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Kavveri Telecom Products
Federal Bank
Hero Honda
India Strategy - Apr 8 2010
Sobha Developers
Src: DP blog and ET
08 April 2010
Morning calls
Top 5 picks | Mid-term picks | Top 10 Equity Funds in 2009-10
Heard on the Street: Axis Bank slumps on block sale talk
GCPL: Watch out for signs of stress in Jan-Mar nos
IndusInd’s ride likely to continue on D-Street
Stocks to watch: Wipro, Reliance Industries, Godrej Consumer
Unitech set to hive off non-core biz and list it
Strategies to adopt for RIL stocks
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Src: DP blog and ET
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Src: DP blog and ET
07 April 2010
Morning calls
Heard on Street: Insurance cos lap up NMDC
Insurance companies lap up NMDC stock
Shares of NMDC, a state-owned iron ore producer, have rebounded from recent lows. There is talk that insurance companies, both private and public sector, have lapped up the stock in recent sessions amid speculation that the company could move to quarterly pricing in line with the recently-introduced global practice. Grapevine has it that an insurance major has bought the stock, when it fell to around Rs 283 last week. On Tuesday, the stock rose 1.6% to Rs 303.20.
Bears seen sniffing around SBI counter
With the market on an uptrend, bears are looking for some stocks they can safely short sell, without losing much sleep. After a quick reading, this group appears to have arrived at the consensus that State Bank of India best fits the bill. The recent RBI rule that banks should pay interest on savings deposits on a daily basis, is expected to pinch SBI the most, as the bank has the most number of savings accounts, so feel the bears. Grapevine is that the Old Fox, and the owner of the Big ‘Bang’ brokerage are said to be among those building short positions in the stock.
Religare’s banking unit on a poaching spree
The investment banking and institutional broking arm of Religare Enterprises continues to aggressively ramp up its senior level, even as rivals are amazed at the salaries being offered by the Delhi-head quartered financial services firm. The company, which has in the recent past poached key personnel from foreign brokerages to beef up its talent pool, is once again looking in that direction for its new strategist. The buzz on the Street is that the new hire is the second in command of the research team at a leading investment bank which claims to have trouble getting sleep.
Networth’s Satish Pasari moves to rival firm
Satish Pasari, who heads the institutional business at BSE-listed Networth Stock Broking, is said to have put in his papers, and will shortly be joining a rival firm. The low-profile Mr Pasari is said to have been instrumental in setting up the retail, wealth management and institutional businesses of the brokerage. When contacted, Mr Pasari declined to comment. Networth had recently hired around two dozen professionals in sales, dealing and research to spruce up its presence in the derivative and quant-trading segments.
(Contributed by Nishanth Vasudevan, Santosh Nair, Deeptha Rajkumar & Apurv Gupta)
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Top 5 picks | Mid-term picks
'I'll give India 2 more brands bigger than Ranbaxy'
Top 10 Equity Funds in 2009-10
Nifty to trade in 5200-5400 range
Godrej Consumers should make a new 52-week high: Devangvisaria.com
Mahindra & Mahindra, Escorts look very promising: Angel Broking
This year is going to be exceptional for TVS Motor: Angel Broking
Expect modest correction: CLSA
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New teen CEOs | Gen Y CEOs | World's top 10 billionaires
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Bull's Eye: Stocks to buy today
Buy Bombay Dyeing with a target of Rs 630
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Src: ET and DP blog etc
Insurance companies lap up NMDC stock
Shares of NMDC, a state-owned iron ore producer, have rebounded from recent lows. There is talk that insurance companies, both private and public sector, have lapped up the stock in recent sessions amid speculation that the company could move to quarterly pricing in line with the recently-introduced global practice. Grapevine has it that an insurance major has bought the stock, when it fell to around Rs 283 last week. On Tuesday, the stock rose 1.6% to Rs 303.20.
Bears seen sniffing around SBI counter
With the market on an uptrend, bears are looking for some stocks they can safely short sell, without losing much sleep. After a quick reading, this group appears to have arrived at the consensus that State Bank of India best fits the bill. The recent RBI rule that banks should pay interest on savings deposits on a daily basis, is expected to pinch SBI the most, as the bank has the most number of savings accounts, so feel the bears. Grapevine is that the Old Fox, and the owner of the Big ‘Bang’ brokerage are said to be among those building short positions in the stock.
