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

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

We are currently facing an issue in receiving the NSE feed. Hence the stock prices are not updated. We are working on fixing this at the earliest. We regret the inconvenience caused.

Oil & gas stocks lose favor
Fri, 18 Mar 01:30 pm

The Indian stock market indices are trading deep in the red currently led by losses in oil & gas stocks. All sector indices except metals are trading below the dotted line. Stocks from oil & gas and technology lead the pack of losers.

The BSE-Sensex is down by 220 points while NSE-Nifty is trading 55 points below yesterday’s closing. The BSE Midcap and BSE Small cap indices are down by around 0.4% and 0.5% respectively. The rupee is trading at 45.10 to the US dollar.

Engineering stocks are trading mixed with Kalpataru Power and AIA Engineering leading the gains. However, Areva T&D and BHEL are trading weak. Havells India is planning to refinance loans worth US$147 m (Rs 6.6 bn) at its Sylvania unit in 2012. Upon refinancing the interest rate is expected to decline by 50% from the current levels of 9%. Refinancing will be through a mix of internal accruals and low cost debt. However, the exact mix has not been decided as yet. It may be noted that Havells bought Germany’s Sylvania in 2007 for US$ 320 m (Rs 14.4 bn) and the loss making unit has been turned around through aggressive restructuring plans. Right now, Sylvania contributes about half of the Havells’ total revenue. In order to further leverage on its premium Sylvania brand, the company is planning to spend Rs 1.2 bn to double its compact fluorescent lamps (CFL) capacity in the next two years.

Energy stocks are trading weak led by a 3.7% decline in the petroleum major Reliance Industries. The weakness in Reliance is because in its reply to the regulator it seems to have said that gas production from the KG Basin block could be lower than estimated. According to provisional budgetary allocations, gas sales from the D1 and D3 fields can be as low as 38 MMSCMD for FY13. This is lower than the current rate of sales from these fields which has dropped to around 43-44 MMSCMD. Reliance replied to the regulator saying that production of natural gas and crude oil could drop even further, unless radical changes can be implemented on the block.

Recently British Petroleum agreed to pay USD 7.2 bn for a 30% stake in 23 out of Reliance’s 30 oil and gas blocks including the gigantic eastern offshore KG-D6 fields. The deal was a big positive for Reliance because British Petroleum is expected to bring technical expertise to ramp up gas production in KG Basin.

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

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Oil & gas stocks lose favor". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.