The already heated up RIL-RNRL gas dispute is likely to have five new stakeholders in the claim. Five more power plants have joined the fray for getting natural gas from RIL's KG-D6 fields and have even demanded a minimum allocation of 4.73 million cubic meters a day.
Among these new players, two power plants each in Delhi and Andhra Pradesh and one in Gujarat have demanded gas even before commissioning in the fiscal.
With a current production of 36 mmscmd gas from KG-D6, RIL supplies 18 mmscmd of gas to power plants. The total capacity to produce stands at 60 mmscmd but is hurdled to produce less as the government has not yet identified customers for buying gas beyond the initial 40 mmscmd, allocated primarily to fertiliser and power producers on a priority basis in accordance with the Gas Utilisation Policy.
RIL is bounded by the government terms not to sell gas to these and other users including its own refineries, until allocation is approved by the Government.
Wednesday, August 5, 2009
MONEY MORNING -> 5th Aug 2009
Wall Street posted modest rise as traders took a break from the recent
heavy buying. The key benchmark indices Dow Jones was up by 0.36%
and NASDAQ was up by 0.13%. The Asian bourses are trading mixed
with Nikkei down by 0.08%, Hang Seng up by 0.76% and Singapore
Nifty up by 0.62%.
While near-term trend continues to be positive, for intraday high degree
volatility can be expected. Technically spot nifty may take resistance at
4725/4775/4860 levels and support at 4640/4595/4505 levels.
POST-MARKET ANALYSIS:
Profit booking at higher levels limited the upside for the domestic
bourses. The key benchmark indices Sensex and Nifty were down by
0.59% and 0.66% respectively.
FIIs’ were net buyers in equity and net sellers in derivatives.
ADRs: Satyam Computers (+7.41%), Tata Motors (+4.33%), Patni
Computers (-4.93%) and Sterlite Ind. (-3.21%).
NEWS TO USE:
POSITIVE
RIL gas sales from its eastern offshore fields have risen to 35 million
cubic metres a day (mmscmd), the highest since the nation's most
prolific fields started producing in April.
Ministry has approved the sale of 8.38%of government equity in NMDC
that could fetch the exchequer around Rs 12,000 crore.
SAIL and TATA STEEL have hiked prices of flat steel products by up to
Rs 1,000 a tonne on account of improving demand in the country.
HCL INFOSYSTEMS has bagged an order of Rs 40 crore from SBI and
associated banks to deploy maintain and service automated teller
machines (ATMs).
RELIANCE INFRA has been awarded the Rs 11,000-crore Mumbai
Metro-II project on a Build Operate Transfer (BOT) basis.
HCC has bagged Rs 228.79 crore contract from Vidharbh Irrigation
Development Corporation for infrastructure.
The proposed 50:50 foundry and forging joint venture between Heavy Engineering Corporation and BHEL may
be incorporated and become operational within this fiscal.
ANDHRA BANK is targeting Rs 3,400 crore business during the current financial year.
DABUR entered the Rs 1,100 crore fairness cream market to take on the likes of HUL's 'Fairly & Lovely',
launching a new range of Ayurvedic products in the skin care segment.
TATA STEEL will take its annual production capacity to 16 million tonnes per annum (MTPA) by 2014 at an
estimated investment of about Rs 40,000 crore.
WIPRO TECHNOLOGIES has bagged a five-year IT services deal with Charming Shoppes Inc, the US-based
multi-brand speciality apparel retailers primarily focussed on plus-size women’s apparel.
NEUTRAL
Govt extends NELP VIII bid date by two months to October 12, 2009.
National Highways Authority of India (NHAI) is working on a proposal to scrap the 30 to 35% premium on toll
charged on highways that bypass cities.
ABG SHIPYARD has raised the open offer price to buy out drilling firm GREAT OFFSHORE to Rs 520 a share
from the Rs 450 announced last week.
STERLITE INDUSTRIES may get the support of rival bidder Harbinger Capital Partners in its takeover plan for
the bankrupt US copper mining firm, Asarco. Harbinger has decided to withdraw from the race, informing the
bankruptcy.
