Morning Views

Top 5 picks | Mid-term picks of the day


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Heard on the Street

Heard on the Street 29 Oct 2009, 0353 hrs IST, ET Bureau

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Former Citi Tech MD joins JPMorgan’s captive unit Punit Sood former MD of Citi Technology, Citigroup’s captive BPO, has made yet another move. He has joined JP Morgan’s captive unit in Mumbai as managing director and head of technology for JP Morgan Services. Before joining JPMorgan, Mr Sood worked with Wipro after the company’s acquisition of the Citi captive in December last year. He was in-charge of the Citi account, which is one of the largest customers for India’s third-largest IT company. Industry sources said that Mr Sood was keen to work with an international bank of repute like he did when he was with Citi. Incidentally, JPMorgan also figures among the top clients of Wipro. Jet Airways soars 9% despite poor Q2 nos Despite posting poor numbers for the September quarter, shares of Jet Airways were in demand on Wednesday. The stock was the best performer in the A group, rising 9% to close at Rs 398, supported by heavy volumes. In the last one month, the stock has gained around 22%. Players tracking the counter say that earnings for the current quarter are expected to be good because of the vacation season. Also, most of the negatives are already reflecting in the current price, they say. Buzz is that one of the domestic mutual funds, which already has a stake in the company, has been adding to its position over the past few sessions. In addition, a South-based mutual fund too has begun accumulating the stock. Jet has has reported a net loss of Rs 407 crore for the quarter ended September, compared with a net loss of Rs 385 crore during the same period last year. The company incurred higher fuel costs in the September quarter as fuel prices rose 17%, impacting it to the tune of Rs 108 crore. The five-day pilots’ strike wiped off Rs 80 crore. The company is awaiting approval the FIPB to raise up to $400 million through an equity offering to domestic and foreign investors. MFs quake at the thought of graveyard shifts Fund managers appear to be the most distraught over Sebi’s proposal to extend trading hours. While it may be possible for brokerage firms to have two sets of dealers and sales traders working in shifts, it is unlikely that fund houses can afford to keep two sets of fund managers. “If extended trading hours become a reality, I may have to keep two sets of drivers; one to drive me to work, and the other to drive me back at the end of the day,” said one fund manager. Contributed by Jessica Mehroin Irani, Apurv Gupta & Shailesh Menon

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Deadpresident Blog updates:

Idea Cellular Ltd

Marico India

Jeremy Grantham Newsletter - Q3 2009

Engineers India

Punj LLoyd India

Zensar Technologies

Property Sector

NIIT Ltd

Astec Lifesciences IPO Analysis

Pidilite Industries, Hero Honda, ITC, NTPC

GSPL Limited

More at : http://www.deadpresident.blogspot.com/


Src: ET, Deadpresident blog

Srisai's Instinct Stock Calls(29.10.2009)

Srisai's Instinct Stock Calls from Dt: 29.10.2009

This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...


Nifty Future

NFut hovers around 4830 levels..... Upside resi at 4865-4880 for further upside...
Downside Supports at 4790-4765 levels...


FSL(firstsource)

Stock at 30 levels.... Strong support at 27 range.... So buy this stock at this level and hold it medium term upside...


ITC : cmp 261

Year high nearly... So If it breaks 264-266 levels then it may move to 280-300 levels in Medium term. Best Defensive Stock to be in Every Portfolio.... Buy this stock at Every dips..... Supports at 246-237 levels...




MIC Electronics cmp 39.9

Purely Buy For investment.... But in Small quantities....



Cipla cmp 300

Every time CIPLA got support at 280-282 levels.... If not breaks then it could go 312-330 levels in short term... Ultimate Tgt is 360.... Other supports are at 272-240 levels...


LIC Hosuing: cmp 790

Stock has supports at 780-765-741 levels... Buy this stock at decline.... Short term investors Buy this Stock with 721 levels as strict Stoploss.... Resi @ 810-840 levels..



Keep Given Strict StopLoss Or Keep Own StopLoss in All trades..


Bye


Srisai....

Qtrly Results Review

Top stories

Gail Q2 Net dips 30 pc to Rs 713.23 cr
28 Oct 2009, 1551 hrs IST

State-run gas utility Gail India today reported 30.31 per cent fall in net profit at Rs 713.23 crore for the second quarter ended September 30, 2009.

