The government today hiked the external commercial borrowing limits for Indian companies to $50 million for rupee expenditure for permissible end-uses under the approval route. The earlier limit was $20 million, which had been imposed last August.
In addition, infrastructure sector companies will now be able to avail ECB's of up to $ 100 million for rupee expenditure for permissible end-uses under the approval route. The move is aimed at providing a boost to the infrastructure sector, which requires $500 billion worth of investment during the 11th Five-Year Plan (2007-12), of which $ 30 billion is expected to come through this route.
The government has also increased the all-in-cost ceilings over six months LIBOR in respect of ECB for average maturity period between three years and five years to 200 bps, from 150 bps at present. For borrowings more than five years, the cost has been increased to 350 bps from 250 bps at present.
However, the existing $500 million annual borrowing limit for individual companies through the automatic route has been left unchanged. Other aspects of the ECB policy such as the end-use of foreign currency expenditure for import of capital goods and overseas investments, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements have also been left unchanged.
The decisions were taken at a high level committee on ECB's chaired by finance secretary D Subbarao here today. Officials from the Reserve Bank of India attended the meeting.
The high-level committee on ECB had agreed ‘in principle' last September to relax overseas borrowing norms for the infrastructure sector. However, huge capital inflows since then, which led to a sharp appreciation of the rupee, prevented the RBI from granting this leeway.
Friday, May 30, 2008
FII, sub-accounts registration made easy
Market regulator SEBI (Securities and Exchange Board of India) has revised the registration guidelines for FIIs. Institutions set up by non-resident Indians can now register as FIIs and invest in the Indian stock markets.
Sebi has amended regulations for easier registration of FIIs and sub-accounts. It has also made AMCs, Investment Managers or advisors owned by NRI eligible for FII registration.
Sebi has allowed FIIs to invest in collective investment schemes. It has said that NRIs can register as FIIs if they do not invest their proprietary funds.
Sebi has allowed sovereign wealth funds, pension funds and endowment funds to register as FII. FIIs cannot issue Offshore Derivative Instrument to any entity not regulated by the Foreign Regulatory Authority. They can issue offshore instruments only after compliance with know your customer, or KYC, norms. Non-regulated FIIs have to cancel, redeem or close positions by March 2009.
Investors were anyways investing through PE notes in India but it’s a classic example of Indian fund managers who are based overseas or heading institutions but were having problems because of the PE note gap which was there. So, now they will be able to register through being an FII.
Sebi has amended regulations for easier registration of FIIs and sub-accounts. It has also made AMCs, Investment Managers or advisors owned by NRI eligible for FII registration.
Sebi has allowed FIIs to invest in collective investment schemes. It has said that NRIs can register as FIIs if they do not invest their proprietary funds.
Sebi has allowed sovereign wealth funds, pension funds and endowment funds to register as FII. FIIs cannot issue Offshore Derivative Instrument to any entity not regulated by the Foreign Regulatory Authority. They can issue offshore instruments only after compliance with know your customer, or KYC, norms. Non-regulated FIIs have to cancel, redeem or close positions by March 2009.
Investors were anyways investing through PE notes in India but it’s a classic example of Indian fund managers who are based overseas or heading institutions but were having problems because of the PE note gap which was there. So, now they will be able to register through being an FII.
Petrol may go up by Rs 4; Cabinet decision today
Prime Minister Manmohan Singh, Oil Minister Murli Deora, Finance Minister P Chidamabaram and UPA Chairperson Sonia Gandhi met yesterday in the evening. Though there was no final decision, CNBC-TV18 has learnt that it has been agreed to marginally increase the price of petroleum products for the moment.
The consensus is that petrol price could go up by Rs 3 and branded petrol even more. No consensus has been reached yet on a hike for diesel prices.
Deora said that he is not very sure what the bail out package for OMCs (oil marketing companies) will. It may be a mix of price hikes, duty cuts and bonds and the Finance Minister would take a call on it, he said.
Deora also said that the cabinet meet on the fuel price hike is likely to be tomorrow. The crude prices soaring and something definitely needs to be done, he said.
CNBC-TV18's Abhijit Neogy said there are two scenarios floating around for the quantum of a price hike: Rs 4 per litre for petrol and Rs 2 for diesel or Rs 3 per litre for petrol and Rs 2 for diesel.
Excerpts from CNBC-TV18's exclusive interview with Murli Deora:
Q: There are so many options being floated around - what are the options that our government has really zeroed in after the meeting with the Prime Minister?
A: Due to the very unprecedented rise in the oil price, we are trying to find solutions to this. The only solution is to realise more money so that oil companies would buy the products we are selling. We are trying to see that all the PSUs, Hindustan Petroleum and Indian Oil Corporation are galvanized to face this situation.
Up until now, there has hardly been a problem and there is no question of any rationing. I would appeal to the people to kindly corporate with the authorities in case there is a shortage .
Q: What people are wanting to know is the price hike, is there going to be a price hike? What are the options? Is it a price hike, bonds and duty cuts?
A: The oil price which was USD 60-70 per barrel has gone up now to USD 130-132 per barrel. The public sector oil companies are losing a lot of money. The government may either give them some more subsidy or allow them to rise price. Something needs to be done and this is what we are contemplating. I’m sure tomorrow we will be able to find a solution to this.
Q: You are basically saying that price rise is also one of the options being considered?
A: There are various options considered, I can’t say which will be accepted by the cabinet and the government.
Q: The Finance Minister has steadfastly refused to go in for duty cuts, either excise cuts or customs cuts. In the meeting with the Prime Minister has he agreed to any kind of duty cuts excise or customs?
A: The Finance Minister has been co-operative and I would say that he has totally refused duty cuts.
Q: So he has basically signaled his intention to at least go in for a marginal reduction in excise duty, can we say that?
A: I can’t say that is not in my hands.
Q: Have you got any indication that there is a margin reduction of excise duty at least happening on petro- products?
A: Unless and until it is approved by the cabinet it’s not possible for me to say.
Q: But the package that you are contemplating will have duty cuts, price rise and bonds?
A: The package we are contemplating cannot be revealed just now because it is not finalized and when it is finalized we will be the first to reveal them.
Q: When is the cabinet meeting - is it going to happening this evening or is the cabinet meeting going to be convened tomorrow?
A: I don’t know whether it will come today or tomorrow.
Q: If the Left has forwarded its own proposals, tax private refiners who have got windfall profits. They have infact proposed a new tax windfall profit tax how do you react to that?
A: I am not for that and that is for the Finance Minister to reply to them; I have nothing to do with this.
The consensus is that petrol price could go up by Rs 3 and branded petrol even more. No consensus has been reached yet on a hike for diesel prices.
Deora said that he is not very sure what the bail out package for OMCs (oil marketing companies) will. It may be a mix of price hikes, duty cuts and bonds and the Finance Minister would take a call on it, he said.
Deora also said that the cabinet meet on the fuel price hike is likely to be tomorrow. The crude prices soaring and something definitely needs to be done, he said.
CNBC-TV18's Abhijit Neogy said there are two scenarios floating around for the quantum of a price hike: Rs 4 per litre for petrol and Rs 2 for diesel or Rs 3 per litre for petrol and Rs 2 for diesel.
Excerpts from CNBC-TV18's exclusive interview with Murli Deora:
Q: There are so many options being floated around - what are the options that our government has really zeroed in after the meeting with the Prime Minister?
