PSU OMCs in demand on buzz of fuel price hike
DATE: 11/09/2012
Key benchmark indices reversed intraday losses to strike intraday high in early afternoon trade. The BSE Sensex was up 28.99 points or 0.16%, up 118.39 points from the day's low and off 7.67 points from the day's high. Index heavyweight Reliance Industries (RIL) extended intraday gain. Index heavyweight and cigarette maker ITC rose. State-run oil marketing companies (PSU OMCs) gained on reports that the cabinet committee on political affairs (CCPA) will today evening discuss raising diesel, cooking gas and kerosene prices. The market breadth was positive.
The key benchmark indices edged lower in early trade on mostly lower Asian stocks. Market retreated from intraday high on fresh selling in morning trade. Indices cut intraday losses hit intraday high in mid-morning trade. Market advanced to intraday high in early afternoon trade.
Asian shares were mostly lower on Tuesday ahead of a key German ruling on the euro zone's bailout funds and the US Federal Reserve's policy decision.
At 12:27 IST, the BSE Sensex was up 28.99 points or 0.16% to 17,795.77. The index rose 36.66 points at the day's high of 17,803.44 in early afternoon trade. The index fell 89.40 points at the day's low of 17,677.38 in early trade.
The S&P CNX Nifty was up 12.05 points or 0.22% to 5,375.50. The index hit a high of 5,375.95 and a low of 5,332.10 in intraday trade.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,374 shares rose and 1,141 shares fell. A total of 130 shares were unchanged.
The total turnover on BSE amounted to Rs 823 crore by 12:25 IST compared with Rs 575 crore by 11:25 IST
Among the 30-share Sensex pack, 17 gained while the rest declined.
Index heavyweight Reliance Industries (RIL) rose 0.30% to Rs 793.50, off day's low of Rs 783.50. RIL has bought back 3.9 crore shares for about of Rs 2793.51 crore till 4 September 2012 under its ongoing share buyback program. RIL has set maximum buyback price of Rs 870 per share. The company has set aside Rs 10440 crore for share buyback. The buyback program opened on 1 February 2012 and closes on 19 January 2013. RIL chairman Mukesh Ambani said at the company's Annual General Meeting in June 2012 that the company's buyback program represents a highly accretive use of cash by the company and it will supplement earnings growth from operations, for higher EPS (earnings per share), in the near future.
RIL on 27 August 2012 said it has scheduled a planned maintenance turnaround of one of the diesel hydrotreater units of the DTA refinery at its Jamnagar, Gujarat complex for a period of approximately two and half weeks starting 28 August 2012. This opportunity will also be utilised to carry out other maintenance and inspection jobs during the shutdown period, RIL said in a statement. During the period the other diesel hydrotreating unit of the DTA refinery along with other units including crude processing levels are planned at normal levels, RIL said.
State-run oil marketing companies (PSU OMCs) gained on reports that the cabinet committee on political affairs (CCPA) will discuss raising diesel, cooking gas and kerosene prices today evening.
BPCL (up 2.32%), HPCL (up 1.83%) and Indian Oil Corporation (up 1.43%) advanced.
PSU OMCs are losing a record Rs 560 crore per day on sale of regulated diesel and cooking fuels and another Rs 16 a day on petrol, the report indicated. If rates are not increased, state-owned oil firms will be saddled with an unprecedented Rs 200000 crore revenue loss this fiscal.
Index heavyweight and cigarette maker ITC rose 0.68% to Rs 265.95. The stock had scaled a record high of Rs 271.50 on 30 August 2012. In a block deal of 57.4 lakh shares on the BSE on Monday, 10 September 2012), ITC had picked up another 1% in hospitality major EIH. With this, the Kolkata-based conglomerate has increased its holding in EIH to 16%. Shares of EIH rose 1.01%.
ITC had reported strong Q1 June 2012 results. ITC's net profit jumped 20.21% to Rs 1602.14 crore on 15.34% growth in net sales to Rs 6652.21 crore in Q1 June 2012 over Q1 June 2011. Despite series of tax hikes, ITC's performance in cigarettes business remains robust and displays pricing power for the company.
+POWERED BY: CAPITAL MARKET NEWS
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