RIL-RNRL Case Verdict:RIL shares fall after gas supply ruling;Court favours RNRL

RIL shares fall after gas supply ruling

Reliance Industries shares fall after gas supply ruling 15 Jun 2009, 1416 hrs IST, ET Bureau & Agencies

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MUMBAI: Shares in Reliance Industries fell as much as 6.1 percent after the Bonbay High Court directed it to supply gas to Reliance Natural Resources at lower than market prices. Reliance Industries, which has the highest weightage in the main share index, was asked to supply 28 million metric cubic metres a day for 17 years at $2.34 million per metric British thermal unit, the lawyer for Reliance Natural said after the court ruling. Shares in Reliance Natural soared as much as 23.4 percent to 107.70 rupees. "Reliance Industries will have to supply gas at a rate lower than the rate fixed by the government. They are going to incur a lower profit for that much amount," said D.D. Sharma, vice president at Anand Rathi Securities. By 0616 GMT, Reliance Industries was trading 5.4 percent lower at Rs 2,228.95 after hitting Rs 2,213.55. Reliance Industries is controlled by billionaire Mukesh Ambani while Reliance Natural Resources is headed by his younger brother Anil Ambani. By the gas supply master agreement, RIL was supposed to supply natural gas from the Krishna-Godavari basin to RNRL, to be used for the Anil Ambani group's power generation plant at Dadri in Uttar Pradesh. The GSMA came into existence in January 2006, following the demerger of the Reliance group. But both the sides differed on its terms related to the quantity of gas to be supplied, price, and duration of supply.

In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order.

Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009. Thereafter, the division bench came out with an interim order allowing RIL to sell gas to third parties. The interim verdict also mentioned that RIL’s gas agreement with others would be subject to the court’s final order.

The basic argument in the RIL-RNRL case pertains to the pricing and quantum of gas. During the course of hearing, RNRL made it clear that it wanted 28 million metric standard cubic meters per day of gas for 17 years for $2.34 per million metric British thermal unit (mmBtu), while RIL argued that it could not sell gas below the government-approved price of $4.2 per mmBtu.


RNRL wins gas supply dispute; stock up 20%

RNRL wins gas supply dispute; stock up 20% 15 Jun 2009, 1120 hrs IST, ET Bureau

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MUMBAI: Shares of Reliance Natural Resources surged 20 per cent on huge volumes Monday after the Bombay High Court pronounced the judgment in Decade's hottest biz feuds Tycoons with a golden heart Mukesh's street on plushest list favour of the company in the long-standing RIL-RNRL gas supply agreement dispute. Bombay High Court has now given a month’s time to both parties to come to enter into an agreement. The court has asked Reliance Industries to sell gas to RNRL for 17 years at $2.34/MBTU. By the gas supply master agreement, RIL was supposed to supply natural gas from the Krishna-Godavari basin to RNRL, to be used for the Anil Ambani group's power generation plant at Dadri in Uttar Pradesh. The GSMA came into existence in January 2006, following the demerger of the Reliance group. But both the sides differed on its terms related to the quantity of gas to be supplied, price, and duration of supply. In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order. Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009. Thereafter, the division bench came out with an interim order allowing RIL to sell gas to third parties. The interim verdict also mentioned that RIL’s gas agreement with others would be subject to the court’s final order.

The basic argument in the RIL-RNRL case pertains to the pricing and quantum of gas. During the course of hearing, RNRL made it clear that it wanted 28 million metric standard cubic meters per day of gas for 17 years for $2.34 per million metric British thermal unit (mmBtu), while RIL argued that it could not sell gas below the government-approved price of $4.2 per mmBtu.

At 11:15 am, shares of RNRL were up 20 per cent at Rs 105 while RIL shares fell 4 per cent to Rs 2258.