A: Due to the very unprecedented rise in the oil price, we are trying to find solutions to this. The only solution is to realise more money so that oil companies would buy the products we are selling. We are trying to see that all the PSUs, Hindustan Petroleum and Indian Oil Corporation are galvanized to face this situation.
Up until now, there has hardly been a problem and there is no question of any rationing. I would appeal to the people to kindly corporate with the authorities in case there is a shortage .
Q: What people are wanting to know is the price hike, is there going to be a price hike? What are the options? Is it a price hike, bonds and duty cuts?
A: The oil price which was USD 60-70 per barrel has gone up now to USD 130-132 per barrel. The public sector oil companies are losing a lot of money. The government may either give them some more subsidy or allow them to rise price. Something needs to be done and this is what we are contemplating. I’m sure tomorrow we will be able to find a solution to this.
Q: You are basically saying that price rise is also one of the options being considered?
A: There are various options considered, I can’t say which will be accepted by the cabinet and the government.
Q: The Finance Minister has steadfastly refused to go in for duty cuts, either excise cuts or customs cuts. In the meeting with the Prime Minister has he agreed to any kind of duty cuts excise or customs?
A: The Finance Minister has been co-operative and I would say that he has totally refused duty cuts.
Q: So he has basically signaled his intention to at least go in for a marginal reduction in excise duty, can we say that?
A: I can’t say that is not in my hands.
Q: Have you got any indication that there is a margin reduction of excise duty at least happening on petro- products?
A: Unless and until it is approved by the cabinet it’s not possible for me to say.
Q: But the package that you are contemplating will have duty cuts, price rise and bonds?
A: The package we are contemplating cannot be revealed just now because it is not finalized and when it is finalized we will be the first to reveal them.
Q: When is the cabinet meeting - is it going to happening this evening or is the cabinet meeting going to be convened tomorrow?
A: I don’t know whether it will come today or tomorrow.
Q: If the Left has forwarded its own proposals, tax private refiners who have got windfall profits. They have infact proposed a new tax windfall profit tax how do you react to that?
A: I am not for that and that is for the Finance Minister to reply to them; I have nothing to do with this.
Thursday, May 29, 2008
Fertiliser units to get highest gas allocation
The empowered group of ministers (EGoM) is understood to have finalised gas allocations for 2008-09, giving top priority to the fertiliser sector. Existing gas-based power plants have been given the second priority followed by city gas distribution (CGD) projects. The ad-hoc prioritisation for one year has been set up to decide the fate of Reliance Industries’ KG basin gas. The company is expected to pump 40 million standard cubic meter per day (mmscmd) of gas from the third quarter this year. It is learnt from government sources that a final gas utilisation policy is still being debated. “An interim arrangement for the year 2008-09 has been made so that RIL would be able to sell its KG basin gas, which is expected in this year. A long-term policy on gas utilisation would be determined later,” a source present in the eGoM said. An eGoM is the final authority on the subject assigned and its decision does not require the Cabinet’s ratification. It is learnt that for 2008-09 those fertiliser units that are stranded would get priority with a total allocation close to 50 mmscmd. This is higher than last year’s allocation when fertiliser units got just about 30 mmscmd of gas. Similarly, only existing gas-based power plant (read no new power plant) would get priority in gas allocation with expected 30 mmscmd allocation. The decision has, however, left the power ministry sulking as it was expecting much higher allocation to run gas-based power projects to full capacity. The power sector is also last in the priority order for gas allocation for greenfield projects. Power ministry had earlier sought allocation of 77 mmscmd of gas for existing and upcoming projects . The power sector requires 60 mmscmd of gas to run 13,334 mw of existing gas-based projects at 90% plant load factor (PLF). It requires additional gas for running 1,285 mw of gas-based capacity that is ready but is not being commissioned due to shortage of fuel, and another 1,002 mw is running on high-cost liquid fuel that needs to shift to gas to become economical. “The proposed allocation of 30 mmscmd for 2008-09 is even lower than last year’s allocation of about 36 mmscmd allocation. The PLF of gas-based power plants is already low at about 50%, this could further get affected this year,” an official source said. The allocation formula has, however, finalised 5 mmscmd gas allocation for CGD projects that would help to keep cities pollution free as per the direction of the Supreme Court. Surprisingly, industry and other sectors, including LPG, petrochemicals, refineries, sponge iron units etc, would also get a lion’s share of gas allocation this year with release of close to 50 mmscmd of gas. Against a demand of about 180 mmscmd of gas during 2007-08, the actual supplies were to the tune of just 102 mmscmd (88 mmscmd domestic production and 26 mmscmd imports). The total allocation of gas is expected to the tune of 140 mmscmd this year, leaving a huge demand-supply mismatch.
India GSPC plans 5 mln T/yr LNG terminal
India's Gujarat State Petroleum Corp Ltd (GSPC) plans to build a five million tonne a year liquefied natural gas (LNG) terminal at the Mundra port in western India by 2013, a top company official said on Wednesday.
"To begin with it will have a capacity of five million tonnes, and will go up to 20 million tonnes," Managing Director D.J. Pandian told Reuters in a telephone interview from Gujarat.
India, Asia's third-largest oil consumer, is encouraging use of natural gas to control its oil import bill and rein in inflation but there is not enough supply to satisfy rising demand.
State-owned GSPC has hired an international consultant to prepare detailed feasibility report of the project, Pandian said.
"The report will be ready in four to six months from now, then only we can work out the costing and finalise the capacity," he said.
GSPC would hold a 50 percent stake in the project while India's Adani group has agreed to buy 25 percent, he said.
"We are talking to Essar for remaining stake. HPCL has also approached us for buying 25 percent. Let's see, if Essar, HPCL don't join us then we will go for IPO," Pandian said.
HPCL (HPCL.BO: Quote, Profile, Research) is a state-run refining and retailing firm.
Gas demand in India, currently around 179 million standard cubic metres a day (mmscmd), is far short of the supply of about 95 mmscmd. Supply is expected to double by 2009 after new gas fields, including those of Reliance Industries (RELI.BO: Quote, Profile, Research), start production.
India's Petronet LNG (PLNG.BO: Quote, Profile, Research) plans to double its capacity to 10 million tonnes of LNG, while Britain's BG Group Plc (BG.L: Quote, Profile, Research) plans to import LNG in India this year, adding to domestic supplies, but Pandian said the demand was rising.
Analysts say there is enormous potential for using compressed natural gas in vehicles once availability increases, while power and fertiliser units would also switch to natural gas.
Goldman Sachs estimates the share of natural gas in India's coal-dominated energy basket will double to 18 percent by 2015 and stabilise at 20 percent by 2025.
He said the LNG was not easily available currently, but by the time the firm's terminal is set up, enough gas would be there in the market.
A GSPC group firm Gujarat State Petronet Ltd (GSPT.BO: Quote, Profile, Research) is laying a pipeline network of 2,500 kilometres in the state, which can be used by GSPC to transport the re-gassified LNG to the demand centres. (Editing by Ranjit Gangadharan)
"To begin with it will have a capacity of five million tonnes, and will go up to 20 million tonnes," Managing Director D.J. Pandian told Reuters in a telephone interview from Gujarat.
India, Asia's third-largest oil consumer, is encouraging use of natural gas to control its oil import bill and rein in inflation but there is not enough supply to satisfy rising demand.
State-owned GSPC has hired an international consultant to prepare detailed feasibility report of the project, Pandian said.
"The report will be ready in four to six months from now, then only we can work out the costing and finalise the capacity," he said.
GSPC would hold a 50 percent stake in the project while India's Adani group has agreed to buy 25 percent, he said.
