Sensex gains 158 pts as blue chips bounce back
The market shrugged off a rise in inflation, crude oil prices, weak Asian bourses and a highly negative start and closed with sharp gains today.
There were several volatile spells during the day but in the end, it was a buoyant close for the benchmark indices Sensex and Nifty thanks to sustained buying in metal, bank, FMCG, oil and auto stocks in afternoon trade.
Power, pharma and information technology stocks also broke free from their lower levels and rallied higher. Capital goods, PSU and realty stocks ended well off their intra-day lows thanks to renewed buying support.
While the Sensex, which rose to a high of 14,428.52 today, ended at 14,401.49 with a gain of 157.76 points or 1.11%, the Nifty closed at 4327.45, slightly off its intra-day high of 4337, with a gain of 43.60 points or 1.02%.
Earlier, in morning trade, the Sensex and Nifty had tumbled to 14,136.86 and 4248 respectively following a weak start.
Even as several large cap stocks marched on to higher levels this afternoon, the mood remained highly subdued with regard to stocks from midcap and smallcap segments. As a result, the market breadth was weak when trade ended today.
Out of a total of 2725 stocks traded on BSE, 1212 stocks closed with gains. 1411 stocks posted losses and 102 stocks ended flat.
Sterlite Industries and Hindalco ended stronger by over 4.25%. Hindustan Unilever moved up by 3.75%. HDFC gained 3.25%. BHEL, Tata Power, Reliance Infrastructure, HDFC Bank and Maruti Suzuki surged 2% - 3%.
Reliance Communications, Infosys Technologies, Ranbaxy Laboratories, Tata Motors, ACC, Mahindra & Mahindra and Reliance Industries advanced by 1.5% - 2%.
Bharti Airtel, Tata Steel, ONGC, Jaiprakash Associates and DLF posted modest gains. State Bank of India and ICICI Bank gained marginally. Tata Consultancy Services closed flat.
SAIL, Reliance Petroleum, Nalco, Cairn India, Tata Communications and Zee Entertainment ended with sharp gains. BPCL, Dr. Reddy's Laboratories and Power Grid Corporation finished with sharp losses.
Satyam Computer Services ended 3.15% down. Grasim Industries and NTPC also closed with sharp losses. Wipro eased by 0.9%. Larsen & Toubro and ITC declined by 0.85% and 0.3% respectively.
-----------------------------------------
Other articles:
Closing Bell
Anil Ambani ready to talk peace, meet big brother Mukesh
Short covering in stock futures
Equities bounce back; oil & gas, metals lead
Tata threatens to move Nano out of Singur
Coal India may soon become a 'Navratna'
'No gas deal between NTPC & RIL'
All GSM cos to connect with RCOM's network
Product Review: Apple iPhone
Anil ready to meet Mukesh any time
Ask mother to help settle gas dispute, court tells Ambanis
Source: BL,BS,ET,Sify.
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22 August 2008
21 August 2008
Top Headlines
Headlines
Rupee strengthens; gold remains flat at Rs 11,910
Woods, Nishita Shah among Forbes' next-gen billionaires list
Two young Indian CEOs make $15.7 mn between them
GSM cos to link with RCom's network
Govt nod to IPTV policy for roll out
$1.49 bn committed in NELP-VII
FDI cap in DTH may rise to 74%
Fertiliser cos to get Rs 53k cr
Nifty below 4,300, Sensex 400 pts down
RComm to launch IPTV by December
Govt clears IPTV policy
ONGC Videsh gets ok for Imperial Energy bid
China's ICBC becomes world's most profitable bank
RIL mulling JV with Petrobras
RPL refinery to begin production in Sept
NSE set to launch currency futures on August 29
Videocon to go ahead with LCD plant in Maharashtra
Exide to expand capacity; enter new overseas markets
Punj Lloyd reported a robust net profit growth
Nagarjuna Constructions gets orders of Rs 474 crores
RIL misused trustee position: RNRL
India may get exemption at the NSG: Experts
Infotech Ent enters O&G space
Lupin eyeing Australian generic co stake
RIL-RNRL case hearing delay may hit RIL
RNRL shifts stance, ready to trade gas for 3 yrs
Source:ET,MC,BS
Rupee strengthens; gold remains flat at Rs 11,910
Woods, Nishita Shah among Forbes' next-gen billionaires list
Two young Indian CEOs make $15.7 mn between them
GSM cos to link with RCom's network
Govt nod to IPTV policy for roll out
$1.49 bn committed in NELP-VII
FDI cap in DTH may rise to 74%
Fertiliser cos to get Rs 53k cr
Nifty below 4,300, Sensex 400 pts down
RComm to launch IPTV by December
Govt clears IPTV policy
ONGC Videsh gets ok for Imperial Energy bid
China's ICBC becomes world's most profitable bank
RIL mulling JV with Petrobras
RPL refinery to begin production in Sept
NSE set to launch currency futures on August 29
Videocon to go ahead with LCD plant in Maharashtra
Exide to expand capacity; enter new overseas markets
Punj Lloyd reported a robust net profit growth
Nagarjuna Constructions gets orders of Rs 474 crores
RIL misused trustee position: RNRL
India may get exemption at the NSG: Experts
Infotech Ent enters O&G space
Lupin eyeing Australian generic co stake
RIL-RNRL case hearing delay may hit RIL
RNRL shifts stance, ready to trade gas for 3 yrs
Source:ET,MC,BS
Sensex plummets 435 pts as bears strike; Inflation at 12.63
Sensex plummets 435 pts as bears strike
After a weak start this morning, the market kept losing ground as the session progressed as the bears, who had taken a breather yesterday, swung back into action once again.
Stockometer Top gainers Worst losers
With global markets turning weak and crude oil prices inching higher, investors were in no mood to build up positions this morning. Fears of interest rates hardening further on the back of high inflation and lower growth appeared to have weighed in significantly in afternoon trade.
