The Sterlite Industries stock is likely to open on a negative note this week as the Tamil Nadu Pollution Control Board on Saturday ordered closure of the company's copper smelter unit, located in Tuticorin, with immediate effect owing to alleged leaks of noxious gas. The order came a week after an unspecified gas was reported to have leaked in the area on March 23. The gas leak caused mild suffocation, sore throat and eye irritation to several people in the locality who suspected that it originated from Sterlite, dealing in sulphuric acid, a by-product. The development assumes significance since the Supreme Court is expected to give its verdict on Tuesday on the copper smelting plant. The unit was ordered to halt its operations in 2010 by the Madras High Court for violating environment norms.

However, the Supreme Court stayed the High Court order until further notice. In FY 2011-12, Sterlite Industries produced 325,877 tonnes of refined copper.

United Spirits: Hopes run high on open offer

United Spirits will remain in focus this week, as open offer from Diageo Plc to its shareholders may happen anytime soon. The Vijay Mallya-controlled UB (Holdings) Ltd on March 22, informed the Karnataka High Court that the Reserve Bank of India has given its consent for the $2.1-billion deal. As the RBI nod was the last regulatory approval required for the deal to go through, open offer may happen any time soon. The company, in fact, in an undertaking to SEBI had said that it will start the tendering period within 12 working days from the receipt of all applicable statutory approvals. Diageo Plc in November had entered into an agreement with United Spirits to buy 27.4 per cent stake in the latter through a combination of share purchase from existing promoters (19 per cent) and preferential allotment of shares (8 per cent). Diageo also launched an open offer at Rs 1,440 a share to USL public shareholders to increase its stake to 53.5 per cent.

Auto, cement stocks to ride on sales numbers

Auto stocks are likely to be in focus as most companies from this sector will unveil their March sales figures on Monday. During the month, auto majors had resorted to production halt due to the slowdown and to clear up inventory pile-up. Companies that undertook production halt include Maruti Suzuki (Gurgaon plant – petrol cars), Tata Motors (Jamshedpur plant for 11 days between March 27 and April 6 for repair and maintenance work) and Mahindra & Mahindra (tractor plants at Jaipur and Rudrapur between March 24 and March 31).

Similarly, cement dispatches will also be closely monitored. According to BRICS Securities, cement prices fell in most regions except Hyderabad on weak demand in March.

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