IT giant Infosys had toppled RIL from the top position three days ago on December 12, but could not retain its lead over the retail-to-energy conglomerate for long.Measured in terms of its Sensex weightage, RIL has enjoyed its position as the most influential stock for many years and the movement in its share price has been crucial for any major fall or rise in this index.Earlier on December 12, RIL had slipped to second position after Infosys in terms of its Sensex weightage, which is measured by the market value of a company's free-float or non-promoter shares that can be freely traded in the market.On that day, Infosys commanded a Sensex weightage of 10.25%, higher than RIL's 10.08%. Infosys retained its lead over RIL for three days till December 14.Similarly at the NSE's Nifty index, another barometer of the Indian stock market, Infosys was the top-ranked stock with a weightage of 9.13%, followed by RIL's 8.48% as on December 12.However, Infosys continues to retain its lead over RIL in terms of weightage on the 50-share Nifty index. At the end of today's trade, Infosys remained most influential among the Nifty stocks with a weightage of 9.08%, followed by RIL at the second position with 8.78%.The weightage of a stock on Sensex and Nifty changes daily, as per the change in the market value of their shares.According to market analysts, Reliance's fall from top position earlier this week did not come as a surprise, as the stock has been under-performing the market barometer Sensex for quite sometime.On a group-basis, RIL had slipped to third slot in June this year, in terms of a corporate group's influence in moving the stock market benchmark Sensex, after HDFC and Tata groups.HDFC and HDFC Bank continue to lead the pack on group level with a collective weightage of over 13% in the Sensex, while four Tata group firms on the index (TCS, Tata Steel, Tata Motors and Tata Power) command a weightage of close to 11%.RIL stock has crashed about 30% so far this year, which is higher than a fall of about 23% in the Sensex. The decline in Infosys shares have been much smaller in comparison.(PTI)
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Petrol prices may be hiked by Rs 0.65 per litre this week if state-owned oil firms manage to get political approval for the move.While a fall in the rupee to an all-time low of Rs 53.75 per US dollar has resulted in an increase in the cost of oil imports, international rates of gasoline -- against which domestic petrol prices are benchmarked -- have also increased, a top source at a state-run oil firm has said."The under-recovery on petrol is Rs 0.55-0.56 per litre.After adding local sales tax, the desired increase in Delhi comes to Rs 0.65-0.66 a litre," he said, adding that the oil companies will review prices on Thursday and any change will be effective from December 16.State-owned oil firms have cut petrol prices on two occasions in the past one month after international oil rates eased.The companies reduced petrol prices by Rs 2.22 per litre, or 3.2 per cent, from November 16 and followed this with a Rs 0.78 per litre cut from December 1.The source, however, could not say if oil companies will go ahead with increasing prices tomorrow, in line with the practice of changing rates every fortnight. "The actual loss to us is only 50-55 paise. We can tolerate it for another fortnight if need be," he said.Public sector oil firms, which revise petrol prices on the 1st and 16th of every month based on the average international rates of the previous fortnight, may informally consult the parent Petroleum Ministry before taking a decision.Parliament is in session and an increase in petrol prices may lead to protests by Opposition parties.The price of gasoline has averaged $111.11 per barrel in Singapore this month, up from $108.25 a barrel in the previous fortnight.(PTI)
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With oil companies losing Rs 333 crore per day on selling fuel below cost, Petroleum Minister S Jaipal Reddy has sought a meeting of a high-powered ministerial panel to decide on revising the rates of diesel, domestic LPG and kerosene."I have asked for a meeting of the Empowered Group of Ministers (EGoM)," Reddy told reporters after a meeting with Finance Minister Pranab Mukherjee, who heads the EGoM.State-owned oil firms are currently losing Rs 9.27 per litre of diesel, Rs 26.94 per litre of kerosene sold through the public distribution system (PDS) and Rs 260.50 per 14.2-kg LPG cylinder supplied to households for cooking purposes.The EGoM "meeting would take place before the Winter Session of Parliament", beginning November 22, he said, adding that a decision on raising prices may "not be easy".The ministerial panel is essentially a consensus-building body of the Congress-led UPA government and comprises key allies like the DMK, TMC and NC. The allies had in September scuttled plans to limit the supply of subsidised LPG cylinders to 4-6 per household in a year so