While the Sensex, which tanked to a low of 14,201.18 in late afternoon trade, ended with a loss of 434.50 points or 2.96% at 14,243.73, the Nifty closed lower by 131.90 points or 2.99% at 4283.85, a few points off a low of 4271.30.
Interest rate sensitive bank and realty stocks took a severe hammering. Mirroring the sell-off in these sectors, the Bankex and Realty indices tumbled by 5.16% and 5.05% respectively.
PSU, power, capital goods, metal, media & communications and information technology stocks too declined sharply. Reflecting their fall, the respective sectoral indices drifted down by 2% - 3.75% today. The Oil & Gas barometer slipped by 1.94%. HC and Auto indices lost around 1.5% each while the Consumer Durables and FMCG indices eased by around a per cent.
Midcap and smallcap stocks also attracted heavy selling and mirroring their decline, the BSE Midcap and Smallcap indices lost 2.04% and 1.83% respectively.
The market breadth was very weak today. Out of 2713 stocks traded on BSE, 1914 stocks finished on a negative note. 734 stocks posted gains and 65 stocks ended flat. Ranbaxy Laboratories (up 1.55% to Rs 513.40) was the lone gainer from the Sensex pack. Among Nifty stocks, besides Ranbaxy Laboratories, Cairn India (1.8%) and ABB (0.15%) were the ones to end on a positive note.
State Bank of India closed with a big loss of 7.1%. HDFC Bank and ICICI Bank, the other banking sector heavyweights in the Sensex, went down by 5.8% and 5.15% respectively.
NTPC, DLF, Reliance Infrastructure, Jaiprakash Associates and HDFC lost 4% - 6%. Reliance Communications, BHEL, Hindalco, Larsen & Toubro, Grasim Industries, ACC, Wipro, Hindustan Unilever, Tata Consultancy Services, Tata Steel, ONGC and Infosys Technologies eased by 2% - 4%.
Bharti Airtel, Mahindra & Mahindra, Reliance Industries, Sterlite Industries, Tata Motors, Maruti Suzuki and Satyam Computer Services also closed on a weak note. Nalco, Unitech, BPCL, Tata Communications, Suzlon Energy, Sun Pharmaceuticals, Punjab National Bank, Ambuja Cements, HCL Technologies, SAIL, Reliance Petroleum and Idea Cellular ended sharply lower.
-------------------------------
Inflation rate rises to 12.63%
India's annual rate of inflation zoomed to a 16-year high of 12.63 percent for the week ended Aug 9, as compared to 12.44 percent the week before, but an unfazed finance ministry said prices had stabilised.
"Prices of essential commodities, which include food grain, pulses, edible oil, vegetable, dairy products and some other products including kerosene, soap and safety matches have more or less stabilised," the finance ministry said in a statement.
The official wholesale price index (WPI) released by the ministry of commerce and industry Thursday showed an increase of 0.3 percent in the index for food article, while that of textile group rose 1.6 percent.
Non-metallic index products rose 0.3 percent.
The increase in index for food articles was due to higher prices of masoor dal (3 percent), tea, moong and gram (2 percent each) and milk (1 percent).The index for manufactured products like mustard oil rose 0.2 percent while that of rubber and plastic products by 0.2 percent.
The index for non-food articles group like sunflower, raw rubber and cotton declined by 0.6 percent and the index for chemical and chemical products like benzene declined by 0.1 percent.
The ministry said the WPI for all commodities stood at 236.9 as compared to 236.1 (provisional) for the week ended June 14 and annual rate of inflation based on final index, calculated on point-to-point basis, stood at 11.8 percent as compared to 11.42 percent (provisional).
The finance ministry in a statement said inflation rate for 30 essential commodities stood at 6.74 percent for the week ending Aug 9, compared to 6.54 percent for the week before.
Double digit inflation to continue till December: D&B
Earlier Thursday, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the problem of inflation was short term and would moderate in due course, as the government has taken several monetary and administrative measures to rein in inflation.
"Inflation will moderate. Let's have patience," Ahluwalia said.
Ahluwalia also brushed aside apprehensions that the government's recent decision to hike employees' salaries would have any adverse impact on the country's economy.
Inflation or terms of trade adjustment?
"We will be able to deal with any implications (arising out of the salary hike)," he said.
The Prime minister's Economic Advisory Council (EAC), in its "Economic Outlook Report 2008-09", has predicted a 7.7 percent economic growth in the current fiscal, as compared to 9.1 percent last fiscal.
More India business stories
Former Reserve Bank of India (RBI) governor C. Rangarajan, while releasing the EAC's economic outlook report here Aug 13, said inflation would moderate to 8-9 percent by March 2009.
After a weak start this morning, the market kept losing ground as the session progressed as the bears, who had taken a breather yesterday, swung back into action once again.
Stockometer Top gainers Worst losers
With global markets turning weak and crude oil prices inching higher, investors were in no mood to build up positions this morning. Fears of interest rates hardening further on the back of high inflation and lower growth appeared to have weighed in significantly in afternoon trade.
While the Sensex, which tanked to a low of 14,201.18 in late afternoon trade, ended with a loss of 434.50 points or 2.96% at 14,243.73, the Nifty closed lower by 131.90 points or 2.99% at 4283.85, a few points off a low of 4271.30.
Interest rate sensitive bank and realty stocks took a severe hammering. Mirroring the sell-off in these sectors, the Bankex and Realty indices tumbled by 5.16% and 5.05% respectively.
PSU, power, capital goods, metal, media & communications and information technology stocks too declined sharply. Reflecting their fall, the respective sectoral indices drifted down by 2% - 3.75% today. The Oil & Gas barometer slipped by 1.94%. HC and Auto indices lost around 1.5% each while the Consumer Durables and FMCG indices eased by around a per cent.