"We are talking to Essar for remaining stake. HPCL has also approached us for buying 25 percent. Let's see, if Essar, HPCL don't join us then we will go for IPO," Pandian said.
HPCL (HPCL.BO: Quote, Profile, Research) is a state-run refining and retailing firm.
Gas demand in India, currently around 179 million standard cubic metres a day (mmscmd), is far short of the supply of about 95 mmscmd. Supply is expected to double by 2009 after new gas fields, including those of Reliance Industries (RELI.BO: Quote, Profile, Research), start production.
India's Petronet LNG (PLNG.BO: Quote, Profile, Research) plans to double its capacity to 10 million tonnes of LNG, while Britain's BG Group Plc (BG.L: Quote, Profile, Research) plans to import LNG in India this year, adding to domestic supplies, but Pandian said the demand was rising.
Analysts say there is enormous potential for using compressed natural gas in vehicles once availability increases, while power and fertiliser units would also switch to natural gas.
Goldman Sachs estimates the share of natural gas in India's coal-dominated energy basket will double to 18 percent by 2015 and stabilise at 20 percent by 2025.
He said the LNG was not easily available currently, but by the time the firm's terminal is set up, enough gas would be there in the market.
A GSPC group firm Gujarat State Petronet Ltd (GSPT.BO: Quote, Profile, Research) is laying a pipeline network of 2,500 kilometres in the state, which can be used by GSPC to transport the re-gassified LNG to the demand centres. (Editing by Ranjit Gangadharan)
MARKET PREDICTION
GLOBAL MARKET IS OPEN POSITIVE AFTER EASING OF CRUDE TO $130.
BUT STILL PAIN LEFT IN US BECAUSE OF HOUSING DATA AND CONSUMER SPENDING IS SUPPORTING ECONOMY,RS VS $ 42.73 ALMOST AT THE SAME LEVEL OF YEASTERDAY,TODAY IS CLEARING DAY NIFTY TUNES INTO PREMIUM FROM DINCOUNT FOR SHORT CLOSER, TOTAL MARKET O I IS 89 K CR OUT O I PREVEIL 46 K CR IN JUNE AND 43 K CR IN MAY SERISE LAST.
PUT CALL RATIO INCHED UP A BIT TO 1.29%.LEVEL OF NIFTY 4930-4980-5020 GO LONG FROM 4930 WITH S L OF 4900 AND GO SHORT FROM 5020 LEVEL WITH S L OF 5030.
BFSI AND IT AND FMCG LOOKS POSITIVE.
HAVE A NICE TRADING DAY
BUT STILL PAIN LEFT IN US BECAUSE OF HOUSING DATA AND CONSUMER SPENDING IS SUPPORTING ECONOMY,RS VS $ 42.73 ALMOST AT THE SAME LEVEL OF YEASTERDAY,TODAY IS CLEARING DAY NIFTY TUNES INTO PREMIUM FROM DINCOUNT FOR SHORT CLOSER, TOTAL MARKET O I IS 89 K CR OUT O I PREVEIL 46 K CR IN JUNE AND 43 K CR IN MAY SERISE LAST.
PUT CALL RATIO INCHED UP A BIT TO 1.29%.LEVEL OF NIFTY 4930-4980-5020 GO LONG FROM 4930 WITH S L OF 4900 AND GO SHORT FROM 5020 LEVEL WITH S L OF 5030.
BFSI AND IT AND FMCG LOOKS POSITIVE.
HAVE A NICE TRADING DAY
Wednesday, May 28, 2008
Fertile gains for fertiliser shares on higher subsidy
Seven fertiliser shares rose between 3.24% and 14.53% on reports that the government has provided fertiliser subsidy of Rs 95000 crore for 2008/09, much higher from earlier budget estimates of Rs 31000 crore.
Tata Chemicals (up 4.29% to Rs 395.10), Nagarjuna Fertilisers and Chemicals (up 2.74% to Rs 46.80), Rashtriya Chemicals and Fertilisers (up 3.90% to Rs 70.55), Chambal Fertilisers and Chemicals (up 3.60% to Rs 79.15), Gujarat State Fertiliser Corporation (up 6.11% to Rs 176.25), Zuari Industries (up 3.24% to Rs 235.55), and National Fertiliser (up 14.53% to Rs 54.40), advanced.
Chambal Fertilisers and Chemicals clocked volumes of 59.20 lakh shares, Nagarjuna Fertilisers saw volumes of 28.30 lakh shares while 3.44 lakh shares changed hands on the Rashtriya Chemicals and Fertilisers counter on BSE.
Fertiliser shares had risen in a weak market yesterday, 27 May 2008, when the news of higher subsidy hit the market during trading hours. On that day, Nagarjuna Fertilisers and Chemicals rose 2.36% to Rs 45.55, Rashtriya Chemicals and Fertilisers gained 1.04% to Rs 67.90, and Chambal Fertilisers and Chemicals jumped 6.85% to Rs 76.40
The substantially higher subsidy bill is a part of the strategy of the government to safeguard farmers from sharp price spiral for both raw materials and finished fertilisers in the global market.
Meanwhile, the government's new fertiliser investment policy is likely to be finalised in the next two to three weeks. The new policy will aim at linking production cost of new fertiliser units to the international prices, in order to encourage fresh investments in the sector.
Tata Chemicals (up 4.29% to Rs 395.10), Nagarjuna Fertilisers and Chemicals (up 2.74% to Rs 46.80), Rashtriya Chemicals and Fertilisers (up 3.90% to Rs 70.55), Chambal Fertilisers and Chemicals (up 3.60% to Rs 79.15), Gujarat State Fertiliser Corporation (up 6.11% to Rs 176.25), Zuari Industries (up 3.24% to Rs 235.55), and National Fertiliser (up 14.53% to Rs 54.40), advanced.
Chambal Fertilisers and Chemicals clocked volumes of 59.20 lakh shares, Nagarjuna Fertilisers saw volumes of 28.30 lakh shares while 3.44 lakh shares changed hands on the Rashtriya Chemicals and Fertilisers counter on BSE.
Fertiliser shares had risen in a weak market yesterday, 27 May 2008, when the news of higher subsidy hit the market during trading hours. On that day, Nagarjuna Fertilisers and Chemicals rose 2.36% to Rs 45.55, Rashtriya Chemicals and Fertilisers gained 1.04% to Rs 67.90, and Chambal Fertilisers and Chemicals jumped 6.85% to Rs 76.40
The substantially higher subsidy bill is a part of the strategy of the government to safeguard farmers from sharp price spiral for both raw materials and finished fertilisers in the global market.
Meanwhile, the government's new fertiliser investment policy is likely to be finalised in the next two to three weeks. The new policy will aim at linking production cost of new fertiliser units to the international prices, in order to encourage fresh investments in the sector.
Robust quarterly earnings propel Neyveli Lignite Corporation
Neyveli Lignite Corporation jumped 6.51% to Rs 148 at 9:56 IST on BSE after reporting 1357.10% surge in net profit to Rs 384.68 crore on 128.9% jump in net sales to Rs 801.74 crore in Q4 March 2008 over Q4 March 2007.
The company announced the results after trading hours on Tuesday, 27 May 2008.
Meanwhile, the BSE Sensex was up 84.87 points, or 0.52%, to 16,360.46.
On BSE, 49,343 shares were traded in the counter. The scrip had an average daily volume of 11.09 lakh shares in the past one quarter.