Kingfisher Airlines posts loss of Rs 419 cr
28 Oct 2009, 1528 hrs IST

Private carrier Kingfisher Airlines has posted a net loss of Rs 419 crore for the quarter ended Sep 30 as compared to a loss of Rs 483 crore reported during the like period last year.

Shriram Transport Q2 net up 25.26 pc to Rs 207.45 cr
28 Oct 2009, 1524 hrs IST

Shriram Transport Finance Company on Wednesday said its net profit rose by 25.26 per cent to Rs 207.45 crore for the second quarter ended September 30, against the same period in the previous fiscal.

India Cement net up 2 pc
28 Oct 2009, 1505 hrs IST

Cement manufacturer India Cement on Wednesday said its net profit for the quarter ended Sep 30 rose 2 per cent to Rs 136.94 crore from Rs 134.27 crore it logged in the like quarter last year.

Andhra Bank Q2 net up 69.58 pc to Rs 273.97 cr
28 Oct 2009, 1449 hrs IST

State-run lender Andhra Bank on Wednesday said its net profit rose by 69.58 per cent to Rs 273.97 crore for the second quarter ended September 30, 2009, over the same period last year.

Bank of Baroda Q2 profit jumps 60 pc to Rs 634 cr
28 Oct 2009, 1312 hrs IST

Bank of Baroda on Wednesday reported a jump of 60 per cent in net profit to Rs 634.18 crore for the second quarter ended September over the corresponding period a year earlier.

HCL Technologies says profit falls on forex loss
28 Oct 2009, 1136 hrs IST

Software services firm HCL Technologies Ltd said quarterly profit fell 12.3 per cent as foreign exchange losses dented rebounding revenues from the US and from media and financial services clients.

HCL Tech Sept quarter US GAAP net profit falls 10 pc
28 Oct 2009, 1051 hrs IST

HCL Technologies Ltd on Wednesday said its quarterly profit under US accounting standards fell 10 per cent.

Jet Airways flies into red zone on capacity glut
28 Oct 2009, 0928 hrs IST, Rajesh Naidu

The September quarter for Jet Airways was, predictably, one of the worst quarters in its operating history.

Lower steel prices weigh heavy on Tata Steel's profit
28 Oct 2009, 0527 hrs IST, Santanu Mishra

Lower steel prices still weigh on Tata Steel's profits amidst the good news of continued strong Indian demand.

Lower steel prices weigh heavy on Tata Steel's profit
28 Oct 2009, 0527 hrs IST, Santanu Mishra

Lower steel prices still weigh on Tata Steel's profits amidst the good news of continued strong Indian demand.

Wipro's Q2 profits strenghten company confidence
28 Oct 2009, 0525 hrs IST, Ranjit Shinde

Wipro expects to maintain growth story for which the domestic market is crucial.

Excise duty cut raises Tata Motors' profit
28 Oct 2009, 0521 hrs IST, Krishna Kant

The cut as a part of fiscal stimulus led to 110% rise in the company's net profit.

Cost cuts prop up Madras Cements' profit margin
28 Oct 2009, 0516 hrs IST, Amriteshwar Mathur

Madras Cements may have trailed Sensex, but is way ahead of its peers while its profit margins rise.

GMR Infra Q2 net plunges 40%
28 Oct 2009, 0323 hrs IST

GMR Infrastructure reported a 40% decline in its consolidated net profit at Rs 53.6 crore for the second quarter ended September 30, 2009.

Alfa Laval net jumps 71%
28 Oct 2009, 0322 hrs IST

Pune-based Alfa Laval (India) posted a 71% jump in net profit for the quarter ended September 30, 2009. The company registered a net profit of Rs 36.7 crore for the quarter, compared with Rs 21.4 crore for the corresponding period last year.

Zydus net grows 39% to Rs 132 crore
28 Oct 2009, 0321 hrs IST

Zydus Cadila maintained its growth pace by posting a 39% jump in net profit at Rs 131.9 crore during the quarter ended September 30, 2009, against Rs 94.9 crore in the corresponding period last year.

DHFL net up 70% to Rs 38 crore
28 Oct 2009, 0320 hrs IST

Dewan Housing Finance Corporation (DHFL) has recorded a 70% growth in net profit to Rs 37.51 crore in the September quarter after posting a 53% rise in total income to Rs 246.12 crore.