Midcap and smallcap stocks also attracted heavy selling and mirroring their decline, the BSE Midcap and Smallcap indices lost 2.04% and 1.83% respectively.
The market breadth was very weak today. Out of 2713 stocks traded on BSE, 1914 stocks finished on a negative note. 734 stocks posted gains and 65 stocks ended flat. Ranbaxy Laboratories (up 1.55% to Rs 513.40) was the lone gainer from the Sensex pack. Among Nifty stocks, besides Ranbaxy Laboratories, Cairn India (1.8%) and ABB (0.15%) were the ones to end on a positive note.
State Bank of India closed with a big loss of 7.1%. HDFC Bank and ICICI Bank, the other banking sector heavyweights in the Sensex, went down by 5.8% and 5.15% respectively.
NTPC, DLF, Reliance Infrastructure, Jaiprakash Associates and HDFC lost 4% - 6%. Reliance Communications, BHEL, Hindalco, Larsen & Toubro, Grasim Industries, ACC, Wipro, Hindustan Unilever, Tata Consultancy Services, Tata Steel, ONGC and Infosys Technologies eased by 2% - 4%.
Bharti Airtel, Mahindra & Mahindra, Reliance Industries, Sterlite Industries, Tata Motors, Maruti Suzuki and Satyam Computer Services also closed on a weak note. Nalco, Unitech, BPCL, Tata Communications, Suzlon Energy, Sun Pharmaceuticals, Punjab National Bank, Ambuja Cements, HCL Technologies, SAIL, Reliance Petroleum and Idea Cellular ended sharply lower.
-------------------------------
Inflation rate rises to 12.63%
India's annual rate of inflation zoomed to a 16-year high of 12.63 percent for the week ended Aug 9, as compared to 12.44 percent the week before, but an unfazed finance ministry said prices had stabilised.
"Prices of essential commodities, which include food grain, pulses, edible oil, vegetable, dairy products and some other products including kerosene, soap and safety matches have more or less stabilised," the finance ministry said in a statement.
The official wholesale price index (WPI) released by the ministry of commerce and industry Thursday showed an increase of 0.3 percent in the index for food article, while that of textile group rose 1.6 percent.
Non-metallic index products rose 0.3 percent.
The increase in index for food articles was due to higher prices of masoor dal (3 percent), tea, moong and gram (2 percent each) and milk (1 percent).The index for manufactured products like mustard oil rose 0.2 percent while that of rubber and plastic products by 0.2 percent.
The index for non-food articles group like sunflower, raw rubber and cotton declined by 0.6 percent and the index for chemical and chemical products like benzene declined by 0.1 percent.
The ministry said the WPI for all commodities stood at 236.9 as compared to 236.1 (provisional) for the week ended June 14 and annual rate of inflation based on final index, calculated on point-to-point basis, stood at 11.8 percent as compared to 11.42 percent (provisional).
The finance ministry in a statement said inflation rate for 30 essential commodities stood at 6.74 percent for the week ending Aug 9, compared to 6.54 percent for the week before.
Double digit inflation to continue till December: D&B
Earlier Thursday, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the problem of inflation was short term and would moderate in due course, as the government has taken several monetary and administrative measures to rein in inflation.
"Inflation will moderate. Let's have patience," Ahluwalia said.
Ahluwalia also brushed aside apprehensions that the government's recent decision to hike employees' salaries would have any adverse impact on the country's economy.
Inflation or terms of trade adjustment?
"We will be able to deal with any implications (arising out of the salary hike)," he said.
The Prime minister's Economic Advisory Council (EAC), in its "Economic Outlook Report 2008-09", has predicted a 7.7 percent economic growth in the current fiscal, as compared to 9.1 percent last fiscal.
More India business stories
Former Reserve Bank of India (RBI) governor C. Rangarajan, while releasing the EAC's economic outlook report here Aug 13, said inflation would moderate to 8-9 percent by March 2009.
20 August 2008
New FnO Lot sizes of 39 stks from Aug 21
NSE/FAOP/11155
Introduction of futures and options contracts on 39 additional individual securities
Introduction of futures and options contracts on 39 additional individual securities
In continuation to our circular NSE/F&O/081/2008 dated August 12, 2008 members are requested to note that the market lot for the additional 39 securities, available for trading in F & O segment with effect from August 21, 2008, will be as follows:
S. No Name Symbol Lot Size
1 ABG SHIPYARD LIMITED
ABGSHIP 550
2 AKRUTI CITY LIMITED
AKRUTI 300
3 ASIAN PAINTS LIMITED
ASIANPAINT 200
4 BALAJI TELEFILMS LTD.
BALAJITELE 1250
5 CONTAINER CORPORATION OF INDIA LIMITED
CONCOR 250
6 CORE PROJECTS AND TECHNOLOGIES LIMITED
COREPROTEC 750
7 DECCAN CHRONICLE HOLDINGS LTD.
DCHL 1700
8 DISH TV INDIA LIMITED
DISHTV 5150
9 EVERONN SYSTEMS INDIA LIMITED
EVERONN 400
10 FIRSTSOURCE SOLUTIONS LIMITED
FSL 4750
11GUJARAT STATE PETRONET LIMITED
GSPL 3050
12 GTL INFRASTRUCTURE LIMITED
GTLINFRA 4850
13 GVK POWER & INFRASTRUCTURE LIMITED
GVKPIL 4750
14 HCL INFOSYSTEMS LTD
HCL-INSYS 1700
15 INDIABULLS REAL ESTATE LIMITED
IBREALEST 650
16 ICSA (INDIA) LIMITED
ICSA 600
17 KLG SYSTEL LTD.
KLGSYSTEL 500
18 K S OILS LIMITED
KSOILS 2950
19 MIC ELECTRONICS LIMITED
MIC 1400
20 MINDTREE LIMITED
MINDTREE 600
21 MERCATOR LINES LIMITED
MLL 2450
22 MONNET ISPAT LTD
MONNETISPA 450
23 MRF LTD.
MRF 100
24 NAVA BHARAT VENTURES LIMITED
NBVENTURES 800
25 NOIDA TOLL BRIDGE COMPANY LTD
NOIDATOLL 4100
26 OPTO CIRCUITS (INDIA) LIMITED
OPTOCIRCUI 600
27 ORBIT CORPORATION LIMITED
ORBITCORP 750
28 PRISM CEMENT LIMITED
PRISMCEM 5550
29 PTC INDIA LIMITED
PTC 2350
30 RELIANCE INDUSTRIAL INFRASTRUCTURE LIMITED
RIIL 200
31 SINTEX INDUSTRIES LTD.
SINTEX 700
32 SREI INFRASTRUCTURE FINANCE LIMITED
SREINTFIN 1750
33 THERMAX LTD
THERMAX 450
34 TORRENT POWER LIMITED
TORNTPOWER 1700
35 TELEVISION EIGHTEEN INDIA LTD.
TV-18 850
36 UCO BANK
UCOBANK 5000
37 UTV SOFTWARE COMMUNICATIONS LIMITED
UTVSOF 300
38 VOLTAMP TRANSFORMERS LIMITED
VOLTAMP 250
39 WALCHANDNAGAR INDUSTRIES LTD
WALCHANNAG 700
As specified earlier through circular no. NSE/F&O/12/2003 dated April 21, 2003, regarding the introduction of option contracts on individual securities, the closing price of the securities in the underlying market shall be rounded off by the applicable strike interval multiplier to derive the at-the-money strike price. Three In-the-money and Three Out-of-the-money strike prices shall be introduced based on the At-the-money strike for both put and call options.
The new contracts will be available for trading from August 21, 2008. Members are advised to take the latest contract.gz, security.gz and fo_participant.gz files from NSE EXTRANET, directory:/faoftp/faocommon before start of trading on August 21, 2008. A detailed list of new contracts being introduced for trading (file name: CONTRACT20082008.CSV) will be available on the path faoftp/faocommon/contracts on August 20, 2008 after market hours.
For any clarification members are requested to contact following officials
Shalini Rebeiro, Sachin Dhar and Janardhan Gujaran on 022-26598151, 022-26598152
Source:NSEINDIA.com
Introduction of futures and options contracts on 39 additional individual securities
Introduction of futures and options contracts on 39 additional individual securities
In continuation to our circular NSE/F&O/081/2008 dated August 12, 2008 members are requested to note that the market lot for the additional 39 securities, available for trading in F & O segment with effect from August 21, 2008, will be as follows:
S. No Name Symbol Lot Size
1 ABG SHIPYARD LIMITED
ABGSHIP 550
2 AKRUTI CITY LIMITED
AKRUTI 300
3 ASIAN PAINTS LIMITED
ASIANPAINT 200
4 BALAJI TELEFILMS LTD.
BALAJITELE 1250
5 CONTAINER CORPORATION OF INDIA LIMITED
CONCOR 250
6 CORE PROJECTS AND TECHNOLOGIES LIMITED
COREPROTEC 750
7 DECCAN CHRONICLE HOLDINGS LTD.
DCHL 1700
8 DISH TV INDIA LIMITED
DISHTV 5150
9 EVERONN SYSTEMS INDIA LIMITED
EVERONN 400
10 FIRSTSOURCE SOLUTIONS LIMITED
FSL 4750
11GUJARAT STATE PETRONET LIMITED
GSPL 3050
12 GTL INFRASTRUCTURE LIMITED
GTLINFRA 4850
13 GVK POWER & INFRASTRUCTURE LIMITED
GVKPIL 4750
14 HCL INFOSYSTEMS LTD
HCL-INSYS 1700
15 INDIABULLS REAL ESTATE LIMITED
IBREALEST 650
16 ICSA (INDIA) LIMITED
ICSA 600
17 KLG SYSTEL LTD.
KLGSYSTEL 500
18 K S OILS LIMITED
KSOILS 2950
19 MIC ELECTRONICS LIMITED
MIC 1400
20 MINDTREE LIMITED
MINDTREE 600
21 MERCATOR LINES LIMITED
MLL 2450
22 MONNET ISPAT LTD
MONNETISPA 450
23 MRF LTD.
MRF 100
24 NAVA BHARAT VENTURES LIMITED
NBVENTURES 800
25 NOIDA TOLL BRIDGE COMPANY LTD
NOIDATOLL 4100
26 OPTO CIRCUITS (INDIA) LIMITED
OPTOCIRCUI 600
27 ORBIT CORPORATION LIMITED
ORBITCORP 750
28 PRISM CEMENT LIMITED
PRISMCEM 5550
29 PTC INDIA LIMITED
PTC 2350
30 RELIANCE INDUSTRIAL INFRASTRUCTURE LIMITED
RIIL 200
31 SINTEX INDUSTRIES LTD.
SINTEX 700
32 SREI INFRASTRUCTURE FINANCE LIMITED
SREINTFIN 1750
33 THERMAX LTD
THERMAX 450
34 TORRENT POWER LIMITED
TORNTPOWER 1700
35 TELEVISION EIGHTEEN INDIA LTD.
TV-18 850
36 UCO BANK
UCOBANK 5000
37 UTV SOFTWARE COMMUNICATIONS LIMITED
UTVSOF 300
38 VOLTAMP TRANSFORMERS LIMITED
VOLTAMP 250
39 WALCHANDNAGAR INDUSTRIES LTD
WALCHANNAG 700
As specified earlier through circular no. NSE/F&O/12/2003 dated April 21, 2003, regarding the introduction of option contracts on individual securities, the closing price of the securities in the underlying market shall be rounded off by the applicable strike interval multiplier to derive the at-the-money strike price. Three In-the-money and Three Out-of-the-money strike prices shall be introduced based on the At-the-money strike for both put and call options.