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Also Read

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→ Private oil companies may hike prices

→ ONGC to hire drill rig from RIL for Rs 3,914.39 cr

→ RIL fails to find enough takers for KG gas

HC verdict against RIL, -ve global cues spook mkts

• Ambani gas case: HC rules in RNRL's favour
• 'Rel Power Wins Too'

RNRL case win to benefit Rel Power too: Tulsian
Ambani gas case: HC rules in RNRL's favour
RIL-RNRL gas tussle: Final HC judgment today

Gas dispute: Bombay HC rules in favour of Anil Ambani

Oil & Gas index slump following HC verdict
	Reliance Natural Resources soars on High Court ruling Oil & Gas index slump following HC verdict Reliance Natural Resources soars on High Court ruling

RNRL wins gas supply dispute with Reliance



Source:EconomicTimes.com, Business Standard, Moneycontrol etc

World's best-performing stock markets

World's best-performing stock markets


World's best-performing stock markets of 2009

On January 8, 2008, history was made as the Bombay Stock Exchange's Sensitive Index (Sensex) hit the magic 21,000-mark! Just about 18 years ago on July 25, 1990, the Sensex touched the magical four-digit figure for the first time and closed at 1,001 in the wake of a good monsoon and excellent corporate results.

But within two weeks of touching 21,000 the fairy tale ended, and on January 21, 2008 the Sensex registered the first-ever four digit loss when it plunged 1,408 points to close the day at 17,605.

Since then the slide was steeper till it almost plunged below 7,000.

At its peak in October 2007, global equity, or the market capitalisation of all companies in world stock markets, stood at $62.5 trillion, close to that year's world GDP figure of $65 trillion.

Then the American sub-prime crisis hit the shores, banks collapsed and financial institutions went belly-up.

A jaw-dropping $37 trillion of wealth in the form of market cap was wiped out in 18 months up to the multi-year lows that were reached on March 9, 2009. That was 59 per cent of public company values, or $25.5 trillion.

Since then, however, equity values have risen 37 per cent - a wealth-growth of $9.5 trillion - to just over $37 trillion.

Almost all markets fell in 2008. According to a report by EconomyWatch, 62 markets out of the 83 studied are now up.

Read on to find out more...

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 Peru 2009 growth: 72.92% Decline from 52-week high: -31.94% The Bolsa de Valores de Lima, the stock exchange of Peru has several indices. The IGBVL (Indice General Bolsa de Valores) is a value-weighted index that tracks the performance of the largest and most actively traded stocks on the Lima exchange. Peru's economy has shown strong growth over the past seven years, averaging 6.8 per cent a year, helped by market-oriented economic reforms and privatisations in the 1990s. Its GDP grew 9.8 per cent in 2008 to $127.8 billion. Note: All stock market figures are till May 25, 2009

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 Russia 2009 growth: 53.33% Decline from 52-week high: -61.22% The Moscow Interbank Currency Exchange or MICEX is one of the largest universal stock exchanges in the Russian Federation and East Europe. MICEX opened in 1992 and is the leading Russian stock exchange, consisting of shares and corporate bonds of about 600 Russian companies. After a massive sell-off last year pushed the valuations of Russian companies to record lows, rising energy prices in recent months have drawn investors back into the market. In May 2009, the Micex index of major Russian company shares, was up about 105 per cent after bottoming out on October 27. Russia's economy shrank by 7 percent year on year in the first quarter of 2009. Unemployment was up, at 8.5 per cent in February, the highest level since January 2005. Image: Moscow Interbank Currency Exchange.

