Investors run away from RNRL

Traders and investors in Reliance Natural Resources, or RNRL, watched in dismay on Monday as more than a fourth of the company’s market capitalisation was wiped out in what is being seen as a strong response to an unfavourable share-swap ratio with group firm Reliance Power.

Reliance Power - RNRL Merger Implications

Reliance Power - RNRL Merger Implications

RNRL, Reliance Power to consider merger on July 4

The boards of directors of Reliance Natural Resources Ltd. (RNRL) and Reliance Power Ltd. will meet on July 4, to consider a merger of the two anil dhirubhai ambani group (ADAG) companies. Earlier, media reports had suggested that RNRL and Reliance Power could merge, sending the shares of the two companies higher. The announcement is significant as it comes close on the heels of the two Ambani siblings rescinding a long-standing non-compete agreement, allowing them to expand into each other's sectors.

RIL and RNRL ink revised gas supply pact

Reliance Industries Ltd. (RIL) and Reliance Natural Resources Ltd. (RNRL) announced the signing of a revised gas supply master agreement (GSMA). RNRL said that the new GSMA with RIL was signed on June 25 pursuant to the judgment of the Supreme Court, dated May 7. RNRL also said that it will now take appropriate steps requesting the Government of India for expeditious allocation of natural gas to facilitate implementation of the same.

RNRL

We recommend a sell in the stock of Reliance Natural Resources Ltd from a short-term perspective. It was on a medium-term uptrend from March low of Rs 34 to its June high of Rs 112. However, the stock reversed direction after encountering significant resistance around Rs 110 in mid-June. Since then the stock has been on a medium-term downtrend. This downtrend got reinforced as the stock failed to breakthrough the resistance Rs 90 after multiple attempts and continued to decline. On October 26, the stock tumbled 5 per cent penetrating 21- and 50-day moving averages. With this the daily relative strength index (RSI) has entered the bearish zone and the weekly RSI is slipping in the neutral region towards this zone. The daily moving average convergence and divergence indicator has signalled a sell and is on the verge of entering the negative territory. Our short-term outlook is bearish. We expect the stock’s decline to continue until it hits our price target of Rs 72. Traders with a short-term perspective can sell the stock while maintaining a stop-loss at Rs 84.5.

via BL

RNRL

RNRL

Annual Report - RNRL - 2008-2009

RELIANCE NATURAL RESOURCES LIMITED

ANNUAL REPORT 2008-2009

DIRECTOR'S REPORT

Dear Shareowners,

Your Directors have pleasure in presenting the ninth Annual Report together
with the audited statement of accounts of the Company for the year ended
March 31, 2009.

Financial Results:

The performance of the Company for the financial year ended March 31, 2009
is summarised below:

Particulars A B C D

Total Income 47,141.09 92.94 36,730.65 91.55

Gross Profit before depreciation 7,194.22 14.18 9,269.44 23.10

Less: Depreciation 5.99 0.01 694.64 1.73

Profit before tax 7,188.23 14.17 8,574.80 21.37

Less: Provision for
Current tax 170.06 0.34 1,692.56 4.22

Fringe benefit tax 11.54 0.02 11.60 0.03

Deferred tax liability 19.61 0.04 10.77 0.03

Profit after tax 6,987.02 13.77 6,859.87 17.10

Add : Balance of profit brought from 9,554.27 18.84 2,694.40 6.71
previous year

Profit available for appropriation 16,541.29 32.61 9,554.27 23.81

Appropriations - - - -

Balance carried to balance sheet 16,541.29 32.61 9,554.27 23.81

A = Financial Year ended March 31, 2009 - Rs in Lakh
B = Financial Year ended March 31, 2009 - US $ in million*
C = Financial Year ended March 31, 2008 - Rs in Lakh
D = Financial Year ended March 31, 2008 - US $ in million*

* Rs 50.72 = US $ 1 Exchange Rate as on March 31, 2009 (Rs 40.12 = US$ 1 as
on March 31, 2008)

Financial Performance:

During the year under review, your Company recorded a total income of
Rs.471.41 crore, against Rs 367.31 crore in the previous year, an increase
of 28.34 per cent. Net Profit for the financial year ended March 31, 2009
rose to Rs 69.87 crore from Rs 68.60 crore in the previous year.

