Diesel can be market-priced by September as crude falls to $100

With the losses of state-run oil marketers on diesel sales below cost falling to under a rupee per litre, brokerage firm Goldman Sachs Tuesday estimated the monthly price hikes would end after September assuming oil prices remain around the current $100 level.

Estimating diesel under-recoveries, or losses, to fall to 30 paise a litre after the price hike on September Goldman Sachs said in a report: "This implies we could effectively be done with the monthly cycle of diesel price increases in next two months and diesel will be market-priced."

In January 2013, the government allowed oil marketing companies (OMCs) to monthly raise diesel rates in small doses of 40-50 paise a litre towards wiping out losses.

Since then, rates have cumulatively risen by Rs.11.24 per litre in 18 instalments.

OMCs, effective Aug 16, are incurring combined daily under-recovery of about Rs.230 crore on the sale of diesel, PDS kerosene and domestic LPG.

Meanwhile international crude prices hovered near 14-month lows of $100 a barrel as worries over conflict in Iraq eased, and as higher Libyan oil output added to ample supplies coupled with weak demand. Price of Indian basket on Monday decreased to $100.04 per barrel.

Copper futures up 0.17% on global cues

Copper prices rose 0.17 per cent to Rs 418.55 per kg in futures trade today as speculators enlarged positions amid a firming global trend and pick-up in demand. 

At the Multi Commodity Exchange, copper for delivery in August added another 70 paise, or 0.17 per cent, to Rs 418.55 per kg in a business turnover of 4,454 lots. 

In a similar fashion, the metal for delivery in November traded higher by 45 paise, or 0.11 per cent, to Rs 427.35 per kg in 116 lots. copper for delivery in three months gained 0.3 per cent to $ 6,926.75 a metric tonne at the London Metal Exchange. 

Diesel price hiked by Rs 1.78 per litre

The Ministry of Petroleum and Natural Gas has decided to increase the price of high speed diesel by Rs.1.78 per litre after reviewing international prices of crude oil and petroleum products during the first fortnight of August.

The hike in diesel prices is effective from August 16.

In the case of kerosene and domestic LPG, the under recoveries for the second fortnight of August continues to be Rs 32.98 per litre and Rs 447.87 per cylinder respectively.

Oil Marketing Companies (OMCs) are now incurring combined daily under-recovery of about Rs 230 crore on the sale of diesel, kerosene and domestic LPG since August 16. 

Tiles maker RAK India plans to go public

RAK India, the domestic arm of the UAE-based tiles maker RAK Ceramics, is planning to go public through an initial public offering when market conditions become conducive.

"The right time to raise the capital from the primary market is a combination of the time for the company and also the market conditions," RAK Ceramics global chief executive Abdallah Massaad told PTI.

Elaborating further, Massad said, "We will launch the IPO when we feel that we are ready for the capital markets and the market is going through the right dynamics."

RAK, which is the world's largest tiles manufacture, has production facilities in the UAE, India, Bangladesh, Iran, Sudan, and China and India is one of its core markets.

While the parent RAK Ceramics is listed on the Abu Dhabi Exchange, one of its Bangladesh arms is listed on Dhaka Stock Exchange.

"So we have that mentality of accessing the capital markets and obviously as Samena Capital being a financial investor, capital markets are always a route to raise capital," he said.

Investment group Samena Capital has recently acquired 30.6 per cent stake in RAK Ceramics from its founder Sheikh Saud bin Saqr al-Qasimi.

The company plans to invest Rs 500 crore in India over the next five years to scale up production both greenfield or brownfield expansion. In May, RAK had said it was mulling to set a new plant in the country to increase capacity.

RAK runs a vitrified tile manufacturing plant at Samalkot in Seemandhra with a capacity of 30,000 sqm of tiles and 1,500 sanitary ware pieces per day.

IOC to hike processing of cheaper crude to 30% by 2017-18

 Indian Oil Corp (IOC), the nation's largest oil firm, plans to raise processing of cheaper crude oil varieties to 30 per cent by 2017-18 as part of its efforts to improve margins.

In 2013-14, IOC, which owns 30 per cent of the nation's oil refining capacity, turned 54.65 million tons of crude oil into fuel. Of the crude oil processed, 16.1 per cent was heavy and high TAN (total acid number) crude. 

Heavy crudes, like the one produced in Latin America, are cheaper than most of the varieties available from the Middle-East as they have high concentration of sulphur and several metals, particularly nickel and vanadium, which require higher grade refineries for processing. Same goes for high acid crudes or high TAN crudes. 

European shares extend rally; Maersk surges

European shares rose in early trading on Tuesday, adding to the previous session's rally, led by Moller-Maersk's sharp gains following forecast-beating results. 

Shares in the Danish shipping and oil group rose 5 per cent after it posted better-than-expected results, raised its full-year profit outlook and unveiled a $1 billion share buyback plan. 

At 0706 GMT, the FTS Eurofirst 300 index of top European shares was up 0.3 per cent at 1,343.43 points, extending the previous session's 1.2 per cent rise and tracking solid gains on Wall Street as investors' concerns over the Ukrainian crisis eased. 

