Sensex Drops; RIL in Gas Deal

Chandrasekhar Atreya
05 Aug, 2010
New York City

Stocks in Mumbai after trading higher through the day lost in the end to close lower. RIL agrees to buy its third shale-gas asset in the U.S. RCom hopes to roll out 3G facility by year end.

[R]5:00 PM Mumbai – Stocks in Mumbai after trading higher through the day lost in the end to close lower. RIL agrees to buy its third shale-gas asset in the U.S. RCom hopes to roll out 3G facility by year end.[/R]

Stocks in India fell towards close and closed lower as traders booked profits after it hit a new 30-month high in early trade. The BSE Sensex Index lost 0.24% or 44.61 to close at 18,172.83.

The market breadth was positive with 1,581 stocks gaining against 1,381 declining while 107 remained unchanged.

Reliance Industries Ltd agreed to buy 60% stake in acreages held by Carrizo Oil & Gas Inc and its partner for its third shale gas asset in the U.S.

Mukesh Ambani-led company will pay $392 million for the stake in the Marcellus shale gas areas of central and northeast Pennsylvania. $340 million will be paid in cash and the remainder in drilling costs, Reliance said in a statement today.

An index measuring wholesale prices of farm products collected by the Ministry of Commerce rose 9.53% in the week to July 24, from a year earlier, after rising 9.67% in the previous week, according to a statement in New Delhi.

India’s Power Ministry is considering setting up an Rs 50,000 crore debt fund to finance projects and may rope in state-run lenders Power Finance Corp and Rural Electrification Corp.

The proposal for setting up the debt fund is at a nascent stage and the ministry is yet to work out the final modalities. It is also in constant dialog with the Planning Commission for working out a blueprint.

Reliance Communications, which won the license to offer third generation mobile telephony services in India in 13 key circles, said that 3G services of its network could be offered by the end of this year or early 2011.

Addressing the media at a conference to announce RCom’s exclusive partnership with Universal Music in preparation for the 3G launch, Mahesh Prasad President, Marketing Wireless Business said, “We expect the spectrum allocation to take place around September, and if that happens, we could roll out our 3G services as early as the end of this year.”

JK Tyre & Industries is setting up a Rs 1,500 crore radial tire manufacturing facility at Sriperumbudur, Chennai. The project spanned on 100 acres and with a capacity to make 5,000,000 passenger-car radial tires. The production is expected to roll out in October 2011. Full production is expected by 2012.

An agreement for setting up the plant was signed by Raghupati Singhania, Vice Chairman and Managing Director I the presence of Tamil Nadu Chief Minister, M. Karunanidhi in Chennai on Wednesday.

Rs 10,000 crore liquefied natural has terminal will come up at Kattupalli to the north of Chennai. The project will be implemented by Indian Oil Corporation and Tamil Nadu Industrial Development Corp will also have a re-gasification facility and a 1,000 megawatt power plant.

IOC Chairman B.M. Bansal and TIDCO Chairman Rajeev Ranjan signed the agreement on Wednesday in the presence of the Chief Minister of the state.

Gainers & Losers

Essar Shipping Ports & Logistics Limited gained 18.7% to Rs 108.85 after the chartering & fleet operations company consolidated net profit soared 544.05% to Rs 39.48 crore.

Fedders Lloyd Corporation Ltd rose 3.7% to Rs 112.15 after the heating, ventilation, air conditioning company said forth quarter net profit jumped 103.2% to Rs 13.96 crore.

Glenmark Pharmaceuticals Limited increased 0.6% to Rs 266.90 after the pharmaceutical company said the overseas unit of the company, received approval from the US drug regulator to market Clotrimazole Cream.

Himadri Chemicals & Industries Limited declined 2.1% to Rs 540.00 after the company reported first quarter net profit fell 19.31% to Rs 18.30 crore.

Hindustan Zinc Limited rose 3.62% to Rs 1,106.50 after the integrated producer of zinc and lead, increased lead and zinc prices.

Infrastructure Development Finance Company Limited fell 1.4% to Rs 183.35 after the infrastructure finance provider said consolidated net profit rose 23% to Rs 335.11 crore.

JSW Steel Limited rose 0.7% to Rs 1,121.80 after the company reported its crude steel production grew 4% to 5.2 lakh tons in July 2010 over July 2009.

Kalindee Rail Nirman (Engineers) Limited increased 2.9% to 148.30 after company said first quarter net profit soared 83.3% to Rs 3.08 crore.

Maruti Suzuki India Limited rose 1% to Rs 1,225.75 after the automobiles manufacturing company reported the company may manufacture cars for German auto firm Volkswagen on a contract basis.

Nitin Fire Protection Industries Limited decreased 0.4% to Rs 359.70 after the fire fighting equipment maker scheduled a board meeting on August 13 to consider stock-split proposal.

Patni Computer Systems Limited dropped 1.2% to Rs 462.15 after the information technology provider said American depository receipt advanced 2.92% to $21.83 on the New York Stock Exchange on August 4.

Raymond Limited rose 3.5% to Rs 242.00 after the multi-product conglomerate plans to add about 100 retail outlets this fiscal as domestic consumer sentiment turns buoyant.

Tata Consultancy Services Limited gained 0.8% to Rs 877.05 after the information technology service provider won a contract to provide back-office support services for the US and UK arms of PricewatehouseCoopers.

Varun Shipping Company Limited surged 16.4% to Rs 47.55 after the shipping company net profit galloped 1179.3 % to Rs 23.54 crore.

Wheels India Limited fell 3% to Rs 301.00 after the automotive components company turned ex-dividend August 5 for a dividend of Rs 4.50 per share for the year ended March.