Religare’s banking unit on a poaching spree
The investment banking and institutional broking arm of Religare Enterprises continues to aggressively ramp up its senior level, even as rivals are amazed at the salaries being offered by the Delhi-head quartered financial services firm. The company, which has in the recent past poached key personnel from foreign brokerages to beef up its talent pool, is once again looking in that direction for its new strategist. The buzz on the Street is that the new hire is the second in command of the research team at a leading investment bank which claims to have trouble getting sleep.
Networth’s Satish Pasari moves to rival firm
Satish Pasari, who heads the institutional business at BSE-listed Networth Stock Broking, is said to have put in his papers, and will shortly be joining a rival firm. The low-profile Mr Pasari is said to have been instrumental in setting up the retail, wealth management and institutional businesses of the brokerage. When contacted, Mr Pasari declined to comment. Networth had recently hired around two dozen professionals in sales, dealing and research to spruce up its presence in the derivative and quant-trading segments.
(Contributed by Nishanth Vasudevan, Santosh Nair, Deeptha Rajkumar & Apurv Gupta)
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Top 5 picks | Mid-term picks
Top 10 Equity Funds in 2009-10
Nifty to trade in 5200-5400 range
Godrej Consumers should make a new 52-week high: Devangvisaria.com
Mahindra & Mahindra, Escorts look very promising: Angel Broking
This year is going to be exceptional for TVS Motor: Angel Broking
Expect modest correction: CLSA
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New teen CEOs | Gen Y CEOs | World's top 10 billionaires
*******************************************
Bull's Eye: Stocks to buy today
Everyday, on this special segment, Bull's Eye, CNBC-TV18 brings you trading/investing calls from investment analysts. Today, we bring you calls
from:
Mitesh Thacker, Technical Analyst, miteshthacker.com.
Investment Advisor, SP Tulsian.
Mitesh Thacker, Technical Analyst, miteshthacker.com.
Buy MTNL with a target of Rs 83
Buy IFGL Refractories with a target of Rs 67
Buy Rel Comm with a target of Rs 186
Investment Advisor, SP Tulsian.
Buy Lloyd Electric with target of Rs 80
Buy ITD Cementation with target of Rs 255
Buy KNR Constructions with target of Rs 182
Buy Essar Shipping with target of Rs 100
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Daily News Roundup - Apr 7 2010
Not in the best of health!
Aditya Birla Chemicals
Src: ET and DP blog etc
06 April 2010
05 April 2010
Resistance at 5330
Resistance at 5,330
Top 5 picks I Mid term picks
Bull's Eye: Cairn, Bhushan Steel, Infosys, DB Corp
Small-cap stocks offer best bet for investors
Stocks to open strong; Nifty resistance seen at 5330-5395
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Src: ET and DP blog and Business-Standard
The market pushed to a new high and then eased back to the previous week’s levels. The Nifty closed at 5,290.5 points for a nominal gain of 0.2 per cent while the Sensex was up 0.3 per cent at 17,644 points. The Defty rose 1.1 per cent as the rupee continued to strengthen.
Breadth was neutral and volumes remained on the low side. Smaller stocks outperformed the pivotals. The Junior was up 1.3 per cent while the Midcaps rose 0.7 per cent and the BSE 500 was up 0.7 per cent as well.
FIIs continued to be strong net buyers while domestic institutions remained net sellers in small quantities.
Outlook: The market established a new 52-week high but momentum and background signals were quite weak. There is strong resistance at 5,330 levels with strong support between 5,200 and 5,250. Most likely the market will remain confined to range-trading between 5,200 and 5,350. If volumes remain low, a downside breakout is more likely. A close below 5,200 could push the market down till 5,100.
Rationale: An uptrend that is not backed by volumes or by significant breadth is unlikely to be sustainable. Momentum indicators aren’t strong either. The intermediate trend has been up for nine weeks now and it could be due for a reversal. The major market trend is confirmed as bullish due to the new high, but that doesn’t preclude a reversal in intermediate or short-term trends.
