Companies & Sectors
RIL-BP combine announces huge gas discovery in KG-D6 block

Though RIL-BP did not put any reserves to the discovery, the find may possibly be the largest single discovery in the country. The discovery, which was notified to the regulatory authorities yesterday afternoon, has been named D-55

Reliance Industries (RIL) and its partner BP Plc of the UK on Friday announced a huge natural gas discovery, possibly the biggest find ever, in the flagging eastern offshore KG-D6 block that will be key to arresting falling output. RIL and BP encountered 155 metres of gas pay zone in the first exploration well drilled on the block in more than five years.

 

The well was drilled two kilometres below the existing producing D1 and D3 fields. “The KGD6-MJ1 well was drilled in a water depth of 1,024 metres—and to a total depth of 4,509 metres (4.5 kilometres below the seabed),” RIL-BP said in a statement. The well was drilled to explore the prospectivity of a Mesozoic synrift clastic reservoir lying over 2,000 metres below the already producing reservoirs in the Dhirubhai-1 and 3 (D1&D3) gas fields.

 

“Formation evaluation indicates a gross gas and condensate column in the well of about 155 metres in the Mesozoic reservoirs,” the statement said adding the well flowed 30.6 million standard cubic feet per day of gas during testing.

 

Though RIL-BP did not put any reserves to the discovery, the find may possibly be the largest single discovery in the country. The discovery, which was notified to the regulatory authorities yesterday afternoon, has been named D-55.

 

Sources said the resource found may be significantly more than a pre-drill best case gross prospective resource of 819 billion cubic feet of gas and 56 million barrels of liquids for the well. RIL-BP had drilled MJ-1 well in early March after the government permitted companies to drill exploration wells in areas where exploration period had long expired.

 

Dhirubhai-1 and 3 (D1&D3) gas fields, the largest among the 18 gas finds on KG-D6 block, have proved to be more difficult to produce than previously predicted. D1&D3 reservoir has seen sharper-than-expected drop in pressure and water and sand ingress in production wells, leading to a drop in output.

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Bank bad loans have not worsened in the March quarter
Pressure on NPAs, especially for public sector banks will continue as more loans turn into non-performing assets due to the overall slowdown in the Indian and global economy, says a study by NPAsource
 
Net non-performing assets (NPAs) or bad loans of 39 listed banks increased by a negligible 0.8% or Rs750 crore only in the fourth quarter of 2012-13 due to high provisioning. However, for the full fiscal year net NPAs of these lenders jumped 51% to Rs92,825 crore, says a study conducted by NPAsource.com.
 
According to the study, gross NPAs of these 39 listed banks stood at Rs1.79 lakh crore as on March 2013, compared with Rs1.78 lakh crore as on December 2012, implying rise of Rs887 crore during the fourth quarter. During 2012-13, gross NPAs of these 39 banks rose by 36.1%, while net NPAs rose by 51.2%.
 
“We believe that with the interest rates expected to come down, the next few quarters may see a slowdown in the growth rate of NPAs. But, pressure on NPAs, especially for public sector banks will continue as more loans become NPAs due to the overall slowdown in the Indian and global economy. As a large chunk of the provisioning for NPAs is done by most banks in the last quarter, there is a marginal increase in NPAs in Q4 of FY2013. But, the first two quarters of current fiscal are going to see a higher growth in NPAs as provisioning will be low," said DK Jain, chairman and managing director of Atishya Group that owns NPAsource.com. 
 
According to the study, for FY13, net NPAs of 39 listed banks rose 51.2% to Rs92,825 crore from Rs61,381 crore a year ago. Out of the total 40 banks listed on stock exchanges, 39 have declared their results so far. Of the banks that have declared results, eight banks have reported reductions of more than Rs100 crore in net NPAs during the fourth quarter. These eight banks together accounted for drop of around Rs5,645 crore in net NPAs during the March quarter, NPAsource said. 
 
 
During the fourth quarter, State Bank of India (SBI) the largest lender in the country reported the biggest drop of around Rs3,400 crore. Net NPAs of Central Bank of India, Punjab National Bank (PNB), Corporation Bank and IDBI Bank fell by 14.9%, 4.6%, 16.9% and 6.1%, respectively, during the fourth quarter. 
 
These five banks accounted for more than Rs5,100 crore drop in net NPAs. As per the Q4 and FY2013 results declared by the SBI, the lender's provisioning for NPAs in the fourth quarter of 2012-13 was 40% higher at Rs3,974 crore as against Rs2,836 crore same period last year. 
 

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Weakness on the Sensex, Nifty may persist: Friday Closing Report
A close below 5,970 on the Nifty may pull the market down further. However, a close above any previous day’s high may bring some relief
 
The market managed to snap its four-session losing streak and end marginally higher today amid volatile and range-bound trade. A close below 5,970 on the Nifty may pull the market down further. However, a close above the previous day’s high may bring some relief. The National Stock Exchange (NSE) reported a lower turnover of 53.30 crore shares and advance-decline ratio of 750:628.
 
The market opened in the positive this morning, recouping itself from the 2% decline seen yesterday, as investors lapped stocks at lower levels. Across the globe, markets in Asia continued to trade in the negative in morning deals on economic concerns and the US markets closed marginally lower on Thursday as gains in IT major Hewlett Packard eased worries of the Federal Reserve’s proposed move.
 
