Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Commodities drag indices lower
Tue, 28 Aug Closing

Weighed by selling pressure on heavyweights from metal, auto and engineering sectors, the key indices in Indian equity markets ended the session below the dotted line today. In what was even otherwise a muted session, post noon profit booking gathered momentum after reports of deadlock in the Parliament and the CAG pulling up Oil and Natural Gas Corporation Ltd. (ONGC) unnerved investors. While the BSE-Sensex today closed lower by 47 points, the NSE-Nifty today closed lower by 16 points. Both the BSE Mid Cap and the BSE Small Cap indices closed more than 1% lower. Gains were, however, seen in select IT and FMCG stocks.

As regards global markets, Asian indices closed mixed today while European indices have opened lower. The rupee was trading at Rs 55.74 to the dollar at the time of writing.

As per a business daily, the Comptroller and Auditor General (CAG) has slammed state-owned Oil & Natural Gas Corporation (ONGC) for not placing desired emphasis on discovering oil and gas. Also the PSU has been behind the schedule in monetizing its discoveries. CAG's report on Hydrocarbon Exploration Efforts of ONGC, which was tabled in Parliament today, underscored concern at the company's lack of adequate efforts, besides highlighting its anomalies in MoU target setting and reporting as well as performance measurement.

Blaming ONGC for being tardy in purchase of seismic survey vessel, CAG reported that less than 50% of the basins were only able to meet survey targets. Further, CAG mandated the company to introduce transparency and competitive tension in the process of hiring consultants/expert. Moreover, it recommended the company to a review of Reserve Replacement Ratio (RRR) as a performance parameter for ensuring performance in exploration efforts. The stock closed 2% lower today.

Meanwhile the PSU banks do not seem to be relenting to the government's demands to lower lending rates. At the same time there is a growing mismatch in loan and deposit growth rates. According to the Reserve Bank of India's (RBI) data, deposit growth, which was 14.3%, was way below the central bank's projection of 16% for FY12. However, the country's second-largest PSU bank, Punjab National Bank (PNB), has stated its unwillingness to prune its retail lending rates further until the cost of funds come down. Most PSU banks have seen pressure on net interest margins (NIMs) in the June quarter.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Commodities drag indices lower". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited).

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Research Private Limited (formerly Equitymaster Agora Research Private Limited) (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.