Trading of CNX Nifty futures on the Singapore stock exchange indicates a flat opening on the domestic bourses today, 4 December 2014. Asian stocks were trading higher today, 4 December 2014.
Reliance Industries (RIL) will be in focus after the Minister of State for Petroleum & Natural Gas Dharmendra Pradhan informed the Rajya Sabha in a written reply yesterday, 3 December 2014, that the possible alternatives for affecting the recovery of additional profit petroleum for the government from the contractor of the D6 Block are being worked out. He said that the government had disallowed development cost based on the cumulative shortfall in production of gas vis-vis production estimates under the approved AIDP (Addendum to Initial Development Plan). The total disallowed development costs as on 31 March 2014 amount to $2.376 billion. RIL is the operator of the D6 Block, off the eastern coast of India with 60% stake. Niko owns 10% and BP Plc has a 30% stake in the block. As a result of disallowance of a portion of contract cost, the contractor is liable to pay additional profit petroleum of $195.34 million to the government for period up to 2013-14, Pradhan said. The contractor of the block has invoked arbitration on this issue, he said.
Shares of oil exploration & production (E&P) companies will be in focus after the Minister of State for Petroleum & Natural Gas Dharmendra Pradhan informed Rajya Sabha in a written reply yesterday, 3 December 2014, that the Kelkar Committee has recommended the Production Sharing Contract (PSC) model as the preferred contractual model for Indian basins. The Kelkar Committee has proposed two fiscal regimes either of which could be deployed. As per one suggestion, the PSC should be linked to investment multiple, with modified contract administration including self-certification costs by the contractors. The other alternative is PSC with biddable supernormal profits tax. The government has not finalized its response to the Kelkar Committee report, Pradhan said.
With reference to the news item titled "JSW Energy may buy JP Power's Bina, Nigrie assets", JSW Energy has clarified after market hours yesterday, 3 December 2014, that it continues to evaluate various opportunities as part of its growth strategy. However, the company not in any conclusive discussions for any particular project other than which has been already communicated in terms of Clause 36 of the Listing Agreement. Whenever any proposal attains finality, the company will comply with the provisions of the Listing Agreement and make requisite disclosures accordingly.
Furthermore, the company is not aware of any information that has been not announced to the stock exchanges under Clause 36 of the Listing Agreement.
Indian Oil Corporation announced after market hours yesterday, 3 December 2014, that company alongwith Mangalore Refinery and Petrochemicals (MRPL) have signed a non-binding Memorandum of Understanding (MoU) with State Trading Corporation (STC), a Government entity of Mauritius for exploring the possibilities for setting up oil storage terminal(s) in Mauritius through a joint venture company. For this purpose, a detailed feasibility study and market study would be carried out. The MoU executed on 27 November 2014 does not have any material impact on the financials of IndianOil at present.
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Steel Authority of India (Sail) will be in focus as the government has announced an offer for sale (OFS) of upto 20.65 crore equity shares, or 5% stake, of Sail through a sale on the separate window provided by the BSE and NSE tomorrow, 5 December 2014 at 9:15 IST and shall close on the same date at 15:30 IST. As much as 10% of the offered shares has been reserved for retail investors, who can buy shares worth up to Rs 2 lakh in the share sale. A minimum of 25% of the issue size would be reserved for mutual funds and insurance companies. Retail investors will be allocated shares at a discount of 5% to the bid price entered by them. The floor price for the OFS would be determined after market hours today, 4 December 2014. Shares of Sail settled 4.67% lower at Rs 85.65 on BSE yesterday, 3 December 2014.
ICICI Bank turns ex-split today, 4 December 2014, for 5 for 1 stock split.
The finance ministry after trading hours yesterday, 3 December 2014, announced the setting up of a High Level Committee (HLC) to interact with trade and industry on tax laws. The HLC will interact with trade and industry on regular basis and ascertain areas where clarity in tax laws is required. The HLC will give recommendations to the CBDT/CBEC for issuance of appropriate clarifications by way of circulars, instructions etc. on tax issues. The CBDT/CBEC will issue the required clarifications, circulars, instructions etc. within a period of 2 months from the date of receipt of recommendations of the HLC, the finance ministry said in a statement. The term of the committee shall be for one year from the date of its constitution, subject to further extensions, as may be considered appropriate by the Department of Revenue, Ministry of Finance.
The Indian government intends to get the Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital starved insurance sector passed during the winter session of parliament which began on 24 November 2014. The government is also likely to introduce the constitutional amendment bill for the goods & services tax in the winter session of parliament.
A divergent trend was witnessed as the barometer index, the S&P BSE Sensex, registered marginal losses whereas the 50-unit CNX Nifty registered small gains yesterday, 3 December 2014. The Sensex lost 1.30 points to settle at 28,442.71, its lowest closing level since 27 November 2014.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 391.07 crore yesterday, 3 December 2014, as per provisional data.
Asian stocks were trading higher today, 4 December 2014. Key benchmark indices in China, Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea rose by 0.39% to 1.39%.
Meanwhile, Japanese Prime Minister Shinzo Abe 's ruling Liberal Democratic Party is poised for a landslide victory in 14 December 2014 parliamentary elections, reports indicated.
Big gains in energy, materials and industrials sectors, following a rebound in oil and gold prices, helped propel the S&P 500 and Dow Jones Industrial Average to record levels yesterday, 3 December 2014.
The influential US nonfarm payrolls report for November will be out in the US on tomorrow, 5 December 2014.
The European Central Bank (ECB) will meet today, 4 December 2014 to discuss monetary policy. The ECB has pledged more stimulus if needed to revive inflation.
In economic data, a reading of private sector employment showed that hiring slowed in November, though employers added more than 200,000 jobs in seven of the past eight months. The productivity for the third quarter was revised upwards, however, labor costs fell, pointing at lagging wages.
Meanwhile, US services companies reported that growth ramped up in November, with a gauge of activity rising to 59.3% from 57.1% in October, according to a survey of senior executives released yesterday, 3 December 2014 by the Institute for Supply Management.
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