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Wednesday, August 26, 2009
Pre Session Commentary - Aug 26 2009
Today domestic markets are likely to open positive as majority of Asian markets have opened in green. The better than expected consumer confidence data for the month of August helped US markets close with moderate gains. However the sentiments across Asian markets are positive exuding some rebound after yesterday’s selling pressure. In the domestic arena one could witness a range bound trade today as the bench mark indices had rebound yesterday before the fag ending of markets.
On Tuesday, domestic markets closed marginally higher after a volatile session. The sentiments were weak in the morning trading hour as Asian markets had opened with blood bath. However as the day progressed investors picked up stocks at lower level. Stocks moved between positive and negative territory during the trading on continuous bouts of buying and selling ahead of expiry of August 2009 contracts on Thursday, 27th August 2009. Despite negative European markets, the benchmark indices gained some ground and moved northward during afternoon trade on some buying seen among key stocks. However, profit booking was also witnessed following recent rally. Further, lower than normal rains this year have raised worries about growth in the economy of country. The BSE Sensex ended above 15,650 level and NSE Nifty closed above 4,650 mark.
The BSE Sensex closed higher by 59.72 points at 15,688.47 and NSE Nifty ended up by 16.55 points at 4,659.35. BSE Mid Caps and Small Caps closed with gains of 33.15 and 99.37 points at 5,737.53 and 6,745.24 respectively. The BSE Sensex touched intraday high of 15,735.32 and intraday low of 15,423.39.
On Tuesday, US stock markets closed higher. The better than expected Consumer Confidence reading helped stocks gain remarkably during the opening trade. Consumer Confidence Index for August recorded at 54.1 than 47.9 that was widely expected and marked an improvement from the upwardly revised July reading of 47.4. The retail stocks were in the limelight as they gained 1.8% higher during the day’s trade. On the other hand financial stocks also provided a lot of support to the broader markets. The sector finished with a gain of 1.1%. The sentiments were further supported by the nomination of Ben Bernanke for the second term as Chairman of the Federal Reserve. US light crude oil futures for October delivery closed at $72.05 per barrel down by 3.1% on the New York Mercantile Exchange.
The Dow Jones Industrial Average (DJIA) closed higher by 30.01 points at 9,539.29, NASDAQ index inclined by 6.25 points to 2,024.23 and the S&P 500 (SPX) closed high by 5.43 points at 1,028.00.
Indian ADRs ended mixed. In the telecom pack, MTNL remained unchanged, while Tata Communications was down 0.81%. In the banking space, ICICI Bank was up 1.16% and HDFC Bank was up 0.61%. In the IT sector, Infosys was up 1.7%, Patni was up 5.2%, while Satyam was up 1.87% and Wipro was up 2.2%. In the other sector, Sterlite was down 0.15%, Tata Motors was up 0.93% and Dr Reddys was down 0.67%.
The FIIs on Tuesday stood as net buyers in equity and net sellers in debt. Gross equity purchased stood at Rs 2,543.90 Crore and gross debt purchased stood at Rs 48.30 Crore, while the gross equity sold stood at Rs 1,695.20 Crore and gross debt sold stood at Rs 103.60 Crore. Therefore, the net investment of equity and debt reported were Rs 848.60 Crore and Rs (55.30) Crore respectively.
On BSE, total number of shares traded were 53.41 Crore and total turnover stood at Rs 6,339.93 Crore. On NSE, total number of shares traded were 97.10 Crore and total turnover was Rs 17,889.19 Crore.
Top traded volumes on NSE Nifty – Suzlon Energy with total volume traded 59841049 shares, followed by Unitech with 50264647, DLF with 9608861, Tata Motors with 9098617 and Hindalco with 9016841 shares.