Counter-view: It is a major bull-market. DII selling allied to trader selling has been a dampening factor despite strong FII buying. There could be more domestic money flowing into stocks with the new fiscal commencing. The usual tax-related liquidity crunch may be easing. Intermediate trends can last up till 12-14 weeks if they are aligned with the major market trend, as in this case. The short-term trend isn’t clearly negative. One chart reading would suggest an upside till 5,450 is possible. At the risk of tedious repetition, the issue is volumes. A volume expansion is required to force the market up.
IT was the one sector that took a hammering through the week and it was by far the worst performer. The CNXIT lost 2.7 per cent with all the majors hit. This is a bad signal since Infosys and TCS will soon be coming through with 2009-10 and March quarter results and 2010-11 advisories. However, there was short-covering ahead of the long weekend. The picture with respect to banks is mixed. Private sector majors like ICICI and HDFC underperformed the PSUs and pulled the BankNifty back.
MICRO TECHNICALS
ABAN OFFSHORE
Current Price: Rs 1,199 Target Price: Rs 1,300
The stock has hit reasonable support and is now picking up volumes as well as seeing a price rise. It has the potential for a pullback till around the Rs 1,300 level. Keep a stop at Rs 1,165 and go long. Increase the position beyond Rs 1,220.
BHARTI AIRTEL
Current Price: Rs 302 Target Price: Rs 290
The stock has seen heavy selling in the past two sessions. It has a little support at current levels but if it closes below Rs 300, it will probably drop to at least Rs 290 and maybe, lower, till around Rs 280. Keep a stop at Rs 307 and go short. Increase the position below Rs 299. Book 75 per cent profit at Rs 290 and reset the stop to Rs 293.
RELIANCE INDUSTRIES
Current Price: Rs 1,092 Target Price: Rs 1,070
The stock is hitting resistance at around the Rs 1,100 mark. It is likely to slide till support at around Rs 1,070 and there is a good chance if it closes below Rs 1,070 that it will fall till around Rs 1,020. Keep a stop at Rs 1,105 and go short. Book 50 per cent profit at Rs 1,070 and reset the stop loss to Rs 1,080.
TCS
Current Price: Rs 807.80 Target Price: Rs 755
The stock has broken several supports amidst heavy selling. It is likely to slide till around the Rs 755-760 mark. Keep a stop at Rs 815 and go short. Increase the short position below Rs 795. Start booking profits below Rs 765. Be prepared for extra volatility.
TATA MOTORS
Current Price: Rs 777.65 Target Price: Rs 815
The stock has bounced from around Rs 715 and is likely to test resistance in the Rs 815-820 zone again. Keep a stop at Rs 765 and go long. Be prepared for a little extra volatility. Clear the position above the Rs 810 mark.
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Top 5 picks I Mid term picks
Bull's Eye: Cairn, Bhushan Steel, Infosys, DB Corp
Small-cap stocks offer best bet for investors
Stocks to open strong; Nifty resistance seen at 5330-5395
5 Apr 2010, 0716 hrs IST
Here are the analysts' picks: Cairn, Bhushan Steel, Infosys Technologies, DB Corp.
5 Apr 2010, 0642 hrs IST
The good news this week from the Securities and Exchange Commission is that it’s on the hunt for companies that have used Lehman-style accounting tricks to make themselves look less leveraged than they really are.
5 Apr 2010, 0639 hrs IST, Bakul Chugan Tongia
Notwithstanding JM Basic’s outstanding performance in the rallies, its high portfolio risk and inability to cushion fall in the downturn remain a concern.
5 Apr 2010, 0634 hrs IST
Every few years, investors get all enthusiastic about Japan. This time the recovery is for real, they argue. This time real change is afoot. This time buy yen-denominated assets and don’t look back, they conclude.
5 Apr 2010, 0630 hrs IST, Bakul Chugan Tongia
Though LIC’s Jeevan Surabhi offers a plenty of features,a closer study of the plan reveals that the cost of investing in it is rather high.
5 Apr 2010, 0629 hrs IST
As the markets touched two-year high and more and more stocks near their higher valuations, it would be difficult to take a smart investment decision.
5 Apr 2010, 0623 hrs IST, Devangi Joshi
As the Dow Jones Industrial Average is aiming to conquer 11000; a one and a half year high; the Nifty's confidence is likely to get tested near 5400.