Dish TV revenues up 49% to Rs 258 crore
28 Oct 2009, 0319 hrs IST

Dish TV said it will continue to reduce its losses in the coming quarters without disclosing a time frame by when it would start making net profit.

R-Power profit rises 49%
28 Oct 2009, 0309 hrs IST

Reliance Power, part of Reliance Anil Dhirubhai Ambani Group (R-ADAG), has posted a 49% growth in quarterly profit because of 58% rise in income that is not related to its core business activities.

Wipro Consumer PBIT up 12.7% at Rs 72.5 cr
28 Oct 2009, 0307 hrs IST

Wipro Consumer Care and Lighting, the FMCG arm of Wipro Ltd, expects renewed interest in its commercial lighting and office modular furniture business over subsequent quarters.

WCCL Q2 profit rises 13% to Rs 73 crore
28 Oct 2009, 0307 hrs IST

Wipro Consumer Care and Lighting (WCCL) expects renewed interest in its commercial lighting and office modular furniture business over subsequent quarters.

Jet Air net loss widens to Rs 406 cr
28 Oct 2009, 0306 hrs IST

The company incurred a 5.7% rise in net loss at Rs 406 crore during the September quarter while revenues fell 5% to Rs 2,325 crore.

RIL retail ventures yet to enter profit zone
28 Oct 2009, 0230 hrs IST, Piyush Pandey

Reliance Retail and Reliance Fresh suffer losses even as retail operations expand as per growth plans.

Tata Steel net dips 50% on weak prices
28 Oct 2009, 0108 hrs IST

A sharp fall in prices of steel and ferro alloys led the country’s largest private steel company by capacity, Tata Steel, to post a 50% dip in net profit during the quarter ended September 30, 2009, disappointing the market that led its shares to plunge 7%.

Wipro beats Street with 19% rise in net
28 Oct 2009, 0104 hrs IST

Wipro said it expects budgets of outsourcing customers to be flat, but not dip any further. Tata Steel net dips 50% on weak prices I Performance of IT cos

Src: Economictimes.Indiatimes.com

Srisai's Instinct Stock Calls for Date from 28.10.09

Srisai's Instinct Stock Calls from Dt: 28.10.2009

This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...

Dt: 27.10.2009


Nifty Future : cmp 4850

NFut supports at 4821-4790-4765 levels... NF has strong supp @ 4765 levels... Mkt has corrected nearly 8% from Recent high... Consider all these we advise Nifty Traders Start accumulate NF in Long side.... Resi @ 4880-4905-4927 levels....


Sintex cmp 230

Everytime Sintex bounce back from this levels.... So risk traders Go Long with 217 level Strict StopLoss...


Tatasteel cmp 500

Results (Both Profit, Sales) well below mkt expectation... If it breaches 494 levels it may fall to 483-477-464 levels soon... Upside to continue only above 523-527 levels.... So Risk is yours whether to Short/Long...



Bharti Airtel: cmp 306

Stock has corrected Nearly 50% from recent high of 460-470 levels.... So buy in 2-3 parts For Investments with time frame of 3-6 months.... Supports at 290-272 levels....



Dabur: cmp 152

Dabur is showing some strenghth in last few sessions... It could be Good Defensive Bet in medium term and also If mkt falls.... Supports at 141 levels... Buy for Medium term investments...


ICICI Bank: cmp 834

ICICI Bank seems to be Oversold in last few sessions.... If it corrects further Buy For Short term Bounce back with Own StopLoss...





Keep Given Strict StopLoss Or Keep Own StopLoss in All trades..


Bye


Srisai....

Morning Call from ET,Deadpresident Blog etc

• Top 5 picks of the day

• Mid-term picks of the day

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Tata Motors net zooms 110%, with rising input costs analysts still sound caution


Heard on the Street


Punters leave Balaji high and dry after QIP

Shares of Balaji Industries were among the big losers on Monday, shedding over 4% to close at Rs 264.65. The company had made a qualified institutional placement (QIP) on Friday at Rs 239.30 per share. Interestingly, the stock price had flared up on heavy volumes in the run-up to the QIP. The stock climbed from Rs 244 to Rs 275 in three trading sessions. Wonder why punters were so excited about the QIP, considering that almost all such placements in the past few months were done at a discount to market price. Having accomplished their task of propping up the stock price

, the opportunistic bulls now appear to making an exit.

