Market opens firm indication of crude oil drops

Benchmark key edged higher in early trade on real Asian stocks rose as European leaders expressed support for Greece and lower energy prices ease concern the global recovery will falter. BSE Sensex rose 135.52 points or 0.76%. The size of the market was strong. Index heavyweight Reliance Industries (RIL) advanced for the second consecutive day. PSU OMC hit a slump in crude oil prices, before a meeting of the empowered group of ministers (EGoM) to discuss fuel prices NRI Online Trading account.

At 9:25 IST, the BSE Sensex up 135.52 points, or 0.76% to 17,863.01. The Sensex rose 163.51 points the day high of 17,891 in early trading, its highest level since June 20, 2011. The index rose 77.45 points to 17,804.94 on the day a bit in early trading NRI Demat Account.

S & P CNX Nifty rose 55.15 points, or 1.04% at 5,375.15. Nifty hit a peak in early trading 5,375.95, its highest level for June 20, 2011.

The market size, which indicates the general health of the market was very strong. On BSE, 656 shares advanced while 212 shares declined. A total of 25 shares remained unchanged PAN Card for NRI.

Among the Sensex pack of 30 members, 27 shares rose, while the rest of them fell. State Bank of India, M & M and TCS rose 1.23% to 1.37%. Tata Power Company, Bhel and Maruti Suzuki India fell 0.15% to 0.66%.

Index heavyweight Reliance Industries (RIL) rose 0.5%, extending gains of 2.9% Thursday triggered by reports of the company made another discovery of natural gas in Block D-9 in the Godavari-rich Krishna Oil (KG) basin. The resource potential of the block is estimated at 5.210 trillion cubic feet (TCF) of oil RIL minority Hardy. When extracted May 1 TCF of gas for $ 20 million to the current market price, it said NRI Share Trading Account.

RIL stock had seen a sell off after the recent reports of the government watchdog has accused the Ministry of Oil for RIL, allowing it to double the development costs for its KG-D6 gas field. Available hit 52-week low of Rs 829 in intraday trading on Monday, June 20, 2011. As per recent reports, a final report by the Comptroller and Auditor of India (CAG) has questioned the decision of the Ministry of Petroleum and its technical arm, Director General of Hydrocarbons (DGH), RIL to increase the development cost of RIL of KG-D6 field. RIL had said last week that he fully complied with its production sharing contract with the performance of petroleum operations

Ril reported tax payment jumped 38.46% to Rs 900 crore in Q1 June 2011 over Q1 June 2010. Higher than the pre-payment of tax normally indicates a higher profit for the period under review.

ONGC rose 2.02% on hopes of a subsidiary division of the burden will decrease if the recent drop in oil prices continues, or if the government increased fuel prices.

Shares of state-owned oil marketing (JI PSU) – HPCL, BPCL and Indian Oil Corporation jumped 2.78% to 4.26% on reports of a meeting of empowered group of ministers (EGoM) led by Finance Minister Pranab Mukherjee is scheduled today, June 24, 2011 to discuss fuel prices. The oil ministry had requested a reduction in taxes on petroleum products and fuel, and demanded higher prices of diesel and cooking to help PSU OMC to reduce losses on the sale of petroleum products at discounted prices attached by the state.

Indeed, oil prices fell sharply in New York Thursday, June 23, 2011, after the United States and other members of the International Atomic Energy Agency said unexpectedly release 60 million barrels of oil in global energy markets to offset loss of production in Libya. The Indian government has been dithering on the rise in prices of diesel and cooking gas, which was increased last a year ago.

On the macro front, the price of food increased by 9.13% and the index of fuel prices increased by 12.84% at June 11, 2011 Board of Directors of the data released on Thursday showed. In the week before, a food and annual inflation was 8.96% of fuel and 12.84% respectively. The index of primary articles rose by 12.62% compared to the annual increase 12.86% a week earlier.

India Meteorological Department (IMD) on Tuesday downgraded the outlook for the vital monsoon rains this year to slightly below normal compared to normal forecast in April 2011. On the back, agricultural production can not be negatively impacted significantly due to the onset of monsoon rains on time this year and expectations that the rain is well distributed.

The IMD said monsoon rains this year would be 95% of the average long-term overall downward its previous forecast of 98% and just below the range of 96 to 104 percent is considered normal monsoon. India, one of the largest producers and consumers around the world crops such as rice, sugar and corn is mainly based on the monsoon from June to September for agricultural production.

The monsoon rains in July 2011 should be 27 centimeters, 29 centimeters against average over 50 years. In August 2011, the rains should be 24 inches from a long-term average of 26 centimeters. The monsoon season brings about 70% of annual rainfall in India and is essential for summer crops such as rice, sugarcane, pulses, cotton and oilseeds as about 60% of the country’s farmland is rainwater. The precipitation forecast has been lowered due to the weakening of La Nina conditions, temperatures neutral on the Indian Ocean and the North Atlantic negative pressure.

The rainy season was 11% higher than normal until June 20 Most regions have so far received normal rainfall above normal, except Gujarat, the largest producer of cotton, the northern region. In northern India, known as the bowl of cereal in the countries of the region, the rainy season has so far affected his peripheral regions of Uttar Pradesh. The monsoon advanced to half the country and is expected to cover most areas in the first week of July.

The rains in July, is considered crucial. Many will begin planting trees in June and July rainfall set a good soil moisture and the proper development of crops planted in June.

Asian stocks rose on Friday, EU leaders expressed their support to Greece and a collapse in energy prices eased concern the global recovery will falter. The key benchmark indices in China, Hong Kong, Indonesia, South Korea, Japan, Singapore increased from 0.36% to 1.55%. Taiwan Taiwan weighted average fell from 0.55%

Oil prices plunged in New York on Thursday after the U.S. and other members of the International Atomic Energy unexpectedly said they would release 60 million barrels of oil on world markets of energy to compensate for the loss of production in Libya.

The U.S. index futures indicated the Dow could get 44 points at the opening bell Friday, June 24, 2011. The U.S. Federal Reserve Wednesday, June 22, 2011 reiterated that it was terminating its $ 600 billion bond purchase program by the end of the month.

European leaders pledged more money to help Greece avoid imminent bankruptcy, provided that the Parliament adopts austerity plan completed in full last minute discussions with international lenders. Greek Prime Minister George Papandreou promised to push through radical economic reforms after his new finance minister won a deal with the inspectors of the EU and the IMF on additional tax increases and cuts to fill a gap € 3800000000 funding.


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