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 India 2009 growth: 48.25% Decline from 52-week high: -18.26% Bombay Stock Exchange, Asia's oldest bourse, is 133 years old and had a market capitalisation of $1.79 trillion (December 31, 2007). BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. Braving the global recessionary trends, India managed 6.7 per cent economic growth in 2008-09 despite the manufacturing sector recording a dismal performance. A 5.8 per cent growth rate during the last quarter of the fiscal, at a time when most developed economies have shrunk, puts India among the top-most growing nations. Inflation slipped to 0.13 per cent, the lowest ever in over three decades even as prices of essential food items turned dearer. Image: A man speaks on a phone in front of a bronze replica of a bull at the gates of Bombay Stock Exchange. Photograph: Arko Datta/Reuters

Discuss | Email | Print | Get latest news on your desktop Back | Next World's best-performing stock markets of 2009 China 2009 growth: 47.01% Decline from 52-week high: -26.30% The Shanghai Composite Index, the benchmark for the Chinese domestic market, rose six-fold in just over two years, starting in mid-2005, before a yearlong drop starting in late 2007 that left it about 70 per cent lower. It is up 52 per cent in 2009, China's 2009 real GDP is seen to grow by just 6.5 per cent. Growth will recover in 2010, but only to 7.3 per cent. The economy will be supported by a rapid expansion of government infrastructure spending and policies to revive housing investment. The outlook for exports is poor, but falling commodity prices will also depress imports

More @ World's best-performing stock markets

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Rahman among world's most creative biz people
Slide show: India's costliest cities
PM's 100-day plan to revive Indian economy

Great Places to Work: Others in India's top 50 list
Sensex closes 174 points lower


Source:Rediff, ET.

Indias Best Companies to Work for 2009

India's Best Companies to Work for 2009

India's Best Companies to Work For 2009 10 Jun 2009, 1226 hrs IST

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Business is all about results. Results arise from opportunities. Opportunities arise from relationships. And business relationships must work beyond the boundaries of achievement to distinguish a good workplace from a great one. In its latest edition of "India's Best Companies To Work For-2009", The Economic Times in partnership with the Great Places To Work Institute, attempts to do just that. Here's a list of India's top 25 best workplaces: Read the complete article:

India's Best Companies To Work For 2009

RMSI Pvt Ltd 10 Jun 2009, 1223 hrs IST

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Rank: 1 India HQ: Noida Employees: 1457 Gender Ratio (F:M): 1:4.69 Employee Turnover: 8% Best Practices: There is more gravitas in the work culture of the company than the slew of awards it has won over the years reflects. It encourages its employees to diversify and rewards them for their out of the box efforts. Read the full article: RMSI Private Pimited : Reach meet share involve

Intel Technology India Pvt Ltd 10 Jun 2009, 1222 hrs IST

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Rank: 2 India HQ: Bangalore Employees: 2541 Gender Ratio (F:M): 1:3.65 Employee Turnover: 10% Best Practices: At every group in Intel, there are broad guidelines or deliverables set, but the culture is always steeped in how they could make things bigger, better. The chipmaker also believes in fully equipping with various tools for its workers. Read the full article: Intel Technology India Pvt Ltd : Inside intelligence too Federal Express Corporation 10 Jun 2009, 1220 hrs IST Print Save EMail Write to Editor Rank: 3 India HQ: Mumbai Employees: 511 Gender Ratio (F:M): 1:4.68 Employee Turnover: 21% Best Practices: It isn’t just the camaraderie, though that drives the company loyalty Federal Express is reputed for; it’s the fairness that has become a hallmark of the organisation, something its founder-CEO Fred Smith instilled right at its inception. Read the full article: Federal Express Corporation : Purple patch

More @ India's Best Companies to Work for 2009



Source:Economic Times

How to turn Rs 100 into Rs 1.9 cr in three months

How to turn Rs 100 into Rs 1.9 cr in three months

n 3 months, Rs 100 could grow to Rs 1.9 cr in Indian market 10 Jun 2009, 0807 hrs IST, Shailesh Menon & Rajesh Mascarenhas, ET Bureau