Dividend:

Your Directors have not recommended any dividend on equity shares for the
year under review.

Management Discussion and Analysis:

Management Discussion and Analysis of financial condition including the
results of operations of the Company for the year under review as required
under clause 49 of the listing agreement with the stock exchanges, is given
as a separate statement in this Annual Report.

RNRL letter to Petro Ministry

Dear Sir,

Subject: Petroleum Ministry's Press Note dated 21.08.2009 silent on several key questions of public and national interest

1. We are happy to note that the Petroleum Ministry has issued a Press Note dated 21.8.09 in response to recent developments, providing answers to a series of questions in public and national interest regarding the supply of gas from KG-D6 fields.

2. We welcome the Ministry's stand that it is committed to protecting the interests of the government-owned navratna NTPC. We trust the Ministry will now take all appropriate steps to ensure that NTPC gets its rightful share of 12 mmscmd of gas from Reliance Industries (RIL) at a price of USD 2.34 /mmbtu for a period of 17 years for its Kawas and Gandhar expansion projects.

3. On the issue of KG-D6 capex, we were surprised to learn from media reports that RIL had, in a letter to the Ministry on 20.08.2009 - just a day before the Ministry issued its own public statement - justified the massive escalation in the Development Cost of KG D6 block. We were also surprised that the Petroleum Ministry, within the short time of less than a day that was available for any verification, defended RIL's apparently inflated capital expenditure, without seeking to allay legitimate public apprehensions on the subject. We have already written a separate letter dated 25.08.2009 to you, seeking an expeditious completion of the CAG audit, and an independent credible revalidation of such capex, in the light of several issues of conflict of interest, etc. surrounding the previous evaluation, and request you to kindly take appropriate action in that regard.

4. We would like to also bring to your kind attention certain other critical issues of public and national interest for your necessary action.

Pricing of Domestic Gas

a. The international price of gas, i.e. the Henry Hub price quoted at Nymex, has crashed by nearly 80% from USD 13.58/mmbtu in July 2008 to USD 2.73/mmbtu on 24th August 2009. As against this dramatic collapse in prices globally, the price consumers are paying for RIL's KG Basin gas during the same period has moved in the opposite direction, and actually gone up by over 20% in rupee terms.

b. This is primarily because the said price of gas, a domestic natural resource for sale in the domestic market in India, has quite strangely been denominated in a foreign currency i.e. US Dollars. This has led to an entirely unjustified annual increase, at peak production, of over Rs 3,700 crore for gas consumers. Over the expected life-time of the KG Basin fields, this increase will amount to a staggering burden of nearly Rs 50,000 crore, even assuming that the exchange rate remains constant at the current levels.

c. Most of this unwarranted increase in gas prices will be borne by power and fertilizer consumers and will lead to a substantial increase in Government subsidies. This aberration once again demonstrates the need for the entire gas pricing policy in India to be reviewed, not just on account of the denomination in a foreign currency, but also because of its lack of elasticity in response to sharp movements in global prices.

Availability of Domestic Gas

d. As per media reports, the DGH has stated that RIL is capable of producing up to 52 mmscmd of gas but is, at present, producing a much smaller quantity in keeping with the lower demand for gas. The same view has been reiterated several times over by senior RIL officials in numerous media reports since June 2006.

e. The DGH had further stated that production from RIL's KG-D6 basin could be ramped to 80 MMSCMD by the end of August 2009, if not earlier.

f. In such a scenario, it is surprising that the Petroleum Ministry continues to take the stand that there is a scarcity of gas in the country, as most recently enunciated in its affidavit to the Supreme Court.

g. This perception of scarcity - a totally artificially created phenomenon - is being exploited by RIL to extract a higher price of gas and make super normal profits. Most independent experts firmly believe that there is little or no demand for gas in the country at the high price of USD 4.2 per mmbtu, which is presently being insisted upon. Indeed, there is unanimity among experts that the price for gas will fall much lower if the contractor is forced to ramp up production, rather than hoarding gas to its sole advantage, as it is doing presently. Only the price thus discovered would truly qualify to be called a freely determined market price of gas.

h. We would, therefore, once again request you to compel RIL to end the artificial scarcity by quickly ramping up production. This will ensure the price of gas corrects to appropriate lower levels in the larger public and national interest.

