Gas price hike: Better than expected
The Cabinet Committee on Economic Affairs has accepted the Rangarajan Committee formula for gas price revision. The price so computed will be applicable from April 1, 2014 and will be reviewed on a quarterly basis.
Brokerage IIFL feels the hike is above expectations. It sees a marked improvement in the long-term investment climate. "We have increased our FY15 EPS estimate for ONGC and Oil India by around 30%, while that of Reliance Industries by about 5%."
The brokerage has maintained its buy recommendation on ONGC, Oil India, Reliance Industries and Petronet LNG. It has also retained its market performer rating on GAIL India despite forecasting a largely negative impact on the counter as it uses gas as a feedstock for its petrochemical division.
The Cabinet Committee on Economic Affairs (CCEA) has accepted the Rangarajan Committee formula for gas price revision. The price so computed will be applicable from April 01, 2014 and will be reviewed on a quarterly basis.
If the formula would have been applied with immediate effect, the gas prices would have been revised to ~US$6.7/mmbtu...Read More
Cabinet okays Coal Regulatory Authority Bill
The Cabinet today gave its approval to the proposal for setting up of an independent regulatory authority for the coal sector and also approved the introduction of the Coal Regulatory Authority Bill, 2013 in Parliament. The setting up of an independent regulatory body for the coal sector shall help in the regulation and conservation of coal resources and will benefit all stakeholders; that is coal companies, coal consuming industries such as power, steel, cement and coal bearing States and people, directly or indirectly associated with the coal industry. The Cabinet also approved that pending enactment of the legislation, the regulator will be set up through an executive order...Read More
Petrol prices get dearer by Rs. 1.82\litre effective June 29
Oil marketing companies have hiked petrol prices by Rs. 1.82 per litre in the intervening midnight of June 28-29. The prices excludes value added tax and other levies. The hike in prices follows the steep weakening in the rupee as against the dollar and higher global crude prices. The Indian unit has been on a tear and is currently hovering around 60 per dollar. OMCs had last hiked petrol price up to Rs 2 per litre on June 16...Read More
OIL, ONGC acquire Videocon's Mozambique stake for $2.48bn
Nomura sees the government's recent reform initiatives as a medium-term positive for the economy. Last week, the Centre allowed power producers to pass through higher imported coal prices. On Thursday, it hiked gas prices to $8.4-8.8/mmBtu from April 1, 2014 from $4.2/mmBtu currently. It also announced a minimum support prices for rice, which has been hiked by 4.8% from an average of 15% over the last six years...Read More
US tech firms laud Immigration Bill; step bad for Indian IT
In a landmark legislation, United States passed its much talked about immigration bill on Thursday. The legislation is historic as it will provide citizenship to 11 million people living illegally in the United States . 68 senators voted in favour of the bill which will now pass to the house of representatives where it will face last hurdle...Read More
India's financial system resilient to shocks: RBI
The Reserve Bank of India's Financial Stability and Development Council finds the financial system resilient to shocks. In its Financial Stability Report released today, the central bank has cautioned that the deteriorating macro-economic picture can erode financial stability going forward. "Stress tests results indicate that if the current macroeconomic conditions persist, the credit quality of commercial banks could deteriorate further."...Read More
Reliance Cap ropes in Nippon Life for banking licence
Reliance Capital has roped in SumitomoMitsui Trust Bank and Nippon Life Insurance for banking licence bid, said reports. Company will spin off its consumer lending business into a new entity in which Japanese giants will buy just under 5% stake each at a substantial premium, report was quoted as saying. Reliance Capital and its two Japanese partners, will apply for a licence by July 1, the deadline set by the RBI.
Fantastic Friday! Sensex rallies 520 points on reform boost
The equity market stunned participants on Friday with the Nifty rallying 170 points and Sensex surging over 500 points on the back of government reform initiatives. The government said it would double natural gas prices from the current $4.2 mmBtu (million British thermal unit) to $8.4-8.5 per mmBtu. This is the first hike in gas prices in three years and will come into effect from April 1, 2014...Read More
Current Account Deficit: Jan-March CAD at $18.1bn
RBI said preliminary data on India’s balance of payments (BoP) for the fourth quarter (Q4), i.e., January-March 2013 of the financial year 2012-13. Based on these, the BoP data for 2012-13 have been compiled, which also incorporates the revisions for the earlier quarters, if any. While Statement I presents BoP data in the format suggested in IMF’s BPM6, Statement II provides details as per the old format...Read More
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