Stock Updates: Coal India, SBI, Kingfisher Airlines

by khalid on 20/10/2011 · 1 comment

Coal India was down by 4% last week although the markets performed decently. The fall was majorly a result of the government directive for diverting the e-auction quota to the power companies those is facing the acute shortage of coal. The company earns high margins on Coal that they sell through e-auction. Also the company is behind its production target for the year at the moment due to the heavy rains in the eastern region of the country. The company is also staring at potential labour problems over the issue of bonus.

Some positives was witnessed for the Heavy weight of the Banking Sector i.e. SBI. The stock was up by 7.5% last week after a fall due to the downgrade of the bank’s financial strength by the Moody’s in the previous week. At the present scenario the government is in a dilemma of how they would be investing in the bank’s stake through the rights issue. However with a investor’s perspective the stock showed a significant good run even though the economy has been showing the signs of a slowdown. The BSE Banking Index saw a rise of 7% last week.

Kingfisher Airlines last week was up by 7.4% with the investors in a hope that the airline would get a part of the funds that would be raised by the stake sale of Force India which is owned by the UB group promoter Vijay Mallya. The Airline company in the recent times had been struggling to pay its fuel bills and resulted in being grounded this Thursday which is for the second time in the last couple of months.

 Bell the Bull says: Markets have improved and so have some of the stocks with the macro as well as the global developments in place. 

Related Posts Plugin for WordPress, Blogger...

Leave a Comment

{ 1 trackback }

Previous post:

Next post: