03:00pm ONGC in News
The Sensex fell 325.43 points or
1.14 percent to 28132.67 and the Nifty dropped 96.35 points or 1.13 percent to
8441.95. About 1052 shares have advanced, 1815 shares declined, and 119 shares
are unchanged.
In a big boost to ONGC, the Oil
Ministry is reworking the fuel subsidy sharing formula to cut its payout by a
quarter through adjustment of statutory oil cess against its share.
According to a new subsidy sharing
formula, the payout of upstream oil producers like ONGC is to be reduced to the
extent of Rs 4,500 per tonne oil development cess they pay to the government, sources
privy to the development said.
The move to lessen the subsidy
burden will give a flip to government's plan to sell 5 percent stake in Oil and
Natural Gas Corp (ONGC) to garner about Rs 17,000 crore.
The cess in current fiscal will
total Rs 10,500 crore and after accounting for Rs 31,926 crore that upstream
firms ONGC and Oil India (OIL) have already paid in fuel subsidy in first
half, their payout in remainder of the current fiscal will be no more than Rs
8,000 crore, reports PTI.
02:45pm CAD to be announced today
Current account deficit for
Q2FY15 will be announced later in the day today. According to the
estimates of economists polled by CNBC-TV18, CAD could widen to around USD 10
billion in Q2 compared to USD 7.8 billion in previous quarter.
This is assuming widening of the
trade deficit sequentially to USD 37.3 bilion in Q2FY15 from USD 33.1 billion,
along with accounting for trade surplus in services at USD 17.8 billion and
assuming remittances and investment came in unchanged Q-o-Q.
02:30pm Sesa Sterlite under pressure
Brokerage house Bank of America
Merrill Lynch has cut its earnings estimates for metal and mining major Sesa
Sterlite, and also the price target, citing falling crude and iron ore prices.
The brokerage has lowered earnings
estimates for FY15-FY16 by 10-33 percent, and price target to Rs 268 from Rs
283 earlier.
“Sesa Sterlite offers leverage to
our positive zinc and aluminium view. It should also gain from stronger zinc
volume sequentially in second half (vs. first half) and the ramp-up of
unproductive power and aluminium assets,” said the BofA note to clients.
“However, the weaker Cairn
earnings outlook and coal cost pressure will dampen group profits, in our view.
if oil stays at USD70/bbl, we estimate that there could be a further 11 percent
downside to our FY16E EBITDA and 28 percent downside to our FY16e EPS (for
Cairn),” the report said.
02:00pm Market Check
The market remained under pressure
with the Sensex falling 281.74 points or 0.99 percent to 28176.36 and the Nifty
losing 90.45 points or 1.06 percent to 8447.85, dragged by banks, technology,
auto, metals and capital goods stocks.
The BSE Midcap and Smallcap indices
fell nearly 0.9 percent. The market breadth was negative with the 1750 shares
declining for 1075 shares advancing on the Bombay Stock Exchange.
Infosys slipped nearly 5 percent as
3.3 crore shares were traded in multiple blocks this morning in the price range
of Rs 1,988 to Rs 2014. Reports indicated that the founders offloaded stake
worth USD 1.1 billion in the company for personal, philanthropic reasons.
Shares of
TCS, ICICI Bank, HDFC Bank, Larsen & Toubro, Mahindra & Mahindra, State
Bank of India, Sesa Sterlite, Dr Reddy's Labs, Wipro, Tata Steel, Hindalco
Industries and BHEL were down 1-3 percent. However, ITC, ONGC, Sun Pharma and
Coal India bucked the trend, up 1-2 percent. More information please visit this
site www.bigprofitbuzz.com
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