On NSE Future and Options, total number of contracts traded in index futures was 923424 with a total turnover of Rs 20,539.62 Crore. Along with this total number of contracts traded in stock futures were 849577 with a total turnover of Rs 26,501.14 crore. Total numbers of contracts for index options were 1696433 with a total turnover of Rs 39,334.10 Crore and total numbers of contracts for stock options were 63118 and notional turnover was Rs 1,966.40 Crore.
Today, Nifty would have a support at 4,545 and resistance at 4,602 and BSE Sensex has support at 15,312 and resistance at 15,525.
ENIL
Investors with a medium-term perspective can buy Entertainment Network India.
The stock has been on an intermediate term up-trend from the November 2008 low of Rs 93.
However, following a short-term correction in June and July, the stock has recently resumed its uptrend.
The stock rallied 16 per cent over the past two trading sessions with heavy volumes and is trading above 21- and 50-DMA. The daily momentum indicators are bullish.
We believe that the stock has potential to move up to Rs 295, with a likely pause around Rs 270. Investors can buy while maintaining Rs 170 as stop-loss.
Short-term traders enter with a target of Rs 229 and stiff-stop at Rs 198.
via BL
Market seen extending four-day rise on positive global cues
Local markets are seen extending their four-day gaining streak today, 26 August 2009 as well, with positive global cues boosting sentiment. The SGX Nifty futures for August 2009 expiry was up 19.5 points in Singapore. Encouraging statements from the Finance
Minister Mukherjee indicating that reforms would continue in right earnest to get the economy back to its 9% growth path may boost sentiment. He added that the green shoots were visible in industry with basic goods, intermediates and consumer durables doing better in the first quarter. Meanwhile the likely progress of the ongoing gas dispute between the Ambani brothers ahead of the Supreme Court verdict on 1 September 2009 may also influence the markets.
However volatility may rise ahead of the expiry of the August 2009 series on Thursday, 28 August 2009.
Most Asian markets were trading higher today, 26 August 2009. Key benchmark indices in China, South Korea, Japan, Hong Kong, Singapore were up by between 0.26% and 1.52%. However Taiwan's Taiwan Weighted slipped 1.5%
US stocks rose on Tuesday, 25 August 2009 as economic data and the renomination of Federal Reserve chief Ben Bernanke strengthened investor confidence. The three major indices closed at 2009 highs, although they were off the year's intraday highs reached after the stronger-than-expected economic data. The Dow Jones Industrial Average advanced 30.01 points, or 0.32 per cent, to 9,539.29. The Standard & Poor's 500 Index gained 2.43 points, or 0.24 per cent, to 1,028.00. The Nasdaq Composite Index rose 6.25 points, or 0.31 per cent, to 2,024.23.
Planning Commission Deputy Chairperson Montek Singh Ahluwalia said on Monday, 24 August 2009 that India's fiscal deficit this year will not exceed 6.8% despite rising concerns that high government spending. In the budgetary estimates for 2009-10, the fiscal deficit was projected at 6.8%. The first full meeting of the Planning Commission will be held on 1 September 2009 and the main topic of discussion will be the state the economy.
The BSE Sensex has risen 878.83 points or 5.93% in the past four trading days from 14,809.64 on 19 August 2009 to 15688.47 on Tuesday, 25 August 2009.
Equities have risen sharply this year on the back of heavy buying by foreign funds. The Sensex is up 6041.16 points or 62.62% in calendar year 2009 as on 25 August 2009. From a 3-year closing low of 8,160.40 on 9 March 2009, the Sensex is up 7528.07 points or 92.25% as on 24 August 2009. FII inflow in calendar year 2009 totaled Rs 36,018.20 crore (till 21 August 2009).
As per the provisional figures on NSE, foreign funds sold shares
worth Rs 259.14 crore and domestic funds bought shares worth Rs 436.59 crore on Tuesday, 25 August 2009.
Transformers and Rectifiers
We recommend a buy in Transformers and Rectifiers from a short-term perspective. The stock formed a long-term trough at Rs 107 in March and has been on a strong uptrend since then. The correction in June halted above Rs 250 and the stock is once more heading higher. The 10-day rate of change oscillator and the daily moving average convergence and divergence indicator have moved above the zero line indicating a bullish near-term perspective.
