Stocks In Action: 16th July 2012

As per the media reports  the Oil Ministry has posed a query to Reliance Industries on its CBM gas pricing that is a repeat of a question the firm had replied to over two months back. The query on inclusion of $0.26 per million British thermal unit in the formula is repeat of what the ministry had asked RIL on April 24. The delay in the CBM price approval is seriously hampering the development and production of CBM which would annually substitute imported liquid fuels worth about $1 billion or substitute $650 million of LNG imports. We may see some pressure on the counter today.

As per the business standard reports Faced with a capacity glut, coupled with the squeezed margins due to ongoing global economic turmoil, state-run Shipping Corporation of India has decided against going in for any capital expenditure to acquire vessels this fiscal. The Shipping Ministry reportedly last year had raised concerns over SCI's plans to induct new vessels, warning that the corporation is on the brink of a financial collapse and going ahead with the orders would lead it into a debt-trap like the national carrier Air India. The counter may remain under pressure today.

As per the media reports Aluminum producer Nalco is in talks to buy Indonesia's Ashan Aluninum (Inalum) for up to Rs 8,000 crore, in what could be the largest overseas acquisition by state-owned metal firm.A Japanese consortium holds 59% stake in Inalum, which owns a 2.1 lakh tonne-capacity aluminum plant in North Sumatra province while the rest is with Indonesian government. The counter may see some positive momentum today.

As per the news from business standard, ICVL, a consortium of five major PSUs, is eyeing mines in mineral-rich countries like Australia and New Zealand at competitive valuations. Valuations have come down. This is the time, we should venture out. We are carrying out due diligence in Australia, New Zealand and Mozambique. We have signed non-disclosure agreements," International Coal Ventures Ltd. This will be a great move by the company at a time when coking coal prices have fallen to the lowest levels. We may see some positive momentum in the counter today.

As per the media reports In a major diversification plan, state-run Power Grid Corporation is in discussions with three companies, including SAIL, for setting up an equal joint venture to manufacture transmission equipment. Power Grid Corporation of India sets up electricity transmission network. Power Grid plans to add about 40,000 circuit kilometres in the 12th Five-Year Plan period (2012-17). At present, it has over 94,000 circuit kilometres of lines. The counter may see some positive momentum on the back of the JV news.