Trading for the week is likely to begin on weak note on domestic bourses on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 24 points at the opening bell. Japanese stocks led declines among Asian stocks after data released today, 17 November 2014 showed that Japan's GDP unexpectedly shrank in the third quarter, throwing the world's third-biggest economy into recession.
Shares of Reliance Industries (RIL) will be in focus after Canada's Niko Resources on Friday, 14 November 2014, said it is evaluating plans for its oil and gas assets in India. There is uncertainty around the long-term natural gas price outlook in India and as a result, the company is evaluating its plans for its assets in India, Niko Resources said at the time of announcement of its Q2 September 2014 results. 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.
In October 2014, the Government of India announced its new domestic gas pricing policy effective 1 November 2014. The announced price for the period from November 2014 to March 2015 is a 33% increase over the price received previously and the company expects to receive a cash benefit of $4 million over this period related to gas sales from the MA field in the D6 Block in India, Niko Resources said in a statement. The new gas pricing guidelines indicate that for all discoveries after the issuance of these guidelines, in Ultra Deep Water Areas, Deep Water Areas and High Pressure-High Temperature areas, a premium would be given on the gas price determined as per the formula defined in the guidelines, with the premium to be determined as per prescribed procedure. The applicability of the premium to existing undeveloped discoveries in the D6 and NEC-25 blocks, such as the discoveries included in the approved plans of development for the R-Cluster and Satellite Areas, remains to be clarified, Niko Resources said. The development of these discoveries is dependent on the future long-term price outlook for gas sales from these projects and the uncertainty in this outlook could mean that the development of these reserves could be deferred and/or material reductions in the company's reported reserves or future net revenues could result, Niko Resources said.
Tata Motors' consolidated net profit declined 7.1% to Rs 3291 crore on 6.5% growth in revenue (net of excise) to Rs 60564 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Friday, 14 November 2014.
Tata Motors said that revenue rose as continuing weak operating environment in the standalone business was more than offset by increase in wholesale volumes, richer product mix and market mix at its British luxury care unit Jaguar Land Rover (JLR).
JLR's net profit declined 11.24% to GBP 450 million on 4.2% growth in revenue at GBP 4808 million in Q2 September 2014 over Q2 September 2013. JLR's profit before tax (PBT) fell 8.8% to GBP 609 million in Q2 September 2014 over Q2 September 2013. The decline in PBT was due to unfavourable revaluation of foreign currency debt and unrealised hedges and higher depreciation and amortisation, Tata Motors said. JLR's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 15.3% to GBP 933 million in Q2 September 2014 over Q2 September 2013. Continued strong revenue and operating performance were driven by wholesale volume increase, richer product mix supported by the ongoing success of Ranger Rover Sport, Range Rover and Jaguar F-TYPE, robust market mix with strong sales in emerging markets, Tata Motors said in a statement.
HDFC Bank will be in focus. As per media reports, the foreign investment promotion board (FIPB) has approved the bank's revised proposal to increase foreign investment ceiling in the bank to 74% from 49%. Currently, the Reserve Bank of India has put a ban on further purchases of shares of HDFC Bank by foreign institutional investors (FIIs). The RBI had on 16 December 2013 notified that foreign shareholding through FIIs/Non Resident Indian (NRI)/persons of Indian Origin (PIO)/Foreign Direct Investment (FDI)/Asset Development Reserve (ADR)/Global Depository Receipt (GDR) in HDFC Bank had crossed the overall limit of 49% of the bank's paid-up capital. Therefore, no further purchases of shares of this bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADR/GDRs, the RBI had said at that time.
ONGC's profit after tax (PAT) declined 10.2% to Rs 5445 crore on 8.8% decline in gross revenue to Rs 20512 crore in Q2 September 2014 over Q2 September 2013. ONGC attributed the decline in PAT to lower crude oil price. ONGC offered a gross discount of Rs 13641 crore in Q2 September 2014 to public sector oil marketing companies on sale of crude oil, PDS kerosene and domestic LPG based on the rates of discount communicated by the Ministry of Petroleum & Natural Gas. This was lower than gross discount of Rs 13796 crore in Q2 September 2013. ONGC's profit after tax was reduced by Rs 7645 crore in Q2 September 2014 due to discount on product sales to PSU OMCs. This was higher than an adverse impact on profit after tax to the extent of Rs 7621 crore in Q2 September 2013. ONGC's crude oil production rose 2.1% to 5.21 MMT in Q2 September 2014 over Q2 September 2013. ONGC announced the second quarter results after trading hours on Friday, 14 November 2014.
