250 points washed away
The BSE Sensex, which slipped below the psychological 14,000 level in the opening session, kept on extending its fall as selling continued, and touched a fresh low of 13,750.60, just a little while ago.
At 13:24 IST the BSE Sensex was down 252.85 points, at 13,768.63. It had opened firm, at 14,071.27, but had started declining immediately after.Even S&P CNX Nifty has breached a key support of 4,000, and is now down 64 points, at 3,975.90.The benchmark Sensex had sharply fallen close to 167 points on Thursday (22 February), in the last 45 minutes of trade, due to heavy unwinding of derivative contracts on account of their expiry.The total turnover on BSE amounted to Rs 2365 crore.
The market-breadth, which reflects the overall health of the broader market, was very weak. A host of stocks from the smallcap and midcap space were being heavily sold. Against 2,116 shares declining on BSE, just 389 advanced. Only 46 scrips remained unchanged.
RIL the lone ranger
Reliance Industries edged up in an otherwise weak market, ahead of the board meeting on Saturday, to review fund-raising plans.The Reliance Industries (RIL) stock was up 0.5% to Rs 1421. As many as 5.8 lakh shares changed hands in the counter on BSE.
The Sensex was down 250 points, at 13,771, and for the firm trend in RIL, it would have shown a much steeper fall. RIL is a heavyweight in both key indices, the Sensex as well as the Nifty. On Thursday (22 Fenruary), too, the Sensex’s fall would have been much steeper if only RIL had failed to hold relatively firm. RIL had rose 0.5% on Thursday. RIL has 11% weightage in the Sensex and near 10% weightage in the Nifty.
The RIL stock has been on a steady uptrend since early-January 2007. It is up 11.5% from a low of Rs 1273.30 on 10 January 2007.
RIL said on 15 February 2007 that its board will meet on 24 February 2007 (Saturday) to review its decision taken late last year to raise $2 billion. These funds were intended to finance the company's capital expenditure plans for oil-gas exploration and production.
The board will discuss raising of further resources to finance the ongoing capital expenditure across several new projects through syndicate loans, non-convertible debentures, convertible debentures, external commercial borrowings, foreign currency convertible bonds, preference shares and warrants.
Another reason why the stock has held firm is expectation that global oil major, Chevron Corporation, may assist RIL in developing an exploration block in the oil-gas rich Krishna-Godavari (KG) basin. David J O' Reilly, chief executive officer of Chevron is in India on a four-day visit starting from Tuesday along with Jeet Singh Bindra, president of Chevron's global refining business. Mr Bindra is Chevron's nominee on the RPL's board, where it has 5% stake with an option to increase it up to 29%.
Recently, RIL found another new natural gas reserve in the D6 block (KG basin). According to its partner Niko Resources; “The AA-1 well is located in the new 3D seismic area and demonstrates the continued high prospectivity of the block as drilling progresses into the southern areas of the block.” RIL has, to date, made over a dozen gas discoveries and two oil finds on the block KG-DWN-98/3, also known as D6. The AA-1 well is located in the new 3D seismic area, south-east of the previous gas finds.
Reliance Industries (RIL) reported 57.6% surge in net profit in the December 2006 quarter to Rs 2799 crore from Rs 1776 crore in the year ago quarter. The surge in bottom line was much more than market expectation. Net sales for the December 2006 quarter rose 45.7%, to Rs 26472 crore from Rs 18168 crore in the year ago quarter.
RIL’s gross refining margin was $11.7 a barrel in the December 2006 quarter, much higher than Singapore refining margins.
At 13:24 IST the BSE Sensex was down 252.85 points, at 13,768.63. It had opened firm, at 14,071.27, but had started declining immediately after.Even S&P CNX Nifty has breached a key support of 4,000, and is now down 64 points, at 3,975.90.The benchmark Sensex had sharply fallen close to 167 points on Thursday (22 February), in the last 45 minutes of trade, due to heavy unwinding of derivative contracts on account of their expiry.The total turnover on BSE amounted to Rs 2365 crore.
The market-breadth, which reflects the overall health of the broader market, was very weak. A host of stocks from the smallcap and midcap space were being heavily sold. Against 2,116 shares declining on BSE, just 389 advanced. Only 46 scrips remained unchanged.
RIL the lone ranger
Reliance Industries edged up in an otherwise weak market, ahead of the board meeting on Saturday, to review fund-raising plans.The Reliance Industries (RIL) stock was up 0.5% to Rs 1421. As many as 5.8 lakh shares changed hands in the counter on BSE.
The Sensex was down 250 points, at 13,771, and for the firm trend in RIL, it would have shown a much steeper fall. RIL is a heavyweight in both key indices, the Sensex as well as the Nifty. On Thursday (22 Fenruary), too, the Sensex’s fall would have been much steeper if only RIL had failed to hold relatively firm. RIL had rose 0.5% on Thursday. RIL has 11% weightage in the Sensex and near 10% weightage in the Nifty.
The RIL stock has been on a steady uptrend since early-January 2007. It is up 11.5% from a low of Rs 1273.30 on 10 January 2007.
RIL said on 15 February 2007 that its board will meet on 24 February 2007 (Saturday) to review its decision taken late last year to raise $2 billion. These funds were intended to finance the company's capital expenditure plans for oil-gas exploration and production.
The board will discuss raising of further resources to finance the ongoing capital expenditure across several new projects through syndicate loans, non-convertible debentures, convertible debentures, external commercial borrowings, foreign currency convertible bonds, preference shares and warrants.
Another reason why the stock has held firm is expectation that global oil major, Chevron Corporation, may assist RIL in developing an exploration block in the oil-gas rich Krishna-Godavari (KG) basin. David J O' Reilly, chief executive officer of Chevron is in India on a four-day visit starting from Tuesday along with Jeet Singh Bindra, president of Chevron's global refining business. Mr Bindra is Chevron's nominee on the RPL's board, where it has 5% stake with an option to increase it up to 29%.
Recently, RIL found another new natural gas reserve in the D6 block (KG basin). According to its partner Niko Resources; “The AA-1 well is located in the new 3D seismic area and demonstrates the continued high prospectivity of the block as drilling progresses into the southern areas of the block.” RIL has, to date, made over a dozen gas discoveries and two oil finds on the block KG-DWN-98/3, also known as D6. The AA-1 well is located in the new 3D seismic area, south-east of the previous gas finds.
Reliance Industries (RIL) reported 57.6% surge in net profit in the December 2006 quarter to Rs 2799 crore from Rs 1776 crore in the year ago quarter. The surge in bottom line was much more than market expectation. Net sales for the December 2006 quarter rose 45.7%, to Rs 26472 crore from Rs 18168 crore in the year ago quarter.
RIL’s gross refining margin was $11.7 a barrel in the December 2006 quarter, much higher than Singapore refining margins.
posted by SY at 1:52 PM
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