The Nifty opened 44 points higher at 6,011 and the Sensex resumed trade at 19,765, a gain of 91 points over its previous close. Gains in fast moving consumer goods, banking, capital goods and consumer durables helped the indices hit their highs in initial trade itself. The Nifty rose to 6,015 and the Sensex inched up to 19,833 at their respective highs.
 
The market could not sustain the early gains and soon trended lower. The benchmarks fell to their lows at around 10.30am. The Nifty fell to 6,937 and the Sensex went back to 19,568 at their lows.
 
Select buying in capital goods, realty, metal and power stocks enabled the market recover from the lows and emerge in the positive terrain around 11.00am. However, the benchmarks remained range-bound and hovered on both sides of their previous closing levels in subsequent trade.
 
Meanwhile, the European markets opened mixed on negative news from China and the US. 
 
The market managed to snap its four-session losing streak and settle marginally higher today on buying in blue chips. The Nifty finished 17 points (0.28%) higher at 5,984 and the Sensex closed trade at 19,704, gaining 30 points (0.15%).
 
The broader indices outperformed the Sensex today, as the BSE Mid-cap index gained 0.37% and the BSE Small-cap index advanced 0.30%.
 
The top sectoral gainers were BSE Consumer Durables (up 1.86%); BSE Metal, BSE Capital Goods (up 1.61%) each; BSE Bankex (up 0.96%) and BSE Power (up 0.96%). The main losers were BSE Healthcare (down 1.28%); BSE IT (down 0.74%); BSE TECk (down 0.66%) and BSE Auto (down 0.04%).
 
Out of the 30 stocks on the Sensex, 15 settled higher. The major gainers were Tata Steel (up 4.56%); Tata Power (up 3.7%); Larsen & Toubro (up 2.705); ICICI Bank (up 2.60%) and Sterlite Industries (up 1.63%). The key losers were Sun Pharmaceutical Industries (down 3.67%); Hindalco Industries (down 1.70%); Cipla (down 1.63%); TCS (down 1.59%) and BHEL (down 1.51%).
 
The top two A Group gainers on the BSE were—United Spirits (up 6.55%) and Amara Raja Batteries (up 5.98%).
The top two A Group losers on the BSE were—Wockhardt (down 6.50%) and Apollo Hospitals Enterprise (down 5.09%).
 
The top two B Group gainers on the BSE were—TTK Healthcare (up 20%) and SAH Petroleums (up 20%).
The top two B Group losers on the BSE were—Ashima (down 19.77%) and GG Dandekar Machine Works (down 19.01%).
 
Of the 50 stocks on the Nifty, 34 ended in the in the green. The main gainers were Maruti Suzuki (up 7.86%); Tata Steel (up 4.77%); Tata Power (up 3.98%); Lupin (up 2.94%) and L&T (up 2.90%). Sun Pharma (down 3.1%); BHEL (down 1.61%); Cipla (down 1.53%); TCS (down 1.39%) and Ranbaxy Laboratories (down 1.32%), were the major losers on the index.
 
Markets in Asia closed mostly higher and the Nikkei 225, which plunged over 7% yesterday, managed to close nearly 0.90% higher today. A Tokyo-based market analyst said that the markets, which were going up and down like a roller coaster, are expected to calm down in a week’s time. Markets in Singapore, Malaysia, and Thailand were closed for a public holiday. 
 
The Shanghai Composite gained 0.57%; the Jakarta Composite advanced 0.66%; The Nikkei 225 climbed 0.89% and the Seoul Composite rose 0.22%. Among the losers, the Hang Seng fell 0.23% and the Taiwan Weighted lost 0.34%.
 
 At the time of writing, two of the three European markets were in the red and the US stock futures were trading lower.
 
Back home, foreign institutional investors were net buyers of equities aggregating Rs316.23 crore on Thursday while domestic institutional investors were net sellers of shares amounting to Rs538.75 crore.
 
Viceroy Hotels is in the process of securing shareholder nod, through a postal ballot, for selling its Chennai Property Division to Ceebros Hotels Pvt Ltd for Rs480 crore. The sale will help the company retire Rs430 crore debt of Chennai property and bring down the overall company debt to Rs200 crore. The stock rose 0.51% to Rs19.70 on the NSE.
 
Fortis Healthcare today said that its Singapore-based subsidiary will receive A$270.38 million (around Rs 1,452 crore) on completion of its stake sale in Dental Corporation Australia to Bupa Australia Health. Fortis Healthcare International has a 64% stake in Dental Corporation Holdings. The stock closed 3.90% down at Rs91.15 on the NSE.
 
Private sector lender YES Bank has ties up with the International Finance Corporation (IFC) to boost international trade opportunities. Through this programme, IFC will extend credit guarantees to YES Bank to cover its payment risks under trade instruments issued by the bank in favour of participating correspondent banks. YES Bank gained 1.75% to close at Rs505.40 on the NSE.
 

 

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COMMENTS

snehakamath

4 years ago

GMR Infra after touching Rs 25 the recent 6 months high , has sharpely corrected till Rs 20.90 and have started upmove and within a day gained Rs 0.85 to Rs 21.75 ( more than 4% gain in a single day)

This strongly indicates it will go higher than the Rs 25 mark in this upmove and the results are also scheduled next week.

This being one of the very high Beta share stop loss is a must for trading.

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