Petroleum Ministry's Intervention in Court Matters

i. Media reports indicate that RIL is relying on the Petroleum Ministry's affidavits in the RIL-RNRL case in the Bombay High Court and Supreme Court to strengthen its own ongoing case against NTPC, and dishonor its binding gas supply agreement with NTPC. Yet, the Petroleum Ministry, it would appear, is not considering intervening in the court case between RIL and NTPC. Indeed, fears are now being expressed that the Petroleum Ministry's recent statements in Parliament may harm the interests of NTPC in its legal battle against RIL.



j. In contrast to this hands-off approach in the RIL-NTPC case, the Petroleum Ministry has chosen to actively intervene in a similar commercial dispute over gas supply between two corporates, even though the Government's interests in this case are fully protected as per the judgment of the Bombay High Court.

k. We would request you, in the interests of having a uniform approach, to kindly consider becoming a party in the RIL-NTPC litigation, as it involves a Government-owned PSU, and concerns an exorbitant burden of an additional Rs 30,000 crore that power consumers in the country may be called upon to bear, solely for the benefit of a private monopoly gas producer, RIL.

5. We request the Petroleum Ministry to take immediate and appropriate steps on the above important matters, in the wider national and public interest.

Thanks Gautam

RNRL wins legal battle over gas supply

RIL told to supply gas at $2.34 million metric British thermal unit to RNRL.

The Bombay High Court on Monday, 15 June 2009, ordered Mukesh Ambani's Reliance Industries (RIL) to assure gas supply of 28 million metric standard cubic metre per day (mmscmd) from Krishna-Godavari (K-G) basin D6 block to Anil Ambani promoted Reliance Natural Resources (RNRL) for 17 years at $2.34 million metric British thermal unit (mmbtu).

The court has directed RIL to arrive at an arrangement along these lines within a month. It has also said the Ambani brothers may consult their mother if there is any difficulty at arriving at a conclusion.

However, it is unclear whether RIL intends to appeal against the current verdict in the Supreme court or go through with the stipulated process of arriving at a viable gas supply agreement.

RNRL had approached the court against RIL that had refused to give gas at $2.34 per mmbtu from the Krishna-Godavari basin.

RNRL had approached the court against RIL that had refused to give gas at $2.34 per mmbtu from the Krishna-Godavari basin.

Anil Dhirbhai Ambani Group (ADAG) claims right over 70% of KG-D6's initial output of 40 million standard cubic meters per day after the family split in in June 2005.

After the split Mukesh Ambani took control of RIL and Anil got financial services, communications and power business of the group through a series of demerger of firms.

As per the Memorandum of Understanding (MoU), RIL was to supply gas from its KG basin to RNRL for its upcoming 7400 megawatts (MW) power project at Dadri in Uttar Pradesh.

In December 2006, RNRL moved the Bombay High Court asking it to compel RIL to honour the gas agreement. Justice Anup Mohta, who heard the case, asked the companies to settle the matter internally under the June 2005 family agreement. The judge also restrained RIL from selling gas to third parties till the final order.

Unable to agree on the price, terms and quantity of gas, both firms approached the division bench of the Bombay High Court against the order of the single bench in early 2008. The hearing of the matter continued till February 2009. Thereafter, the division bench came out with an interim order allowing RIL to sell gas to third parties.

The interim verdict also mentioned that RIL's gas agreement, however, was subject to the court's final order.

The basic argument in the RIL-RNRL case pertained to the pricing and quantum of gas. During the course of hearing, RNRL made it clear that it wanted 28 million metric standard cubic meters per day of gas for 17 years for $2.34 per million metric British thermal unit (mmBtu), while RIL argued that it could not sell gas below the government-approved price of $4.2 per mmBtu.

Gas talk…Mama’s boys really

After several months of war of words and legal wrangling over the contentious issue of gas supply, the warring Ambani brothers could be headed for an out of court settlement, provided their mother plays the role of the mediator once again. Anil Ambani's lawyers told the Bombay High Court on Aug. 21 that the younger of the Ambani siblings was ready to meet his elder brother Mukesh "anywhere, anytime" to resolve the long-standing dispute between the two groups.