We also see a spurt in volumes over the last four sessions that is supportive of the current uptrend extending. The stock can move higher to Rs 380 in the short-term. Short-term investors can buy with a stop at Rs 330.
via BL
Daily News Roundup - Aug 26 2009
The Government has decided to take two distinct decisions in the two disputes involving the KG D-6 block gas supplies — NTPC-RIL and RIL-RNRL. (BL)
United Breweries offers beer giant Heineken the right to have equal representation on the UB board. (ET)
Tata Motors to develop higher capacity engines for its Nano car, to target domestic as well as foreign markets. (BS)
Wockhardt has sold its 10 hospital properties to Fortis Healthcare and plans to use the funds for repaying Rs5bn debt on its books. (BS)
Diageo Plc’s talks with UB group to buy a stake in United Spirits have collapsed on a disagreement over the company’s valuation. (FE)
Tech Mahindra has won an outsourcing contract worth ~US$500mn from Swan Telecom. (ET)
IOC refuses to reduce the base price of jet fuel. (ET)
HCL Technologies has refinanced the loan taken from Standard Chartered to finance the acquisition of Axon. (BL)
Lupin plans to borrow up to Rs5bn in the form of term-loans or debentures. (ET)
Coal India may hike coal prices by up to Rs175 a ton to close the gap between domestic and international rates. (ET)
ABB has won an Rs1.3bn order from Power Grid Corporation of India to set up a 400kV gas insulated switchgear substation in Navsari, Gujarat. (BL)
Indiabulls Power is in talks with banks for a pre-IPO placement for raising Rs4.1bn which is likely to be finalized at Rs43.5 per share. (ET)
Ratnagiri Gas and Power to supply electricity at a higher rate of Rs2.24 per unit to Maharashtra State Electricity Distribution Company. (ET)
JSW Energy to raise Rs90bn in next 18 months for project expansion. (BS)
Cairn India to begin crude oil production from its Rajasthan block from August 29, 2009. (FE)
International Finance Corporation (IFC) plans to invest Rs250bn by way of equity into Snowman Frozen Foods Ltd. (FE)
Pyramid Saimira to offload 40% stake in its movie production company to a Kolkata-based corporation. (BS)
McLeod Russel India through its UK arm has acquired, indirectly though, controlling stake in Gisovu Tea Company, Rwanda, producing an estimated 1.7mn kg tea annually. (BL)
JSW Energy is close to finalizing a coal-supply linkage pact in Indonesia. (ET)
Apollo Hospitals’ has put its plans to start operations in UK on hold. (BL)
GlaxoSmithKline Pharmaceuticals to import Actiprotect, its disposable respirator mask that has an anti-viral coating. (BL)
Delhi International Airport Ltd signed a 25-year concession agreement with EIH to finance, design, develop, construct, operate, manage and maintain in-flight catering facilities and services at the airport. (BL)
An integrity panel has endorsed BSNL’s decision to disqualify Nokia Siemens Networks from its Rs350bn tender on technical grounds. (ET)
Great Eastern Energy Corporation Ltd plans to raise ~Rs4bn through an initial public offering in FY10 to part-fund drilling of nearly 300 wells and distribution of gas for industrial purposes in West Bengal. (BL)
The food ministry is working on a proposal to revise the levy sugar price from the current average of Rs13 per kg to ~Rs20 per kg and also make available an additional 10% sugar under the levy quota only for the festival season. (FE)
The Central Board of Direct Taxes (CBDT) orders scrutiny of firms taking AS-11 relief. (BS)
DoT plans to ask the EGoM on 3G-spectrum auction to consider a proposal under which successful bidders of pan India 3G spectrum can enjoy tax benefits applicable under section 80-1A of the income tax act. (ET)
The Government has decided to release the remaining three-fifths of arrears due to government employees and pensioners under the Sixth Pay Commission. (E)T
Security concerns have forced the government to put on hold a proposal allowing foreign airlines to invest in domestic carriers. (ET)
Government to allow corporate bond repurchase for liquidity. (BL)
India’s tobacco exports rose by 39% yoy in value terms to Rs13.7bn during Apr-Jul’09. (ET)
No firm decisions!