Ukrainian government forces reported new successes overnight, building on a weekend breakthrough when troops raised the national flag in Luhansk, a city held by pro-Russian separatists since fighting began in April. 

TCS subsidiary gets multi-million pound deal from Friends Life Management

Tata Consultancy Services(TCS.NS) said its subsidiary Diligenta had signed a multi-million pound deal with financial services company Friends Life Management Services Ltd for its international operations.

Under the deal, Diligenta will implement TCS BaNCS, the IT service provider's banking services platform, to support international operations of Friends Life in Asia Pacific and the Middle East, TCS said.

Diligenta was established in 2005 to specialise in business process outsourcing services for the life and pensions industry in the United Kingdom and currently administers about 6.5 million live policies on behalf of its clients, TCS said.

Goa government to allot 27 mining leases; Sesa Sterlite rallies

Sesa Sterlite was the top gainer on the Nifty in trade today following reports that the Goa government will allot at least 27 mining leases from September 30 to October 10 this year. 

Goa chief minister Manohar Parrikar said his government will renew leases of 27 holders which include Sesa  Sterlite, V M Salgaocar & Sons, Chowgule  & Co and Sociedade de Fomento. His government will also finalize various schemes for the support of the mining-affected including truck owners, tea shop owners, etc by October. 

The government will finalize all other mining-related issues latest by the end of this calendar year. 

Oil marketing companies rally as crude oil prices hit 13-month low

State-owned oil marketing companies surged upto 4 per cent in trade on Tuesday amid falling crude oil prices that hit a 13-month low. 

The unrest in Iraq, Libya, Ukraine and Gaza, coupled with an accelerating American economy, would normally spell a spike in crude oil prices. However, prices have slipped to a 13-month low of about $102 per barrel.

BPCLBSE 3.29 % surged as much as 3.5 per cent to hit its fresh 52-week high of Rs 671.50. HPCLBSE 3.50 % rose 4.3 per cent to hit its intraday high of Rs 459.85. While IOCBSE 2.23 % rose nearly 3 per cent in trade. 

IOC was trading 2.9 per cent higher at Rs 363, BPCL was up 3.2 per cent to Rs 669 and HPCL was trading 3.8 per cent higher at Rs 457.50. 


Brent crude prices have fallen by 11% to $102/bbl from the 2014 highs of $115/bbl in June 2014 which is positive for India which imports nearly 85 per cent of its crude oil requirement. 

India's FY15 fuel subsidy is estimated at Rs 1 trillion ($16.6bn) at Deutsche Bank's Brent oil price forecast of $111/bbl every $10/bbl fall in oil price reduces India's annualized oil import bill by $10 bn and fuel subsidy by $5.6 bn. 

JSW to buy Welspun Maxsteel for enterprise value of $165 million

 JSW Steel Ltd has agreed to acquire local steelmaker Welspun Maxsteel Ltd for an enterprise value of 10 billion rupees from Welspun Enterprises to bolster its production capacity.

The equity value of the deal, which is subject to regulatory approvals, was not disclosed. Welspun Maxsteel has an installed capacity of 900,000 tonnes per annum at its plant in Raigad district of Maharashtra.

JSW Steel has an installed capacity of 14.3 million tonnes, and the company plans to raise it to 40 million tonnes in the next decade, the company said in a statement late on Monday.

Gold ticks up on fund inflows, safe-haven demand

Gold snapped a two-day losing streak on Tuesday as geopolitical tensions and fund inflows boosted the safe-haven metal, but gains were kept in check by strength in equities and the dollar.

Equity markets rose after Russian Foreign Minister Sergei Lavrov said all issues around a humanitarian convoy sent by Moscow to relieve needy areas of eastern Ukraine had been resolved. Moscow said it would like a ceasefire to allow aid to get to people trapped by the fighting.

Spot gold rose 0.2 percent to $1,299.35 an ounce by 0332 GMT, after dropping 0.6 percent in the previous session. U.S. gold gained about $1 to $1,300.70.

Gold has gained about 8 percent this year, largely because of geopolitical tensions as it is seen as a good alternative to riskier assets.

Spot gold may rebound to $1,307, as it failed to break support at $1,296 per ounce ,other precious metals also got a boost.

Silver rose 0.2 percent, moving off a two-month low hit in the previous session, while palladium was not too far from a 13-year high, supported by worries over supplies from top producer Russia and strong demand prospects.

Indian rupee opens flat at 60.77 per dollar

The USD/INR appears to have touched the near-term lows and sentiment appears to have turned positive on the back of improving global scenario. 
After four days of holiday, the Indian rupee opened on flat note at 60.77 per dollar on Tuesday against last Thursday's closing value of 60.76 a dollar. The dollar has risen against a basket of major currencies on reduced concerns over Russia and Ukraine and positive US housing data. Data shows US home builder sentiment rising in August to its highest since January as labor market conditions improved.