The suggestion was made by Ram Jethmalani, the lawyer for RNRL during the course of arguments before the court over the controversial issue of gas supply from Reliance Industries’ Krishna Godavari basin to the Dadri power project in Uttar Pradesh. However, he added that Anil wants Kokilaben to intervene in the matter. It may be recalled that she had played a crucial role in dividing the Reliance group’s assets between the two estranged brothers in June 2005.

"We are prepared to have this particular issue decided by Kokilaben. They may meet with their mother without the lawyers," Jethmalani said. " The court can call both Mukesh and Anil to explore the possibility of an out-of-court settlement and Anil is willing to attend at a time convenient to the judges." Some weeks ago, Harish Salve, RIL's counsel had said the company is not the family property of the Ambani family and the court has no jurisdiction in altering the demerger.

"If you go by MoU approach, you will take RIL as the family property of the Ambanis. The demerger scheme was agreed upon by both the parties with open eyes. Any directions by the court in this regard will mean corporate democracy going to the dogs. The suitable arrangement must be found within the scheme and not outside it," Salve had said.

Reliance - RNRL gas will lead us to losses

Reliance Industries on Thursday informed the Bombay High Court that it would incur losses in the range of 600-900 million dollars annually if it supplies gas to Anil Ambani-owned Reliance Natural Resources Ltd at 2.34 dollars per mmBtu.

Mukesh Ambani-owned RIL told the court that it could not promise a fixed quantity of gas to RNRL at 2.34 dollars, which is much lower than the price fixed by the government at 4 dollars per mmBtu.

If RIL entered into a contract to supply the fixed quantity of gas at 2.34 dollars, it would incur annual losses ranging from USD 600 to 900 million, RIL told the high court.

Division bench of Justices J N Patel and K Tated is hearing the dispute over gas supply from the Krishna-Godavari basin between RIL and RNRL.

RIL's counsel Harish Salve argued that RNRL's power plant was not going to commence before 2010 and till then, RIL could not be restrained from extracting gas.

As such, RIL could not wait for RNRL's power plant to come up and so they had to enter into gas sale purchase agreements (GSPA) with third parties.

Once RNRL notified it that their plant was working, they could enter into GSPA between them.

"The country needs the gas and if we keep waiting for RNRL, the government which owns the natural resource, will take us out of contract by 2025 anyway when the lease ends," said Salve.

RNRL has already given up its right on the gas for trading earlier, which they are trying to revive, he contended and added that the Gas Supply Master Agreement between RIL and RNRL specifically includes supply of gas on a suitable agreement for RNRL's power plants.

Regarding supply of gas for the RNRL power plant when it comes up, the quantity can be decided in accordance with a formula considering the total resource of gas available, the tenure for which the extraction will be carried out less the share that has to be given to the government on an annual basis, Salve contended.

RNRL is entitled to 28 mmscmd of gas when the production reaches 40 mmscmd. If RNRL want to procure more in case when the production increases, it will have to purchase it at market price, he said.

The GSPA has to be revised in accordance with the annual production of gas, he further said.

Also, just because RIL and RNRL are in dispute, the production sharing contract (PSC) with the government cannot be compromised, added Salve.

"We are ready to give the gas at the fixed price provided the government approves such price," he said.

RNRL has been citing the memorandum of understanding between the two companies regarding the fixed quantity of gas at the said price but the MOU cannot supercede the PSC with the government, he contended.

Also, the government has specifically said that the prices of gas to any third party other than itself has to be at arms-length prices, Salve argued.

RIL has invested 8 billion dollars in the project, he told the court.

Salve will continue to argue on the MOU, the documents in connection with the MOU and what is the scope of the company's jurisdiction regarding gas supply in the next hearing on August 5.

RIL, RPL, RNRL April 2008 futures at premium

Turnover in F&O segment rises


Nifty April 2008 futures were at 4914.90, at a premium of 35.25 points as compared to spot closing of 4879.65.
The NSE futures & options (F&O) segment turnover was Rs 46,369.75 crore, which was higher than Rs 41,003.92 crore on Friday, 11 April 2008.
Reliance Industries (RIL) April 2008 futures were at premium at 2623 compared to the spot closing of 2611.80.
Reliance Petroleum (RPL) April 2008 futures were at premium at 191.20 compared to the spot closing of 189.80.
Reliance Natural Resources (RNRL) April 2008 futures were at premium at 106.75 compared to the spot closing of 105.70.
In the cash market, the S&P CNX Nifty gained 101.85 points or 2.13% at 4879.65.