Bears and bulls get ready to cross swords

Market conditions don’t appear to be favourable to bears, yet. But the Old Fox is a firm believer in the theory that big gains can be made only through big risks. He is very bearish on the telecom sector, and is steadily building up short positions in Bharti Airtel, Idea Cellular and Reliance Communications. In addition, he is also said to have gone short on Unitech, Suzlon and Punj Lloyd, among others. At the same time, bulls too are not finding the going any easier. The Rar(e)ing Bull is said to be refraining from big trading bets, and making token purchases in the stocks

he is bullish on from a long-term perspective. He is said to have accumulated a small chunk of Sterlite shares in the past couple of sessions.

A new caste system in the broking industry

Equity research is gradually becoming a key ‘differentiator’ in the broking industry. Several brokerages have begun promoting research as an exclusive product to investors. The more innovative ones (brokers) have started preparing reports targeting specific classes of investors. High volume institutional clients and affluent investors get on-the-fly direct email reports (on daily market developments) from analysts while small retail clients are often mailed reports that are a day or couple of days’ old. A leading brokerage — with strong presence in both the retail and institutional space — is learnt to be telling prospective retail customers that it provides the same research to both its institutional and retail clients. What it has not clarified is whether it will be providing the same research simultaneously to both sets of investors.

(Contributed by Santosh Nair & Shailesh Menon)


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Pantaloon Retail

GSPL

Bharat Forge

Mahindra and Mahindra Financial Services

Idea Cellular

ING Vysya

JSW Steel Limited

Dr Reddy's Labs Ltd

Atul Ltd

Power Sector

IDFC, HCC, BHEL, Asian Paints, Birla Corporation, JSW Steel

Adhunik Metaliks, Biocon, Garware Offshore, Infoedge, Rolta, Yes Bank

Reliance Industries

Zee Entertainment Enterprises /

Zee News

Source: Economictimes, Deadpresident Blog

Morning Calls

Top 5 picks I Mid-term picks

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Crucial support at 4,950

MICRO TECHNICALS

YES BANK
Current Price: Rs 256.5
Target Price: NA

The stock established a high of Rs 262 last week and it looks likely to test that soon. Volumes remain excellent. The problem could be over-extension since it’s moved up almost vertically in the past three weeks. Also it is impossible to set a target. Keep a trailing stop at Rs 249 and go long. Move the stop up 5 units for every 5 unit move.

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HIND UNILEVER
Current Price: Rs 280.5
Target Price: Rs 295

The stock hit strong resistance at Rs 295 and corrected down to a good support at Rs 270. It has started moving up again on slightly improved volumes. The pattern suggests range-trading will occur between Rs 270-295. Keep a stop at Rs 275 and go long. Start booking profits above Rs 293.

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JUBILANT ORGANOSYS
Current Price: Rs 237.5
Target Price: Rs 250

The stock has seen massive volume expansion coinciding with a rise from a bottom around Rs 210. If the volume pattern is maintained it will certainly test Rs 250 levels intra-day, though there is a strong resistance there. Keep a stop at Rs 232 and go long. Cover at Rs 250.

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CRANES SOFTWARE
Current Price: Rs 41.5
Target Price: Rs 48

The stock has seen strong institutional interest and bulk deals between Rs 38-41, leading to strong volume expansion. It has the potential to land somewhere between Rs 48-50, given the volume pattern. Keep a stop at Rs 39.5 and go long. Book profits above Rs 47.5.

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SHREE RENUKA SUGARS
Current Price: Rs 214.45
Target Price: Rs 225

Sugar remains in a secular bull-run. Renuka Sugars has climbed over 300 per cent in the past 12 months, from Rs 50 levels. It saw another price breakout coupled to strong volumes last week. The new target would be around Rs 225. Keep a stop at Rs 207 and go long.

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Other Stories:

Intermarket review 26-OCT-09 The term Intermarket was coined by John Murphy in 1990.

Analysts' corner 26-OCT-09 Adani Power (APL) is an interesting case of private sector entrepreneurship, capitalising on India’s persistent power deficits and exploiting high medium-term merchant tariffs which should reduce the payback of projects, and also having lower execution time cycles by using Chinese equipments.