The new contracts will be available for trading from August 21, 2008. Members are advised to take the latest contract.gz, security.gz and fo_participant.gz files from NSE EXTRANET, directory:/faoftp/faocommon before start of trading on August 21, 2008. A detailed list of new contracts being introduced for trading (file name: CONTRACT20082008.CSV) will be available on the path faoftp/faocommon/contracts on August 20, 2008 after market hours.
For any clarification members are requested to contact following officials
Shalini Rebeiro, Sachin Dhar and Janardhan Gujaran on 022-26598151, 022-26598152
Source:NSEINDIA.com
RIL may be allowed to sell diesel in domestic market
RIL may be allowed to sell diesel in domestic market
New Delhi, Aug. 19 With the diesel demand showing an 18-per cent growth and oil companies depending on imports to bridge the gap, the Government is considering changes in tax norms to allow refineries in export-oriented units such as Reliance Industries Ltd (RIL) to feed the domestic market.
It is also mulling a differential pricing for power and other industrial consumers of the fuel.
After a review meeting with the chiefs of PSU oil companies here on Tuesday, the Petroleum Minister, Mr Murli Deora, said that a consistent, long-term pricing policy for diesel is required – one which would balance social concerns with business realities. The Ministry was seeking changes in tax rules to allow EOU refineries to supply petroleum products to PSU refiners.
Mr Sarthak Behuria, Chairman, Indian Oil Corporation Ltd, told news persons that “We have written to Directorate General of Foreign Trade (DGFT) and the Commerce Ministry in this regard, and if the Finance Ministry also approves it, we will be able to buy diesel from Reliance as is the case with LPG.”
An EOU refinery will have to pay both customs and excise duty for selling the products in the domestic market. The excise duty comprises two components - ad valorem and specific. Currently, the EOU will have to face double taxation in specific.
In addition, the company will have to pay income-tax on its profits when it sells fuel in the domestic tariff area (DTA). “It is being examined if domestic sales by Reliance in the DTA can be given a ‘deemed export status’ and it continues to get income-tax waiver,” he said. RIL already enjoys a deemed export status for selling LPG to the PSUs.
Surge in demand
Mr Behuria said that industrial use of subsidised diesel was pushing up demand and forcing the refiners to increase imports. The output by Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together in 2008-09 was estimated at 39.49 million tonne, with the demand being at 54.79 m.t.While transport and agriculture demand for diesel had grown by 10-12 per cent, consumption by power producers and other industries had risen 30 per cent.
------------------------------------------
RIL may get export perks for diesel sales
Aiming to meet the shortfall of diesel, which has witnessed exponential demand growth, the government is considering a proposal to declare Reliance Industries' sales of the fuel domestically as deemed exports.
State-owned oil marketing companies, which will import about 3.5 million tonnes of diesel this financial year —about 20 per cent more than last year — to meet higher demand growth, say it would be cheaper to buy from Reliance Industries’ refinery if it is given the deemed export status as compared with importing diesel. If granted, these public sector companies will not have to pay transportation charges and taxes such as customs duty.
“The gap between domestic diesel production and demand can be made good by the private sector refineries,” said Sarthak Behuria, chairman and managing director of Indian Oil Corporation (IOC), the largest oil marketing and crude oil refining company in the country. Demand for diesel grew by 18 per cent between April-July as against government-owned refineries, which can meet about 12 per cent growth in demand, Behuria said.
ON DEMAND
The government is considering a proposal to declare RIL's sales of diesel domestically as deemed exports
The government move comes against the backdrop of exponential diesel demand growth
State-owned oil marketing companies were planning to import about 3.5 million tonne of diesel this financial year
It was about 20 per cent more than last year
The firms say the gap between domestic diesel production and demand can be made good by the private sector refineries
Oil marketing companies, including Bharat Petroleum Corporation and Hindustan Petroleum Corporation, will soon send a formal proposal to the government on removing taxes on domestic diesel sales from RIL’s refinery.
Early last year, RIL’s 33 million-tonne-per-annum refinery at Jamnagar, Gujarat, was granted export-oriented status, which allows the refinery to export products at zero duty. The refinery, which produces about 12 million tonne of diesel every year, will have to pay customs as well as excise duty on the fuel if it sells it in the domestic markets. The two taxes will raise the price of the fuel by more than Rs 9 a litre.
Coupled with the absence of transportation costs and insurance, the price at which the marketing companies buy from the Reliance refinery could be at least 30 per cent cheaper than the imported fuel.
The Reliance refinery already sells cooking gas in the domestic market after the product was given deemed export status last year.
---------------------------------------------
Sensex cuts losses, ends down 102pts; ACC sheds 6%
Biyani's Future Group clocks Rs 105-cr sales in just one day
RBI to review road map of foreign banks in India
Govt pulls up oil firms, orders clearing of LPG waitlist
Reliance Big TV targets 40% share of DTH pie
L&T close to picking equity in Australian, Indonesian coal mines
Storage level in major reservoirs improves
Indiabulls set to sell 35% stake in comex
GMR Energy aims to raise Rs 2,600 cr from stake sale
iPhone to cost Rs 31,000 to Rs 36,000 in India
Govt mulls dual price for diesel
Balaji promoters to buy back Star`s stake
Source:BS,BL
New Delhi, Aug. 19 With the diesel demand showing an 18-per cent growth and oil companies depending on imports to bridge the gap, the Government is considering changes in tax norms to allow refineries in export-oriented units such as Reliance Industries Ltd (RIL) to feed the domestic market.
