Stocks In Action For July 26, 2012

Maruti Suzuki, with its production facility at Manesar closed down temporarily, has been running out of stock on the models Swift and Dzire. Bookings continue to pour in as the demand for the products is strong, with the company receiving over 1,000 bookings a day. The production of Maruti has been stalled for a week now and losses in revenue due to this have been mounting by the day. The company will have to brace itself for a tough time meeting demands during the festive season. The stock is expected to see some volatility today.

According to Business Standard, Jubilant FoodWorks Ltd that operates the Dominos Pizza chain in India, today said that it plans to open 100 Dunkin’ Donuts outlets in India in the next five years. Earlier in May this year, leading baked food and coffee chain of the U.S., Dunkin’ Donuts chose Jubilant FoodWorks Ltd (JFL) as its master franchisee. Further, the company yesterday announced its quarterly numbers with the net profit staying at Rs 323.492 million for the quarter ended June 30, 2012 as compared to Rs 231.656 million for the quarter ended June 30, 2011. On the back of this news one may see volatility in the share price of Jubilant FoodWorks in today’s trade.

According to Economic Times, SKS Microfinance has said that some of its employees have cheated the company to the tune of Rs 15.8 crore in the last financial year. The services of employees involved have been terminated and the company has written off over Rs 14 crore. The auditors of the company have reported that there was cash embezzlement by the employees to the tune of Rs 2.5 crore and loans given to non-existent borrowers were valued at Rs 13.3 crore. On the back of this news one may see volatility with a negative bias in the SKS Microfinance share price in today’s trade.

According to Business Line, Hero MotoCorp has announced an investment of Rs 160 crore on a Global Parts Centre (GPC) at a 35-acre plot at Neemrana, Rajasthan. The GPC is expected to be operational in the third quarter of 2013-14 and will initially employ 400 personnel. It will have an automated storage and retrieval system, an automated packaging and sorting system, online tracking of parts and lean manufacturing systems. On the back of this news one may see volatility in the share price of the auto major in today’s trade.

According to media reports, Suzlon Energy, the world’s fifth-largest wind turbine maker, has raised USD 281 million in short-term loans to repay holders of its foreign convertible bonds that mature on Friday. The company has been under pressure for the last few years as global turbine sales slowed and its huge borrowings for expansion started to hurt. On Monday it signed an 18-month loan facility with 11 lenders, including ICICI Bank, State Bank of India, Bank of Baroda, Central Bank of India, etc. On the back of this news one may see volatility in the share price of Suzlon Energy in today’s trade.

One could watch out for stocks announcing their Q1FY13 results today for volatility depending on the results they announce. These include ACC, Ambuja Cements, Arvind, Bajaj Electronics, Bata India, Bharat Gears, BHEL, Edelweiss Capital, Gujarat Gas, ITC, JK Lakshmi Cement, JSW Steel, Sterlite Industries, Tata Communication and Thermax, among others.