RNRL gains on hopes of early SC verdict in gas case | Citi downgrades RIL

RNRL gains on hopes of early SC verdict in gas case | Citi downgrades RIL


Shares of Anil Ambani owned Reliance Natural Resources (RNRL) and Reliance Power gained momentum after media reports that the Supreme Court may announce verdict in RIL-RNRL gas dispute case in a week’s time.

It has been reported that the Chief Justice of India KG Balakrishnan, who is leading the 3-member Supreme Court bench on the gas dispute case, will retire on May 11.

At 10:35 am, shares of RNRL were at Rs 66.70, up 7.06 per cent or Rs 4.40 on the BSE. It touched a high of Rs 67.85 and low of Rs 61.50.

Reliance Power was up 1.30 per cent or Rs 2.05 at Rs 159.95. It touched a high of Rs 161.65 and low of Rs 155.20.

Meanwhile, share of Reliance Industries continued its downtrend after disappointing quarterly results. The scrip was down 2.26 per cent at Rs 1037.25 on the NSE.

RIL and RNRL has been fighting a legal battle over the supply of 28 million units of gas for 17 years at $2.34 per unit to RNRL from the gas fields of Krishna-Godavari basin, which had been awarded to Mukesh Ambani’s RIL as part of the New Exploration or Licensing Policy (NELP).

***************************************

Reliance Industries discovers more oil in Cambay basin



MUMBAI: Energy major Reliance Industries has discovered more oil on India's western coast, raising the potential of the exploratory blocks it has been drilling, the company said on Wednesday.

India's biggest conglomerate whose businesses span petrochemicals, refining, oil and gas exploration and retail said the current flow was at 300 barrels of oil per day (bopd) at the onland exploratory block in the Cambay basin in Gujarat state.

The potential commercial interest of the discovery is being evaluated through more data gathering and analysis, it said in a statement. "The discovery is significant as this play fairway is expected to open more oil pool areas leading to better hydrocarbon potential within the block," it said.

Reliance holds 100 per cent participating interest in the block, and three earlier discoveries had a flow rate of 500 bopd. The company has so far drilled 14 exploratory wells in the block that covers an area of 635 square kilometres.

Last year Reliance, controlled by billionaire Mukesh Ambani, started pumping gas from its block in the vast Krishna Godavari (KG) basin off India's east coast, where it made the country's largest gas find. It has been producing 60 million standard cubic metres a day (mmscmd) of gas from the block.

Also Read

→ Accumualate Reliance: Institution Broking and Global Research

→ Regulator hikes hauling tariff for Gail, Reliance Gas in ‘haste’

→ Raghu Pillai to quit Reliance Retail by mid-year

→ Reliance Communications, US firm tie up for application stores

→ Reliance promises to come out with better results in FY10-11: Deven Choksey

At peak output of 80 million mmscmd it could nearly double India's gas output. Reliance also produces oil from its D6 block in the KG basin, and holds a stake in the Panna, Mukta and Tapti oil and gas fields off India's west coast.

The company, which owns the world's largest refining complex in Gujarat, earlier this month agreed to pay $1.7 billion to form a joint venture with Atlas Energy at one of the most promising natural gas deposit regions in the United States.

At 0745 GMT, shares in Reliance shares, which has a market value of $78 billion, were trading down 2.6 per cent at 1,033.80 rupees in a Mumbai market down 0.85 per cent.

*****************************************
Markets nosedive as Greece concerns loom




Src:Economictimes.indiatimes

Global mkts in a tizzy as S&P junks Greece

Global mkts in a tizzy as S&P junks Greece


MUMBAI: Stocks, bonds, crude oil and commodities tumbled as investors feared a wave of sovereign debt crisis, similar to the 1997 Asian crisis, after Standard & Poor’s cut Greece’s rating to junk and lowered Portugal two notches. Safe haven gold rose.

Investors fear the downgrade of these two nations may be the beginning of a series of such moves as most governments are burdened with debt after they spent their way out of recession following the credit crisis. Even the US is under threat of losing its top rating.

“The biggest risk now is that the market speculates against every single indebted peripheral country, and that could lead to a sovereign debt crisis,” Axel Botte, a strategist at AXA Investment Managers in Paris, told Bloomberg News. “The contagion risk is real. It’s much easier to bail out a bank than to bail out a country.”


The Stoxx Europe 600 Index slid 3.1% in New York, Standard & Poor’s 500 Index lost 1.6%, crude oil sank 2.4%, while copper plunged 4.3%. ADRs of ICICI Bank and HDFC Bank crashed. Gold rose 0.7%, or $8, to $1161.57 an ounce.

Standard & Poor’s cut Greece three levels to BB+, or junk, and lowered Portugal two steps to A- as they stare at a default. Greek notes slid earlier as concern deepened that the nation will ask investors to accept delayed or reduced debt payments.

The European Union, which had pledged to support Greece, has been dragging its feet on the conditionalities to extend a bailout. Emerging markets could be the worst-hit in a sovereign crisis as global investors pull out funds in a flight to safety.

Global investors could sell developing market stocks and bonds, and buy US treasuries or German bonds which are considered the safest. The cost of borrowing for both companies and countries are set to rise.

“We could see another wave of forced deleveraging, which could obviously affect any high-yielding assets, including emerging-markets debt,” Luis Costa, an emerging markets strategist at Citigroup, was quoted as saying by Bloomberg.

The average spread for emerging-market bonds over the US treasury climbed 18 basis points to 261 basis points, the largest increase since February.

A basis point is 0.01 percentage point. The MSCI Emerging Markets Index dropped 1.7% and Brazil’s Bovespa index tumbled 2.4%. The Shanghai Composite Index sank 2.1% earlier to a six-month low, the most since February 5.

“We’re entering a phase of blind panic,” said Orlando Green, an interest-rate strategist at Credit Agricole CIB in London. “Given the inaction of the euro nations to back Greece and to get things done quickly, we’ve found now this inaction has been a big obstacle. That’s not satisfying for the markets, and not for S&P either; hence, the downgrade.”



Related News:

Wall St slips on Greece, Portugal rating downgrade

******************************************
Pre Market: Weak start likely as Greece contagion pressures global equities

Funds rethink India, China strategy: Morgan Stanley

Top gainers & losers I Top 5 stock picks I Mid-term picks

Coromandel a good stock to buy: Gaurang Shah

SC verdict on RIL-RNRL gas case in next few days: Sources



*******************************************

Jayant Agro-Organics

Sterlite Industries

IRB Infrastructure Developers

Indian Bank

Maruti Suzuki

Mandhana Industries IPO Note

Tara Health Foods IPO Analysis

Tarapur - Mandhana - Nitesh - Grey Market Premiums

Src: ET and Moneycontrol and DP blog etc