It is also mulling a differential pricing for power and other industrial consumers of the fuel.
After a review meeting with the chiefs of PSU oil companies here on Tuesday, the Petroleum Minister, Mr Murli Deora, said that a consistent, long-term pricing policy for diesel is required – one which would balance social concerns with business realities. The Ministry was seeking changes in tax rules to allow EOU refineries to supply petroleum products to PSU refiners.
Mr Sarthak Behuria, Chairman, Indian Oil Corporation Ltd, told news persons that “We have written to Directorate General of Foreign Trade (DGFT) and the Commerce Ministry in this regard, and if the Finance Ministry also approves it, we will be able to buy diesel from Reliance as is the case with LPG.”
An EOU refinery will have to pay both customs and excise duty for selling the products in the domestic market. The excise duty comprises two components - ad valorem and specific. Currently, the EOU will have to face double taxation in specific.
In addition, the company will have to pay income-tax on its profits when it sells fuel in the domestic tariff area (DTA). “It is being examined if domestic sales by Reliance in the DTA can be given a ‘deemed export status’ and it continues to get income-tax waiver,” he said. RIL already enjoys a deemed export status for selling LPG to the PSUs.
Surge in demand
Mr Behuria said that industrial use of subsidised diesel was pushing up demand and forcing the refiners to increase imports. The output by Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together in 2008-09 was estimated at 39.49 million tonne, with the demand being at 54.79 m.t.While transport and agriculture demand for diesel had grown by 10-12 per cent, consumption by power producers and other industries had risen 30 per cent.
------------------------------------------
RIL may get export perks for diesel sales
Aiming to meet the shortfall of diesel, which has witnessed exponential demand growth, the government is considering a proposal to declare Reliance Industries' sales of the fuel domestically as deemed exports.
State-owned oil marketing companies, which will import about 3.5 million tonnes of diesel this financial year —about 20 per cent more than last year — to meet higher demand growth, say it would be cheaper to buy from Reliance Industries’ refinery if it is given the deemed export status as compared with importing diesel. If granted, these public sector companies will not have to pay transportation charges and taxes such as customs duty.
“The gap between domestic diesel production and demand can be made good by the private sector refineries,” said Sarthak Behuria, chairman and managing director of Indian Oil Corporation (IOC), the largest oil marketing and crude oil refining company in the country. Demand for diesel grew by 18 per cent between April-July as against government-owned refineries, which can meet about 12 per cent growth in demand, Behuria said.
ON DEMAND
The government is considering a proposal to declare RIL's sales of diesel domestically as deemed exports
The government move comes against the backdrop of exponential diesel demand growth
State-owned oil marketing companies were planning to import about 3.5 million tonne of diesel this financial year
It was about 20 per cent more than last year
The firms say the gap between domestic diesel production and demand can be made good by the private sector refineries
Oil marketing companies, including Bharat Petroleum Corporation and Hindustan Petroleum Corporation, will soon send a formal proposal to the government on removing taxes on domestic diesel sales from RIL’s refinery.
Early last year, RIL’s 33 million-tonne-per-annum refinery at Jamnagar, Gujarat, was granted export-oriented status, which allows the refinery to export products at zero duty. The refinery, which produces about 12 million tonne of diesel every year, will have to pay customs as well as excise duty on the fuel if it sells it in the domestic markets. The two taxes will raise the price of the fuel by more than Rs 9 a litre.
Coupled with the absence of transportation costs and insurance, the price at which the marketing companies buy from the Reliance refinery could be at least 30 per cent cheaper than the imported fuel.
The Reliance refinery already sells cooking gas in the domestic market after the product was given deemed export status last year.
---------------------------------------------
Sensex cuts losses, ends down 102pts; ACC sheds 6%
Biyani's Future Group clocks Rs 105-cr sales in just one day
RBI to review road map of foreign banks in India
Govt pulls up oil firms, orders clearing of LPG waitlist
Reliance Big TV targets 40% share of DTH pie
L&T close to picking equity in Australian, Indonesian coal mines
Storage level in major reservoirs improves
Indiabulls set to sell 35% stake in comex
GMR Energy aims to raise Rs 2,600 cr from stake sale
iPhone to cost Rs 31,000 to Rs 36,000 in India
Govt mulls dual price for diesel
Balaji promoters to buy back Star`s stake
Source:BS,BL
Stocks Analysis from Deadpresident
Deadpresident Blog updates:
Hindalco
Technical Calls - Aug 20 2008
Reliance Communications launches BIG TV
Reliance Power
Stocks: Cheap but best avoided
Bilpower
Vishal Information Technologies Fun
Grey Market Premiums
India Telecom, India Banking, India Sugar
Havells India
Cement Sector Update
NTPC, Tata Motors, Mercator Lines, Bharat Forge, I...
India Equity Strategy
India Construction
Thermax
Source: Above blog.
Hindalco
Technical Calls - Aug 20 2008
Reliance Communications launches BIG TV
Reliance Power
Stocks: Cheap but best avoided
Bilpower
Vishal Information Technologies Fun
Grey Market Premiums
India Telecom, India Banking, India Sugar
Havells India
Cement Sector Update
NTPC, Tata Motors, Mercator Lines, Bharat Forge, I...
India Equity Strategy
India Construction
Thermax
Source: Above blog.
18 August 2008
Rupee hits 17-month low in volatile trading
Rupee hits 17-month low in volatile trading
Lack of participation weighs on markets
The rupee fell to its lowest in 17 months on Monday, hit by a weak stock market and some lumpy orders in a holiday-thinned market that was also factoring in some recent dollar strength. The partially convertible rupee ended at 43.59/60 per dollar, recovering slightly from a intraday low of 43.70, its lowest level since March 29, 2007. The rupee fell 1.33 percent from Thursday's close of 43.01/02, its biggest percentage fall in a year. It has fallen by 3.5 percent in the last five sessions and is down 9.6 percent in 2008. It rose more than 12 percent in 2007.