Aar ya Paar - RNRL v RPL

New game - yay ! :-) . We select two stocks .. you tell us which one will outperform in the next 7 days (end of Jan 16 2007)!

RNRL or RPL


RNRL - CMP - 228.70

RPL - CMP - 232.10

Leave a comment and tell us why you think so :). Tell us if you short on both of these :)

RNRL Trading Call

Buy RNRL above Rs 205. Stop Loss at Rs 194, target at Rs 277 and Rs 397

Poll - Reliance Stocks you own ?

RIL 270 (44%)

RPL 402 (65%)

RNRL 247 (40%)

RELCAPITAL 138 (22%)

RIIL 100 (16%)

RCOM 263 (42%)

OTHER 96 (15%)

OVERALL - 612 votes

Each vote could select multiple options

WOW, 65% of you own RPL ! Hope most of you got it at IPO and made huge returns

RIL and RCOM have got 42% ownership, RNRL is equally owned at 40%

Thanks for the overwhelming response!

Rakesh Jhunjunwala - cautious, RNRL, RPL don't deserve to run up like this

Q: Last year, you were telling everybody that 15% is great and that we should not expect 50% every year. We have done that again. Are you a bit surprised?

A: I would say I am surprised to some extent by at least the gain of the last one-month. The space and speed has surprised all of us.

Q: Do you think we can do an on core, third time lucky with 50% again or is that being too optimistic?

A: It is time to reflect, we have had a rise from 3,000 to 19,000-20,000. I do not think economic conditions in America are very good. Asian markets there are deteriorating at a fast speed. It is an economy, which is drunk on credit. The credit markets are value effected, so I will not be circumspect at these levels.

We have had such a humongous gain from 3,000 to 19,000-20,000. I think markets are going to consolidate around these levels and would feel more comfortable as an investor.

Q: Would you be cautious here or do you see much higher levels even next year on this base?

A: What makes me uncomfortable is the divergence in valuations. You cannot have Infosys making a 52-week low as their earnings have not come down and they are still growing 15-20%. It is one of India’s best performing investments in time to come. You cannot sustain this kind of divergence in valuations, where you keep giving value to momentum, and you lose all value to value. That would be the first sign of an indication, may be it could happen in a week, ten days, or maybe we are in it. May be it could not happen in the next three months and we could go 20% higher, but I think this is the first indication and we have to be very cautious in this market.

Q: When you say you are cautious, are you cautious because of the excesses that have happened? Is it why you are calling for a correction or have you in the medium-term too become circumspect?
A: There are two-three things internationally especially in America where we are facing large uncertainty. We don’t know how this uncertainty will pan out, what value will the dollar lose, and what disorder it can cause to financial markets. I am extremely bearish on US financial markets and think the sub-prime problem is going to be far larger than what people are imagining. There is a paradigm shift in India. The bull market is very much alive. The factors driving this secular bull market are very much alive and kicking, I have no doubt about it. I am hopeful that five years later we are going to be far higher than where we are today. But the fact remains that we at 19,000 are at 19 times 2009 earnings. There is vast divergence in the valuations of the Sensex or Nifty, you have very narrow group of stocks gaining.

Q: Undeservedly are you saying?
A: I will reserve my opinion there. The fact remains that in a true bull market you cannot have quality stocks going to 52-week lows. You can have stocks with no operating income, whose valuations are 100-200 times earnings. The narrowness of the rise, the uncertainty that we are facing, and the speed of the rise, is why I feel the markets need to pause. They need to take a breath and that will give it strength for the long-term rise.

Q: When you speak about a correction, are you speaking about a major sell-off or just about a 10-15% correction? We have seen three of those this year and we are still up 50%.
A: There is a difference between opinion and the empirical evidence of what the screen is telling us. In the last 15-20 days, flows from abroad have considerably slowed down. World markets after the second Fed cut are showing some kind of resistance and weakness. The market is losing breadth and is facing resistance at higher levels. The market should pause and correct, it is more than opinion, as that is what the screen is telling us. We have not had any correction right from 3,000 to 20,000. We have had very severe corrections but they have been related to prices, there has not been any timewise correction. What will really test people’s belief in this market and country will be when the market corrects not so much valuewise but corrects valuewise and timewise. I can’t believe we are going to have a ride from 3,000-40,000-50,000 where investors’ conviction and patience are not going to be tested.

