Friday, May 20, 2011
Cairn Energy Plc said on Thursday that it has been informed that the Government of India (GoI) Cabinet Committee on Economic Affairs which met on 6 April 2011 to discuss the Cairn Vedanta transaction has referred the matter to a Group of Ministers (GoM). The GoM has not yet met. Accordingly the two companies have agreed to extend the closing date of their Sale and Purchase Agreement in order to secure the necessary consents and approvals from the GoI to complete the transaction. Cairn has been notified by Vedanta of the results of the Open Offer for Cairn India shares by Sesa Goa Limited (a subsidiary of Vedanta), which closed on 30 April 2011. A total of approximately 155 million Cairn India shares, representing 8.1 per cent of the share capital, have been tendered. Following the acquisition of both the 10.4 percent stake from PETRONAS International Corporation Limited announced on 19 April 2011 and the Open Offer shares, Sesa Goa Limited will hold 18.5 per cent of the share capital of Cairn India. Cairn and Vedanta have agreed that, for the purposes of the formula set out in the Share Purchase Deed entered into in August 2010; these shares will all be treated as if they had been acquired in the Open Offer. Accordingly, on completion of the Transaction, Cairn will sell a stake in Cairn India to Vedanta equivalent to 40 per cent of the share capital, following which Cairn will hold a residual interest of 21.7 per cent of the share capital.
Encouraged by the marginal decline in inflation in April, Finance Minister Pranab Mukherjee said that he was hopeful that prices would come down further in the coming months amid increase in food stocks and decline in the cost of manufactured items.
"The April prices have come down both on the manufacturing sector and food sector...Therefore, this is good trend and if it continues, then perhaps it will be more moderated," Pranab Mukherjee told reporters in New Delhi.
Billionaire investor George Soros's hedge fund exited most of its positions in physical gold in the first quarter of 2011 but hedge-fund manager John Paulson remained invested in the yellow metal amid bets that the rally would continue.
Soros Fund Management, based in New York, owned 49,400 shares of the SPDR Gold Trust at the end of March, down from 4.7 million shares held at the end of December.
The announcement of the higher oil subsidy burden for state-run upstream companies partly marred the mood. But, the overall sentiment did receive a slight boost from L&T's results and drop in food inflation in early May. ITC results failed to impress though. Recovery in global stock equities and moderation in the commodity complex supported the Indian markets.
In the coming week, the focus will on the F&O expiry. The market may gain some more ground, provided overseas cues are supportive and results from the likes of Tata Motors, Tata Steel, M&M and Coal India don't sour the mood. Keep an eye on FII flows as well to see if the offshore investors have turned buyers again. Expect some resistance at higher levels.
Although the market could rise slightly from here on, it will be mostly a short covering led bounce. On the whole, the market is suffering from a general lack of interest from large investors. Traders too are caught in a bind amid lack of clarity on the direction of the markets. The near-term outlook remains uncertain amid worries over inflation and its implications for monetary policy.
India's annual inflation edged lower last month from March but was still slightly above consensus expectations, government data released showed. Annual, point-to-point inflation for April decreased to 8.66% from 9.04% in March, the Union Commerce & Industry Minister said. Average expectation was for inflation to fall to 8.4%.
Markets carried previous session’s gains and remained strong all throughout the day, with the Sensex up 185 points and the Nifty up 58 points
ITC consolidated net profit soars 20% in FY11
Higher subsidy burden drags OIL, ONGC, GAIL
IRB Infrastructure falls after posting results
The key benchmark indices dropped to eight-week low in first half of the week on sustained foreign fund selling and on fears high interest rates may impact corporate profitability. But, the market recovered during the later half on bargain hunting. Volatility was high as select index pivotals saw sharp reactions following unveiling their quarterly earnings. The market logged declines in three out of five trading sessions during the week ended Friday, 20 May 2011.
The key benchmark indices extended gains for the second straight day as bargain hunting emerged after recent steep slide. Gains in European stocks also supported Indian stocks. But, political uncertainty pulled the market off highs after a sharp intraday surge on reports that a court has ordered arrest of Dravida Munnetra Kazhagam (DMK) party MP Kanimozhi in the 2G scam spectrum case. The DMK is a part of the Congress-led United Progressive Alliance (UPA) government at the Centre. The BSE 30-share Sensex was up 184.69 points or 1.02%, off close to 105 points from the day's high and up about 165 points from the day's low.
The key benchmark indices registered small gains in a volatile trading session as index heavyweight Larsen & Toubro surged close to 6% after company said at the time of announcing Q4 March 2011 results that it is well positioned to sustain the revenue growth momentum in the medium term. Data showing easing of food inflation and higher European stocks, aided gains as the market snapped three-day losses. The BSE 30-share Sensex was up 55.20 points or 0.31%, up about 85 points from the day's low and off close to 55 points from the day's high.