5 Apr 2010, 0616 hrs IST, Ranjit Shinde
While Idea Cellular’s stock may suffer in the short run due to low tariffs and competition, the company is poised to benefit from its recent expansion in the long term.
5 Apr 2010, 0616 hrs IST, Deepak Mohoni
All the indices are in an intermediate uptrend which is now nearly eight weeks old.
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Monthly Report - March 2010
Job report to dictate momentum at Wall Street
Network 18
Daily News Roundup - Apr 5 2010
Positive momentum may prevail
Cairn India to drill 14 wells in 3 blocks by Sept-end
Maruti Suzuki sells a million units in FY10
Mahindra Satyam
Bharti Airtel Ltd
Shoppers' Stop
Proctor and Gamble
Fortis Healthcare
Adani Enterprises
Crompton Greaves
Src: ET and DP blog and Business-Standard
01 April 2010
New Financial Year Starts (FY11)......
Top 5 picks I Mid term picks
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Heard on the Street
Clearwater seen taking control of Sayaji
Hotels
In a first-of-its-kind instance, a private equity firm could end up taking control of the company in which it has been a minority shareholder until now.
US-based Clearwater Capital Partners made an open offer to buy an additional 20% in Indore-based Sayaji Hotels at Rs 110 apiece. Clearwater currently holds a 8.48% equity stake in the Dhanani-controlled hotel chain, and also 75 foreign currency convertible bonds that will mature in August this year.
The private equity player has the option to convert the bonds into 46,68,000 equity shares at Rs 75 each, which will increase its stake to 32.87% on the fully-diluted equity base. The promoter stake will come down to 41%, from 52%. Sebi regulations require an investor to make an open offer for an additional 20% stake when his holding exceeds 15%.
Clearwater said it intended to convert the bonds into shares and has made the open offer ahead of the conversion. Grapevine is that Clearwater had asked the promoters to buy it out after differences of opinion, which the latter refused. This provoked the open offer, say some brokers. If the open offer succeeds, the PE fund will have a majority stake in the company.
When contacted, an official of Sayaji Hotels said there was no difference of opinion between the management and Clearwater, and that the open offer was in line with the regulatory requirement. Trading in Sayaji Hotel shares was frozen at the upper end of the 5% circuit filter at Rs 112, after there were only buyers for the stock.
Sebi deals another blow to MFs’ profitability
Capital market regulator Sebi is learnt to have dealt another blow to fund houses, asking them to pay upfront commission to distributors from their own profits and not from expense pool.
In an email communication, Sebi has directed fund houses not to charge upfront commission to the overall 2.5% expense charges, which until recently were split in equal proportion to meet asset management charges and expenses, including upfront commission, transfer agent charges and marketing expenses.
The Sebi order will be effective from April 1. According to industry sources, the above order will put fund houses that pay higher upfront commission in deep trouble. Fund houses like ‘Cutie Eye’, ‘Icy Icy Mutual’, ‘Reliable Mutual’ and ‘Jammy Mutual Fund’, which are said to pay upfront commission between 100 and 200 basis points to push their schemes, will now have to pay upfront commission from their own pockets.
The other alternative for fund houses will be to force distributors to collect upfront commission from investors, which looks near to impossible. The Sebi diktat, if followed to the word, will hit the profitability of most fund houses.
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Mitesh Thacker's top 5 picks for trade today
Src: ET and Moneycontrol and DP blog
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Heard on the Street
Clearwater seen taking control of Sayaji
In a first-of-its-kind instance, a private equity firm could end up taking control of the company in which it has been a minority shareholder until now.
US-based Clearwater Capital Partners made an open offer to buy an additional 20% in Indore-based Sayaji Hotels at Rs 110 apiece. Clearwater currently holds a 8.48% equity stake in the Dhanani-controlled hotel chain, and also 75 foreign currency convertible bonds that will mature in August this year.
The private equity player has the option to convert the bonds into 46,68,000 equity shares at Rs 75 each, which will increase its stake to 32.87% on the fully-diluted equity base. The promoter stake will come down to 41%, from 52%. Sebi regulations require an investor to make an open offer for an additional 20% stake when his holding exceeds 15%.