The stock hit a high of Rs 148 and a low of Rs 142.10 so far during the day. The stock had a 52-week high of Rs 273.90 on 4 January 2008 and the stock hit a 52-week low of Rs 58.85 on 12 June 2007.
The mid-cap company had underperformed the market over the past one month till 27 May 2008, declining 5.99% compared to the Sensex’s decline of 4.35%. It had also underperformed the market in the past one quarter, declining 10.70% compared to Sensex’s decline of 8.70%.
The company’s current equity is Rs 1677.71 crore. Face value per share is Rs 10.
The current price of Rs 148 discounts its Q4 March 2008 annualised EPS of Rs 9.17, by a PE multiple of 16.14.
Neyveli Lignite Corporation (NLC)’s net profit surged 94.36% to Rs 1101.57 crore on 34.48% rise in total income to Rs 3638.07 crore in the year ended March 2008 over the year ended March 2007.
On 15 May 2008, NLC got approval from the Union government for development of 1000-megawatt coal based thermal power project at Tuticorin in Tamil Nadu.
Neyveli Lignite Corporation’s principal activities are exploration of lignite mines and power generation. The company owns three lignite mines and two thermal power stations in Neyveli and Cuddalore district in the state of Tamil Nadu. It generates power by using lignite as fuel.
The company announced the results after trading hours on Tuesday, 27 May 2008.
Meanwhile, the BSE Sensex was up 84.87 points, or 0.52%, to 16,360.46.
On BSE, 49,343 shares were traded in the counter. The scrip had an average daily volume of 11.09 lakh shares in the past one quarter.
The stock hit a high of Rs 148 and a low of Rs 142.10 so far during the day. The stock had a 52-week high of Rs 273.90 on 4 January 2008 and the stock hit a 52-week low of Rs 58.85 on 12 June 2007.
The mid-cap company had underperformed the market over the past one month till 27 May 2008, declining 5.99% compared to the Sensex’s decline of 4.35%. It had also underperformed the market in the past one quarter, declining 10.70% compared to Sensex’s decline of 8.70%.
The company’s current equity is Rs 1677.71 crore. Face value per share is Rs 10.
The current price of Rs 148 discounts its Q4 March 2008 annualised EPS of Rs 9.17, by a PE multiple of 16.14.
Neyveli Lignite Corporation (NLC)’s net profit surged 94.36% to Rs 1101.57 crore on 34.48% rise in total income to Rs 3638.07 crore in the year ended March 2008 over the year ended March 2007.
On 15 May 2008, NLC got approval from the Union government for development of 1000-megawatt coal based thermal power project at Tuticorin in Tamil Nadu.
Neyveli Lignite Corporation’s principal activities are exploration of lignite mines and power generation. The company owns three lignite mines and two thermal power stations in Neyveli and Cuddalore district in the state of Tamil Nadu. It generates power by using lignite as fuel.
Cement shares build on relaxation of export ban
Four frontline cement shares rose between 1.37% and 3.69% after the Union government partially lifted a ban on cement exports.
Meanwhile the BSE Sensex was down 19.92 points or 0.12% to 16,259.98
Ambuja Cement (up 3.69% to Rs 101.20), UltratechCement Company (up 2.52% to Rs 651.95), ACC (up 1.37% to Rs 664.50), and India Cement (up 3.51% to Rs 162.30), advanced.
Ambuja Cement clocked volumes of 1.28 lakh shares, UltratechCement Company notched volumes of 3228 shares, ACC clinched volumes of 33,701 shares and 61,827 shares were traded on India Cements counter on BSE.
As per the notification of Directorate General of Foreign Trade (DGFT) issued yesterday, 27 May 2008, export of cement will be allowed from ports based in Gujarat. Gujarat accounts for almost 90% of the country’s cement exports and approximately two million tonne of cement is exported annually from Gujarat.
The partial relaxation on the export ban comes at a time of expectation of slow down in the demand of cement in the country with monsoons approaching.
Earlier, on 11 April 2008, the government had banned cement export to increase availability of the construction material in the domestic market and keep a check on prices, which among other items had fuelled inflation.
Earlier this month, the government had allowed export of cement and cement clinkers to Nepal.
Meanwhile the BSE Sensex was down 19.92 points or 0.12% to 16,259.98
Ambuja Cement (up 3.69% to Rs 101.20), UltratechCement Company (up 2.52% to Rs 651.95), ACC (up 1.37% to Rs 664.50), and India Cement (up 3.51% to Rs 162.30), advanced.
Ambuja Cement clocked volumes of 1.28 lakh shares, UltratechCement Company notched volumes of 3228 shares, ACC clinched volumes of 33,701 shares and 61,827 shares were traded on India Cements counter on BSE.
As per the notification of Directorate General of Foreign Trade (DGFT) issued yesterday, 27 May 2008, export of cement will be allowed from ports based in Gujarat. Gujarat accounts for almost 90% of the country’s cement exports and approximately two million tonne of cement is exported annually from Gujarat.
The partial relaxation on the export ban comes at a time of expectation of slow down in the demand of cement in the country with monsoons approaching.
Earlier, on 11 April 2008, the government had banned cement export to increase availability of the construction material in the domestic market and keep a check on prices, which among other items had fuelled inflation.
Earlier this month, the government had allowed export of cement and cement clinkers to Nepal.
Singapore Hot Stocks-Raffles Education hits 3-mth high on JVs
Raffles Education Corp (RLSE.SI: Quote, Profile, Research) rose as much as 6.3 percent to a three-month high of S$1.36 after the firm formed joint ventures with India's Educomp Solutions (EDSO.BO: Quote, Profile, Research) in India and China.
The $150 million joint ventures with Educomp Solutions, which provides multimedia teaching aids and computer education programmes to schools, allows Raffles Education to tap into the Indian market.
"The Indian education market mirrors that of China in many ways -- inefficient spending by the government on infrastructure and restrictive regulations that stagger private sector participation," Credit Suisse said in a client note.
Credit Suisse analysts kept Raffles Education at "outperform" with a price target of S$1.75, a 30-percent upside from the stock's last traded price.
They said both firms would have limited near-term synergies, and that their education programmes and systems would take time to gain recognition in China and India.
The $150 million joint ventures with Educomp Solutions, which provides multimedia teaching aids and computer education programmes to schools, allows Raffles Education to tap into the Indian market.
"The Indian education market mirrors that of China in many ways -- inefficient spending by the government on infrastructure and restrictive regulations that stagger private sector participation," Credit Suisse said in a client note.
Credit Suisse analysts kept Raffles Education at "outperform" with a price target of S$1.75, a 30-percent upside from the stock's last traded price.
They said both firms would have limited near-term synergies, and that their education programmes and systems would take time to gain recognition in China and India.
MARKET PREDICTION
GLOBAL MARKET IS MIXED...OIL CORRECTED SIGNIFICANTLY FROM HIGH TO $128.
RUPEE GOT WEAK AGAINST DOLLAR 42.78.
JUST BEFORE CLEARING DAY MARKET IS REALLY BAISED TOTAL ROLL OVER SEEN IS 42% JUNE SERISE O I IS 37 K CR AND MAY SERISE O I IS 48 K CR TOTAL O I IS PREVALING IS 85 K CR.
PUT CALL RATIO IS 1.25%.LEVEL OF NOFTY IS 4800 AND 4920 IS CRUCIAL LEVEL FOR THE DAY.
