FIIs invested 1 LAKH CRORES...!!!

Deepak Korgaonkar  |  Mumbai  

December 6, 2013 Last Updated at 23:29 IST, 

FII inflows cross Rs 1-lakh-cr mark

According to the Securities and Exchange Board of India, FIIs invested Rs 100,577 crore ($18.07 billion) as of Thursday. On Friday, they invested an additional Rs 864 crore (provisional data). Of the total net inflow, about Rs 40,000 crore came in the last three months, following measures taken by the Reserve Bank of India (RBI) to boost the weakening rupee and revive economic growth. A delay in US Federal Reserve’s quantitative easing tapering, coupled with better-than-expected September quarter earnings, ensured FIIs kept foreign money flowing into Indian equities.

Since their entry into Indian capital markets in 1992-93, net FIIs inflows have exceeded Rs 1,00,000 crore in 2010 and 2012. In 2012, FIIs had net invested Rs 1,28,360 crore ($24.4 billion), while in 2010, they made a record net inflow (in rupee terms) of Rs 1,33,266 crore ($29.36 billion).

Currently, market capitalisation is heavily skewed in favour of large companies. But analysts say there is ample potential for companies with strong fundamentals and sound business models in the mid-cap space. Latest data on shareholding pattern show FII holdings in BSE100 companies is estimated at 15.5 per cent. These companies account for about 70 per cent of the total BSE market capitalisation. FIIs hold an average 11 per cent stake in BSE mid-cap companies, and eight per cent in small-cap companies. Analysts expect the fund flow to continue. Kruti Shah, an analyst with Karvy Institutional Research, says, “In the third quarter of 2013-14, we can expect net positive FII inflows due to postponement of the US Fed’s tapering decision. With rising dependence on short-term inflows to finance CAD (current account deficit), we expect volatility in foreign exchange reserves to remain high.” Since September, FII made net inflow of Rs 40,000 cr in Indian equity markets Foreign institutional investors (FIIs) continue to pump in money into Indian equity markets, with their net inflow so far this year crossing the Rs 1-lakh-crore mark on Friday. According to official data, the inflows touched a whooping Rs 1,01,441 crore as of Friday.

http://www.business-standard.com/article/markets/fii-inflows-cross-rs-1-lakh-cr-mark-113120600450_1.html

Nifty target at 6,900 - UBS....!!!

Reuters  

December 5, 2013 Last Updated at 09:21 IST

UBS sets Nifty target at 6,900 for 2014

Says tapering is not a big fundamental worry for IndiaUBS set Nifty 2014 target at 6,900 and said it expects the index to trade between 5,500 and 6,900 for the year based on its valuations and FY15 earnings growth estimates of 10-15% for the NSE index.The investment bank adds tapering is not a big fundamental worry for India, but a depreciating rupee may yet be a likely trend. More than 30% of Nifty earnings benefit from the depreciating rupee and this could provide some stability for overall market earnings.UBS added that elections are the key theme for first half of 2014 and the recent rally implies that a Narendra Modi-led BJP government is no longer viewed as a low-probability scenario. The BJP emerged as the biggest winner in four key state elections, exit polls forecast on Wednesday, a possible blow to the ruling Congress party ahead of a general election due next year.The bank is "overweight" on Indian IT, telecommunications, media, oil and gas, private banks and power shares, while being "underweight" on two-wheelers, consumer discretionary, infrastructure and capital goods, government banks.UBS remains "neutral" on Indian four-wheelers, rural-focused consumer staples, metals, mining and pharmaceutical stocks.http://www.business-standard.com/article/markets/ubs-sets-nifty-target-at-6-900-for-2014-113120500108_1.html

MSP Steel & Power ... !!!!!!

Home > Money > ReportMSP Steel reworks project in quest of profitsThursday, Dec 5, 2013, 9:08 IST | Place: Kolkata | Agency: DNASumit Moitra  Looks to introduce high-margin items and cut down on costly fuels at Jharsuguda project in Odisha.Steel makers are thinking out of the box to get the better of the gloom. MSP Steel & Power has restructured and tweaked the integrated steel project promoted by its arm, MSP Metallics, deciding not to opt for low-profit products and reduce dependence on high-cost fuels like coal. Instead, it wants to incorporate high-margin items at a lower capital cost at its project at Jharsuguda in Odisha.“The reorganisation of the project by going for high-value items like seamless pipes and cutting down on unprofitable items like sponge iron has brought down capital costs and would also help its bankability,” Kamal Jain, chief financial officer, MSP Steel, told dna.MSP Metallics is scaling down the size of the sponge iron plant to 0.57 mtpa from the projected 0.99 million tonnes per year (mtpa), in addition to cutting down the sizes of coke oven, coal washery and captive power plants. At the same time, the company is doubling the capacity of the iron ore pellet plant to 1.2 mtpa from the earlier planned 0.6 mtpa and that of  iron ore sinter plant to 0.92 mtpa from 0.46 mtpa.Also, additional facilities like a seamless tube plant of 0.3 mtpa and TMT bar plant of 0.24 mtpa are in the works. “The promoter of the project, due to scarce availability and rising of price of iron ore and coal, compelled to shift its focus to producing value-added special category steel products such as seamless tube and steel rods. As a strategic measure, capacities of sponge iron are reduced substantially, along with the coal washery, coke oven and captive power plant. In order to match the capacity of metallics, enhancement of pellet and sinter capacity is envisaged,” the project document stated.The total cost of the proposed restructured project is estimated at Rs 1,279 crorehttp://www.dnaindia.com/money/report-msp-steel-reworks-project-in-quest-of-profits-1929809