that subsidies can be cut.Reddy said his ministry would push for raising prices of all three regulated products, diesel, LPG and kerosene.On oil companies pressing for a hike in petrol prices, he said PSUs were fully empowered to take a view, keeping in mind rising crude oil prices and depreciating rupee."Our ministry does not administer" the price of petrol, which was freed from government control in June last year, he said.Yesterday, HPCL Director (Finance) B Mukherjee had said that oil firms may have to raise petrol prices, as they were losing Rs 1.50 per litre at the current rates.Reddy said Indian Oil, Hindustan Petroleum and Bharat Petroleum stand to lose over Rs 130,000 crore this fiscal on selling diesel, domestic LPG and kerosene at rates below their cost."Oil companies will soon find it difficult to get loans from Indian banks, let alone foreign banks," he said, adding that the companies were borrowing heavily to meet even working capital requirements in the absence of fuel selling price not meeting even operating expenses.Petroleum Secretary G C Chaturvedi said oil firms were free to decide on raising rates of deregulated petrol at the right time."It is for them (oil companies) to decide. They will take a decision at a right time," he said.Chaturvedi said petrol is a deregulated commodity whose pricing is not decided by the government. "The oil companies are empowered to take a view on it," he said.Indian Oil, HPCL and Bharat Petroleum had last hiked petrol prices by Rs 3.14 a litre on September 16, when the Indian rupee was valued at about Rs 48 per US dollar. The exchange rate is now over Rs 49 per US dollar."From today, there are some losses on petrol. To cover them, we may have to increase prices," Mukherjee had said yesterday.He had stated that crude oil is hovering at around USD 108 per barrel in international markets. At the current exchange rate, the petrol price of Rs 66.84 per litre in Delhi is equivalent to a crude oil price of about USD 102 a barrel."Let's say, we are toying with the idea," he said. "It may happen. We will see," he added.(PTI)
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State-run gas firm GAIL India aims to invest $1 billion in shale gas assets globally in one year's time, its chairman B.C. Tripathi said on Wednesday.In September, GAIL said it had agreed to buy a 20 per cent stake in one of Carrizo Oil & Gas Inc's shale gas assets in the United States. Earmarks $400 Mn For Singapore LNG Trading Biz in 2012Gail (India) Ltd has earmarked $400 million for its new Singapore trading office to secure LNG and petrochemical product cargoes for delivery to India in 2012, Chairman and Managing Director B C Tripathi announced in Singapore today.Gail's Singapore office, which was inaugurated today but will begin trading next month on getting all formal approvals, will tie-up as much as $400 million worth of LNG cargoes and petrochemical products next year for delivery into India, he told PTI after addressing a press conference.Ninety per cent of the trade would be in LNG from the initial start-up."India is a huge market for LNG and petrochemical products, while supply remains tight," stressed Tripathi, reaffirming Gail's commitment to energy development both within India and globally through an annual investment of USD 2 billion.He also disclosed that Gail was building shale gas expertise through participation in projects in the United States."The company is building expertise in shale gas and will participate in the Indian shale gas projects once the government announces its policy and development plans," he said.He said participation in US shale gas was a part of Gail's strategy to develop technology, expertise and know-how.Gail, along with its international partners in existing projects, will aggressively bid for shale gas concessions in India once the government puts them up for auction, which is expected to take place in about one year.Gail has invested $100 million on the US shale gas projects and plans to spend another $200 million over the next two years, said Tripathi, indicating that the company will spend $1 billion on shale gas projects in the coming years.Several shale gas projects were being negotiated in the United States and Canada, he disclosed, adding that the company's next investment decision in upstream shale gas was expected in six months.The target would be to ship the North American shale gas LNG to India and if not feasible, trade it globally, said Tripathi.The Singapore office, which is being opened a few months after a Houston office and a year after its office in Egypt, underlines Gail's focus on global gas resources and trade, said Tripathi.Additionally, Gail continues to make regular investments on gas infrastructure in India, with the next big proposal involving the establishment of a floating or land-based LNG terminal on the East Coast of the country.A final investment decision on the East Coast terminal is expected in six months, he told reporters.Tripathi said Gail will continue with its aggressive business development strategy, including participation in international gas pipeline projects linking the Indian market to huge neighbouring gas basins.(Agencies)