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MUMBAI: In 1999, when he was barely 18 years old and still a student, American Timothy Sykes decided to invest his $12,000 gift money in the Cashing in on your money | Know about stock arbitrage | Better returns: Book capital losses | Plan long term portfolio stock market. In a little over two years, his investment had grown to $1.65 million. Impressive, no doubt, but it’s still not the stock market investor’s ultimate fantasy. Now, suppose an Indian investor had been struck by a brilliant flash of visionary foresight at the start of March this year. Starting March 2, which was the first trading day of the month, for the next three months he would know how each stock was going to behave and which one would end up being the best performer every single day. What would our investor have done with just Rs 100? Would he have made Mr Sykes look like a babe in the woods? On March 2, his Rs 100 would have been on Apollo Tyres, the top gainer of the day. At the close of trading, his investment would have been worth Rs 124 and he would have redeemed it to invest the entire amount in Monnet Ispat on March 3. The steel-maker’s stock would then have turned his Rs 124 into Rs 139. Thus aided by prophetic vision our investor would have gone on, watching his Rs 100 multiply manifold as he picked the best-performing stock each day for 57 trading sessions. As general elections drew nearer around the second week of April, there was a wave of positive sentiment towards the troubled export, infrastructure and real estate sectors. Stocks of companies such as Gitanjali Gems, Reliance Infra, Sasken Communication Technologies and Unitech rose smartly on hopes that a new government would come up with plans to infuse new life into these ailing business segments. On the morning of April 16, when India began voting to elect new representatives to the Lok Sabha, our fortunate investor’s Rs 100 had grown to Rs 36,812. He used the money to buy shares of Gitanjali Gems and exited the stock that evening, pocketing a gain of Rs 6,085. Also Read → Diversified equity funds underperform Nifty → Which way will the markets go next? → Bull run revives investor interest in equity market → Domestic investors stay away from QIPs Over the next month, as the world’s largest democratic exercise unfolded, our investor’s Midas Touch with stocks continued. On election results eve on May 15, he parked his money, now Rs 14,11,863, in Aban Offshore. In a little over five hours, he was richer by Rs 3,10,186. Again, on May 18, when trading had to be halted twice as the market showed its glee with the outcome of the election, our prescient investor had picked Indiabulls Real Estate. In less than two minutes of trading, the pre-market opening order for shares worth Rs 17,22,049 has become Rs 22,98,074. Indian investor better off On June 2, after two months of living the fantasy, our investor’s original Rs 100 had multiplied 2 lakh-fold and returned him a fortune of Rs 1,97,03,879. During this period, the benchmark Sensex index of the Bombay Stock Exchange had risen by a measly 50% while it took Mr Sykes over two years to multiply his investment by 137 times. Our investor may have been imaginary and his investments fantastic. But like English novelist Terry Pratchett remarked, “Fantasy is an exercise bicycle for the mind. It might not take you anywhere, but it tones up the muscles that can.”

Sensex nears one-year high of 15589.62 mark
Expect infra, PSU, power, sugar, metals to do well: Kotak Securities
Go long on ABB June future at Rs 732: India Infoline

Buy Praj Industries with stoploss of Rs 106: India Infoline

Buy M&M with stoploss of Rs 723.30: Angel

Buy Tata Power on dips with stoploss of Rs 1080: Nirmal Bang

Mkts end 2% up on +ve global cues; commodities, infra gain

Source:ET,MC etc

Strategies to trade mkts, commodities, currencies next week:CNBC

Strategies to trade mkts, commodities, currencies next week

Udayan Mukherjee, Managing Editior, CNBC TV18: Trading in markets in the first week of June has not been too bad, unless you start comparing it with the heady weeks of May. I think it has been very good. Largecaps and smallcaps were up 3% and 7% respectively. There is a little bit of fatigue or sluggishness that is creeping in now at above 4,500-4,600 Nifty. However, there is nothing to suggest that the music has stopped playing.

Here is a verbatim transcript of Udayan Mukherjee’s comments on CNBC-TV18. Also watch the accompanying video.