Clearwater said it intended to convert the bonds into shares and has made the open offer ahead of the conversion. Grapevine is that Clearwater had asked the promoters to buy it out after differences of opinion, which the latter refused. This provoked the open offer, say some brokers. If the open offer succeeds, the PE fund will have a majority stake in the company.
When contacted, an official of Sayaji Hotels said there was no difference of opinion between the management and Clearwater, and that the open offer was in line with the regulatory requirement. Trading in Sayaji Hotel shares was frozen at the upper end of the 5% circuit filter at Rs 112, after there were only buyers for the stock.
Sebi deals another blow to MFs’ profitability
Capital market regulator Sebi is learnt to have dealt another blow to fund houses, asking them to pay upfront commission to distributors from their own profits and not from expense pool.
In an email communication, Sebi has directed fund houses not to charge upfront commission to the overall 2.5% expense charges, which until recently were split in equal proportion to meet asset management charges and expenses, including upfront commission, transfer agent charges and marketing expenses.
The Sebi order will be effective from April 1. According to industry sources, the above order will put fund houses that pay higher upfront commission in deep trouble. Fund houses like ‘Cutie Eye’, ‘Icy Icy Mutual’, ‘Reliable Mutual’ and ‘Jammy Mutual Fund’, which are said to pay upfront commission between 100 and 200 basis points to push their schemes, will now have to pay upfront commission from their own pockets.
The other alternative for fund houses will be to force distributors to collect upfront commission from investors, which looks near to impossible. The Sebi diktat, if followed to the word, will hit the profitability of most fund houses.
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Mitesh Thacker's top 5 picks for trade today
Daily News Roundup - Apr 1 2010
Don’t get fooled!
Chambal Fertilizers
Bharti Airtel
Godrej Properties
India Strategy - March 31 2010
Kolte-Patil Developers
Cadila Healthcare
GSK Pharma
Sobha Developers
Zee Entertainment Enterprises
Sesa Goa
Src: ET and Moneycontrol and DP blog
31 March 2010
Sensex ends FY10 with 80% gains; FIIs pump in $20 bn
Sensex ends FY10 with 80% gains; FIIs pump in $20 bn
It was an outstanding fiscal year - 2009-10 - for the Indian equity markets; the Sensex rallied 80% and Nifty surged 74%. FIIs came back in droves, pumping in close to USD 23 billion in India's cash market. India, in fact, was the second best performing equity market globally, next only to Russia in this fiscal.
Two big events that aided this rise - firstly a recovery in global markets on the back of numerous stimulus packages and secondly, a thumping victory for the Congress party in the Lok Sabha elections in May 2009.
Sector report
On the sectoral front, the BSE Metal Index was the star performer on the back of rally in prices of international commodities. Respective index shot up 210%. Jindal Steel & Power surged 256% and Hindalco was up 254%. Tata Steel gained 212% and SAIL rose 150%.
The Auto Index rallied 150%, as Tata Motors surged 310%. M&M was up 190%. Hero Honda and Maruti were up 85% each.
The BSE Bankex soared 140%, as Axis Bank, ICICI Bank and PNB surged 144-190%.
In the technology space, HCL Tech went up 263%, TCS up 200%, Wipro up 192% and Infosys up 105%. The IT Index was up 130%.
The BSE Oil & Gas and FMCG indices were the least performers in the year 2009-10. Respective indices were up 45% and 41%.
Stock performances
Among largecaps, IDFC was up 200%, Ranbaxy up 190%, Jaiprakash Associates up 168% and L&T up 147%.
Idea Cellular gained 34%. BPCL and ONGC were up 40%. RIL went up 44%. HUL rose just 1% and NTPC went up 13%.
However, Reliance Communications declined 4% and Bharti Airtel was down 1%.
Among the broader indices, the CNX Midcap Index was up 128% and BSE Small Cap Index up 162%.
In the midcap space, Jindal Saw shot up 510%. IndusInd Bank, JSW Steel, Orbit Corporation, Greaves Cotton and Yes Bank were up 410-458%. Gujarat NRE Coke gained 355%.
In the smallcap space, Fame India surged 740%. Unity Infra, Supreme Infra and Zydus Wellness rallied 555-675%.
Currencies and commodities
The US Dollar Index was down 5% while the Reuters CRB Commodity Index was up 21%.
