Gas find, inflation & more... - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Gas find, inflation & more...

Jul 18, 2008

India's gas story keeps getting better
The Gujarat government-owned Gujarat State Petroleum Corporation (GSPC) has discovered yet another gas reserve in the hydrocarbon rich KG basin. Although, the company has not disclosed the size of the discovery, the flow rates indicate that the discovery might be of a substantial quantity. Infact, even as per the upstream regulator, the Directorate General of Hydrocarbons, the reservoir's quality seems to be good. The importance of the discovery can be gauged from the fact that Gujarat chief minister Narendra Modi is likely to inspect the project site in Andhra Pradesh and then make an announcement.Interestingly, the company is contemplating an initial public offering (IPO) of 20% equity in December this year to raise funds for developing its gas fields. However, the Gujarat Energy Minister, Mr Saurabh Patel, has said no decision has been taken so far on the IPO and the timing and quantum of stake sold (likely to be restricted to 20%) is likely to vary depending on the funds required and market condition. It may be noted that GSPC is planning to invest Rs 40 bn in developing its KG basin gas fields.

We consider this development as a confirmation of our view that the Indian natural gas story is here to stay and that several players from the upstream, midstream and downstream segments are likely enjoy the benefits.

  • Also read - Oil & gas: Same industry, different fates

    Inflation finally stabilising
    The inflation measured in terms of wholesale price index (WPI rose to 11.9% for the week ended July 5, up from the 11.8% reported in the previous week. As for the break up, fuel products like naphtha, light diesel oil, furnace oil and aviation turbine fuel along with manufactured products like chemicals and iron and steel witnessed a rise in prices.

    This comes as a relief for the policy makers as the steep uptrend in the WPI has stalled after nearly two months. In fact, the finance ministry indicated that inflation rate for the group of 30 essential commodities such as food grain, pulses, edible oils, vegetables, dairy products and some other commodities, including kerosene, soap and safety matches, have more or less stabilised. It may be noted that inflation is now at a 13-year high and it is believed that double-digit inflation is likely to persist for a while. As a result, the Reserve Bank of India (RBI) is likely to tighten monetary policy again in its review of monetary policy on July 29.

  • Equitymaster requests your view! Post a comment on "Gas find, inflation & more...". Click here!


    More Views on News

    I Found My Guru. Have You Found Yours? (Fast Profits Daily)

    Feb 24, 2021

    In this video, I'll tell you about the need to find a guru early in your career and how I found mine.

    It's the Beginning of a New Bull Phase in Smallcaps (Profit Hunter)

    Feb 24, 2021

    Last time the smallcap index crossed 19k a big correction followed. Here's what makes it different this time.

    Why Senior Citizens Need To Choose Their Tax-Saving Avenues Thoughtfully (Outside View)

    Feb 24, 2021

    Senior citizens while exploring tax-saving avenues, must keep in mind these top three priorities: capital protection; regular income; and managing healthcare and retirement-related expenses well.

    The Hidden Tesla in My Great Indian Wealth Project (Profit Hunter)

    Feb 23, 2021

    An Indian company founded three decades ago in a garage caught my attention...

    Make Trading Profits All Day Long (Fast Profits Daily)

    Feb 23, 2021

    In this video, I'll show you how to how to profitably trade stocks, commodities, and currencies on the same day.

    More Views on News

    Most Popular

    Intraday Trading for a Living (Fast Profits Daily)

    Feb 15, 2021

    In this video, I'll cover your queries on intraday trading and also share my view on how to decide stop losses and target prices.

    Penny Stock Master Series: The Quest for 10X Profits in 10 Years (Profit Hunter)

    Feb 12, 2021

    This is first of the three part master series. In these editorials, I'll show you how to earn 10X returns from a penny stock portfolio over 10 years.

    Top 5 Stocks Mutual Funds Bought and Sold in January 2021 (Sector Info)

    Feb 16, 2021

    A look at what India's top equity mutual funds bought and sold in January 2021.

    I Would Recommend this Small-cap Stock Over Tesla (Profit Hunter)

    Feb 16, 2021

    Do you enjoy reading Tesla and Bitcoin stories? Here's a not so famous small-cap stock to profit from the rise of EVs.


    India's #1 Trader
    Reveals His Secrets

    Secret To Increasing Your Trading Profits Today
    Get this Special Report,
    The Secret to Increasing Your Trading Profits Today, Now!
    We will never sell or rent your email id.
    Please read our Terms


    Feb 24, 2021 (Close)