Indecision is like a stepchild: if he does not wash his hands, he is called dirty, if he does, he is wasting water.
Recent gains could water down as the market comes to terms with indecisiveness and intra-day gyrations ahead of the F&O expiry. The 10-year benchmark bond yield ended at 7.30% on Tuesday and the Finance Minister’s tone seems to suggest he is trying to talk up the stock market and cool down the bond market.
While it has started pouring in many places, the adverse fallout from the delayed and disappointing rains could be much wider, deeper and longer. Inflation will be the biggest concern going forward. Interest rates too have bottomed out. We see a flat to cautious start and the usual dash of volatility for the day.
Meanwhile, the primary market seems to be gradually coming back to life after a protracted hiatus. It could have some impact on the secondary market, if there are too many issues. We are not talking about the IPOs only. There are other issues as well, like NCDs, GDRs, ADRs and QIPs. Liquidity could switch sides.
From consumer confidence to consumer sentiment, the global markets will tune in to a host of data from US. Stay tuned.
Wednesday brings reports on new home sales and durable goods orders in the US, both from the Commerce Department. The weekly crude oil inventories report from the Energy Information Administration is also due in mid morning.
FIIs were net sellers at Rs2.59bn in the cash segment on Tuesday on a provisional basis while the local funds pumped in Rs4.36bn, according to figures published on the NSE's web site. In the F&O segment, the foreign funds were net buyers at Rs3.33bn. On Monday, FIIs were net buyers at Rs8.48bn in the cash segment. Mutual Funds were net buyers of Rs4.16bn in the cash segment on the same day.
US stocks advanced on Tuesday, extending the recent rally, after reports showed that consumer confidence and home prices are starting to recover. Treasuries gained as crude oil fell more than $2 a barrel to the lowest price in a week.
News that President Obama is nominating Federal Reserve chairman Ben S. Bernanke for a second term in office added to the positive sentiment.
The Dow Jones Industrial Average added 30 points, or 0.3% to close at 9,539.29, its highest point since Nov. 4. The S&P 500 index gained 2 points, or 0.2% to end at 1,028.00, its highest point since Nov. 6. The Nasdaq Composite index rose 6 points, or 0.3%, to 2,024.23, the highest close since Oct. 1.
Stock gains were pretty broad based, with 21 of 30 Dow stocks rising.
US stocks had slipped on Monday as investors decided to take some profits home after pushing the major benchmarks to new 2009 highs on Friday.
But falling oil prices cut into any stock gains, dragging down the influential energy sector. The Amex Oil index was off 1%.
Since bottoming at a 12 1/2 year low on March 9, the S&P 500 is up 52% as of Tuesday's close. The pace and breadth of the run up has left many market players calling for a big selloff in September and October. But so far, there has been no indication of that.
Stocks hit the highs of the day just after the release of the August Consumer Confidence index. The index rose to 54.1, surprising economists who thought it would rise to 47.9. The index stood at a revised 47.4 in July.
Unemployment is continuing to rise, and that's going to keep the consumer spending in check for the time being. Inventory rebuilding will help support the US economy in the short term, rather than a spike in consumer spending.
President Obama nominated Bernanke to chair the Federal Reserve for a second term, announcing the reappointment months ahead of the expiration of Bernanke's current term. The reappointment is expected to receive the approval of the Senate.
Home prices rose 2.9% in the second-quarter versus the first quarter, according to an S&P/Case-Shiller report. That's the first quarterly rise in prices in three years and could signal that the housing market has bottomed.