Stock market gives investors 80% return in FY'10; best in 5 yrs
NEW DELHI: Investors have reaped a five- year best return of over 80 per cent from the stock markets in fiscal 2009-10, when judged by the
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Analysts, however, said that the momentum could be slowed in the coming fiscal as investors are expecting a lot from the market now, which may not come in until there is a correction.
The bulls were back with a bang in fiscal FY'10, offsetting the losses incurred by investors in the previous financial year.
The returns from investments in this fiscal have soared to 80.5 per cent. The Bombay Stock Exchange benchmark Sensex settled at 17,527.77 points on March 31, 2010, from 9,708.5 points at the end of March 31, 2009. The Sensex had jumped to its two-year high level of 17,793 points on March 29 driven by strengthening of the rupee against the US dollar.
During FY'09, the 30-share index had plunged to 9,708.50 points from 15,644.44 points, losing nearly 38 per cent.
"The market has gained quite a lot and will continue to remain volatile in the coming days. Monsoon will be a deciding factor for the overall growth of the economy and that would in turn affect the capital market," Taurus Mutual Fund Managing Director RK Gupta said.
During fiscal 2007-08, the market provided a return of 20 per cent, while the same for 2006-07 and 2005-06 was 16 per cent and 74 per cent, respectively.
The fiscal has been a good one for the broader market with a host of new companies coming out with public offerings and three state run companies -- NTPC, REC and NMDC -- coming out with follow-on-offers.
Among the biggest gainers in the Sensex companies Tata Motors surged over 300 per cent, followed by Hindalco 240 per cent, Tata Steel 210 per cent, TCS 200 per cent and Wipro 190 per cent in financial year ending March 31, 2010.
Other major gainers include ICICI Bank 180 per cent, M&M 175 per cent and the index heavy-weight Reliance Industries 44 per cent.
"Returns have been widespread for the market but the coming financial year will not be too rosy. We are cautiously bullish on the market as a lot of expectations have been built up," SMC Global Vice-President Rajesh Jain said.
Analysts said at this juncture a correction is imminent in the market and the Sensex could trail the 20,000 level by the end of next fiscal (2010-11).
"FIIs may withdraw money if the rupee strengthens at this pace. It will pour in money again after the rupee comes back to the 47-a-dollar mark," Gupta said. The Indian rupee is currently hovering around the 44.97-a-dollar mark, at nearly 19-month high level.
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Emerging market currencies show cracks
Src: Moneycontrol, ET
Reliance to tighten grip on world fuel markets
Reliance to tighten grip on world fuel markets
NEW DELHI/SINGAPORE: India's top privately run refiner Reliance is expected to raise crude oil imports by about 22 percent this year as it ramps up production at its giant complex, further stamping its mark on world markets.
To maximise profit margins with its sophisticated refining capability, Reliance Industries is also set to limit African crude imports this year in favour of Middle East grades, if light crude prices continue to strengthen against heavy-sour grades, traders and analysts said.
"I expect Reliance refineries to run at full steam, even if in between there is a small shutdown, they can easily run at about 65 million tonnes," said a trader familiar with refining operations. Reliance declined comment on traders' estimates.
This means that the company's two refineries -- the largest facility in the world -- will run above their full combined capacity of 1.24 million barrels per day (bpd), higher than last year when its second plant began operating at full rate in the second half.
After the world first saw increasing flows from Reliance in the summer of 2008, with the start of its new 580,000 barrel-per-day (bpd) plant, this year will see the full blast of exports of high-value diesel and gasoline made from a diverse slate of the cheapest available crudes.
This will put pressure on weak Western refineries and arbitrage traders at a time oil demand is just starting to pick up, but is still in defensive mode, analysts said.
"It's a powerful refinery, and if they get the right logistics, they can probably penetrate Western markets, gain market share and push some out of the market entirely," said John Vautrain, senior vice president of Purvin & Gertz Inc.
DIVERSITY OF CRUDE
The refiner's 2009 crude shipments from Africa including Egypt and Sudan rose more than fivefold to over 200,000 bpd, making the continent its No. 2 supplier, overtaking Latin America. This is in line with a 74 percent jump in total imports.
It bought crudes as varied as Cameroon's Lokele, Chad's Doba, Venezuela's Corocoro, and China's Penglai, while resuming Iraqi crude imports that it shunned in 2006.