GO SHORT FROM 4900 WITH SL OF 4920 AND BUY FROM LOWER SUPPORT OF 4820 WITH S L OF 4800.IN LONG SIDE IT AND PHARMA LOOK ATTRACTIVE AND IN SHORT SIDE BANKING , FINANCIAL SERVICES AND CONSTRUCTION LOOKS GOOD.
HAVE A NICE TRADING DAY.
-MR SAM
RUPEE GOT WEAK AGAINST DOLLAR 42.78.
JUST BEFORE CLEARING DAY MARKET IS REALLY BAISED TOTAL ROLL OVER SEEN IS 42% JUNE SERISE O I IS 37 K CR AND MAY SERISE O I IS 48 K CR TOTAL O I IS PREVALING IS 85 K CR.
PUT CALL RATIO IS 1.25%.LEVEL OF NOFTY IS 4800 AND 4920 IS CRUCIAL LEVEL FOR THE DAY.
GO SHORT FROM 4900 WITH SL OF 4920 AND BUY FROM LOWER SUPPORT OF 4820 WITH S L OF 4800.IN LONG SIDE IT AND PHARMA LOOK ATTRACTIVE AND IN SHORT SIDE BANKING , FINANCIAL SERVICES AND CONSTRUCTION LOOKS GOOD.
HAVE A NICE TRADING DAY.
-MR SAM
Tuesday, May 27, 2008
MARKET PREDICTION
GLOBAL MARKET IS MIXED TODAY.
OIL HIT $133 APROX AFTER 2ND ATTACK IN NIGERIA.
RUPEE VS DOLLAR SETTLE AT 42.63.IN NIFTY WE HAVE SEEN HAVY SELLING PRESURE AFTER BRECH 4900 LEVEL,IF MARKET DO NOT TAKE SUPPORT AT 4800 IT COULD TUMBLE TO 4700 TOO WHICH IS IMMEDIATE SUPPORT TO MARKET IN SHORT TERM,TOTAL O I IS 83 K CR,IN MAY SERISE 54 K CR AND IN JUNE SERISE 29 K CR.
TOTAL MARKET WIDE ROLL OVER IS 25% AND PUT CALL RATIO IS HOVERING AROUD 1.27.
LEVEL OF NIFTY 4850-4920-4980.
IF MARKET HOLD 4800 GO LONG IN PHARMA AND TECH SHARE,ALSO IN SHORT SIDE IF MARKET DOES NOT HOLD 4920 GO SHORT WITH S L OF 4950 IN BANK AND CONSTRUCTION.
HAVE A NICE TRADING DAY..
-MR SAM
OIL HIT $133 APROX AFTER 2ND ATTACK IN NIGERIA.
RUPEE VS DOLLAR SETTLE AT 42.63.IN NIFTY WE HAVE SEEN HAVY SELLING PRESURE AFTER BRECH 4900 LEVEL,IF MARKET DO NOT TAKE SUPPORT AT 4800 IT COULD TUMBLE TO 4700 TOO WHICH IS IMMEDIATE SUPPORT TO MARKET IN SHORT TERM,TOTAL O I IS 83 K CR,IN MAY SERISE 54 K CR AND IN JUNE SERISE 29 K CR.
TOTAL MARKET WIDE ROLL OVER IS 25% AND PUT CALL RATIO IS HOVERING AROUD 1.27.
LEVEL OF NIFTY 4850-4920-4980.
IF MARKET HOLD 4800 GO LONG IN PHARMA AND TECH SHARE,ALSO IN SHORT SIDE IF MARKET DOES NOT HOLD 4920 GO SHORT WITH S L OF 4950 IN BANK AND CONSTRUCTION.
HAVE A NICE TRADING DAY..
-MR SAM
Monday, May 26, 2008
MARKET OUTLOOK
GLOBAL MARKE T IS WEAK ASIAN MARKET ARE DOWN ALMOST 2%.SO WE CAN ASSUME NIFTY WILL OPEN IN NEGETIVE NOTE .
THIS IS CLEARING WEAK TOTAL JUNE SERISE O I IS 22 K CR,TOTAL MARKET ROLL OVER IS 20% AROUND MAY SERISE O I IS 59 K CR.PUT CALL RATIO IS 1.31%.
LEVEL OF NIFTY IS 4800-4850-4920.
IF MARKET HOLD 4850 GO LONG IN PHARMA AND FMCG,AND IF MARKET DOES NOT HOLD 4900 GO SHORT IN CONSTRUCTION AND BANKING AND FINANCIAL SERVICE.
KARNATAKA ELECTION IS TURNMOIL IN INDIA BECAUSE BJP HOLDING MAJORITY SEAT IT COULD LEAD TO LOKSHABHA ELECTION.
HAVE NICE TRADING DAY
THIS IS CLEARING WEAK TOTAL JUNE SERISE O I IS 22 K CR,TOTAL MARKET ROLL OVER IS 20% AROUND MAY SERISE O I IS 59 K CR.PUT CALL RATIO IS 1.31%.
LEVEL OF NIFTY IS 4800-4850-4920.
IF MARKET HOLD 4850 GO LONG IN PHARMA AND FMCG,AND IF MARKET DOES NOT HOLD 4900 GO SHORT IN CONSTRUCTION AND BANKING AND FINANCIAL SERVICE.
KARNATAKA ELECTION IS TURNMOIL IN INDIA BECAUSE BJP HOLDING MAJORITY SEAT IT COULD LEAD TO LOKSHABHA ELECTION.
HAVE NICE TRADING DAY
Saturday, May 24, 2008
Indian Rupee Has Fifth Week of Losses on Rising Crude Oil Costs
India's rupee declined for the fifth week, the worst run in almost two years, as record crude oil costs spurred demand for dollars needed to buy the commodity.
The local currency fell to the lowest since April 2007 this week as companies such as Indian Oil Corp., the nation's largest refiner, paid more for raw materials. Higher oil costs may slow growth of Asia's third-largest economy, which depends on imports to meet three-quarters of its annual energy needs.
``The pressure on the rupee continues because refiners are looking to cover dollar needs arising in the short term,'' said Rohan Lasrado, a foreign-exchange trader at HDFC Bank Ltd. in Mumbai. ``Adding to the rupee's worries will be the inconsistent dollar supply.''
The rupee declined 0.5 percent this week to 42.705 versus the dollar at the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. It may fall to 43.25 in next few days, Lasrado said.
The rupee is the second-worst performer this year among Asia's 10 most-traded currencies, excluding the yen.
The local currency will rise by almost 9 percent through the end of the year as the central bank raises borrowing costs by July to fight inflation that's at the fastest pace in 3 1/2 years, Fortis Bank SA said.
The currency will rebound from its lowest in 13 months as the Reserve Bank of India increases the repurchase rate to 8 percent from 7.75 percent before its next meeting on July 29, Joseph Tan, Fortis Bank's Singapore-based strategist, said in an interview.
Tightening Policy
``Economic growth is pretty much intact, but inflation is a new threat and there is no scope for the central bank to have a neutral monetary policy approach,'' Tan said. ``I am leaning toward believing that the central bank will tighten monetary policy further, despite what the economy is going through, and will also use the exchange rate.''
Fortis predicts the rupee will rise to as high as 39.4 at the end of this year. It is among the 21 respondents in a Bloomberg News survey, all of whom predict that the currency will rise in 2008.
Goldman Sachs Group Inc. revised its forecasts for the Indian rupee, predicting a 3.2 percent drop in the next six months because rising oil costs will increase the import bill and double the nation's current-account deficit. Goldman wasn't part of Bloomberg's survey.
