Indian Oil $12 Billion Expansion

Mayank Mehta
14 Sep, 2009
New York City

Indian Oil Corp plans to invest $12 billion in the next three years to expand crude oil refining capacity. India will begin the 3G wireless auction process on December 7 and hopes to collect $5 billion. Reliance Industries is looking to invest in Brazil and Gulf of Mexico based oil fields.

[R]6:00 PM Mumbai, 8:30 AM New York – Indian Oil Corp plans to invest $12 billion in the next three years to expand crude oil refining capacity. India will begin the 3G wireless auction process on December 7 and hopes to collect $5 billion. Reliance Industries is looking to invest in Brazil and Gulf of Mexico based oil fields.[/R]

The Sensex index in India decreased 50.11 or 0.3% to 16,214.19 and CNX Nifty index fell 20.95 or 0.4% to 4,808.60. Among the Sensex 30 stocks, 16 fell and 14 rose.

On BSE trading, 1,467 stocks advanced, 1,310 declined and 72 were unchanged. Metals and realty remained subdued while state controlled companies and banks edged higher.

The rupee declined 0.4% to close at 48.7232 against a dollar.

Gainers & Losers

BASF India Limited advanced 7.6% to Rs 315.90 said that its board has approved the amalgamation of Ciba India and its affiliates Diamond Dye-Chem and Ciba Research (India) (P) Ltd with BASF India.

Bharat Petroleum Corporation Ltd added 1.3% to Rs 567.55 as market speculated that government will sell its stake in the company.

Dabur India after the company said it plans to set up a second manufacturing unit in Egypt.

Godrej Industries Limited rose 3.8% to Rs 206.10 after Chairman Adi Godrej said that the company is likely to lists its property unit in the next three months.

Housing Development and Infrastructure Limited decreased 2.9% to Rs 304.05 after the company said that the Income tax Department had conducted a raid on the company office premises and promoters residences on Sept 10 and 11.

Indian Oil Corporation Limited advanced 4.2% to Rs 643.45 after the board approved one bonus share for every share held. The company plans to increase refining capacity to 80 million tons in the next fiscal year ending in 2011 from the current 60.2 million tons.

Chairman Sarthak Behuria told shareholders that the company will invest 60,000 crore rupees ($12 billion) to expand refining capacity and add chemical plants.

Indraprastha Gas Limited advanced 2.5% to Rs 162.70 after the company got a relief from the Delhi High Court.

Jet Airways (India) Limited added 2.5% to Rs 264.00 after the company said that its pilots ended five-day strike. The company agreed to rehire four pilots and set up a committee to hear pilot grievances. The company also said that lost as much as $2 million a day. Separately, after the press conference with reporters the company also confirmed that it is working to raise $400 million in a qualified offering to lower debt.

Kirloskar Oil Engines Limited rose 5.0% to Rs 120.00.

Mahindra & Mahindra Limited advanced 1.4% to Rs 831.60.

Punj Lloyd Limited increased 0.4% to Rs 258.60 after the engineering company received Rs 550 crore from India''s state-run Mangalore Refinery and Petrochemicals for construction related works.

Dr. Reddy’s Laboratories Limited added 1.6% to Rs 822.80 said received approval from the U.S. Food and Drug Administration and has launched the generic version of Novartis'' Starlix, used to treat diabetes, according to a company spokesman.

Reliance Industries oil and gas business president P.M.S. Prasad said that the company is looking to diversify its oil fields exploration after it runs into trouble in how to price the its natural gas production. The company is looking to either invest or operate fields in Brazil and Gulf of Mexico.

Ruchi Infrastructure Limited surged 10.0% to Rs 42.55.

State Bank of India rose 1.9% to Rs 1,956.15 and Hughes Communications said it has received a five-year contract worth Rs 22.5 crore from the bank to deploy satellite broadband network to connect its off-site ATMs across the country.

Spanco Telesystems and Solutions Limited added 4.9% to Rs 63.80.

SREI Infrastructure Finance Limited advanced 4.0% to Rs 75.05 said that it has obtained a preliminary approval from the regulator Securities and Exchange Board of India to manage mutual funds.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 242.27 or 2.32% to 10,202.06, Hang Seng index in Hong Kong decreased 229.22 or 1.08% to 20,932.20 and CSI 300 index in China higher 55.26 or 1.71% to 3,293.39. ASX 200 index in Australia decreased 65.00 or 1.41% to 4,531.10. The FTSE Bursa KL Composite index in Malaysia closed lower 4.92 or 0.41% to 1,203.36.

The Kospi Index in South Korea decreased 16.79 or 1.02% to close at 1,634.91. SET index in Thailand closed lower 13.49 or 1.91% to 694.32 and JSE Index in Indonesia decreased 33.24 or 1.38% to 2,382.70. The Sensex index in India decreased 50.11 or 0.31% to 16,214.19.