CAIRN INDIA STRIKES...KG BASIN BOUNTIFUL OIL RESERVES..!!!

Cairn strikes east coast oil bounty, 10,000 bpd output likely from 2017
Pranav Nambiar | New Delhi | Updated: Dec 03 2013, 05:29 ISSUMMARYCAIRN India has struck significant oil reserves in its Krishna-Godavari (KG) Basin onshore field KG-ONN-2003/1 with productionCAIRN India has struck significant oil reserves in its Krishna-Godavari (KG) Basin onshore field KG-ONN-2003/1 with production estimated at 8,000-10,000 barrels of oil per day (bopd) starting 2017. This opens up a larger play for Cairn India on the east coast, joining the likes of Reliance Industries (RIL) and Oil and Natural Gas Corporation (ONGC) that have made large finds in the region.As per the declaration of commerciality (DoC) documents submitted by Cairn to the Directorate General of Hydrocarbons (DGH) on November 29, the company has in-place oil resources of about 320 million barrels, of which about 40 million barrels can be recovered. It has also found small amounts of gas with recoverable reserves of around 70 billion cubic feet (bcf) of gas.
The oil resource estimate is based on the appraisal of three discovered wells in the field — Nagayalanka SE, 1Z and 1Z ST. Cairn will invest around $600 million in drilling 20 wells of the next three to four years and an additional $165 million for creating the infrastructure to produce oil from the field. Oil ministry sources say Cairn India’s reserves in the field can be revised upwards as it drills more wells. The net present value (NPV) of the project stands at around $ 900 million.Cairn’s KG onshore field has a tight reservoir with low permeability, thus requiring the company to use hydraulic fracking techniques to drill the wells. The recovery factor of the KG field is therefore just 10-15%, while at Ravva, it is as high as 60%.
The sedimentary formations where Cairn’s KG field is located in are also called Mesozoic rocks and these formations formed over 100 million years back have seldom been tapped in India, though they account for nearly 50% of global hydrocarbon finds. Mesozoics are mainly found in the western regions of Narmada, Cambay and Saurashtra, in the east around Cauvery and the KG Basin as well as the north along the higher Himalaya.According to industry experts, as the investments are lower in the case of onshore fields, the threshold for commerciality is lower and from that perspective, 8,000-10,000
bopd is a reasonably good find. In contrast, a deepwater field which requires platforms for separating oil and water as well as pipelines for evacuating oil is generally commercial at higher levels of around 30,000 bopd. ONGC’s recent oil find of about 100 million tonnes or 700 million barrels of oil in its east coast KG-DWN-98/2 field is larger than the Cairn find but this is located in the deepwater region. “In the case of onshore fields, we need just tankers to evacuate the oil. So, even small onshore oil finds are typically commercially viable,” said a public sector oil company official. The latest find also opens up a huge play for the company in the east coast. Cairn India will soon begin exploring its offshore KG basin block KG-OSN-2009/3 after it received a government nod to undertake a pared down minimum work programme in the block. The private sector oil and gas company will invest Rs 500 crore to undertake the MWP and subsequently ramp up investments depending on the prospectivity of the block.
Cairn is also undertaking 4D seismic work to identify pockets of oil deposits which have bypassed east coast Ravva fields. The oil production from Ravva is seeing a natural decline averaged 22,600 barrels of oil equivalent per day (boepd) in the July-September quarter. The results from the 4D tests are expected to be released by the end of the financial year.Cairn’s current production is 1,78,000 boepd and expects to exit FY14e at greater than 2,00,000 boepd, led by Rajasthan which produced around 1,74,200 boepd in the previous quarter.

http://www.financialexpress.com/news/cairn-strikes-east-coast-oil-bounty-10000-bpd-output-likely-from-2017/1202402/2