X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks

MEMBER'S LOGINX

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

Sensex Marginally Higher; Cairn India Surges 2.8%
Wed, 18 Jan 01:30 pm

Indian share markets continued to trade strong during the noon session amid firm global markets. Barring oil & gas stocks, all the sectoral indices are trading in green. Capital goods and metal stocks witnessed majority of the buying activity.

The BSE Sensex is trading higher by 41 points and the NSE Nifty is trading higher by 23 points. Meanwhile, the BSE Mid Cap index & the BSE Small Cap index is up by 0.4% & 0.6% respectively. The rupee is trading at 68.05 to the US$.

SBI share price is trading on an optimistic note (up 0.9%) after the bank concluded the issue of US$500 million fixed rate Senior Unsecured Notes with maturity of five years at a coupon of 3.25% payable semi-annually under Regulation-S. The bonds will be issued through the Bank's London branch as of January 24, 2017, and will be listed on the Singapore Stock Exchange.

Although the bank is flush with funds following demonetisation, the dollar denominated borrowing will enable the bank meet funding requirement of its international operations, which are spread across 37 countries.

The transaction saw strong interest from investors across geographies with an order book in excess of USD1.5 billion across 170 accounts. According to SBI's Chairman Arundhati Bhattacharya the response to the bond offering reflected the strong perception of the bank's credit by the international investor community.

The bonds is rated Baa3 by Moody's. According to Moody's, the bank's rating has secured a one-notch uplift, because of the high-level support in a stressed situation for the bank from the government.

S&P, on the other hand, has issued a 'BBB-' long-term issue rating.

Moving on to news from stocks in oil & gas sector. Cairn India share price is trading up by 2.8% on the BSE after the company received an approval for undertaking drilling works of 64 exploratory and appraisal wells in KG-OSN-2009/3 block in KG basin at Prakasam and Guntur districts of Andhra Pradesh. A committee under the Ministry of Environment, Forests and Climate Change has given a green signal to the company for the same.

The Expert Appraisal Committee (EAC) while according to environmental clearance set a few conditions along with other specific and general environmental conditions relevant to the project proposal.

The company has proposed for drilling of 55 exploratory and 11 appraisal wells in KG-OSN-2009/3 block in Offshore KG Basin. The offshore block in the Bay of Bengal along the coast of Andhra Pradesh is spread over an area of about 1988 km.

Meanwhile, the company recently reported production data for quarter ending December 31. The daily average production saw a decline of 7% during the quarter.

For Q3 FY2017, the average gross production across assets remained at 181,818 barrels of oil equivalent per day (boepd). As expected, the production was lower primarily due to planned maintenance shutdown in Rajasthan and natural decline in offshore assets.

Shares of oil exploration companies are on the rise. However, analysts don't see a major upside as investors remain uncertain about these companies' prospects and as they do not expect oil prices to gain significantly from current levels.

Cairn India's share price has surged 136% in last one year
Cairn India's share price has surged 136% in last one year

The OPEC production cut will help oil prices but upside will be capped as shale gas production will start coming into the market at higher levels. Indian oil exploration and production companies have their own problems of corporate action, government subsidies etc.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Sensex Marginally Higher; Cairn India Surges 2.8%". Click here!

  

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE OIL & GAS


Nov 20, 2017 (Close)

MARKET STATS