a source privy to the development. On the back of this news one may see volatility in the share price of DLF in today’s trade.

According to Economic times, Lanco Infratech, a builder of power plants and roads with nearly Rs 23,000 crore of longterm debt, is negotiating with some banks for an easier loan repayment schedule because of strain on its cash flow on account of lower capacity utilisation and high dues from consumers. If the company's loans are indeed admitted for a formal restructuring, it would become the biggest ever at nearly Rs 23,000 crore, surpassing the Rs 16,000 crore worth of loans of telecom tower group GTL Ltd and GTL Infrastructure restructured last year. On the back of this news one may see volatility with a negative bias in the share price of Lanco in today’s trade.

According to Economic times, Godfrey Phillips India (GPI), the country's second largest cigarette-maker, is embroiled in a legal spat with DS Group. In April, GPI dragged DS to Delhi High Court alleging that DS had copied the advertising slogan for one of its brands. On the back of this news one may see volatility in the share price of Godfrey Phillips share price in today’s trade.

According to Economic times, Hyderabad-based infrastructure firm Gayatri Projects is in talks with Jindal Power, the unlisted arm of Jindal Steel and Power Ltd (JSPL), for a possible stake sale in a power project jointly developed by NCC and Gayatri. The deal is valued around over Rs 1,400 crore.  The company has been in talks with over five strategic investors, including Tata Power and Jindal Steel and Power, for a possible stake sale. While sources at both NCC and Gayatri confirmed the same, Jindal Steel and Power refused to comment on the deal. On the back of this news one may see volatility in the share price of JSPL in today’s trade.

For today, watch out for stocks like Asian Paints, Crompton Greaves, Hindustan Zinc, Indiabulls Financial Services, JSW Energy, Karnataka Bank, RIL, Praj Industries, UltraTech Cement, United Phosphorus, as the companies are going to announce their June quarter numbers. One could see some volatility in the above mentioned share price in today’s trade.