There is still lot of liquidity sloshing around in the market, still a lot of interest in midcaps and smallcaps and that may well continue as we go into next week, despite Friday’s late sell-off in many midcap and smallcap names. Interest levels would still be very high. So, we could see a familiar pattern that at higher levels the market periodically runs into a little bit of rough weather and at lower levels it is constant buying which emerges every time the Nifty looses 100-150 points. It will partly depend on global markets. If global markets are rangebound more or less around these levels, then the Nifty will still try to go 100-150 points higher next week and then take it from there. We continue with the uptrend next week, albeit with mild chance of turbulence creeping in above 4,600. But that is not decisive or conclusive though.

Experts speak on the way the markets have rallied during the week

Stephen Roach, Chairman, Morgan Stanley Asia, said, “For the first time in 12 years, I have been optimistic about India than China. The reason being that India has made good improvements in the recent years from the standpoint of macro development, especially higher savings, increased foreign direct investment, and a massive improvement in infrastructure’s share of GDP.”

“From the standpoint of India, you have got massive government Budget deficit. External capital flow have been hit in the past one-and-a-half year. The government, politicians need to seize the moment and take the initiative.”

Also see: Experts see strong undercurrent in mkts ahead

Jonathan Garner, Chief Asian and Emerging Market Equity Strategist, Morgan Stanley, said, “We have upgraded India to overweight along with other markets in the region. It is the key outperformer this year and the growth is proving very resilient in a global context. You have very positive political dynamics that has unfolded here in India which is a catalyst for the people here to really get involved. Hence, we are seeing increasing flows from our global client into the Indian market.”

“What we have seen throughout the year is the building of fund flows towards the emerging markets. Year-to-date, we have had over USD 40 billion of net inflows to various emerging markets funds that we track.”

Sanjay Shah, MD and Head-Institutional Sales, Morgan Stanley, said, “What has happened post the election results is that most large global long-only funds, who were waiting for results to come out and get some more clarity, have decided to go overweight on Indian equities. Some are in the process of doing so and some have already started doing so. That is where the incremental amount of interest is coming from. Global hedge funds have been increasing their exposure to India post the election results, but it is not as much hedging as there is more fresh interest built into Indian equities.”

Ridham Desai, MD and Head-Equities, Morgan Stanley, said, “Our bull case does call for a significant room on the upside. That is predicated on the policy response from the government if it exceeds current expectations. Our bull case for this year is somewhere around 19,500 which is not very far from where we were at the peak of 2008.”

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rading ideas for next week

Sudarshan Sukhani of Technical Trends said, “Hindalco, which is a blue-chip company, has probably seen the worst. At current levels, if you have a three-year time horizon, the stock is a buying opportunity. You could make a reasonable amount of money. If there is a correction, you might like to add to your positions.”

“In Reliance Capital, there is a possibility of volatile movement. But given the encouraging economic environment, the stock is itself trading considerably lower than its 2007-08 highs. It has corrected well, so you should be buying Reliance Capital on correction.”

Rajat Bose of rajatkbose.com said, “The technical formation of PowerGrid Corporation suggests that the medium term outlook for this stock is pretty good. Within the short-term also, I expect some kind of movement in this stock. I expect this stock to go to Rs 137-143. I suggest a stop loss of Rs 118.”

“Indowind Energy has formed a base and has started moving up in the recent past. However, the chart pattern suggests that there is considerable upmove left in the stock over the medium-term. I recommend the stock as a medium-term pick. My target is Rs 69-85 with a stop loss below Rs 33.”

Vijay Bhambwani of bsplindia.com said, “For the coming week, the momentum base aggressive traders can initiate long positions in the June futures of Cairn India. As long as the counter remains above the Rs 260 levels, I suggest a stop loss at Rs 248 and a profit target at Rs 275-282.”

“Buy Inox Leisure, which is a BSE-listed counter, around Rs 115-118 levels. A deep stop loss is suggested at Rs 95 and the profit taking is recommended at Rs 200.”

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More @ http://www.moneycontrol.com/india/news/market-outlook/strategies-to-trade-mkts-commodities-currencies-next-week/400707/1

• Strategies to trade mkts, commodities, currencies next week

Source:Moneycontrol.com