The 20-city index declined 15.4% in June versus a year ago, but that was shy of forecasts for a drop of 16.4% versus a year ago.
The White House released its deficit and economic forecast. It predicts a federal budget deficit of $9 trillion over the next decade and a deficit of $1.58 trillion in 2009. The $9 trillion is $2 trillion more than what the administration had forecast previously.
The Congressional Budget Office released its own forecast shortly after the Obama administration. The CBO said that the 2009 deficit will total $1.6 trillion.
US light crude oil for October delivery fell $2.32 to settle at $72.05 a barrel on the New York Mercantile Exchange, after touching a new 10-month high in the morning.
Treasury prices inched higher, lowering the corresponding yields, following a positive response to the first of three government debt auctions this week. The rise in prices lowered the yield on the benchmark 10-year note to 3.44% from 3.47% on Friday.
Treasury sold $42 billion of 2-year notes Tuesday and is planning to sell $39 billion of five-year notes on Wednesday and $28 billion of 7-year notes on Thursday.
COMEX gold for December delivery rose $2.30 to settle at $946 an ounce.
In currency trading, the dollar rose versus the euro and gained versus the Japanese yen.
European shares too edged higher, notching a fresh annual high in the process, as gains for telecom stocks offset losses for miners. The Dow Jones Stoxx 600 index rose 0.4% to 237.84. Since January, the index has gained nearly 20% and has jumped more than 15% this quarter.
The UK's FTSE 100 index rose 0.4% to 4,916.80, while Germany's DAX index advanced 0.7% to 5,557.09 and the French CAC-40 index gained 0.8% to 3,680.61.
Indian markets extended its upswing for the third straight trading session on Tuesday with the NSE Nifty closing above the 4650 levels. The BSE Sensex has added nearly 450 points in the last 3 days.
Markets started off on a weak note mainly on the back of weak global cues coupled with selling pressure in the heavyweights. However, a sharp pull back in the Shanghai Se Composite in China lifted the sentiments on Dalal Street invigorating the NSE Nifty to end above the 4,650 levels.
The BSE Sensex gained 60 points or 0.4% at 15,688 after touching a high of 15,735 and a low of 15,423. The index opened at 14,574 against the previous close of 15,629. The NSE Nifty gained 16 points to shut shop at 4,659.
In Asia, the Nikkei in Japan ended lower by 0.8% at 10,497 while Australia's S&P/ASX lost 0.5% at 4,405. The Hang Seng index in Hong Kong slipped 0.5% at 20,435. Shanghai SE Composite in China gained by 2.5% at 2,915.
In Europe, stocks were trading in flat. The FTSE in the UK was, the DAX in Germany and the CAC 40 index in France were flat with a slight negative bias.
Coming back to India, among the BSE sectoral indices, the IT index was the top gainer, gaining 2%, followed by the Consumer Durables index that was up 2%. The BSE Oil & Gas index up 1.1% and the BSE Pharma index was up 1%.
The BSE Mid-Cap index gained 0.6% and the BSE Small-Cap index gained by 1.5%.
Among the 30-components of Sensex, 15 stocks were in the green while the other 15 ended in the red. The major gainers were Tata Motors, Wipro, Reliance Industries, RCom, Grasim and NTPC.
Among the major losers were, SBI, BHEL, Bharti, ICICI Bank and ONGC.
Outside the frontline indices, the big gainers in the broader market were Jubilant Org, Rolta, Mphasis, Educomp and HCL Tech. On the other hand, losers included Nagarjuna Const, Jai Corp, Tulip Tele and BEL.
Sugar stocks were under pressure after the government imposed limits on how much of the commodity users are allowed to hold. The government said that the bulk users of sugar, whose monthly consumption exceeds 1mt should not stockpile more than 15-days worth of the sweetener, the food ministry said.
Shares in Balrampur Chini fell 2.7%, Renuka Sugars declined 2%, while Triveni Engineering ended lower by 2%.