At the time of announcement of Q2 September 2014 results, the board of directors of ONGC approved two major investment decisions valued over Rs 10600 crore for further enhancing production from ONGC's Western Offshore fields. The Redevelopment (Phase-III) of ONGC's giant offshore field - Mumbai High (South) involved a capital investment of Rs 6069 crore. The implementation of the project will lead to incremental gain of 7.547 million tonne (MMT) crude oil and 3.864 billion cubic meter (BCM) gas by 2030, ONGC said. This project is designed to carry forward the success of the previous two phases of redevelopment project and give a new lease of life to the giant field, ONGC said in a statement.
The second project viz. the Integrated Development of Mukta, Bassein and Panna Formations involves an estimated capital expenditure of Rs 4620 crore. This project located is designed to carry forward the success of the previous two phases of redevelopment. The incremental production is expected to start in 2014-15 with peak incremental production rate of 10 MMSCMD of gas, 950 barrels of oil and about 1,100 cubic meters of condensate per day by 2017-18. The cumulative production till 2027-28 is pegged at 19.56 BCM of Gas, 1.97 million cubic meter of Condensate and 1.83 MMT of Oil.
At the time of announcement of Q2 September 2014, ONGC notified two more hydrocarbon discoveries; one new Prospect (GKS092NAA-1 (NELP block GK-OSN-2009/2) at Kutch Offshore shallow water) and one New Pool discovery at well RSAK (R-184) in Rudrasagar ML Block, North Assam Shelf, A&AA Basin. With this, ONGC notified total 10 discoveries (5 new Prospects and 5 new Pools) so far in this fiscal year.
Tata Consultancy Services announced on Friday, 14 November 2014 that its customer, Nedgroup Insurance Company (Nedic), a leading insurer specializing in homeowner's cover (HOC), personal-accident and vehicle insurance products, has gone operational with TCS BaNCS for Insurance as its new policy administration system for short-term insurance services. The announcement was made after market hours on Friday, 14 November 2014.
A sharp slide in global crude oil prices on Thursday, 13 November 2014 and data showing continuation of buying of Indian stocks by foreign portfolio investors boosted sentiment as key benchmark indices edged higher on Friday, 14 November 2014. The S&P BSE Sensex advanced 106.02 points or 0.38% to settle at 28,046.66, a record closing high for the index.
Meanwhile, the provisional data released by the stock exchanges after trading hours on Friday, 14 November 2014, showed that foreign portfolio investors (FPIs) bought shares worth a net Rs 645.90 crore on that day.
Japanese stocks led declines among Asian stocks after data released today, 17 November 2014 showed that Japan's GDP unexpectedly shrank in the third quarter, throwing the world's third-biggest economy into recession. Key benchmark indices in Singapore, Taiwan, Hong Kong, Japan, Indonesia and South Korea fell by 0.08% to 2.59%.
In China, the Shanghai Composite index rose 0.24% as a trading program linking Hong Kong's stock market with Shanghai began today, 17 November 2014. For the first time, the pilot program allows eligible Mainland investors to trade stocks listed on the Stock Exchange of Hong Kong (SEHK) directly through the Shanghai Stock Exchange (SSE). At the same time, it allows Hong Kong and overseas investors to trade stocks listed on the SSE directly through the SEHK, also for the first time. China will waive capital gains tax for foreign investors buying mainland through the Connect, according to statement released by the Finance Ministry last week.
Japan's real GDP shrank 1.6% on an annualized basis in July-September third quarter as firms cut inventories and held back on capital investment. The figure marked the second quarter of contraction, after the economy shrank 7.3% in the April-June second quarter after the national sales tax ticked up to 8% from 5% on 1 April 2014.
US stocks were little changed on Friday, 14 November 2014 with benchmark indexes near record levels, as health-care shares sank to offset gains among energy producers and investors weighed whether the recent rally in equities may have been overdone.
A report from the Commerce Department on Friday, 14 November 2014 showed that retail sales in October increased 0.3% after a 0.3% drop in September, as American consumers ate out and shopped for clothes, enjoying a windfall from cheaper gasoline.
The US Federal Reserve reports the US industrial production data for October later in the global day today, 17 November 2014.
Leaders from the G 20 group of nations agreed on Sunday, 16 November 2014 to boost flagging global growth, tackle climate change and crack down on tax avoidance but ties between the West and Russia plummeted to a new low over the crisis in Ukraine. President Barack Obama announced a $3 billion US contribution to an international fund to help poor countries cope with the effects of climate change, reports added. Prime Minister Narendra Modi at the G20 summit, called for close global coordination to address the challenges posed by tax avoidance.
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