RIL Cut Losses After Denying Inflate Costs KG D6

The benchmark index cut losses in trading morning, after fresh intraday lows as the index heavy Reliance Industries (RIL), compared to the initial losses after the company has denied inflating the cost of its D6 gas field in Krishna Godavari- (KG) basin. BSE Sensex fell 264.25 points, or 1.57%, close to 60 points from days low of about 65 points higher today. A setback in Asian equities triggered by renewed fears of European sovereign debt crisis weighed in Indian securities today, September 12, 2011, 50 units, S & P Nifty below the psychological level CNX 5000 NRI demat account.

Metal stocks fell across the board is concerned about the global economic slowdown. Bank stocks also slid across the board, higher interest rates on loans may limit growth. Anil Dhirubhai Ambani group’s shares advanced Friday losses. Shares of oil exploration companies as well as crude oil prices fell. Shares of the state gas transmission and distribution company Gail (India) has hit a 52-week low. Extension of the market was weak. Except BSE FMCG index all other sectoral indices of BSE were in red.

The market opened on a weak note as renewed fears of a Europe of sovereign debt crisis sent Asian stocks tumbling. The market trimmed losses in morning trading, after hitting intraday low cost.

Investors look forward to data from the second quarter to September 2011 the company’s deferred tax payment due on Thursday 15 September in 2011, which may give clues for Q2 September 2011 results.

At 10:20 IST, the BSE Sensex fell 264.25 points, or 1.57% to 16,602.72. The index fell 198.72 points to 16,668.25 on the day high in early trading. The index fell 327.93 points to 16,539.04 on the day a bit in early trading, its lowest level since September 6, 2011.

The S & P CNX Nifty lost 79.75 points or 1.58% at 4979.70. The Nifty hit a low of 4954.90 in trade intraday, its lowest level since September 6, 2011.

The size of the market, indicating the overall health of the market was weak. On BSE, 1398 shares declined and 627 shares rose. A total of 56 shares remained unchanged NRI Pan Card.

Among the 30-share Sensex pack fell by 27 and only three have increased. FMCG giant Hindustan Unilever rose 1.91% on the purchase defensive. Infosys, TCS and Jaiprakash Associates shed by between 2.88% to 3.11%.

Index heavyweight Reliance Industries (RIL) shed 0.5% to RS-821, from lowest daily Rs 806th The company has denied the cost inflation in its D6 gas field in Krishna-Godavari (KG) Basin. RIL said that the revisions to three independent experts found that the cost of KG-D6 field is not too large, and the company had lived up to the PSC (Production Sharing Contract). With regard to the Comptroller and Auditor General of India (CAG) observation that the operator has an incentive to keep costs high, says the independent auditor Ernst & Young (E & Y) of any increase in spending capital is very harmful to the contractor and the government. Consultant Daniel Johnston noted that the evaluation activities that RIL has carried over to the various discoveries in KG-D6 block in accordance with good international petroleum industry (GIPIP).

RIL has said that the independent reports by E & Y, the IPA and Daniel Johnston & Co., Inc., a wholly RIL to strengthen its response CAG department. Independent of the nature of the investigations conducted by the consultants of international repute, has been recognized by Ril commendably bringing the flow of India’s first deep water oil and gas production in record time, RIL said. The fact that the high energy, BP has entered into a strategic partnership with RIL in this field, but also vindicates the position of RIL, RIL said. The newly formed partnership with BP, RIL is confident that the full potential and KG-D6 and the other blocks, bringing greater benefits from the nation, RIL said.

RIL issued the statement after trading hours, Friday, September 9, 2011, after the CAG said in its final report submitted to parliament Thursday, September 8, 2011, as initially estimated capital costs RIL D-1 and D gas discovery at -3 $ 2.4 million, later revised to 8.8 million. The CAG report also said that RIL has started the implementation of capital investment review plans before they were approved by the government. The report also found that EFI does not give lower priority to some areas on the KG D6 block, which the government can give to other companies for further exploration.