The broad measure of trade that includes investment flows will widen to 3.5 percent of gross domestic product in the fiscal year ending in March from 1.5 percent the previous year, Goldman's Tushar Poddar and Pranjul Bhandari wrote in a note.
Caught By Surprise
``The recent large move up in the dollar has caught us by surprise and appears to be driven by the run-up in oil prices,'' wrote Mumbai-based Poddar and Bhandari, analysts at the world's largest securities firm by market value. ``The rupee will continue to weaken.''
Goldman changed its three-month, six-month and one-year forecasts for the rupee to 43.9, 44.1 and 42.2 from earlier estimates of 41, 40.3 and 38.9, respectively.
The current-account shortfall widened to $5.4 billion in the three months ended Dec. 31, from $3.7 billion a year earlier and $4.7 billion in the preceding quarter, the central bank said on March 31. That was after the country imported oil worth $71.8 billion in the year through March 31, 23.5 percent more than a year earlier.
The local currency fell to the lowest since April 2007 this week as companies such as Indian Oil Corp., the nation's largest refiner, paid more for raw materials. Higher oil costs may slow growth of Asia's third-largest economy, which depends on imports to meet three-quarters of its annual energy needs.
``The pressure on the rupee continues because refiners are looking to cover dollar needs arising in the short term,'' said Rohan Lasrado, a foreign-exchange trader at HDFC Bank Ltd. in Mumbai. ``Adding to the rupee's worries will be the inconsistent dollar supply.''
The rupee declined 0.5 percent this week to 42.705 versus the dollar at the 5 p.m. close in Mumbai, according to data compiled by Bloomberg. It may fall to 43.25 in next few days, Lasrado said.
The rupee is the second-worst performer this year among Asia's 10 most-traded currencies, excluding the yen.
The local currency will rise by almost 9 percent through the end of the year as the central bank raises borrowing costs by July to fight inflation that's at the fastest pace in 3 1/2 years, Fortis Bank SA said.
The currency will rebound from its lowest in 13 months as the Reserve Bank of India increases the repurchase rate to 8 percent from 7.75 percent before its next meeting on July 29, Joseph Tan, Fortis Bank's Singapore-based strategist, said in an interview.
Tightening Policy
``Economic growth is pretty much intact, but inflation is a new threat and there is no scope for the central bank to have a neutral monetary policy approach,'' Tan said. ``I am leaning toward believing that the central bank will tighten monetary policy further, despite what the economy is going through, and will also use the exchange rate.''
Fortis predicts the rupee will rise to as high as 39.4 at the end of this year. It is among the 21 respondents in a Bloomberg News survey, all of whom predict that the currency will rise in 2008.
Goldman Sachs Group Inc. revised its forecasts for the Indian rupee, predicting a 3.2 percent drop in the next six months because rising oil costs will increase the import bill and double the nation's current-account deficit. Goldman wasn't part of Bloomberg's survey.
The broad measure of trade that includes investment flows will widen to 3.5 percent of gross domestic product in the fiscal year ending in March from 1.5 percent the previous year, Goldman's Tushar Poddar and Pranjul Bhandari wrote in a note.
Caught By Surprise
``The recent large move up in the dollar has caught us by surprise and appears to be driven by the run-up in oil prices,'' wrote Mumbai-based Poddar and Bhandari, analysts at the world's largest securities firm by market value. ``The rupee will continue to weaken.''
Goldman changed its three-month, six-month and one-year forecasts for the rupee to 43.9, 44.1 and 42.2 from earlier estimates of 41, 40.3 and 38.9, respectively.
The current-account shortfall widened to $5.4 billion in the three months ended Dec. 31, from $3.7 billion a year earlier and $4.7 billion in the preceding quarter, the central bank said on March 31. That was after the country imported oil worth $71.8 billion in the year through March 31, 23.5 percent more than a year earlier.
Friday, May 23, 2008
India to issue 3G, WiMax guidelines by June - Raja
India aims to issue guidelines for third-generation mobile (3G) and WiMAX networks by June and will allow foreign participation in them, telecoms minister Andimuthu Raja said on Friday.
"By June the guidelines will be issued for 3G and WiMAX," Raja said in a speech at an industry conference, adding he expected the roll-out of such networks by January 2009.
3G wireless networks allow operators to transmit data, voice and video at high speeds, enabling Internet services on mobile devices. India is eyeing 3G network as a solution for lack of voice-centric 2G network capacity and slow growth of broadband.
"All existing operators are ready for 3G rollout. It does not need new infrastructure," Raja told reporters after the speech.
When asked if foreign players would be allowed to bid for 3G spectrum, he said: "If there is common auction, open auction, then there will be no bar."
India allows foreign firms to own up to 74 percent in an Indian telecoms firm, and these partnerships can also start 3G services, Raja said.
"Either way foreign players will be permitted," he said.
"By June the guidelines will be issued for 3G and WiMAX," Raja said in a speech at an industry conference, adding he expected the roll-out of such networks by January 2009.
3G wireless networks allow operators to transmit data, voice and video at high speeds, enabling Internet services on mobile devices. India is eyeing 3G network as a solution for lack of voice-centric 2G network capacity and slow growth of broadband.
"All existing operators are ready for 3G rollout. It does not need new infrastructure," Raja told reporters after the speech.
When asked if foreign players would be allowed to bid for 3G spectrum, he said: "If there is common auction, open auction, then there will be no bar."
India allows foreign firms to own up to 74 percent in an Indian telecoms firm, and these partnerships can also start 3G services, Raja said.
"Either way foreign players will be permitted," he said.
Oil resumes climb after sharp drop
Oil stood near $132 a barrel on Friday, recovering a little from a strong bout of profit-taking in the previous session that pulled prices back more than 3 percent from the record high above $135 a barrel.
U.S. light crude for July delivery was up $1.13 at $131.94 a barrel by 0736 GMT. It surged to $135.09 on Thursday before slumping to settle at $130.81, the first time in five sessions that it settled lower.
London Brent crude was up $1.37 at $131.88.
"Supplies not growing is still the main thing. OPEC can turn the tap but they cannot do it forever, and non-OPEC growth is not enough," said Tony Nunan, risk management executive at Tokyo-based Mitsubishi Corp.
"Demand...is not falling as much as expected," he added.
Oil production from countries outside OPEC is stagnating and forecast to remain below 50 million barrels per day this year, at 49.56 million bpd, lower than earlier forecast, a Reuters survey of 12 analysts showed on Thursday.
The failure of non-OPEC producers to increase output significantly has helped drive oil prices up more than a third since the beginning of the year.
It has also sent long-term prices even higher, at close to $150 a barrel, as concerns mount that supplies will not be enough to meet demand from developing countries in the future.
OPEC Secretary-General Abdullah al-Badri on Thursday repeated the group's stance that it can do nothing to lower oil prices in a "crazy" market, blaming record prices on factors such as geopolitical tensions, speculation and the weak dollar.
The cartel's view was shared by the chief executive of Royal Dutch Shell Plc, Jeroen van der Veer, who told Reuters Television that oil prices are rising due to market sentiment rather than a shortage of supply.
A stronger dollar on Thursday also contributed to lower oil prices as investors have increasingly been using oil as a hedge against the falling currency, setting off inverse trends in the dollar and oil.
The greenback steadied on Friday, but the currency stayed in sight of a one-month low against the euro on worries that inflation could lead to a deeper U.S. slowdown.