RIL will pick up a 67% stake in Krishna Godavari Gas Network Ltd (KGGNL), a joint venture promoted by the
Andhra Pradesh government, for undertaking city gas distribution in the state.
A follow-on public offer of REC to raise around Rs 2,900 crore is likely to come up by the end of the current
financial year
The public spat between the government and the Anil Dhirubhai Ambani (ADA) group continued today, with
downstream petroleum regulator Directorate General of Hydrocarbons (DGH) defending the $8.8-billion capex
plan of RIL for the KG-D6 field and reiterating the importance of the production sharing contract (PSC).
The civil construction of the 15 million tonne per annum (mtpa) refinery of the IOC at Paradeep is expected to
start by Decembder this year.
AXIS BANK will issue 71.4 million fresh equity shares through Global Depository Receipts (GDRs) or qualified
institutional placement (QIP) to support growth.
TATA STEEL is exploring possibilities for supplying skin panels to the world's largest car maker Toyota's
upcoming 'strategic' small car in India, to be launched by 2011.
DIVIS LABORATORIES has allotted over 6.48 crore equity shares of Rs 2 each as bonus to the shareholders
of the company in the ratio of 1:1.
KOTAK GROUP purchased a 51% stake in the Ahmedabad Commodity Exchange (ACE) and plans to convert
the regional exchange into a national one within a year.
BHARTI AIRTEL announced the creation of a new terrestrial cable network to Bhutan. As part of this initiative,
Airtel has inked an MoU with the Royal Government of Bhutan to extend fibre connectivity to the Himalayan
Kingdom.
GUJARAT ALKALIES AND CHEMICALS LTD plans to outsource manufacturing of its new toluene-based
products.
Strategy to be followed:
Buy on every decline and sell on every rally.
However, given the current high volatility of the markets, investors are advised to take a long-term investment
perspective.
Investors are advised to book profit even when the stock reaches 60-70% of the target.
Diversify the portfolio as it reduces the risk.
BOARD MEETING:
DATE COMPANY NAME PURPOSE
08 08 2009 HANUNG TOYS AND TEXTILES LIMITED Postal Ballot
10 08 2009 SMS PHARMACEUTICALS LIMITED Audited Accounts
13 08 2009 COLGATE PALMOLIVE (INDIA) LTD Interim Dividend/Record Date
08 09 2009 SHRENUJ & CO LTD Miscellaneous
TO VIEW
heavy buying. The key benchmark indices Dow Jones was up by 0.36%
and NASDAQ was up by 0.13%. The Asian bourses are trading mixed
with Nikkei down by 0.08%, Hang Seng up by 0.76% and Singapore
Nifty up by 0.62%.
While near-term trend continues to be positive, for intraday high degree
volatility can be expected. Technically spot nifty may take resistance at
4725/4775/4860 levels and support at 4640/4595/4505 levels.
POST-MARKET ANALYSIS:
Profit booking at higher levels limited the upside for the domestic
bourses. The key benchmark indices Sensex and Nifty were down by
0.59% and 0.66% respectively.
FIIs’ were net buyers in equity and net sellers in derivatives.
ADRs: Satyam Computers (+7.41%), Tata Motors (+4.33%), Patni
Computers (-4.93%) and Sterlite Ind. (-3.21%).
NEWS TO USE:
POSITIVE
RIL gas sales from its eastern offshore fields have risen to 35 million
cubic metres a day (mmscmd), the highest since the nation's most
prolific fields started producing in April.
Ministry has approved the sale of 8.38%of government equity in NMDC
that could fetch the exchequer around Rs 12,000 crore.
SAIL and TATA STEEL have hiked prices of flat steel products by up to
Rs 1,000 a tonne on account of improving demand in the country.
HCL INFOSYSTEMS has bagged an order of Rs 40 crore from SBI and
associated banks to deploy maintain and service automated teller
machines (ATMs).