Shares of oil exploration companies the price of oil fell. Cairn India (up 2.31%) and Oil India (up 0.96%) declined. Declining oil prices lead to lower oil sales realizations for oil exploration companies

But ONGC rose 0.25%. The company, which earlier this month filed the prospectus for about Rs 11,000 crore following the public offering with the Securities and Exchange Board of India.

With crude futures fell for a third day in New York as investors bet the debt crisis in Europe will affect economic growth, demand for oil hardening materials. Crude for October delivery fell $ 1.09 per barrel or 1.25 to 86.15% per barrel.

Shares of the state gas transmission and distribution company Gail (India) fell 1.99% RS 406.45. In stock hit a 52-week low of Rs 405.15 today.

Anil Dhirubhai Ambani group’s shares advanced Friday slide. Reliance Infrastructure, Reliance Communications, Reliance Capital, Reliance Power and Reliance Media Works paid between 1.9% and 3.84%.

Metal stocks fell on fears of global economic slowdown. Sterlite Industries, Hindustan Zinc, Jindal Steel & Power, Hindalco Industries, Bhushan Steel, JSW Steel, Tata Steel, and sailed between 1.91% to 4.06%.

LMEX, a gauge of six metals traded on the London Metal Exchange fell 3.07% Friday, September 9, 2011.

Bank stocks slide on down the line, higher interest rates on loans may limit growth. The largest private bank in India with a net profit ICICI Bank fell 2.68%. India, the second largest private bank, HDFC Bank net profit declined 1.32%.

The largest bank branch network in India and the State Bank of India net profit (SBI) pays 2.25%. The government may soon receive a call from the infusion of capital by SBI. SBI requires 20,000 rupees crore to fund its growth plans in the next two fiscal years.

Bank of India, Bank of Baroda and Punjab National Bank fell between 1.46% to 2.48%.

Manufacturer of India’s largest truck sales of Tata Motors shed 3.58%, extending a loss of 3.21% last Friday. The company reported after market hours on Friday, September 9, 2011 and its President and CEO Carl-Peter Forster resigned Friday, September 9, 2011, with immediate effect. Forster’s resignation, according to a notice of Tata Motors, was due to unavoidable personal circumstances. Forster, who previously headed the operations of General Motors Co. ‘s European, Tata Motors joined in February 2010. Its mandate Tata Motors managing its global operations, including Jaguar Land Rover (JLR), which was acquired in June 2008.

I deeply regret that my personal circumstances make it difficult to treat challenging tasks to manage a thriving business for Tata Motors International Group, whose main activities in India and the United Kingdom, and increasingly in other foreign markets, the statement said Forster . Forster, however, is still on the table for a brief period as non-executive member. Prakash Telang, Managing Director India Operations, and Ralf Speth, President and CEO, Jaguar, Land Rover, represented by its operations on board.

Foreign institutional investors (IIE) has sold shares worth Rs 427.67 crore Friday, September 9, 2011, according to preliminary data scholarships.

The government announced industrial production data for July 2011 Today, September 12, 2011. Growth in industrial production is seen down to 6.2% in July 2011 increased by 8.8% in June 2011, according to the median estimate of 15 economists surveyed by Capital Market.

Prolonged rain in the last part of the season helped ease concerns that the monsoon this year could fall below its long-term average after a brief pause in July, when the country usually receives one third of the monsoon rains. The monsoon was 3% higher than the average for September 7, 2011, the latest data from the India Meteorological Department (IMD). Most parts of the country received an average of above average rainfall this year, but the season was marked by two lulls and periods of heavy rain in western and eastern parts.

Although it rained a key element in determining the status output, the timing and distribution of rainfall is also important to ensure a good harvest. Unusually this year, rains can delay the harvest, affect the Enter key to the summer-sown crops such as rice, oilseeds, sugarcane and cotton. Area of ​​rice that the September 2, 2011, up 12% from last year to 35.75 million hectares.