Q: You see this as a likely scenario. Is 16,000 not inconceivable or are you looking at that big a correction?
A: Our last rise was from 14,000 to 20,000, so surely we could carry a 50-60% rise. Things internationally are going to turn far ugly than what people have anticipated. I don’t know valuewise, but timewise we are going in for a good correction. The sheer momentum with which any stock that has some kind of story build around it goes up at unbelievable volumes. I feel the market is ignoring a lot of stocks, these are the first signs of danger. For the whole rise, the market is going to test us timewise and valuewise.

Q: Are you getting the first sense of euphoria creeping into the screen after those 20-25% blowouts that you have seen in the last few weeks?
A: Absolutely, blowing into all kind of stocks. There are some bull and cock story scrips that are seeing tremendous volumes, unbelievable price rises, and nobody wants to talk any sense there. Somebody guesses, spread some story, and advises a buy and investors just go and buy. These are signs, the markets always do that, there is noting surprising about it. But when markets do this, it is time to be alert in my opinion.

Q: Are you surprised that Infosys is hitting a 52-week low while the market hits new highs. Is it a sector write off for you or do you see value there?
A: A bull market does not mean that some stocks just go up and everything else goes down in value. We are in the initial stages of what is going to be a very big, long-term bull market. In the last two-three months, along with international uncertainty we are staring at local elections in the next 6-12 months, which the markets may not like. Don’t forget that the worst mistakes are made in the best of the times.

I don’t agree with this theory that interest rates in America will go down, all problems will be solved, and all assets in the world will inflate. Markets have had a too good and easy this Goldilocks situation. This is a dream run, in the world this has never happened that you reduced interest rates and all ills are over.

You have given USD 2.5 trillion in one-year to people who did not have money to repay. I don’t buy this theory that he will keep reducing interest rates and we will keep buying emerging markets. You can’t take valuations to any level and expect people to keep on buying. Why have flows slowed down in the last two-weeks? Why is China down 5% today? All of Asia and all emerging markets have been weak in the last 10-12 days.

Q: Let me come to another sector which have been one of the pillars of this bull market, telecom. The big pillars like Bharti and even Reliance Communications have started correcting. What do you see for the next one-year for this space, is the best behind them?
A: Some of the dreams of corporate India are now going beyond all reality. Look at the people applying for telecom license, I don’t know what kind of background and qualification they have to go into the telecom business. Someone is doing a broking business and he wants to get into real estate, someone is doing real estate and he wants to get into the telecom business. The way the markets are giving money to public issues, it seems that nobody is even looking at the prospectus or reading it. They are just finding what the prices are in Rajkot and how much is the issue going to be oversubscribed. If you give money Rs 50,000-1 lakh crore or even Rs 10 lakh crore it is not going to be enough because of the way dreams are expanding and the way in which people are getting money, these are all danger signs.

Q: What is your sense on this whole oil and gas space, especially exploration and refining, and the way the market is valuing some of these stocks?
A: I do not apply my mind at all there. There is surely value in oil refining companies. IOC has got a lot of non-refining and non-marketing income. The market doesn’t want the government to decide what income they will have and whether there is very good yield. Never forget in all this momentum that in 1992 the price of Hindustan Lever was Rs 18.20 whereas the index was 4,300, but in 2003 when the index was 2,900 then HLL was Rs 328. As an investor I found that it is not how high my scrip goes, it is at what level it settles after it goes high. If a stock moves from Rs 100 to Rs 1,000 and comes back to Rs 20, then nobody really gains. But if the stock grows from Rs 100 to Rs 1,000 and then does it stop at Rs 600 or Rs 500, I don’t know.

Q: You were speaking about excesses. Have you found some excesses in any of the stocks which we discussed over the last few weeks?
A: I don’t know what is RNRL business, I am confused and didn’t make any effort to find out also.

Q: But RPL tippled and that has a business?
A: It has a market cap of more than Infosys. I can’t say anything beyond that. I am told it has a market cap of more than the entire refining sector.