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Brent crude was little changed above $107 on Tuesday, after falling in the previous session, on concerns of demand growth as investors worried that last week's pact by European leaders may not be enough to limit the region's debt crisis.The worries echoed across financial markets. Asian stocks sank, the euro languished near a two-month low, gold plunged to a seven-week low and copper fell after posting its biggest decline in three weeks. Oil will be driven by headlines on Europe's fiscal condition and Wednesday's OPEC meet, with support coming from supply uncertainties in the Middle East.Brent fell 3 cents to $107.23 a barrel by 0630 GMT, after sliding to as low as $107.07 and settling down $1.36. US crude also fell 3 cents to $97.74, after settling $1.64 lower, trading below $100 for a third day."Markets probably are thinking the euro zone is taking too long to get its act together," said Tony Nunan, risk manager at Mitsubishi Corp. "But it's also true that you can't force things at any quicker rate because of the sheer number of countries involved in the decision making process."The uncertainty worsened after ratings agency Moody's said it would review ratings of all EU member states in the first quarter of 2012, while rival Fitch said the summit had failed to provide a "comprehensive" solution to the debt crisis.Oil investors are awaiting the outcome of a meeting of producer group OPEC on Wednesday. The group on Monday targeted a new 30-million barrel-a-day production deal aimed at healing the rift left by a bad-tempered failure to reach an output agreement when it last met in June.OPEC MeetAt stake for the Organization of the Petroleum Exporting Countries is a credible policy going into a year when a sluggish global economy could undermine fuel demand and send oil prices tumbling from over $107 a barrel now."It would be in the OPEC members' best interest to come up with an agreement after they failed to do so in the last meeting," said Natalie Robertson, an analyst at ANZ Bank.Without a collective supply target, OPEC members with spare capacity - Saudi Arabia and its Gulf Arab allies - remain free to pump at will.Saudi Oil Minister Ali al-Naimi confirmed on Monday that the kingdom pumped 10.047 million barrels per day in November."Whether or not OPEC agree to a ceiling, we see the end result being that Saudi Arabia, Kuwait and the UAE will be the main swing producers in the rebalancing process over the next six months," JPMorgan analysts said in a report.US commercial crude stockpiles are expected to have fallen on average 1.6 million barrels for last week, a preliminary Reuters poll of seven analysts showed.Fed MeetFinancial markets are awaiting the outcome of a US Federal Reserve meeting later in the day. The policy-setting Federal Open Market Committee looks set to hold off on easing monetary policy as it gauges the impact of Europe's crisis.The United States has had a series of positive numbers, raising hopes of a steady economic recovery in the country, helping boost demand in the world's biggest oil consumer."The market is also starting to focus on what the Fed will say about its outlook for policy, and a general guidance on the outlook of the economy," said Robertson at ANZ Bank.Unrest in the Middle East is helping put a floor under prices as participants worry about supply disruptions.An explosion ripped through a gas pipeline near the town of Rastan in the central Syrian province of Homs and flames were seen rising from the site, a witness said, the second reported blast at an energy pipeline in Homs in a week.(Reuters)
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After three decades of ostracisation, it is nice to be included in the nuclear club. On 4 December, Australia lifted its ban on exporting uranium to India. Australia is the latest to join the bandwagon of Canada, Kazakhstan and France, following the International Atomic Energy Agency's approval of India's move to allow inspection of civilian nuclear facilities (helped in no small part by US support).Ironically, in 2007, the Australian government had ended discussions on the issue. But now, it wants to build closer ties, both economic and political. It could not have come at a better time for Australia, as the world is still far from a recovery after the global crisis of 2008. Already, many Indian companies have bought coal (and iron) mines in Australia.Given India's plans to add 64,000 MW of nuclear energy capacity, the gains are considerable. The Australian Uranium Association hopes to sell about 2,500 tonnes of uranium in the next two decades to India. That translates into a potential A$300 million (Rs 1,589 crore) by 2030.But it may not all be smooth sailing. Australian public sentiment has long been divided over nuclear energy and uranium mining. Fresh safety concerns have risen after the near crisis in the Fukushima power reactor during the Japanese tsunami in early 2011. And this could stall future uranium exports. Australia accounts for almost 24 per cent of global uranium deposits. The country itself, though, has no nuclear energy facilities; work on its Jervis Bay nuclear power plant stopped some time ago. In India, there have been protests at the Jaitapur and Kudankulam plants. We aren't going critical — yet.(This story was published in Businessworld Issue Dated 19-12-2011)