Healthy demand outlook 26-OCT-09 A revival in the US financial services sector and better cost management would help TCS sustain profitable growth.

Stiff pricing 26-OCT-09 While an under-penetrated market and robust business plans should help DEN Networks grow faster, competitive pressures are likely to intensify.

Volume plays 26-OCT-09 India’s largest two-wheeler makers had a sparkling September quarter

Src: Economictimes.Indiatimes, Business-Standard

Srisai's Instinct Stock Calls

Srisai's Instinct Stock Calls

This(Srisai's Instinct Stock Calls) will be a New Initiative of this blog to Publish Blog Author's Own Investment/Trading Calls for Short-Medium Term perspective. But All these Calls are not given on Purely Technical perspective. Most of these Calls are given by Blog Author from His past Investment/Trading experiences. So Do not expect More depth in Calls. Author has tried his best to give some calls for the benefit of Investors/Traders from his experience and from some media/web/news based call. So author request all the investors/traders to take/try these Calls as RISK CALLS. And Keep Strict Stop Loss Own (or) Keep Resi,Supp levels As Stop Loss for their Trading(or) Trade/Invest @ your Own Financial Risk. All type of Comments are Welcome about this New Initiative. Dont Forget to Keep Stop Loss and Again Author Remembering you that he is giving calls only from his past trading experience...


Date: 26.10.2009

Nifty Future: cmp 5007

NFut little weak below 5063 levels... Upside only above 5063-5087 levels.... So keep watch on this... Downside supports are at 4970-4957-4930 levels.



Reliance Industries: cmp 2046

RIL stocks down 4% on Friday as Hardy Oil abondons KG-D9 block process.
But In my point of view Market has Over-reacted on this announcement... From the Media sources, I came to know some facts.... RIL Exploration Success Ratio is ( 60%) Bigger than Global Success Ratio of 40%... So No need to worry about this Abandon. And KG D9 Block as not as much important as KG-D6 block...
So If RIL falls below 2000, Use that lows as Buying opportunity for short term..

Supports are at 1970-1927-1906 levels...




BajajHindustan: cmp 233

Year high nearly comoing around 240 levels.... So if it breaks that levels with Huge volumes, then it could move 252-265 levels soon... Supports at 227-215 levels....



Polaris: cmp 170

Polaris is trying very hard to cross levels 173-175 in last two sessions... and also not going below of Rs 165 levels.... So decision is yours whether to short/go Long...

Supp: 165-160 levels. Resi: 173-175 levels.



EssDee Aluminium: cmp 373

I have tried this stock continuously while crossing 375-385 levels... some thing there in that range...That is stock struggles in that range... So risk traders watch this stock and make SHORT/LONG with Strict Own Stoploss... Supports may be 348-355 levels...


Amtek Auto : cmp 189

Stock has corrected nearly 20-25 % in last few sessions.... Buy this at further correction in Small/Medium quantities.... Stock's 50 simple moving avg is at 185 levels... S try this stock in small qty with own stop loss... Other supports are: 177-172 levels....



Again Says Keep Strict Given StopLoss/Own StopLoss in All Trades.....