Reliance for the first time imported Gimboa crude from Angola, which positioned itself as the fourth-biggest supplier, surpassing Venezuela. It also took crude from Gabon, Ivory Coast, Congo, Colombia, Ecuador, Syria and Yemen into its roaster.
Though Middle East crude remains Reliance's main staple, OPEC supply cuts in end-2008 -- around the time the refiner started its new plant -- prompted it to turn to African crude to make up for the gap when Gulf grades became costlier last year.
This was made possible after the Brent-Dubai price spread, an approximation of the premium at which Atlantic basin light-sweet crude trades to Gulf heavy-sour grades, reversed into steep discounts three times last year, making some West African crudes cheaper, traders said.
The structure has returned to normal this year. The front-month Brent/Dubai Exchange of Futures for Swaps (EFS) for May rose to $2.50 a barrel on March 18, the highest since OPEC producers began record supply curbs.
More @ http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/Reliance-to-tighten-grip-on-world-fuel-markets/articleshow/5746150.cms
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Indian shares could rise further in Q1 of FY-11: Poll
Check out cos that gave high dividend in last 6 years
India poised to overtake China
NEW DELHI/SINGAPORE: India's top privately run refiner Reliance is expected to raise crude oil imports by about 22 percent this year as it ramps up production at its giant complex, further stamping its mark on world markets.
To maximise profit margins with its sophisticated refining capability, Reliance Industries is also set to limit African crude imports this year in favour of Middle East grades, if light crude prices continue to strengthen against heavy-sour grades, traders and analysts said.
"I expect Reliance refineries to run at full steam, even if in between there is a small shutdown, they can easily run at about 65 million tonnes," said a trader familiar with refining operations. Reliance declined comment on traders' estimates.
This means that the company's two refineries -- the largest facility in the world -- will run above their full combined capacity of 1.24 million barrels per day (bpd), higher than last year when its second plant began operating at full rate in the second half.
After the world first saw increasing flows from Reliance in the summer of 2008, with the start of its new 580,000 barrel-per-day (bpd) plant, this year will see the full blast of exports of high-value diesel and gasoline made from a diverse slate of the cheapest available crudes.
This will put pressure on weak Western refineries and arbitrage traders at a time oil demand is just starting to pick up, but is still in defensive mode, analysts said.
"It's a powerful refinery, and if they get the right logistics, they can probably penetrate Western markets, gain market share and push some out of the market entirely," said John Vautrain, senior vice president of Purvin & Gertz Inc.
DIVERSITY OF CRUDE
The refiner's 2009 crude shipments from Africa including Egypt and Sudan rose more than fivefold to over 200,000 bpd, making the continent its No. 2 supplier, overtaking Latin America. This is in line with a 74 percent jump in total imports.
It bought crudes as varied as Cameroon's Lokele, Chad's Doba, Venezuela's Corocoro, and China's Penglai, while resuming Iraqi crude imports that it shunned in 2006.
Reliance for the first time imported Gimboa crude from Angola, which positioned itself as the fourth-biggest supplier, surpassing Venezuela. It also took crude from Gabon, Ivory Coast, Congo, Colombia, Ecuador, Syria and Yemen into its roaster.
Though Middle East crude remains Reliance's main staple, OPEC supply cuts in end-2008 -- around the time the refiner started its new plant -- prompted it to turn to African crude to make up for the gap when Gulf grades became costlier last year.
This was made possible after the Brent-Dubai price spread, an approximation of the premium at which Atlantic basin light-sweet crude trades to Gulf heavy-sour grades, reversed into steep discounts three times last year, making some West African crudes cheaper, traders said.
The structure has returned to normal this year. The front-month Brent/Dubai Exchange of Futures for Swaps (EFS) for May rose to $2.50 a barrel on March 18, the highest since OPEC producers began record supply curbs.