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Oil prices fell on Monday, weighed down by a stronger dollar and weaker demand, with investors eyeing a Group of 20 meeting later this week that will focus on the European debt crisis.The U.S. dollar climbed to a three-month high against the yen on Monday after Japan intervened in currency markets to stem the yen's rise. The U.S. dollar index also rose around 1.5 per cent against a basket of currencies."The dollar is stronger against the euro - that is pushing down the commodity markets," said Masaki Suematsu, a broker at brokerage Newedge in Tokyo."Last week WTI and Brent were stronger and it's a correction because the market fundamentals are not so strong."Prices had rallied on news of a deal struck by the euro zone last week to recapitalise its banks, strengthen its rescue fund and impose hefty losses on holders of Greek debt, but persisting uncertainties about the plan have put pressure on the market."The key will be this optimism out of the EU. It doesn't translate into demand today and probably not even tomorrow, it's just that mere fact that a plan is at hand is buoying prices," said Jonathan Barratt, managing director of Commodity Broking Services in Sydney.Brent crude fell 91 cents, or 0.8 per cent, to $109 a barrel by 0633 GMT after closing at 109.91 on Friday. Brent traded between $108.60 and $110.33 per barrel.U.S. crude fell $1.50 to $92.27 per barrel.A reasonable price for crude oil is between $80 and $100 a barrel, United Arab Emirates Oil Minister Mohammed bin Dhaen al-Hamli said on Monday at the Singapore International Energy Week (SIEW) conference.He said a high oil price would lead to more investment in alternative energy and also more investment in crude production capacity, which would mean less volatile prices.Speaking at the same conference, Nobuo Tanaka, former executive director for the International Energy Agency (IEA), said an oil price of between $70 and $80 a barrel was just right, adding that prices of $100 or more will derail global economic growth, just as the record prices preceding the 2008 financial crisis did.Over the weekend, Spain and Portugal called for the United States and other G20 powers to take action to help contain the fallout from the European debt crisis at the G20 summit, set for Cannes, France, on Nov 3 and 4.British Prime Minister David Cameron, writing in the Financial Times on Monday, urged colleagues at home and abroad to avoid talking down domestic and global economic prospects.In the United States, mixed economic data did little to support oil prices. Sluggish income growth made U.S. households cut back on saving in September to raise their spending, though a separate report showed consumer morale in the world's largest economy brightened in October.The market was also eyeing weather in the U.S. Northeast, which was hit with an early winter storm, leaving more than 3 million households without power on Sunday and killing at least eight people.A cooler winter in the world's top oil consumer could bolster global energy prices, but the early storm was viewed largely as a fluke."For all intents and purposes, we're still meant to get a coolish winter, but nothing too much of an extreme and so far this seems to be just a little bit of an aberration on that," Barratt said.(Reuters)
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Telecom company GTL Infrastructure has admitted undisclosed income of more than Rs 500 crore to the Income Tax department, Parliament was informed on Friday."In consequence to a search action conducted in 2010, a group (GTL Infrastructure) had admitted undisclosed income of Rs 500.65 crore," Minister of State for Finance S S Palanimanickam told Lok Sabha in a written reply today.In a separate reply, the minister said the Enforcement Directorate has issued notices worth Rs 22 crore in connection with Hawala transactions this year."During the current year up to October 2011, the Directorate of Enforcement has issued 117 show cause notices involving an amount totalling to Rs 2246.31 lakh in respect of Hawala in contravention of the provisions of the Foreign Exchange Management Act (FEMA)," Palanimanickam said.He said the agency takes action under FEMA provisions on the "basis of specific information".(PTI)
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