Friday, April 16, 2010

BOR: Market Outlook: Indian markets are expected to open in negative terrain

Market Outlook: Indian markets are expected to open in negative terrain on the back of negative cues from the global markets and likely to remain ranged with a negative bias.

Results today: Crisil, DCB, IndusInd Bank, Gruh Finance, KPR Mills

Global Events to watch for today

  • Housing Starts
  • Consumer Sentiment

Global indices Update @ 8:

Dow Jones : 11144 (+21.46)

NASDAQ : 2515 (+10.83)

Nikkei 225 : 11121 (+152.2)

Hang seng : 21867 (+289.9)

SGX CNX Nifty : 5260 (-15.00)

INR / 1 USD : 44.38

Stocks in action for the day : ONGC, Triveni, SAIL, Pipavav, GMR Infra, Welspun India, HDFC, RIL, VST

K-G gas not viable at current rates, says ONGC Oil and Natural Gas Corporation (ONGC) aims to produce 20-25 million cubic meters of gas a day from its deepwater block in the Krishna-Godavari Basin, and seeks a price in excess of USD 7 per million British thermal unit (mBtu) to make development viable, according to company Chairman and Managing Director, RS Sharma. ``Pricing is a major issue. The current price level (4.20/mBtu) is not viable. No one in the world is making future investment at these (price) levels,`` Sharma said on the sidelines of an energy conference. The state-run explorer is the operator of the KG-DWN-98/2 and holds 65% interest. It has so far made 10 gas discoveries in the block, adjacent to Reliance Industries prolific D6 Block that started producing gas in April 2009.

Triveni shuts down rural retail biz Dhruv M Sawhney-promoted Triveni Engineering & Industries has decided to shut its loss-making rural retail business. Its fully-owned retail arm, Triveni Retail Ventures, operates under the brand name, Triveni Khushali Bazaar, and incurred losses of over Rs 190 million up to March 2009. Triveni Retail operates in rural towns and semi urban cities of Uttar Pradesh and Uttarakhand, and has 42 stores. ``We have decided to shut down the ruralretail business , since it has been making losses. The overheads are high in organised retail and we have faced difficulties in competing with the local Kirana stores,`` said acompany executive. Triveni was earlier reported to have been looking for a buyer.

SAIL in talks with Posco, Kobe for possible JV: MoS Steel State-owned Steel Authority of India (SAIL) is in talks with South Korean steel major Posco and Japan`s Kobe Steel for technology tie-ups to jointly set up steel plants, Parliament was informed today. ``In order to remain competitive, SAIL is exploring the possibility of a technology tie-up for new iron-making technology like Finex from Posco and ITMK3 from Kobe Steel through the joint venture route,`` Minister of State for Steel A Sai Prathap said in a written reply to the Lok Sabha. The minister said a final decision on the JV project would depend upon techno-economic viability and regulatory approvals. ``The final decision on selection of technology and details of the joint venture are contingent upon techno-economic viability and necessary approvals,`` he said.

Timex to expand across Tier I, II cities After a flat year in terms of growth, watchmaker Timex Group India is devising strategies to widen reach in the country and gain a bigger pie of the organised watch market. To start with, thecompany is planning to set up 20 kiosks and stores spanning metro, tier I and tier II cities in the next one year. ``Last year there was a slowdown in all segments except the above Rs 5,000 (price) segment. People who used to buy watches in the Rs 2,000 price bracket are gradually moving up the value chain, to higher priced watches. Overall. We expect a growth of 10% in gross revenue for 2010-11,`` said Gopalratnam Kannan,managing director, Timex Group India.

Pipavav Shipyard in talks to buy European oil rig, shipping co Pipavav Shipyard is in talks to buy an oil rig and shipping company in West Europe, a top company official said. ``We are in talks with a West European company to buy an oil rig and shipping company in a bid to enter into the oil and gas service segment,`` Pipavav Shipyard Chairman Nikhil Gandhi told PTI here today. The deal size would be around USD 100 million out of which Pipavav will put USD 40 million through equity and another USD 60 million by raising debt, Gandhi said. The deal is expected to be concluded in the next four-to-eight-weeks, he said.

ONGC in talks with ExxonMobil, others for KG basin block Oil and Natural Gas Corp (ONGC) is in talks with super majors like ExxonMobil to replace Norway’s Stat oil and Petrobras of Brazil who have decided to quit its KG basin gas block. ``We are talking to a lot of people,`` ONGC chairman and managing director RS Sharma said. The companies ONGC is talking to includes Exxon but Sharma refused to divulge details. ``We are looking at firms for technology (to produce gas from ultra deep sea) and risk sharing,`` ONGC director (Finance) Dinesh K Sarraf said.

HPCL shelves refinery at Vizag State-run Hindustan Petroleum has ``shelved for now`` its planned 300,000 barrels-per-day refinery and associated petrochemical project at Vizag, the company`s head of finance, B Mukherjee, said on Thursday.

Hardy Oil -Releases report on assessment of D3 & D9 prospectively -KG D9 prospective resource numbers downgraded 50% (5.4 TCF gross) -Successes in D3 have led to an upgrade of 56% (1.4 TCF gross) Alert: Hardy Oil is RIL’s 10% partner in KG D9 and D3 Alert: RIL's risked resource estimate reduced by an aggregate of 11%
Alert: RIL’s risked resource estimate reduced to 2bn barrels of oil equivalent in blocks. Analysts estimate that the impact on valuations would be Rs18/share or 1.7% of current stock price.

Govt sources -SEZ contiguity norms likely to be relaxed -CNBC-TV18 ALERT: Proposed move to benefit RIL

New contiguity norms to bring down cost of SEZ projects -Relaxation in contiguity norms for SEZ non-processing areas

VST (Q4, bad numbers) -Sales at Rs 105.7 crore versus Rs 102.19 crore (YoY) -PAT at Rs 3.44 crore versus Rs 18.1 crore (YoY) Operating profit at Rs 1.7 crore versus Rs 25 crore

CMC (FY10) -Sales at Rs 690 crore versus Rs 820 crore ( YoY) -PAT at Rs 129.58 crore versus Rs 105.57 crore (YoY)

Oil PSUs to up ATF prices by avg Rs 1,363/kL on Friday

GMR Infra QIP opened yesterday, book crosses USD 300 million

Welspun India raises Rs 155 crore via QIP

New listing: Goenka Diamond

HDFC launches dual rate home loan scheme, HDFC to offer fixed rate loans at 8.25% for 2 years


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