PSU OMCs in focus as crude oil boils

Shares of public sector oil marketing companies (PSU OMCs) will be in focus after Brent crude rose to a nine-month high on Wednesday, 18 June 2014, with investors worrying about exports from Iraq. Brent crude rose past $114 a barrel as Sunni militants opposing Baghdad's Shi'ite government battled their way into Iraq's largest refinery, raising the specter of supply disruptions from OPEC's second-largest producer. Higher crude oil prices will increase under-recoveries of PSU OMCs on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol.

Kotak Mahindra Bank will be watched after the Reserve Bank of India (RBI) notified that the foreign share holding in Kotak Mahindra Bank by Foreign Institutional Investors (FIIs) under Portfolio Investment Scheme (PIS) has reached the trigger limit. Hence, further purchases of equity shares of this company would be allowed only after obtaining prior approval of RBI.

Moody's Investors Service affirmed the credit ratings on Tata Steel as well as Tata Steel UK Holdings, saying that their profitability and cash generation are unlikely to deteriorate in the next 12 months. The global rating agency has maintained the negative outlook on the two entities.

Shareholders of Reliance Industries (RIL) approved the appointment of Nita M. Ambani, Chairperson of Reliance Foundation (RF), as director on the board of RIL in the AGM held on Wednesday, 18 June 2014.

PSU stocks may be in focus on reports that the finance ministry is working on a road map to divest stake in big state-run companies, which include Coal India, Sail, MMTC, NMDC, NHPC and Nalco. The government holds 80% or more stakes in these companies.

Engineers India has reportedly won its largest ever consultancy contract for a 20 million tonne oil refinery in Nigeria. The state-owned firm won a $139 million contract from Nigerian company Dangote Group to provide services for a refinery and polypropylene plant. This is the largest ever single consultancy assignment for Engineers India, reports added.

Crompton Greaves has reportedly put up a part of its land parcel at LBS Marg in the eastern suburbs of this city for sale. The company has put 8-10 acres up for sale now; the rest will be sold in tranches. The total valuation of the 32-34 acre plot is estimated at Rs 1400 crore, reports added.

Hanung Toys & Textiles said that Corporate Debt Restructuring Cell has approved the Corporate Debt Restructuring package of the company in its meeting held on 23 May 2014 as informed by them vide their letter dated 16 June 2014.

Sequent Scientific's board has approved fund raising of upto Rs 400 crore through issue of GDRs/ ADRs/ FCCBs/ QIP/ such other equity linked instruments, etc. The board also approved increase in the limit of investments by Foreign Institutional Investors (FIIs) in the equity share capital of the company upto 49% of its paid up capital.

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