U.S. light crude for July delivery was up $1.13 at $131.94 a barrel by 0736 GMT. It surged to $135.09 on Thursday before slumping to settle at $130.81, the first time in five sessions that it settled lower.
London Brent crude was up $1.37 at $131.88.
"Supplies not growing is still the main thing. OPEC can turn the tap but they cannot do it forever, and non-OPEC growth is not enough," said Tony Nunan, risk management executive at Tokyo-based Mitsubishi Corp.
"Demand...is not falling as much as expected," he added.
Oil production from countries outside OPEC is stagnating and forecast to remain below 50 million barrels per day this year, at 49.56 million bpd, lower than earlier forecast, a Reuters survey of 12 analysts showed on Thursday.
The failure of non-OPEC producers to increase output significantly has helped drive oil prices up more than a third since the beginning of the year.
It has also sent long-term prices even higher, at close to $150 a barrel, as concerns mount that supplies will not be enough to meet demand from developing countries in the future.
OPEC Secretary-General Abdullah al-Badri on Thursday repeated the group's stance that it can do nothing to lower oil prices in a "crazy" market, blaming record prices on factors such as geopolitical tensions, speculation and the weak dollar.
The cartel's view was shared by the chief executive of Royal Dutch Shell Plc, Jeroen van der Veer, who told Reuters Television that oil prices are rising due to market sentiment rather than a shortage of supply.
A stronger dollar on Thursday also contributed to lower oil prices as investors have increasingly been using oil as a hedge against the falling currency, setting off inverse trends in the dollar and oil.
The greenback steadied on Friday, but the currency stayed in sight of a one-month low against the euro on worries that inflation could lead to a deeper U.S. slowdown.
India set to raise fuel price, inflation a worry
India is set to raise petrol and diesel prices to keep pace with crude oil's record run but the move will fuel inflation, heaping more pressure on a government struggling to calm prices ahead of elections.
Crude oil's surge has hurt consumers around the world and countries such as Indonesia are being forced to raise state-controlled prices. China said on Thursday it would retain controls on fuel prices, denying rumours about deregulation.
"A fuel price hike is inevitable," Indian Petroleum Secretary M.S. Srinivasan told reporters on Friday, adding that the oil ministry was also seeking tax changes to help Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which are forced to sell fuel below cost.
India sets the heavily discounted prices at which fuel is sold in order to help fight inflation and protect hundreds of millions of poor people from price shocks.
It partially compensates oil retailers by issuing oil bonds to them, which they can either hold as assets or sell in the market, while upstream companies share some of the burden.
The government, which faces a string of state elections this year and a national poll by May 2009, is worried that higher fuel prices will stoke inflation, already at its highest level in 3-½ years at nearly 8 percent.
It has strived to contain inflation with tough restrictions on exports of rice and duty cuts on some imports, while steel firms have been firmly told to freeze prices for three months.
But with oil above $130 a barrel and losses at state energy firms mounting, the government has little option but to raise retail fuel prices.
The oil minister said on Friday the government may take a week to decide whether to raise prices.
"With a fuel price hike in the offing, inflation is headed up and we may see inflation hit 8.5 percent by June," said A. Prasanna, economist at ICICI Securities.
"We expect the central bank to take further liquidity tightening measures to control inflation."
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
Crude oil's surge has hurt consumers around the world and countries such as Indonesia are being forced to raise state-controlled prices. China said on Thursday it would retain controls on fuel prices, denying rumours about deregulation.
"A fuel price hike is inevitable," Indian Petroleum Secretary M.S. Srinivasan told reporters on Friday, adding that the oil ministry was also seeking tax changes to help Indian Oil Corp, Hindustan Petroleum Corp and Bharat Petroleum Corp, which are forced to sell fuel below cost.
India sets the heavily discounted prices at which fuel is sold in order to help fight inflation and protect hundreds of millions of poor people from price shocks.
It partially compensates oil retailers by issuing oil bonds to them, which they can either hold as assets or sell in the market, while upstream companies share some of the burden.
The government, which faces a string of state elections this year and a national poll by May 2009, is worried that higher fuel prices will stoke inflation, already at its highest level in 3-½ years at nearly 8 percent.
It has strived to contain inflation with tough restrictions on exports of rice and duty cuts on some imports, while steel firms have been firmly told to freeze prices for three months.
But with oil above $130 a barrel and losses at state energy firms mounting, the government has little option but to raise retail fuel prices.
The oil minister said on Friday the government may take a week to decide whether to raise prices.
"With a fuel price hike in the offing, inflation is headed up and we may see inflation hit 8.5 percent by June," said A. Prasanna, economist at ICICI Securities.
"We expect the central bank to take further liquidity tightening measures to control inflation."
The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is published weekly.
MARKET PREDICTION
NO BIG NEWS IS MOVING AROUND THE WORLD ..
TODAY'S INDIAN MARKET WILL TOTALLY DEPENDS ON INFLATION DATA AND GOVERNMENT ACTION PLAN ON THAT.
TOTAL MARKET O I IS 81 K CR (IN MAY SERIES 61 K CR AND 19 K CR N JUNE SERIES) PUT CALL RATIO IS 1.37.DOLLAR VS RUPEE IS 42.85.
CRUDE OIL IS $131.4/BRL.
LEVEL OF NIFTY IS 4950-5000-5060-5100.
IF MARKET HOLD 5000 GO LONG IN TECH AND PHARMA WITH SL OF 4980..IF DOES NOT SUSTAIN ABOVE 5000 GO SHORT IN CONSTRUCTION WITH S L OF 5030.
--HAVE A NICE TRADING DAY
-MR SAM
TODAY'S INDIAN MARKET WILL TOTALLY DEPENDS ON INFLATION DATA AND GOVERNMENT ACTION PLAN ON THAT.
TOTAL MARKET O I IS 81 K CR (IN MAY SERIES 61 K CR AND 19 K CR N JUNE SERIES) PUT CALL RATIO IS 1.37.DOLLAR VS RUPEE IS 42.85.
CRUDE OIL IS $131.4/BRL.
LEVEL OF NIFTY IS 4950-5000-5060-5100.
IF MARKET HOLD 5000 GO LONG IN TECH AND PHARMA WITH SL OF 4980..IF DOES NOT SUSTAIN ABOVE 5000 GO SHORT IN CONSTRUCTION WITH S L OF 5030.
--HAVE A NICE TRADING DAY
-MR SAM
Thursday, May 22, 2008
BPCL starts rationing fuel supplies
As crude oil prices keep soaring and the Centre refuses to bail out public sector oil marketing companies, which are under tremendous strain, the oil crisis has literally reached your neighbourhood gas station. Vehicle owners can no longer be sure that petrol or diesel will be available on demand. Beginning Tuesday, Bharat Petroleum Corporation Limited has put its petrol pumps across the country on a "rationed" supply. BPCL has adopted the drastic system because of a severe cash crunch for buying oil products. Other oil majors like as HPCL and IOC too are facing a cash crunch given the government's refusal to allow an increase in retail prices, which has been in the offing several times in the last few months. Amarjit Singh, vice-president of the Petro Dealers' Association in Mumbai, said that BPCL petrol-pump owners were informed on Tuesday that every dealer would receive only a limited quota every month. "Every petrol dealer will receive petrol/diesel equivalent to the sale that was done in the same period last year. For instance, my pump sold around 80 kilolitres in May last year. I will receive a similar quantity or less this month," he said. In effect, this means that if a dealer exhausts his quota within, say, 25 days, due to the growing demand for petrol from the ever-growing automobile sector, he has to down the shutter for the remaining days of the month. The company has told dealers that the move is only aimed at extending the available products for a longer duration.
