IOC beats Reliance to become the nation’s top refiner

New Delhi: State-owned Indian Oil Corporation (IOC) has surpassed Reliance Industries (RIL) to regain its position as nation's biggest refiner after it completed expansion of its Panipat unit, report PTI.

"We have this week completed expansion of our Panipat refinery (in Haryana) to 15 million tonnes (from 12 million tonnes)," IOC director (refineries) B N Bankapur said today.

Before the expansion, IOC's eight refineries had a total crude oil refining capacity of 51.2 million tonnes a year and together with its subsidiary Chennai Petroleum Corporation Ltd (CPCL), it had a combined refining capacity of 61.7 million tonnes.

After the Panipat expansion, IOC group's refining capacity has increased to 64.7 million tonnes, ahead of 62 million tonnes of refining capacity that RIL has at Jamnagar in Gujarat.

IOC was the largest oil refiner in the country before Reliance started its 29 million tonnes a year only-for-exports unit adjacent to its 33 million tonnes a year plant at Jamnagar.

"This year we have raised Haldia refinery capacity by 1.5 million tonnes to 7.5 million tonnes," Bankapur said.

IOC is mulling raising the capacity of its Koyali refinery in Gujarat to 16 or 18 million tonnes a year from current 13.7 million tonnes a year.

"We will conduct feasibility of raising Koyali refinery capacity to either 16 or 18 million tonnes in next 3-4 months," he said.

Also IOC has sought approval from the Supreme Court to raise capacity of its 8 million tonnes Mathura plant to 11 million tonnes.

IOC's refining capacity would rise to 80 million tonnes by 2012 after it commissions a 15 million tonnes a year unit at Paradip refinery in Orissa.
 

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Thursday Closing Report: Bear and tear

Consolidation in the domestic market continued for the second day on selling by institutional investors resulting in a cut of over 1.25% at the end of the trading session.

The market witnessed a green opening this morning but selling pressure soon took the indices into the negative terrain on the back of global uncertainty. Even the easing of the weekly food inflation numbers brought no respite to the market, which was in a consolidation mood for the second day in a row. The indices slipped further on outflows by institutional investors, dragging the indices deeper into the red.

The Sensex closed at 20,589, down 286.62 points (1.37%). The bellwether index touched a high-low of 20,937 and 20,544, respectively. The Nifty was down 81.45 points (1.30%) at 6,194. The index touched an intraday high of 6,296 and a low of 6,179 today.

The market breadth was negative today. The Sensex had 25 losers while five stocks closed in the green. The 50-share Nifty list had 30 declining stocks, 10 gainers and one stock was unchanged. Among the broader indices, the BSE Mid-cap index tanked 1.12% while the BSE Small-cap index declined 0.47%.

The main performers on the Sensex were Hindalco Industries (up 2.65%), Tata Power (up 1.47%) and Reliance Infrastructure (up 1.16%). The top losers were DLF (down 4.41%), Jaiprakash Associates (down 3.28%), Bharti Airtel (down 3.26%), Cipla (down 3.22%) and BHEL (down 2.66%).

Consolidation in the domestic market continued for the second day on selling by institutional investors resulting in a cut of over 1.25% at the end of the trading session.

The market witnessed a green opening this morning but selling pressure soon took the indices into the negative terrain on the back of global uncertainty. Even the easing of the weekly food inflation numbers brought no respite to the market, which was in a consolidation mood for the second day in a row. The indices slipped further on outflows by institutional investors, dragging the indices deeper into the red.

The Sensex closed at 20,589, down 286.62 points (1.37%). The bellwether index touched a high-low of 20,937 and 20,544, respectively. The Nifty was down 81.45 points (1.30%) at 6,194. The index touched an intraday high of 6,296 and a low of 6,179 today.

The market breadth was negative today. The Sensex had 25 losers while five stocks closed in the green. The 50-share Nifty list had 30 declining stocks, 10 gainers and one stock was unchanged. Among the broader indices, the BSE Mid-cap index tanked 1.12% while the BSE Small-cap index declined 0.47%.

The main performers on the Sensex were Hindalco Industries (up 2.65%), Tata Power (up 1.47%) and Reliance Infrastructure (up 1.16%). The top losers were DLF (down 4.41%), Jaiprakash Associates (down 3.28%), Bharti Airtel (down 3.26%), Cipla (down 3.22%) and BHEL (down 2.66%).

The sectoral space was a sea of red today as all sectors ended lower. BSE Realty was down 3.15%, BSE Oil & Gas was down 1.84%, BSE TECk was down 1.58%, BSE PSU was down 1.43% and BSE IT was down 1.34%.

Food inflation declined to 12.30% for the week ended 30th October from 12.85% in the previous week, on improved supply of items, showing a downward movement for the fourth straight week.

While most food items like wheat, pulses and potatoes turned cheaper, onions became costlier as their prices rose about 10% within a week.

Considering that food inflation stood at a high of 12.59% during the corresponding week of last year, even 12.30% inflation is quite elevated.

Asian markets closed mixed today. The Chinese market was up as Moody's Investor Service upgraded the country's debt rating. Speculations that the government will hike fuel prices boosted domestic oil companies. The Japanese market was supported by speculations that proposed banking regulations by the Group of Twenty (G20) will not impact the country's banks. Other markets were lower awaiting the outcome of the two-day G20 meet.

The Shanghai Composite surged 1.04%, Hang Seng gained 0.82%, Nikkei 225 was up 0.31% and the Straits Times rose 0.13%. On the flip side, the Jakarta Composite declined 0.33%, KLSE Composite fell 0.94%, Seoul Composite tumbled 2.70% and Taiwan Weighted shed 0.16%.

