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Monday November 23, 09:40 AM
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BSE Sensex seen flat to lower; Reliance watched
MUMBAI (Reuters) – The BSE Sensex (^BSESN : 16031.95 -10.23
) is expected to start flat to lower on Monday, but energy major Reliance Industries Ltd (RELIANCE.NS : 990.7 -2.55) could rise after it made an offer to buy controlling interest in U.S.-based bankrupt petrochemicals company LyondellBasell Industries.
Reliance, the country's top-listed firm is offering about $12 billion to buy a controlling interest in LyondellBasell, and the deal if closed will make it one of the largest overseas acquisitions by an Indian company.
"We may open lower considering Friday's gains and weak U.S. markets," said V.K. Sharma, head of private client group at HDFC Securities.
"But the market, which usually does not like large deals, is likely to make an exception for Reliance," he said, indicating the stock could rise.
"With the company being relatively liquid, it should not be a problem," he said.
Telecom stocks will be watched after the mobile operators added record 16.67 million users in October as tariff war in the sector heated up with Tata Teleservices extending its per-second billing scheme to roaming calls.
The MSCI's measure of Asian markets other than Japan was up 0.5 percent by 0311 GMT, but the Nifty (^NSEI : 4779.55 -13.1) India stock futures in Singapore were trading 0.2 percent lower.
Japanese markets were closed for a public holiday.
On Friday, the 30-share BSE index closed up 1.4 percent at 17,021.85.
STOCKS TO WATCH
* Essar Oil (ESSAROIL.NS : 142 +2.8
), after the Economic Times reported over the weekend Royal Dutch Shell was in talks to buy 10 percent of the Indian firm as part of a deal where it would sell three European refineries to Essar.
* Ashapura Minechem after the firm said over the weekend it can resume sale and export of mined bauxite from the western state of Gujarat following a directive from the state government, which would lift its performance in the current financial year.
(Reporting by Ami Shah and Bharghavi Nagaraju; Editing by Ranjit Gangadharan)
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