The News International Team
1:50 pm Fund infusion: Coal India, the world’s largest producer, and state gas utiltity GAIL India Ltd today signed agreements to invest Rs 9,000 crore in a plant to convert coal into gas and use this fuel to manufacture fertiliser.
CIL and GAIL along with Rashtriya Chemicals and Fertilizers (RCF) and Fertilizer Corp of India Ltd (FCIL) will set up the integrate coal gasification cum fertiliser and ammonium nitrate complex at Talcher in Odisha by 2019, Fertiliser Minister Ananth Kumar said after the four firms signed joint venture agreements.
The plant will be built by the two joint ventures – the upstream consortia for converting coal into synthetic gas or syngas, and downstream plant to manufacture urea and other fertilizers.
GAIL will holds 35 percent in the upstream venutre, called GAIL Coal Gas (India) Ltd. FCIL will take 11 percent interest while RCF and CIL will pick up 3 percent each each. The balance 48 percent will be given to technology provider and financial institutions.
1:30 pm How to trade financial companies? For the banking and financial companies, year 2015 has been one of stable asset quality, but weak credit growth. Credit growth for 2015 is estimated at 11 percent.
Jignesh Shial, research analyst, IDBI Capital Markets feels public sector banks may find it easier to raise capital in 2015. He sees scope for a lot of consolidation in the private banking space, but not in PSU banks. He likes HDFC Bank the most among private banks and State Bank of India among public sector banks. He is also bullish on City Union Bank, Karur Vysya Bank and Federal Bank.
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The market is still limping as the ordinance on insurance and coal does not seem to boost sentiment. The Sensex is down 110.20 points at 27396.26. The Nifty slips 30.25 points at 8236.75. About 1251 shares have advanced, 1300 shares declined, and 103 shares are unchanged.
BHEL, NTPC, Hindalco, Dr Reddy’s Labs and HDFC are top losers in the Sensex. Among the gainers are Tata Steel, ICICI Bank, Maruti, ITC and SBI.
Shares of Max India and Reliance Capital rallied 4-5 percent after the Cabinet approved ordinance on insurance. Government today approved promulgation of an ordinance to hike foreign direct investment (FDI) cap in the insurance sector to 49 percent from 26 percent, as the legislation could not be passed in the Parliament session that ended on Tuesday.
The Reserve Bank of India today fixed the reference rate of the rupee at 63.4614 against the
US dollar and for the euro at 77.3087 as against 63.4475 and 77.6217 yesterday. According to a RBI press release, the exchange rates for the pound and yen against the rupee were quoted at 98.5111 and 52.73 per 100 yen, respectively, based on reference rates for the dollar and cross-currency quotes at noon. The SDR-Rupee rate would be based on this rate, the release added.