ABB gained 2% to Rs730 after it bagged Rs1,283mn order from Power Grid Corporation of India Limited for a 400-Kv(Kilovolt) gas insulated switchgear (GIS) substations to strengthen the power transmission network in the country's western Grid.
Shares of Suven Life Sciences were locked at 20% to Rs31.6 after the Chairman & CEO, Venkat Jasti said the company is in talks with four global Pharma majors, who are evincing keen interest about the possible out-licensing deals for SUVN-502, the company's lead candidate for Alzheimer's disease.
If everything goes well Suven will receive substantial upfront payments / milestones payments and royalties and it will be known only after Completion of due diligence around December 2009. Irrespective of the outcome of these deals, our Company is preparing for the commencement of Phase IIa studies for this molecule during next year and also for fund raising activity.
Ranbaxy Labs surged by over 7% to Rs343 after the company announced that it received approval from the U.S. Food and Drug Administration to manufacture and market Glycopyrrolate Tablets USP, 1 mg and 2 mg.
Mcleod Russel announced that Borelli Tea Holdings Ltd, UK, the wholly owned subsidiary of the Company has signed Shareholders Agreement to acquire 75% equity stake of Olyana Holdings LLC, USA, for US$2.75mn.
The stock ended lower by 2.5% to Rs176. It opened at Rs179 and made an intra-day high of Rs185 and a low of Rs174. Total traded volumes stood at 1.1mn shares.
Shares of Madhucon Projects rallied by over 10% to Rs224 after reports stated that the company plans to raise Rs5bn for Madhucon Infra via an Initial Public Offering.
Madhucon Infra is a wholly owned subsidiary of Madhucon Projects. The company is also planning to increase the power capacity to 1000MW from 540MW.
Stone India was locked at 5% upper circuit to end at Rs38.55 after it received the first bulk order for supply of Air Spring for passenger coaches from Rashtriya Coach Factory, Kapurthala for 123 coach sets. The order is valued at Rs 49mn.
The recently announced "Duranta Express" will use this new generation pneumatic suspension system which will provide superior air cushion ride for passengers for trains running at a higher speed. Stone India is manufacturing this product under collaboration from Sumitomo Electric Industries, Japan - the leading supplier of such products for Bullet Trains in Japan.
Shares of Piramal Life Science surged 4% to Rs76.45 after the company announced that it completed phase I trail for diabetes drug. The stock opened at Rs70 and made an intra-day high of Rs77 and a low of Rs70. Total traded volumes stood at 17,000 shares.
Grey Market Premium - Oil India, NHPC, Jindal Cotex, Globus Spirits
NHPC 36
4.5 to 5.50
Jindal Cotex 70 to 75
4 to 5
Globus Spirits Ltd. 90 to 100
6 to 6.50
Oil India 950 to 1050
155 to 160
Turnover surges
Tata Motors August 2009 futures at discount
Nifty August 2009 futures were near spot price at 4659.95 as compared to the spot closing of 4659.35. Turnover in NSE's futures & options (F&O) segment surged to Rs 88,341.26 crore from Rs 76,803.24 crore on Monday, 24 August 2009.
The near month August 2009 futures contract will expire on Thursday, 27 August 2009.
Tata Motors August 2009 futures were at discount at 487.40 compared to the spot closing of 490.35.
Tata Steel August 2009 futures were at discount at 456.35 compared to the spot closing of 457.85.
Suzlon Energy August 2009 futures were near sport price at 92.30 compared to the spot closing of 92.10.
In the cash market, the S&P CNX Nifty rose 16.55 points or 0.36% at 4659.35.
Crude registers steep drop
Price pare earlier gains as US budget deficit expands
Crude prices pared earlier gains and ended lower on Tuesday, 25 August, 2009. Prices rose earlier during the day as consumer confidence in US showed signs of improvement. But then prices slipped as U.S. government report showed the highest federal deficit in more than six decades.