Markets were closed on Friday will shut again on Tuesday for local holidays, which meant many trading rooms were thinly staffed. Trade was volatile, with the rupee trading a 43.05-43.70 band, and traders said there was heavy dollar buying by a large manufacturing company around 43.50 per dollar. "This sharp fall looks like some stop-losses have got triggered and even offshore markets are pointing to a weaker rupee," said R N Hirve, chief dealer at Central Bank of India.
One-month offshore non-deliverable forward contracts were quoting at 43.81/86 per dollar. The dollar hit a six-month high against the euro on Monday, although its surrendered the gains later in the day. The euro has fallen nearly six percent against the dollar in two weeks on concerns of an economic slowdown. Speculation the central bank may step in to stop the rupee's fall proved unfounded.
"There was some talk it may intervene around the 43.50 per dollar, but once that level broke conclusively, it fell like a stone," said a dealer at a state-run bank. Data on Thursday showed the central bank sold $7 billion in intervention in June, the biggest single-month dollar sales since it began publishing the data in April 1995. A weak finish on the stock market also weighed on sentiment. The benchmark index ended down 0.5 percent, a fourth successive fall, and is down 28 percent for the year. Foreigners sold about $250 million of stocks last week, taking their net sales for the year to $6.8 billion. They bought a record $17.4 billion in 2007.
Source: Economic Times.com
Lack of participation weighs on markets
The rupee fell to its lowest in 17 months on Monday, hit by a weak stock market and some lumpy orders in a holiday-thinned market that was also factoring in some recent dollar strength. The partially convertible rupee ended at 43.59/60 per dollar, recovering slightly from a intraday low of 43.70, its lowest level since March 29, 2007. The rupee fell 1.33 percent from Thursday's close of 43.01/02, its biggest percentage fall in a year. It has fallen by 3.5 percent in the last five sessions and is down 9.6 percent in 2008. It rose more than 12 percent in 2007.
Markets were closed on Friday will shut again on Tuesday for local holidays, which meant many trading rooms were thinly staffed. Trade was volatile, with the rupee trading a 43.05-43.70 band, and traders said there was heavy dollar buying by a large manufacturing company around 43.50 per dollar. "This sharp fall looks like some stop-losses have got triggered and even offshore markets are pointing to a weaker rupee," said R N Hirve, chief dealer at Central Bank of India.
One-month offshore non-deliverable forward contracts were quoting at 43.81/86 per dollar. The dollar hit a six-month high against the euro on Monday, although its surrendered the gains later in the day. The euro has fallen nearly six percent against the dollar in two weeks on concerns of an economic slowdown. Speculation the central bank may step in to stop the rupee's fall proved unfounded.
"There was some talk it may intervene around the 43.50 per dollar, but once that level broke conclusively, it fell like a stone," said a dealer at a state-run bank. Data on Thursday showed the central bank sold $7 billion in intervention in June, the biggest single-month dollar sales since it began publishing the data in April 1995. A weak finish on the stock market also weighed on sentiment. The benchmark index ended down 0.5 percent, a fourth successive fall, and is down 28 percent for the year. Foreigners sold about $250 million of stocks last week, taking their net sales for the year to $6.8 billion. They bought a record $17.4 billion in 2007.
Source: Economic Times.com
Top Headlines Today
Headlines
Bharti Airtel crosses 75 mn subscriber base
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Sical logistics to invest Rs 1,700 cr
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Nuclear Power short-lists 4 suppliers for reactors
The shape of Indian talent after 61 years of Independence
Reliance Big, Soros deal stuck over valuation
Maruti to open 110 new driving schools; 10 research institutes
L&T eyes 25 pc revenue from international business
India Inc's investment plans rise to $244 bn
India Inc's investment plans surge to Rs 10 trillion: Assocham
India is among "big brothers" of WTO: Pascal Lamy
'Indian stocks only positive performer among BRIC in Aug'
Gold may slip below Rs 10,500 by end of Sept
`Institutions will have to pay 100% for IPOs soon`
250 sugar mills under scanner for holding back stocks
For 17,500 right people, ICICI scans 7.5 lakh resumes: Kamath
India expects exemption from NSG without any change to draft
Oil rises to $114 on storm threat
Source: ET,BL.BS,UTVi.
Bharti Airtel crosses 75 mn subscriber base
TRAI turns the heat on GSM cos for not linking to RCOM
Analysts'Picks: Voltas, Corporation Bank, Sterlite Ind, India Cements, IRB Infra
Sical logistics to invest Rs 1,700 cr
PSU city gas cos oppose RIL entry
Nuclear Power short-lists 4 suppliers for reactors
The shape of Indian talent after 61 years of Independence
Reliance Big, Soros deal stuck over valuation
Maruti to open 110 new driving schools; 10 research institutes
L&T eyes 25 pc revenue from international business
India Inc's investment plans rise to $244 bn
India Inc's investment plans surge to Rs 10 trillion: Assocham
India is among "big brothers" of WTO: Pascal Lamy
'Indian stocks only positive performer among BRIC in Aug'
Gold may slip below Rs 10,500 by end of Sept
`Institutions will have to pay 100% for IPOs soon`
250 sugar mills under scanner for holding back stocks
For 17,500 right people, ICICI scans 7.5 lakh resumes: Kamath
India expects exemption from NSG without any change to draft
Oil rises to $114 on storm threat
Source: ET,BL.BS,UTVi.
Sensex likely to enter bull orbit only after crossing 15300
Sensex likely to enter bull orbit only after crossing 15300
18 Aug, 2008, 0301 hrs IST
It has been a decent run for the market with more leaps than hops, in the past few weeks. Some of that momentum has eased last week. At this juncture, the Sensex is trading below the 15000-level. Looking at the market from here on, the 14900-mark — crucial for the continuation of the current trend — has been breached. This may revive forgotten pains of wealth destruction for participants seen in the past six months.