A good monsoon season can generally raise farm incomes in rural areas and has an influence on the overall economy through higher spending on consumer goods and reduced prices of food. But food prices are not necessarily decrease if delayed, and too much rain in some areas affecting crop yields.

Annual inflation in food articles group decreased to 9.55% in the week ending August 27, 2011, from 10.05% the previous week, the latest data showed. It was 14.76% during the same period last year. But inflation in primary articles group rose to 13.34% in the week, from 12.93% in the week ending August 20, 2011. It was 15.24% in the period of the previous year. Inflation in the Fuel & Power group was 12.55% in the week ended 27th unchanged from the previous week in August, the latest data show. It was 12.61% in the corresponding week last year.

Reserve Bank of India (RBI) said that a change in anti-inflationary monetary policy will be motivated by evidence of a sustained decline in inflation. Industrial production data for July 2011 announced today, and data on global inflation September 14, 2011-August 2011 will give signals of the most probable position of the central bank in the mid-quarter, Monetary Policy September 16, 2011. Reserve Bank of India raised its key rate 11 times over the last 18 months to keep inflation high.

Inflation based on wholesale prices is expected to be 9.6% in August 2011, more than a reading of 9.22% in July 2011, according to the median estimate of 13 economists surveyed by Capital Market. Data for Wednesday, September 14, 2011. Eleven of the twelve economists surveyed by Capital Markets expect a 25 basis points (bps) increase in repo rate is the main short-term political interests of the Reserve Bank of India in its policy review on 16 mid-term September 2011.

Moody Investors Service affirmed its Baa3 rating for India foreign currency debt of the government and its rating to Ba1 local currency debt in an annual credit analysis released last week. The firm’s ratings a positive outlook for India’s rupee-denominated bonds, says he will consider an overall rating of Baa3 for all obligations, if India improves its financial position and its willingness to strengthen the internal market. The outlook for foreign currency debt is stable.

The report was optimistic about India’s ability to withstand a global economic slowdown. Although it is not immune to a slowdown in international growth, strong domestic demand and economic diversity provides protection against a downturn in the areas of overall risk, the report said. He noted that India’s foreign exchange reserves equal to four times its external debt.

Debt ratio of 71% is worrisome, because the interest on this debt eats 25% of annual sales in India. However, Moody’s expects continued growth and gradual fiscal consolidation reduces the debt / GDP of the government, the report said.

Merchandise exports from India grew by 44.2% in August 2011 over the previous year, totaling $ 24.3 billion, net slowdown in the pace of the previous month, the Commerce Secretary Rahul Khullar said, Friday, September September 2011. Imports in the month just ended up 41.8% year on year to 38.4 million, which increased the trade deficit of $ 14.1 billion from 11.1 billion in July.

Asian stocks plunged Monday, September 12, 2011, with some multi-hit stocks lower, after renewed fears of a Europe of sovereign debt crisis led to strong sales of U.S. and European markets last week. The key benchmark indices in Hong Kong, Indonesia, Japan and Singapore were down 1.71% to 3.38%. South Korea, Taiwan and mainland Chinese markets were closed for holidays.

China’s trade surplus fell sharply in August, exports pulled back to a record and imports increased, which shows the second largest economy in the world feels a pinch of weakening global economic growth while domestic demand remains resistant.

The heavy losses in Asian stocks Monday, September 12, 2011, came after the Dow Jones Industrial and S & P 500 fell 2.7% each Friday, September 9 and Stoxx Europe 600 index fell 2 by 6%. Among the most important events on Friday in Western markets has been the resignation of the European Central Bank (ECB), Juergen Stark, a board member, a promoter of higher interest rates, whose departure was seen by some as signs of a political dispute with the ECB.

Group of Seven finance chiefs pledged Friday to a coordinated response to a slowing global economy, but offered some distinct and specific focus on the debt crisis of Europe.

The Federal Open Market Committee (FOMC) is scheduled for a two-day policy review of U.S. interest rates 20:21 September 2011.

The U.S. index futures said the Dow could fall 95 points at the opening bell Monday, September 12, 2011.


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