Tuesday March 20, 10:30 AM
Buoyant opening... |
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By Equitymaster.com
Markets have started the day's trading on a buoyant note with buying being witnessed across sectors. Currently, only 2 stocks on the Nifty are trading in the red. Banking, cement and telecom stocks are leading the pack of gainers. The CMX midcap index is also up 1%, indicating the positive sentiments across the markets.
The BSE Sensex is trading at 12,778 (up 133 points) while the NSE Nifty is trading at 3,715 (up 37 points). The rupee is trading at 43.91 to the dollar.
Reliance (RELI.BO, news) Industries (RIL) is lining up investments of over US$ 12 bn for production of gas from its fields in the Krishna-Godavari basin and its transport to consumers across the country. US$ 5.2 bn will be spent on gas production, while a larger chunk of US$ 7 bn will be spent on building gas pipes. Production of gas from the K-G basin will begin by June 2008. The total investment planned by the company in these oil, gas, refining, chemical and retail businesses is over US$ 28 bn by 2011. Gas consumption may rise to 400 million cubic metres a day (MCMPD) by 2025 if the economy grows at the projected rate of 8% a year. At present, there is a demand for 170 MCMPD, while supply stands at 93 MCMPD. Officially, the KG-field of Reliance, discovered in 2002, is projected to produce 80 MCMPD. However, with the recent new discoveries there, the production could go up to 100 MCMPD. This would help the company augment its topline going forward. The stock, along with its peer ONGC, is up 1%.
In the US markets, news of corporate deals led to the renewed interest by investors in the market. The Dow Jones, the S&P 500 and the tech laden NASDAQ all ended the day higher by 1%. Oil prices settled further lower at US$ 56 per barrel. As regards global markets, while the Asian markets are currently trading mixed, the European markets closed on a positive note.
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