Posts filed under 'Oil & Petro Chemicals'
Wednesday, August 27, 2008 12:37:17 PM IST
Markets are flat during the last one hour of trade. The NSE Nifty is now at 4326 down 0.26% while BSE Sensex is down by 62 points and is testing the 14400 levels. ONGC is trading at 1025.50 levels.
The CNX IT is down 0.03% while the Bank Nifty is down 0.37% CNX Midcap index slipped a bit and is now up by 0.20%
BSE Sensex is trading at 14419 level down nt 63 points. Realty, Oil & Gas, Bankex, Power, FMCG and Capital Goods indices are down while Consumer Durables, metal, Healht Care, IT and Auto are marginally up.
Toppers on Nifty include Dr. Reddy (now up by 3%), Sun Pharma (up 2%), SAIL, GAIL, Tata Steel, Hero Honda, ABB (all up over 1%), ONGC, Power Grid and Hindalco (marginally up).
Top losers on the Nifty include DLF (down over 2%), Tata Power, Reliance Infra, BHEL, Reliance, TCS, Grasim, RPL (down over 1%), National Aluminium and Satyam (both marginally down)
ONGC Videsh is all buzzing as it is almost close to acquire Imperial Energy Corp Plc after the former announced it will be ready to pay 1.4 bn pounds ($2.6 bn) for the takeover and is about to submit its bid. This gives ONGC a sense of security for its oil supplies. Imperial Energy has good projects in the Russia. For now, ONGC has beat China’s Sinopec in its bid to acquire Imperial.
ONGC is trading at 1024. Its 52-week high and 52-week are 1385.05 and 778.70 respectively.
Markets analysts are giving a Hold rating for the stock with a target of 1170 - 1250
1 U.S. dollar = 43.7292286 Indian rupees
1 U.S. dollar = 109.48106 Japanese yen
1 U.S. dollar = 0.683200109 Euros
1 Ounce Gold = $826.10
1 Barrel Crude Oil = $116.43
August 27th, 2008
Friday, August 22, 2008 1:17:18 PM IST
Business press is reporting of a news of ONGC (BSE Script Name: ONG CORP LTD; Script Code: 500312) is taking lead in the bid to buy the London-based Oil exploration and production company Imperial Energy (LON:IEC). ONGC through its subsidy ONGC Videsh Ltd is attempting to bid in full after getting the approval from the Government of India. Sources say ONGC is ahead of China’s Sinopec and KNOC of Korea which are competing in the bid.
ONGC Share price movement
52-week high: Rs. 1386.90
52-week low: Rs. 777.15
ONGC is trading at Rs. 1017.50 a share - Up by 8.60 or 0.85%
Its peers Indian Oil is at Rs. 394.65 down 16.05 or 3.91%
HPCL is at Rs. 198.50 down Rs. 6.00 or 2.93%
Reliance Industries is at 2256.15 up Rs. 43.83 or 1.98%
Reliance Petroleum is at Rs. 160.25 up Rs. 2.5 or 1.68%
August 22nd, 2008
When markets correct, there is one batch of people who enter into the picture. While the traders take rest sitting aside, it is the long term investors who are bullish on the stock markets who enters into the picture. These people have a higher horizon / time frame - generally of the periods of 3, 5 or even 10 years. Their investments go into companies that are generally large cap, that have good reputation, into companies working either in diversified sectors or a focused sector, into companies who are the leaders in their segment or those that feature into the top 3 companies of its category. Because of the market correction, these stocks becomes very attractive to buy.
Two such large cap stocks that underwent huge unwinding in recent times are Reliance Industries and Larsen & Toubro.
Reliance Industries is in news these days for wrong reasons - it is one of the hugely corrected stock and since it is the mostly wide held stock by investors, people are getting nervous about what to do with the stock. Its 52-week high is Rs. 3298 while 52-week low is Rs. 1248. Its last traded price is Rs. 2135. Most people do not have to think much about the price at which one can enter into the Reliance counter simply because of the trust in the management. The hope is that no matter at what price they enter, given some time staying invested, the stock surely will enter into new highs in a gradual manner. Reliance has made many millionaires who have stay put with the stock for sometime. Infact there are few investors who always stayed invested for over a decade or ever since the Reliance raised money via the IPO route. Reliance is currently trading at 16x FY09 and has an EPS of 131.34. Needless to stay, this is an attractive buying opportunity.
L&T is our other stock pick. It is a well known engineering company. L&T and BHEL are the leaders in the segment. L&T has the edge over, say, BHEL, since it has well diversified business. It has a number of subsidaries where there is a huge potential available. L&T seems to be coming out of its diversified subsidaries by selling them off and hence bringing money to the investors table on one side and ensuring its focus on core engineering is always maintained on the other makes it look like a company with a good strategy. Apart from that, L&T itself has a huge order book which will keep it busy for the next few years. Looking at the inflation numbers and elections due next year, the next few months will be a bit of testing times for L&T in terms of getting new order. However, considering that which ever Government comes into power later next year, infrastucture will be seen as a major area that needs to be addressed and L&T will surely be the company that will be watched out for.
L&T is trading at Rs. 4690 few days back. With the current market correction, the stock tumbled down to Rs. 2313, the 52-week low being Rs. 2235. We feel that stock has corrected enough and every subsequent correction should been as an attractive buying opportunity considering there is a huge upside available for this stock. Many Market Research firms have already raised the flag of this stock to buy. Macquarie for instance in its recent research report said that the company is an outperformer and gave a target of Rs. 3416.
Before we wind off, just a word of suggestion. Considering the huge volatility (aka uncertainity) in the stock markets, it is always advisable to buy stocks in small lots at different times. i.e the investment needs to be spread over time rather than taking the buy calls on a single go. This way, we can mitigate the risk involved in buying a stock in hurry at a higher price and yet seize opportunities without sacrificing too much.
June 25th, 2008
The media had reports that GAIL (India) Limited may issue bonus.
The Exchange, in order to verify the accuracy or otherwise of the information reported in the media and to inform the market place so that the interest of the investors is safeguarded, had written to the officials of the company.
GAIL (India) Limited has vide its letter inter-alia stated, “The Board has not considered any proposal pertaining to issuance of Bonus Shares.”
March 13th, 2008
The derivative contracts in the underlying ESSAROIL have crossed 95% of the market-wide position limit on January 11, 2008. It is hereby informed that all clients/ members shall trade in derivative contracts of ESSAROIL by offsetting their existing positions till the open interest comes down to 80% of the market wide position limit.
January 12th, 2008
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