Q: Some other ideas?
A: In four years, a share of Great Eastern Shipping has appreciated about 25 times. It was Rs 25, when the management bought back six crore shares, they got all those shares in the range of Rs 5-7.

Q: Will you remain cautious for the next few months or a year?
A: We live in uncertain ages and times. Let us see how this will pan out. We will react to it but let us be prepared. We will react to it as it pans out. I don’t know whether the index will stop at 16,000 or if it may have a bottom there, there may be no correction at all. I have some feelings and am going to react to it as the circumstances arise.

As humans and investors we must have the maturity to realize that we can’t earn the wealth without time passing, without it being tested, and without our conviction being tested. Nobody has earned wealth easily and retained it.

I feel we have had it too good and easy to really last. We are going to be tested. In view of the narrowness, rise of uncertainty in the world financial markets, the fact is that we are going to face an election, and the speed at which we have gone up, the only thing I am saying is be alert and cautious and always be there in the market.

RNRL November futures at premium

Turnover in F&O segment rises

Nifty November 2007 futures were at 5861, at a premium of 13.70 points as compared to spot closing of 5847.30.

NSE’s futures & options (F&O) segment turnover was Rs 77,646.90 crore, which was higher than Rs 76,145.01 crore on Friday, 2 November 2007.

Reliance Natural Resources (RNRL) November 2007 futures were at premium, at 185.90, compared to the spot closing of Rs 179.30.

GMR Infrastructure November 2007 futures were at premium, at 193.85, compared to the spot closing of Rs 190.90.

Power Grid Corporation of India November 2007 futures were at premium, at 153.60, compared to the spot closing of Rs 152.15.

In the cash market, the S&P CNX Nifty lost 85.10 points or 1.43% at 5847.30.

BSE, NSE seek explanation from RNRL

Stock market authorities have sought explanation from the Anil Ambani group firm Reliance Natural Resources (RNRL), whose share price has nearly doubled in the past few days, on media reports about its business plans.

Both the Bombay Stock Exchange and the National Stock Exchange brought the company under scanner last week and early this week to ascertain if the price movement was normal.

From Rs 52 at close on September 19, the share price hit a one-year high of Rs 103 during trading on September 25, although it ended down at Rs 94.85 that day.

There have been media reports that it plans to sell stake in coal-bed methane blocks to strategic investors and has applied for starting city gas distribution projects.

NSE wrote to company officials on September 21 after reports that it plans to start CGD projects in various cities. The company's share price surged by a whopping 35 per cent that day to settle at Rs 76.70 from Rs 56.80 a day ago.

The scrip soared another 22 per cent on September 24 to Rs 93.55. Incidentally, there is no circuit filter on the scrip.

Similarly, turnover rose to a whopping Rs 673.47 crore on September 21 when more than 9.5 crore shares changed hands. This was against Rs 136.5 crore in the previous day when only 2.4 crore shares were traded. On September 24, it recorded a turnover of about Rs 457 crore.

The company informed the bourses on September 24 that its affiliate firm Reliance Fuel Resources Ltd did submit an application to the Petroleum Ministry for setting up such projects in Mumbai, Delhi and the national capital region.

BOC India, RNRL, Ashapura Minechem, Global Broadband, Guj State Petronet, Bombay Paints

BOC India, RNRL, Ashapura Minechem, Global Broadband, Guj State Petronet, Bombay Paints

RNRL - 10% delivery volumes

21-SEP-2007,RNRL,Reliance Natural Resource,CLEAN FINANCE & INVESTMENT LTD,BUY,7440941,71.19,-
21-SEP-2007,RNRL,Reliance Natural Resource,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,8827690,69.02,-
21-SEP-2007,RNRL,Reliance Natural Resource,P R B SECURITIES PRIVATE LTD,BUY,13293387,70.79,-
21-SEP-2007,RNRL,Reliance Natural Resource,CLEAN FINANCE & INVESTMENT LTD,SELL,7430941,71.30,-
21-SEP-2007,RNRL,Reliance Natural Resource,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,8907690,69.10,-
21-SEP-2007,RNRL,Reliance Natural Resource,P R B SECURITIES PRIVATE LTD,SELL,13214737,71.04,-