The 2008 global financial crisis had little impact on funds flow to south Asia's power sector and had only marginal adverse impact on India's power sector. In India, the impact of the global financial crisis on its power sector was marginally adverse in the short term, said the report "The Impact of the Global Financial Crisis on Investments in the Electric Power Sector: the Experience of India, Pakistan, and Bangladesh", released by the World Bank's Energy Sector Management Assistance Program (ESMAP).

Wall Street settled higher on Wednesday on positive economic data and as the dollar took a breather after four sessions of gains. The Federal Reserve said it will conduct 18 open-market operations from 12th November through 9th December. The central bank is buying an additional $600 billion of Treasuries through June and expects to reinvest $250 billion to $300 billion of proceeds from mortgage-backed debt and agency securities into Treasuries. Besides, the number of workers filing for initial jobless claims fell by a greater-than-expected 24,000 to 435,000, the lowest level in four months.

The Dow added 10.29 points (0.09%) to close at 11,357. The S&P 500 rose 5.31 points (0.44%) to 1,218. The Nasdaq gained 15.80 points (0.62%) to close at 2,578.

Foreign institutional investors were net sellers of Rs32 crore in the equities segment on Wednesday. Domestic institutional investors were net sellers of Rs143 crore worth stocks on the same day.

Elecon Engineering Company Ltd (down 0.16%) has informed the Bombay Stock Exchange that the company has been awarded an order worth Rs36 crores from Essar Projects (India) Ltd. for design, engineering, manufacturing, testing, inspection and supply, of equipment with all the auxiliaries / accessories for complete installation and commissioning of Material Handling Equipments for Paradeep Coal Berth Terminal Project.

The government today said it will take a call within a fortnight on whether State Bank of India (SBI) (down 1.20%) should be allowed to go for the rights issue, which is expected to be in the range of Rs18,000-Rs21,000 crore, less than the original estimate.

"We are number crunching that (SBI proposal of Rs20,000 crore rights issue) at this point of time. I think some decision would be taken perhaps in next 15 days," financial services secretary R Gopalan said on the sidelines of an event by consultant Skoch in New Delhi.

Shipping Corporation of India (SCI) (2.09%) is planning to add 1.7 deadweight tonnage (DWT) to its existing fleets by acquiring 29 vessels by March 2012. For this acquisition the company will be investing around Rs 6,000 crore. Of the new order, 26 vessels will be delivered to SCI during the next two years while it has received the possession of three vessels. The vessels ordered include product tanker, crude oil carrier, bulk carrier, supply carrier, anchor handling vessels.

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India Inc’s performance in Q2 marginally short of expectations

The financial performance of India Inc in the September quarter has been decent, albeit slightly lower than anticipated. Steel products, real estate and auto ancillaries posted robust growth while cement and IT companies fell short

A large part of the widely-anticipated Q2 earnings season is almost over and investors are hoping for a good set of numbers from the Indian corporate fraternity at the end of it. Although the reported financial performance so far has been decent, it has yet to catch up with the Street's expectations.

While analysts and experts were anticipating at least a 20% rise in revenues for India Inc, the results so far have fallen marginally short of this target. Among the Moneylife sample of 1,334 listed entities, 878 companies have come out with their September quarter figures till date. These companies have managed to post revenue growth of 18% while operating profit growth stands at 17% over the corresponding quarter last year.

Among the companies that have clocked robust growth are those belonging to the steel & steel products, real estate, auto ancillaries and engineering, electronics & electrical sectors. Strong demand and higher prices aided steel products manufacturers to post healthy numbers. Varun Industries, for instance, delivered a sales growth of 205% from Rs291 crore to Rs886 crore for the September quarter, while operating profits also surged 66% over last year. Revenues for Remi Metals Gujarat jumped 118% to Rs158 crore while operating profits zoomed 328% to Rs3.7 crore. Similarly, Sarda Energy & Minerals clocked revenue growth of 96% and operating growth of 162% over last year.

Within real estate, companies like Indiabulls Real Estate, Vijay Shanthi Builders, Ackruti City and DB Realty did extremely well, albeit from a low base. While Indiabulls registered a sales growth of 2,652% and operating profit growth of 500%, Vijay Shanthi Builders' revenues surged 148% and operating profits jumped 305%. Ackruti City witnessed its revenues climb 112% with profits also rising 91%. Meanwhile, DB Realty's sales went up 98% and operating profits surged 103%.

Auto ancillaries companies have piggybacked on the phenomenal growth in volumes for the automobile industry. Companies like Automobile Corporation of Goa, MM Forgings, Porwal Auto Components, Fairfield Atlas, Premier and Bharat Forge logged strong growth in the quarter. Revenues of Automobile Corporation of Goa grew 166% to Rs109 crore while operating profits climbed 326%. MM Forgings also clocked robust sales growth of 94% with operating profits zooming 179%.

Among the engineering, electronics & electrical companies, Nitin Fire Protection Industries, BGR Energy Systems and Centum Electronics have done well.

However, cement, media and some infrastructure companies suffered a drop in financial performance. Rising raw material prices seem to be hurting cement companies badly. Gujarat Sidhee Cement, Shree Digvijay Cement, Sagar Cements and Mangalam Cement faired poorly in the last quarter. Gujarat Sidhee's revenues fell 41% to Rs51 crore but its operating performance took a severe beating, with profits tanking by 1,020%. Shree Digvijay also suffered a sharp decline in revenues (down 46%) and profitability (down 195%).

The sustained decline in financial performance of media companies continued with Zee News, Network 18 Media & Investments and NDTV exhibiting poor performance. Some construction-EPC-infrastructure companies also turned in poor numbers for the September quarter but that could be due to the inherent lumpiness of their earnings. These include Gammon Infrastructure Projects, KSK Energy Ventures, MSK Projects (India) and Punj Lloyd. 
 

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