The markets made handsome gains on Friday with the Sensex closing up 300 points and the Nifty gaining over 80 points to close at 4313.

Stock markets have stabilized after the sharp slide since the beginning of 2008. Volatility is gradually decreasing as share market factors in almost all the major negatives.

Crude seems to forming a base around $120 level and might drift lower. Inflation is still high at 12% and one more spike in inflation is expected because of the revised base effect. The RBI measures will gradually have their effect on the economy and hopefully inflation will come down to about 7% by next year.

Among all this negative news flow stock investing public is missing out on some attractive valuations and future prospects. Some news which is going to have effect on the companies concerned in the near future will be helpful to you for stock picking.

Stocks in news:

Bajaj Auto:

French auto major Renault has opened a second front with ultra-low-cost car partner Bajaj Auto by inviting the Pune-based two-wheeler maker to pick up stake in Renault Nissan Automotive India, which is setting up a $1-billion greenfield plant in Chennai. The company is also negotiating with Bajaj to extend the ultra-low-cost car partnership to include marketing, sales and distribution of Renault vehicles to be made in Chennai.

M&M:

Mahindra & Mahindra is going to foray into the two-wheeler segment by agreeing to buy the assets of Kinetic Motor Company for Rs 110 crore. M&M will buy the assets through a new company called Mahindra Kinetic Scooters and Motorcycles, which will own the assets of the Pune-based Kinetic Motor. M&M will own 80 per cent of the new company. Kinetic Motor, which makes two-wheelers, will own 20% in the new joint venture firm.

Ranbaxy:

The stock of Ranbaxy made some handsome gains from the beginning of 2008 but was hammered down lately on the news flow of investigation by US Justice Department in company’s affairs.

The US Department of Justice intends to withdraw its motion to enforce subpoenas on Ranbaxy Laboratories after the Indian major submits the entire audit documents sought by the federal authorities.

Axis Bank:

The government is mulling a proposal to sell part of the equity holdings it controls in Axis Bank through qualified institutional placement to a wide base of investors. The plan envisages offering over 21 per cent of Axis Bank’s equity held on behalf of the government by the Specified Undertaking of UTI to a broad-based set of investors.

UTV:

Minority shareholders of of Sony Entertainment Television (SET), now called Multi Screen Media (MSM), who hold 32 per cent stake in MSM, had earlier reached an agreement to sell their stake to billionaire-industrialist B K Modi. However, the future of that agreement is now in some doubt. It is learnt that Indian entertainment company UTV, along with Disney, is in discussion with Sony Pictures Entertainment to see if they could buy the 32 per cent stake.

Torrent Pharma:

J