A high-ranking BPCL official, requesting anonymity, confirmed that rationing has been done across the country and would, in effect, be initially for four to five months or less if the issue of payment is resolved earlier. HPCL officials refused to comment while IOC's N Srikumar said: "There is no quota from our end and there is no such move from our end." Singh said the petrol dealers had proposed to BPCL that they would keep the petrol pumps open only for a limited period every day. "Some of us are open till late at night or all 24 hours.
We have proposed that the petrol pumps will be open only from 7am to 10pm every day. It does not make sense to work longer hours if we are going to run out of petrol before the month-end and have to shut shop." The government, he said, must act soon as it is a very difficult situation.
A high-ranking BPCL official, requesting anonymity, confirmed that rationing has been done across the country and would, in effect, be initially for four to five months or less if the issue of payment is resolved earlier. HPCL officials refused to comment while IOC's N Srikumar said: "There is no quota from our end and there is no such move from our end." Singh said the petrol dealers had proposed to BPCL that they would keep the petrol pumps open only for a limited period every day. "Some of us are open till late at night or all 24 hours.
We have proposed that the petrol pumps will be open only from 7am to 10pm every day. It does not make sense to work longer hours if we are going to run out of petrol before the month-end and have to shut shop." The government, he said, must act soon as it is a very difficult situation.
Why oil prices are at a record high????????
U.S. crude oil hit an all-time high of $130.47 a barrel.
Robust demand for crude and a weak dollar have fuelled the rally from a dip below $50 at the start of 2007.
Adjusted for inflation, oil is now above the $101.70 peak hit in April 1980, according to the International Energy Agency, a year after the Iranian revolution.
DOLLAR WEAKNESS
The fall in the value of the dollar against other major currencies has helped drive buying across commodities as investors view dollar assets as relatively cheap.
It has also reduced the purchasing power of OPEC's revenues and increased the purchasing power of some non-dollar consumers.
OPEC oil ministers have noted that although prices are rising to record nominal levels, inflation and the dollar have softened the impact.
Some analysts say investors have been using oil as a hedge against the weaker dollar.
FUNDS
Since the Federal Reserve cut U.S. interest rates in mid-August last year and central banks pumped billions of dollars into financial markets to ease a credit crunch, oil and gold have risen.
Investment flows from pension and hedge funds into commodities including oil have boomed, as has speculative trading. At the same time, the credit crunch has brought some other markets, such as the U.S. asset-backed commercial paper market, to a virtual standstill.
Some of that money has found its way into energy and commodities, analysts say.
DEMAND
While previous price spikes have been triggered by supply disruptions, demand from top consumers the United States and China is a main driver of the current rally.
Global demand growth has slowed after a surge in 2004 but is still rising and higher prices have so far had a limited effect on economic growth.
Analysts say the world is coping with high nominal prices because, adjusted for exchange rates and inflation, they have been until recently lower than during previous price spikes and some economies have become less energy intensive.
OPEC SUPPLY RESTRAINT
The Organization of the Petroleum Exporting Countries, source of more than a third of the world's oil, started to reduce oil output in late 2006 to stem a fall in prices.
Fewer OPEC barrels entering the market helped propel the rally and consumer nations led by the International Energy Agency have urged OPEC to pump more oil.
At its meetings since December, OPEC has agreed to leave output unchanged, saying there is enough crude in the market. It next meets formally on September 9.
Few in the group believe there is much it can do to tame a market it says defies logic.
NIGERIA
Supply of crude from Nigeria, the world's eighth-largest oil exporter, has been cut since February 2006 because of militant attacks on the country's oil industry.
Oil companies and trading sources have detailed 559,000 bpd of shut Nigerian production due to militant attacks and sabotage.
IRAN
Oil consumers are concerned about supply disruption from Iran, the world's fourth-biggest exporter, which is locked in a dispute with the West over its nuclear program.
Western governments suspect Iran is using its civilian nuclear program as a cover to develop nuclear weapons. Iran denies this, saying it wants nuclear power to make electricity.
IRAQ
Iraq is struggling to get its oil industry back on its feet after decades of wars, sanctions and underinvestment.
Exports of Kirkuk crude from the country's north are stabilizing as the system recovers from technical problems that had mostly idled the pipeline since the U.S.-led invasion of Iraq in March 2003.
REFINERY BOTTLENECKS
Refiners in the United States, the world's top gas guzzler, struggled with unexpected outages which have drained inventories.
Robust demand for crude and a weak dollar have fuelled the rally from a dip below $50 at the start of 2007.
Adjusted for inflation, oil is now above the $101.70 peak hit in April 1980, according to the International Energy Agency, a year after the Iranian revolution.
DOLLAR WEAKNESS
The fall in the value of the dollar against other major currencies has helped drive buying across commodities as investors view dollar assets as relatively cheap.
It has also reduced the purchasing power of OPEC's revenues and increased the purchasing power of some non-dollar consumers.
OPEC oil ministers have noted that although prices are rising to record nominal levels, inflation and the dollar have softened the impact.
Some analysts say investors have been using oil as a hedge against the weaker dollar.
FUNDS
Since the Federal Reserve cut U.S. interest rates in mid-August last year and central banks pumped billions of dollars into financial markets to ease a credit crunch, oil and gold have risen.
Investment flows from pension and hedge funds into commodities including oil have boomed, as has speculative trading. At the same time, the credit crunch has brought some other markets, such as the U.S. asset-backed commercial paper market, to a virtual standstill.
Some of that money has found its way into energy and commodities, analysts say.
DEMAND
While previous price spikes have been triggered by supply disruptions, demand from top consumers the United States and China is a main driver of the current rally.
Global demand growth has slowed after a surge in 2004 but is still rising and higher prices have so far had a limited effect on economic growth.
Analysts say the world is coping with high nominal prices because, adjusted for exchange rates and inflation, they have been until recently lower than during previous price spikes and some economies have become less energy intensive.
OPEC SUPPLY RESTRAINT
The Organization of the Petroleum Exporting Countries, source of more than a third of the world's oil, started to reduce oil output in late 2006 to stem a fall in prices.
Fewer OPEC barrels entering the market helped propel the rally and consumer nations led by the International Energy Agency have urged OPEC to pump more oil.
At its meetings since December, OPEC has agreed to leave output unchanged, saying there is enough crude in the market. It next meets formally on September 9.
Few in the group believe there is much it can do to tame a market it says defies logic.
NIGERIA
Supply of crude from Nigeria, the world's eighth-largest oil exporter, has been cut since February 2006 because of militant attacks on the country's oil industry.
Oil companies and trading sources have detailed 559,000 bpd of shut Nigerian production due to militant attacks and sabotage.
IRAN
Oil consumers are concerned about supply disruption from Iran, the world's fourth-biggest exporter, which is locked in a dispute with the West over its nuclear program.
Western governments suspect Iran is using its civilian nuclear program as a cover to develop nuclear weapons. Iran denies this, saying it wants nuclear power to make electricity.
IRAQ
Iraq is struggling to get its oil industry back on its feet after decades of wars, sanctions and underinvestment.
Exports of Kirkuk crude from the country's north are stabilizing as the system recovers from technical problems that had mostly idled the pipeline since the U.S.-led invasion of Iraq in March 2003.
REFINERY BOTTLENECKS
Refiners in the United States, the world's top gas guzzler, struggled with unexpected outages which have drained inventories.
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