RELIANCE INFRA has been awarded the Rs 11,000-crore Mumbai
Metro-II project on a Build Operate Transfer (BOT) basis.
HCC has bagged Rs 228.79 crore contract from Vidharbh Irrigation
Development Corporation for infrastructure.
The proposed 50:50 foundry and forging joint venture between Heavy Engineering Corporation and BHEL may
be incorporated and become operational within this fiscal.
ANDHRA BANK is targeting Rs 3,400 crore business during the current financial year.
DABUR entered the Rs 1,100 crore fairness cream market to take on the likes of HUL's 'Fairly & Lovely',
launching a new range of Ayurvedic products in the skin care segment.
TATA STEEL will take its annual production capacity to 16 million tonnes per annum (MTPA) by 2014 at an
estimated investment of about Rs 40,000 crore.
WIPRO TECHNOLOGIES has bagged a five-year IT services deal with Charming Shoppes Inc, the US-based
multi-brand speciality apparel retailers primarily focussed on plus-size women’s apparel.
NEUTRAL
Govt extends NELP VIII bid date by two months to October 12, 2009.
National Highways Authority of India (NHAI) is working on a proposal to scrap the 30 to 35% premium on toll
charged on highways that bypass cities.
ABG SHIPYARD has raised the open offer price to buy out drilling firm GREAT OFFSHORE to Rs 520 a share
from the Rs 450 announced last week.
STERLITE INDUSTRIES may get the support of rival bidder Harbinger Capital Partners in its takeover plan for
the bankrupt US copper mining firm, Asarco. Harbinger has decided to withdraw from the race, informing the
bankruptcy.
RIL will pick up a 67% stake in Krishna Godavari Gas Network Ltd (KGGNL), a joint venture promoted by the
Andhra Pradesh government, for undertaking city gas distribution in the state.
A follow-on public offer of REC to raise around Rs 2,900 crore is likely to come up by the end of the current
financial year
The public spat between the government and the Anil Dhirubhai Ambani (ADA) group continued today, with
downstream petroleum regulator Directorate General of Hydrocarbons (DGH) defending the $8.8-billion capex
plan of RIL for the KG-D6 field and reiterating the importance of the production sharing contract (PSC).
The civil construction of the 15 million tonne per annum (mtpa) refinery of the IOC at Paradeep is expected to
start by Decembder this year.
AXIS BANK will issue 71.4 million fresh equity shares through Global Depository Receipts (GDRs) or qualified
institutional placement (QIP) to support growth.
TATA STEEL is exploring possibilities for supplying skin panels to the world's largest car maker Toyota's
upcoming 'strategic' small car in India, to be launched by 2011.
DIVIS LABORATORIES has allotted over 6.48 crore equity shares of Rs 2 each as bonus to the shareholders
of the company in the ratio of 1:1.
KOTAK GROUP purchased a 51% stake in the Ahmedabad Commodity Exchange (ACE) and plans to convert
the regional exchange into a national one within a year.
BHARTI AIRTEL announced the creation of a new terrestrial cable network to Bhutan. As part of this initiative,
Airtel has inked an MoU with the Royal Government of Bhutan to extend fibre connectivity to the Himalayan
Kingdom.
GUJARAT ALKALIES AND CHEMICALS LTD plans to outsource manufacturing of its new toluene-based
products.
Strategy to be followed:
Buy on every decline and sell on every rally.
However, given the current high volatility of the markets, investors are advised to take a long-term investment
perspective.
Investors are advised to book profit even when the stock reaches 60-70% of the target.
Diversify the portfolio as it reduces the risk.
BOARD MEETING:
DATE COMPANY NAME PURPOSE
08 08 2009 HANUNG TOYS AND TEXTILES LIMITED Postal Ballot
10 08 2009 SMS PHARMACEUTICALS LIMITED Audited Accounts
13 08 2009 COLGATE PALMOLIVE (INDIA) LTD Interim Dividend/Record Date
08 09 2009 SHRENUJ & CO LTD Miscellaneous
TO VIEW
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