Market cues: Asian markets flat, oil prices surge
FMCG major Hindustan Unilever (HUL) hiked the price of two Rin washing powder variants by 3 per cent. The company is expected to further increase the price of these powder variants by 7 per cent in February or March.
Asian markets opened flat on Thursday as growing concerns of more capital raising by troubled European banks hurt the sentiment. The trend in US markets was similar overnight with major indices ending flat. Meanwhile, reports say that US new vehicle sales indicated strong sales in December but automakers expect lower growth in 2012.
Oil prices surge
Crude advanced for the ninth time in 11 days after the EU said foreign ministers intend to announce harsher sanctions on Iran's energy and banking industries at their next meeting on 30 January 2011. Iran has threatened to block the Strait of Hormuz, through which about 20 percent of the world's oil flows out of the Persian Gulf, if its exports are restricted. US traded around $103.22. Analysts say Brent may rally to $125 if the EU bans imports from Iran.
ONGC dividend
Dividend bonanza for shareholders of Oil & Natural Gas Corporation, India's biggest energy explorer. ONGC shareholders including the government of India will get a special interim dividend of 125% or Rs 6.25 per share. The Indian government will get nearly Rs 4,000 cr as part of the dividend payout. Meanwhile, ONGC will take over stakes in three offshore exploration blocks held by BG group as the British company withdraws from the projects. ONGC Exploration Director S V Rao said that BG will pay ONGC $50 million for failing to fulfill its drilling commitments.
IDFC plans another bond issue
Infrastructure Development Finance Company said on Wednesday that it will raise Rs 4,400 crore through the issuance of a second tranche of tax-saving long term infrastructure bonds on January 11.The second tranche of the bond issue would be open for subscription till February 25. In December, IDFC had mopped up Rs 538 crore from the a first tranche of tax-saving long-term infrastructure bonds.The NBFC had mopped up Rs 1,451 crore from over 7.3 lakh retail investors through the issue of long-term infrastructure bonds in FY'11.
Reliance acquisition
Mukesh Ambani-led Reliance Industries, which already has a presence in the US in non-conventional energy, is planning to enter the conventional hydrocarbon space. According to a Bloomberg report, RIL is in talks to buy the exploration and production (E&P) of US pipeline company El Paso Corp. The deal could be worth worth $8.1 billion.
HUL hikes prices
FMCG major Hindustan Unilever (HUL) hiked the price of two Rin washing powder variants by 3 per cent. The company is expected to further increase the price of these powder variants by 7 per cent in February or March. Hul may also hike the price of Lux soap in the coming months. Rising raw material prices is forcing consumer companies to pass on price hikes to consumers.