More @ http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/Reliance-to-tighten-grip-on-world-fuel-markets/articleshow/5746150.cms
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Indian shares could rise further in Q1 of FY-11: Poll
India poised to overtake China
Morning calls
Top 5 picks I Mid term picks
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Heard on the street
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Heard on the street
Buying by domestic funds boosts Tilaknagar
Shares of Tilaknagar Industries, a mid-sized liquor brewer, has rallied smartly amid major fund-based buying, even as its promoters have been reducing their stake in the company over the past few weeks. Market sources attributed the current frenzy in the counter largely to purchases by domestic mutual funds looking to boost their net asset values by the end of this financial year. The promoters — Dahanukars — have sold a sizeable 12% stake through many deals transacted in BSE’s bulk deal segment between March 8 and 29. They sold a total of 37.1 lakh shares in different lots at different prices for Rs 44 crore during the period. Of these, 15 lakh shares were picked up by Citigroup Global Markets and another 7.5 lakh by ABN Amro Bank, according to disclosures filed with the exchange. The Dhahanukars owned 74% in Tilaknagar Industries as on December 31, ’09. The stock has risen 20% over the past one month, before closing flat at Rs 123 on Tuesday.
BGR Energy on institutions’ radar
Institutional investors have been buying shares of power equipment manufacturer BGR Energy Systems on the hope that the company will do well on the back of increased government spending in the power sector, unique business positioning and strong order book. According to institutional dealers, ‘Reliable Mutual Fund’ and ‘Cutie Eye MF’ have been accumulating shares of BGR Energy Systems in large numbers over the past few weeks. The operator group — led by the Rar(e)ing bull — has also been buying shares of BGR Energy at every opportunity. On BSE, the shares ended 1.2% higher at Rs 515 on Tuesday.
Gail falls as a foreign investor cuts exposure
Shares of Gail India drifted lower in heavy trade on Tuesday, closing at Rs 401.55. Dealers tracking the counter say a foreign institutional investor (FII) has been cutting exposure to the stock in the past couple of trading sessions. This fund is said to have offloaded 10 lakh shares on Monday and another 7 lakh shares on Tuesday. Offers for sizeable blocks of the stock were doing the rounds on Tuesday too. Speculation is that the fund is looking to sell 30 lakh shares in all, of which 17 lakh have already been placed. Till buyers emerge for the last tranche, the stock could remain subdued, say dealers.
(Contributed by Vijay Gurav & Shailesh Menon)
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Src: ET and DP blog
Shares of Tilaknagar Industries, a mid-sized liquor brewer, has rallied smartly amid major fund-based buying, even as its promoters have been reducing their stake in the company over the past few weeks. Market sources attributed the current frenzy in the counter largely to purchases by domestic mutual funds looking to boost their net asset values by the end of this financial year. The promoters — Dahanukars — have sold a sizeable 12% stake through many deals transacted in BSE’s bulk deal segment between March 8 and 29. They sold a total of 37.1 lakh shares in different lots at different prices for Rs 44 crore during the period. Of these, 15 lakh shares were picked up by Citigroup Global Markets and another 7.5 lakh by ABN Amro Bank, according to disclosures filed with the exchange. The Dhahanukars owned 74% in Tilaknagar Industries as on December 31, ’09. The stock has risen 20% over the past one month, before closing flat at Rs 123 on Tuesday.
BGR Energy on institutions’ radar
Institutional investors have been buying shares of power equipment manufacturer BGR Energy Systems on the hope that the company will do well on the back of increased government spending in the power sector, unique business positioning and strong order book. According to institutional dealers, ‘Reliable Mutual Fund’ and ‘Cutie Eye MF’ have been accumulating shares of BGR Energy Systems in large numbers over the past few weeks. The operator group — led by the Rar(e)ing bull — has also been buying shares of BGR Energy at every opportunity. On BSE, the shares ended 1.2% higher at Rs 515 on Tuesday.
Gail falls as a foreign investor cuts exposure
Shares of Gail India drifted lower in heavy trade on Tuesday, closing at Rs 401.55. Dealers tracking the counter say a foreign institutional investor (FII) has been cutting exposure to the stock in the past couple of trading sessions. This fund is said to have offloaded 10 lakh shares on Monday and another 7 lakh shares on Tuesday. Offers for sizeable blocks of the stock were doing the rounds on Tuesday too. Speculation is that the fund is looking to sell 30 lakh shares in all, of which 17 lakh have already been placed. Till buyers emerge for the last tranche, the stock could remain subdued, say dealers.
(Contributed by Vijay Gurav & Shailesh Menon)
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