Technically speaking, as per the Elliot wave, the current fall that started from 21207 (6357) has shown a Falling Wedge’ Structure. In this structure as seen in the chart, the A-B-C formation of the bear trend got completed. After this, the Sensex formed a bottom of 12514 mid-July which is also near the 50% retracement level of the past five years’ uptrend (2904-21207) of 12300 (3700). After this significant bottom, the index witnessed a swift rally of 3000 points in just 21 trading sessions, raising hopes of a further upmove.
Major contributors to this rally were shares of banks and capital goods companies. However, we have broken this momentum and this break may play just the decisive role in inducing further movements. Here is where the level of 14900 is significant. First of all, looking at the current upward movement closely, one would see a higher-top, higher-bottom pattern formation. For this pattern to remain intact, the index has to close above 14900. Secondly, if we look at the trend line joining bottoms that were formed along the way by the Sensex in this past rally, the level of 15000 is a threshold for its way up.
Thus, a closing below 14900 is a decisive breach of this trend line. The breach downward signals the termination of this trend and beginning of a corrective trend. Also, the Relative Strength Index Oscillators on daily charts is in an overbought territory and is turning downward. This indicates fatigue in the market thereby inducing some more profit-booking. After consecutive four positive weekly closings, the Sensex witnessed a decline of 444 points, showing a bearish candle on weekly charts thereby confirming the probable trend reversal.
What next? After this development, no prizes for guessing the direction of the market. If we have to put a tentative number to the next level, we may look at one of the trend reversal properties, according to which more often than not key retracement level of 50% of the preceding uptrend is tested. If we were to trace the current rally for the Sensex of over 3000 points from 12514 to 15580, the 50% retracement level comes near 14000.
There could be good buying support at this (14000) level. This level has another significance as well since the 34 DMA (daily moving average) is also placed near this level. The odds are against a further rise on the back of this weekly close, but if the market does manage to escape out of this bear momentum, the bounceback will find congestion levels, placed at 15000 and subsequently at 15300.
The Sensex needs to sustain above 15000 and decisively breach 15300 to enter the bull orbit again. If the market were to test lower levels once again, shares from the capital goods, auto and banking sectors appear to be good bets. Bharat Heavy Electricals and Bharat Electronics among capital goods shares, Maruti and Hero Honda in the automobile sector, and ICICI Bank and Jammu and Kashmir Bank in the banking sector look good on the charts.
Other Investor Guide Articles from ET
Analysts'Pick: IRB Infrastructure18 Aug, 2008, 0635 hrs IST
Lehman Brothers initiates coverage on IRB Infrastructure Developers with an ‘overweight’ rating and a March ’09 price target of Rs 195.
Analysts'Pick: Indian Cements 18 Aug, 2008, 0632 hrs IST
JM FINANCIAL recommends ‘hold’ rating on India Cements (ICL) and values the company at a target enterprise value/tonne of $100 to arrive at its June ’09 target price of Rs 168.
Analysts'Pick: Sterlite Industries 18 Aug, 2008, 0631 hrs IST
Merrill Lynch remains ‘neutral’ on Sterlite Industries due to weak zinc outlook.
Analysts'Pick: Corporation bank, 18 Aug, 2008, 0629 hrs IST
Indiabulls Securities reaffirms its ‘buy’ rating on Corporation Bank with a target price of Rs 335, which is 21% more than its current market price.
Analysts'Pick: Voltas 18 Aug, 2008, 0627 hrs IST
Citigroup rates Voltas as ‘sell/medium risk’ with a target price of Rs 121.
Refinery sector faces crunch18 Aug, 2008, 0553 hrs IST, Ramkrishna Kashelkar
The slowing demand for petro products globally and a glut in upcoming refining capacity in the country do not bode well for the refinery sector.
Investment philosophy;stocks to buy and hold on 18 Aug, 2008, 0537 hrs IST
ETIG dug deep into the past five years’ data and ferreted out stocks, which although cheap, are best avoided.
Comparison of two FMCG majors; HUL & ITC 18 Aug, 2008, 0517 hrs IST, Kiran Kabtta
ETIG presents comparison between two FMCG majors, HUL and ITC.
Tulip keen on improving in highmargin biz 18 Aug, 2008, 0456 hrs IST, ranjit shinde
Tulip Telecom continues to look attractive at current valuations, given its future growth prospects.
Insecticides is a good long-term bet 18 Aug, 2008, 0450 hrs IST, Amit Jain
Insecticides India is a good long-term bet, as it promises strong topline & profits and has limited downside risks.
Elder Pharma an attractive pick for investors 18 Aug, 2008, 0442 hrs IST, Kiran Kabtta
Robust healthcare sector has accelerated growth of FMHG in India and Elder Pharma, which has an eclectic bunch of offerings, is cashing in on good times.
Economic slowdown hits profitability of domestic banks 18 Aug, 2008, 0432 hrs IST, karan sehgal
The current economic slowdown has hit profitability of domestic banks. In such a challenging scenario,Axis Bank, HDFC Bank & Bank of India are the safest bets.
Global sugar supplies to tighten 18 Aug, 2008, 0407 hrs IST
World is sitting on huge stockpile of sugar, but global supply outlook will tighten into next year due to rain-induced crop problems in Brazil and falling output in India, auguring for higher prices.
The twin trap; Market currently under-prepared or under-hedged! 18 Aug, 2008, 0336 hrs IST, Shakit Patra
Last week, Nifty posted its first weekly loss after five consecutive weeks of gains, rise in volatility that should have ideally accompanied it didn’t materialise.
Source:Economic Times.
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