Equities are likely to witness yet another volatile session Tuesday amid weak overseas cues over concerns about the fallout from the global credit crisis.
Oil was steady as dealers weighed the impact of high oil prices on global demand against fresh threats of supply disruptions in Nigeria, Brazil and Iran. US crude was 30 cents lower at $144.88 per barrel, while London Brent crude fell 32 cents to $143.60 per barrel.
Rupee weakened to 43.06, down 14 paise as foreign institutions continued to exit on account of weak global market sentiment and.
Ranbaxy Laboratories and Daiichi Sankyo on Monday sought to quell speculations about their multi-billion deal going awry even as the Indian drug maker’s shares plunged 10.45 per cent (Rs 55) to Rs 475.90 after news of the US government initiating legal action against Ranbaxy for allegedly forging documents and selling sub-standard products became public.
South African telco MTN is learnt to have sent feelers to Bharti for reviving talks, if it fails to clinch a deal with Reliance Communications. MTN and Bharti Airtel, which were in merger talks in May, but the Indian telco had called off talks after both companies failed to agree on the corporate structure of the combined entity. Shares of Bharti Airtel ended at Rs 736.85, down 1.14 per cent.
Reliance Natural Resources has sent a legal notice to the petroleum ministry to clarify that the marketing of Reliance Industries’ KG basin gas would not prejudice the Bombay High Court proceedings and the rights of RNRL to the gas. RIL has been directed to sell the KG basin gas in accordance with the gas utilisation policy which does not allow gas supplies to new power plants. This would mean that RIL would be under no obligation to sell gas to NTPC or Reliance Power for the proposed power plants in Uttar Pradesh. The ongoing case in the high court between RIL and RNRL is over gas supplies to ADAG’s gas-based power plants. The court case comes up for hearing on July 24. RNRL closed flat at Rs 69.05 while Reliance Industries shares closed 1.5 per cent higher at Rs 2046.80.
Steel prices may move up by at least Rs 4,000 per tonne next month as steel producers would not be in a position to hold prices for long in the wake of rising freight and raw material costs, say analysts. While prices of iron ore, a primary input for producing steel, has surged 66 per cent since December, transportation costs for steel companies have gone up 10-15 per cent in the last month due to increased fuel cost.
Meanwhile, the Railways has decided to give a 25 per cent discount on domestic iron ore freight booked to ports in a bid to help steel companies hit hard by rising input cost.
State Bank of India is likely to report an improvement in its asset quality when it presents its first quarter results. The bank has recovered bad loans worth around Rs 2,000 crore during April-June 2008. SBI scrip ended at Rs 1257.70, up 2.90 per cent on the BSE.
Sun Pharmaceuticals’ hostile bid to acquire majority control of Taro Pharmaceuticals is facing yet another hurdle. After the Taro board, Templeton Asset Management — a prominent shareholder of Taro — has dumped Sun Pharma’s unsolicited tender offer. Sun Pharmaceuticals shares closed at Rs 1337.20, up 1.54 per cent on the BSE.
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