Srisai

RIL slumps 4% as Hardy boys pull out of KG-D9 well

RIL slumps 4% as Hardy boys pull out of KG-D9 well

MUMBAI: Reliance Industries fell 4% after its minority partner Hardy Oil & Gas of the UK said it was abandoning exploration at a well in the D9 block off the Krishna-Godavari basin, reversing earlier estimates of gas worth billions of dollars. Although analysts have not factored in revenues from the block for Reliance earnings forecast, the fall was in part mirroring the crash of Hardy’s stock in the UK where it faced the worst-ever falls. Hardy crashed 37% to 345.25 pence in early London trading. RIL fell Rs 86.25 to close at Rs 2047.30 on BSE. The British explorer, which owns 10% stake in the field, said it would discontinue drilling at the KGD-A1 well, the first of a four-well programme at Block D9 in the Krishna Godavari basin, as it encountered “poor reservoir sands in the middle and lower Miocene target levels.” “The market has overreacted to the news as it was on the edge with stretched valuations,” said Amitabh Chakraborty, president of equities at Religare Capital. “For me, it seems to be an excuse for profit-booking.” Hardy in May this year had said that it estimated the prospective resources at Block D9 at 10.8 trillion cubic feet of gas and 143 million barrels of oil, almost equal to the reserves in the country’s most prolific KG-D6 block, whose monetary value is estimated to be $50 billion. It was then pulled up by the Director General of Hydrocarbon (DGH) saying it was premature to publicise the prospects of reserves. Reliance, which surrendered a third of the 45 exploration blocks to the government for unsuccessful exploration with sunk cost of Rs 1,400 crore, said on Friday it would not surrender this block, but would drill three more wells. “The data obtained from this first exploration well is significant and will be integrated with the existing geological model to improve the understanding of the geology and petroleum system within the block before drilling subsequent wells. Any rumour of RIL surrendering this block is completely baseless,” added the RIL statement. Analysts also believe that this is not the end of the road for RIL and Hardy in this block. “Exploration is a high-risk-high-reward game. Based on results of drilling one well, you cannot decide the prospects of the block. Cairn has discovered oil in Rajasthan after Royal Dutch Shell abandoned that block,” said an analyst with an international firm. Hardy is not throwing in the towel either. “We did not find a reservoir of good quality, so we have abandoned this well. We are looking at the data to plan our next drilling sequence. So far, we have drilled nothing in this block,” Hardy COO Yogeshwar Sharma told ET NOW. Early this year, RIL joined the league of global deepwater operators by putting its D-6 gas field into commercial production and doubling India’s natural gas production. RIL has started production of one oil find and two of the 18 gas discoveries in KG-D6. Its plans for nine satellite finds in the block as well as six discoveries in NEC-25 are yet to be approved by the government.

• RIL to drill more wells despite failure in KG-D9
• Reliance shares fall after partner says to abandon well

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Hardy abandons exploration in one D9 well of KG basin


Article Src: Economictimes, Businessline.in

Hardy Oil to abandon 1 well in KG D9 block; RIL stock down

Hardy Oil to abandon 1 well in KG D9 block; RIL stock down

UK-based Hardy Oil and Gas, which has 10% stake in Krishna-Godavari D9 block on the east coast of India, will abandon exploration of one well. The Hardy Oil stock was down 36% on the London Stock Exchange on the announcement.

India’s Reliance Industries (RIL), the field's operator, holds 90% in KG D9. RIL’s stock was seen under pressure after the news came out and was down about 4% on the National Stock Exchange at 14.35.

In response, RIL said it would comment only after informing the Directorate General of Hydrocarbons (DGH), the government body that overlooks the management of oil and natural gas resources in India.

The DGH in June had complained to market regulator Securities and Exchange Board of India (SEBI) when Hardy had “prematurely” announced its assessment of reserves in the KG blocks.

Market Watch: Sensex trips on profit booking; RIL, L&T weigh

RPT-UPDATE 1-Reliance shares hit as partner says to abandon well ...

Reliance down as Hardy Oil abandons well in KG D9 block

Reliance down as Hardy Oil abandons well in KG D9 block

India Infoline News Service / 02:26 PM , Oct 23, 2009

Hardy holds a 10% stake in the D9 block while, Reliance Industries is the operator, with a 90% stake.

Shares of Reliance Industries have declined by over 4% to Rs2064 after Hardy Oil & Gas Plc reportedly plans to abandon a well in the KG-basin that showed “poor” reservoir sands. Hardy Oil and Gas plc, announced the results of the drilling of the first of a four well programme on the Company's D9 (KG-DWN-2001/1) exploration license. The exploratory well KGD-A1 drilled to a total depth of 4,875 m TVDRT (4,861 m subsea) to explore the Middle and Lower Miocene targets, will be plugged and abandoned. While encountering some background gas while drilling, the well encountered poor reservoir sands in both the Middle and Lower Miocene target levels. The data obtained from this firstexploration parametric well is very significant and will be integrated with the existing geological model to improve the prospectivity of the block before drilling subsequent wells. The first phase of the D9 exploration licence provides for the drilling of a further three exploration wells in the block. Hardy holds a 10% stake in the D9 block while, Reliance Industries is the operator, with a 90% stake. Shares of Hardy Oil in the UK were slam-dunked by over 36% in a single trading session.

Src: All Leading Websites...