India Power Sector
Monday, September 24, 2012
BPCL which is setting up its first propylene unit in Kochi, said it is ready to offer 51% stake in the Rs60bn project to its Korean joint venture partner LG Chemicals. (ET) After cutting its base rate by 25 basis points, State Bank of India reduced its benchmark prime lending rate (BPLR) by a similar margin. The public sector bank’s BPLR now stands at 14.5%. (BS) Diageo Plc is in advanced talks to buy a stake in United Spirits. (BS) Reliance Industries and its partner BP plan to surrender two more exploration blocks, reducing their tally to 14 from 21 a year ago. (ET)
Sometimes, the times we can’t change end up changing us. – Anonymous. UPA, which had promised plenty but had delivered little until recently, finally decided to shun inertia and restore some credibility by unleashing a slew of ‘reforms’. The question now is whether these are the real reforms our economy badly needs? Brace for a few capital market-friendly steps to keep FIIs interested in India. Insurance, IT, Telecom and NBFCs could see some action amid reports that the Centre might ease certain rules to boost these sectors. The opening is not likely to be good though, with global cues not being supportive. Asian stock benchmark has retreated from a four-month high. US stock indices on Friday broke a two-week winning streak. European stock markets moved higher on reports Spain may be preparing the ground for a bailout request.
The market may open lower on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 25 points at the opening bell. Volatility may remain high this week as traders roll over positions in the futures & options (F&O) segment from the near month September 2012 series to October 2012 series. The September 2012 F&O contracts expire on Thursday, 27 September 2012. Asian shares edged lower on Monday, with metal-related firms weak, while some Japanese stocks suffered from a rising yen and growing tension between China and Japan. State Bank of India (SBI) Saturday, 22 September 2012, said it has cut its benchmark prime lending rate by 25 basis points to 14.5% per annum with effect from 27 September 2012. The announcement comes close on the heels of the bank cutting its base rate by 25 basis points to 9.75% with effect from 20 September 2012.