On Tuesday, crude-oil futures for light sweet crude for October delivery closed at $72.05/barrel (lower by $2.32 or 3.1%). During intra day trading, it rose to a high of $75. Last week, crude ended higher by 6.1%.
For the month of July, 2009, crude ended lower by a marginal 0.6%. For the second quarter, crude ended higher by 40%. Crude prices had rallied 11.3% in the first quarter of 2009.
Oil prices had reached a high of $147 on 11 July, 2008 but have dropped almost 52% since then. Year to date, in 2009, crude prices are higher by 48%.
The Congressional Budget Office estimated on Tuesday that the budget deficit will total $1.6 trillion in 2009. At 11.2% of gross domestic product, that will be the highest level since World War II.
Earlier during the day, the Conference Board reported that consumer-confidence index in US rose to 54.1 in August from an upwardly revised 47.4 in July.
In the currency market on Tuesday, the dollar firmed earlier during the day. But the dollar earlier came under pressure after reports showed U.S. home prices rose in June and consumer confidence rose in August. The dollar also remained relatively low on announcement about the nod to President Barack Obama's reappointment of Federal Reserve Chairman Ben Bernanke to serve a second term. The dollar index which weighs the value of dollar against a basket of six other currencies fell by 0.4%.
Also at the Nymex on Tuesday, September reformulated gasoline fell 4.21 cents, or 2.1%, to $2.007 a gallon, and September heating oil dropped 6.75 cents, or 3.5%, to $1.8559 a gallon.
September natural-gas futures fell 4.1 cents, or 1.4%, to $2.882 per million British thermal units.
Crude prices had ended FY 2008 lower by 54%, the largest yearly loss since trading began at Nymex.
At the MCX, crude oil for September delivery closed lower by Rs 112 (3.1%) at Rs 3,504/barrel. Natural gas for September delivery closed lower by Rs 2.1 (1.3%) at Rs 160.6/mmbtu.
Oil India IPO price band set at Rs 950-Rs 1050 per share
IPO opens for bidding on 7 September 2009
The government has fixed Rs 950-1,050 per share price band for the initial public offering of Oil India (OIL), the second state-run firm to hit the market this year after NHPC, and will raise up to Rs 4,982 crore. The IPO will open for bidding on 7 September 2009 and close on 11 September 2009. OIL, which produces 3.5 million tonnes of oil annually, will be listed on the bourses on 29 September 2009.
OIL will offer fresh equity of 2.64 crore shares or 11%, while the government will put on offer 10% of its stake in the company to state-run refiners. IOC will get about five per cent HPCL and BPCL would take about 2.5% each.
The IPO will help mop up Rs 4,507 crore at the floor price and Rs 4,982 crore at the ceiling rate. Government would earn Rs 1,995-Rs 2,205 and the company would get Rs 2,512 to Rs 2,777 at the lower and upper end of the band, respectively.
Post-IPO and disinvestment, the government's stake in the company will decrease from 98.13% to 78.5%.
FIIs continue buying
Inflow of Rs 848.70 crore on 24 August 2009
Foreign institutional investors (FIIs) bought shares worth a net Rs 848.70 crore on Monday, 24 August 2009, much higher than Rs 546.20 crore on Friday, 21 August 2009.
FII inflow of Rs 848.70 crore on 24 August 2009 was a results of gross purchases Rs 2543.90 crore and gross sales Rs 1695.20 crore. The BSE Sensex surged 387.92 points or 2.55% to 15,628.75 on that day.
FII inflow in August 2009 totaled Rs 697.20 crore (till 24 August 2009). Foreign funds had bought equities worth Rs 11,625.20 crore in July 2009. FII inflow in calendar year 2009 totaled Rs 36,866.90 crore (till 24 August 2009).
There are a total of 1687 foreign funds registered with the Securities & Exchange Board of India (Sebi).
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