Market Watch: 10 piping hot stocks to focus on today

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Global Markets

In the US markets, stocks finished slightly lower but staged an impressive comeback in the last half-hour of trading on hopes that the European leaders are working to form a solution to tackle the region's ongoing debt crisis.

And in economic data, GDP increased at a 1.9% annual rate in its final reading, which was unchanged from its estimate last month and in line with expectations. Weekly jobless claims fell 6,000 to a seasonally adjusted 386,000.

In key economic data to watch out for in the US, the consumer sentiment index is expected to be flat at its 2012 low levels of 74.1. Personal income growth could also see a modest gain to 0.3% from 0.2% in April.

And all eyes are on the key European summit which is underway in Brussels. In the latest press conference held by French president, Francois Hollandes, he said that all EU members have agreed on a growth pact but Italy and Spain will sign later.

Italy and Spain want to ensure that the talks deal with short-term measures. As per the pres statement, Spain wants to avoid taking on bank debt while Italy is demanding a mechanism to lower interest rates on debt. Italy could be pushing for short-term measures to help bring down its yields as well.

However the 17-euro zone countries have agreed to go ahead with plan for deeper integration. Talks of top EU officials' long-term plan for the Euro union could be put off until October.

Meanwhile European markets extended losses amid skepticism that leaders are reaching an agreement to resolve the ongoing debt crisis at the summit.

Asia begins trade on a cautious note today and remains unchanged for now.

Currencies & Commodities

The euro hobbled along three-week lows in Asia trade. The dollar index is however stable above 82.

Brent crude prices slipped below USD 92 a barrel on worries that an EU summit will not find durable solutions to the euro zone crisis.

Gold fell more than 1%, hit by worries of an economic slowdown. However in Asia trade it stabilises around the USD 1,550/oz mark.

Indian Market

This series was a turnaround month for the market as compared to May, where the benchmarks fell 5%. Dalal Street managed to shrug off a slew of disappointing events, such as the Reserve Bank of India’s policy, weak GDP growth numbers, and rating agency warnings.

At close yesterday, the Nifty was up 7 points to close at 5,149 and the Sensex gained 23 points to 16,990. For the week, the market is still marginally lower due to the past few days of compressed movement.

Stocks in News

Oil marketing companies (OMC) cut petrol prices by around Rs 3, effective midnight. IOC says the price cut is based on a fortnightly review. FY13 revenue loss on subsidised fuel seen at Rs 83,000 crore, says IOC.

Petrol Price Cut: Delhi (Rs 2.46/l), Mumbai (Rs 3.10/l), Chennai (Rs 3.13/l), Kolkata (Rs 3.07/l).

Sources indicate that Cairn UK will sell 6.6 crore shares via a block deal today. The block deal price range is between Rs 307 to 317 a share. Citigroup will be the sole banker to the deal. Cairn PLC’s stake will come down to 18.3% from 21.8% post the stake sale.

Power ministry sources say they have finalised fresh bid parameters for new ultra mega power projects (UMPP). Power ministry sources say they will seek legal vetting of new UMPP bid norms.

Tata Power buys 51% in Tata BP solar from BP alternative energy. With this acquisition, Tata BP solar becomes a wholly owned subsidiary of Tata Power.

The CBDT has issued draft GAAR guidelines, saying a monetary threshold is a must for invoking GAAR provisions. GAAR will apply to income accruing on or after Apr 1, FY13.

JP Power OFS opens today. The company plans to sell 2.9 crore shares at a floor price of Rs 33.5 a share.

PMO to discuss easing of environmental norms for Coal India with MoEF, reports the PTI.

Rakesh Jhunjhunwala has hiked his stake in NCC to 7.98% by buying 7.5 lakh shares.

Pipavav promoters pledge additional 12.93 crore shares with IL&FS.

DoT will slap a Rs 1594 crore penalty on Bharti, Idea, Tata Tele, Tata Comm, Vodafone and RCom, reports the Economic Times.

Insecticides India promoters are looking to sell stake, Rothschild mandated, reports the Financial Express. (Promoters own 74%)

Jaiprakash Power will earn Rs 100 crore from carbon credits, reports the Financial Express.

VKS Projects IPO opens today and will close on July 4. The company hopes to raise Rs 55 crore and the price band is at Rs 55-60 a share.

Mudra lifestyle’s proposal for debt restructuring has been approved. (CMP is Rs 18, M Cap Rs 88 crore)

Chelsea Saldanha
Chelsea.saldanha@network18online.com