Category: Your Money

Sunder’s List

Oil and Natural Gas Corporation

(Photo credit: Wikipedia)

Another lesson from the ONGC fiasco: the government doesn’t think twice to drive a shaft through private investors if it means flushing money down the NREGA. The recent budget increased the cess on oil production from Rs 2,500 per tonne to Rs 4,500 – a body blow to the oil producers like [stockquote]ONGC[/stockquote], [stockquote]OIL[/stockquote] and [stockquote]CAIRN[/stockquote]. ONGC, which alone produces 24.5 million tonnes of oil annually, is going to see its annual cess expenditure go up by Rs 4,600 crore. Oil India, which is nearing 4 million tonnes in annual crude oil production, will take a hit of Rs 700 crore. The Cairn-ONGC joint venture, which has been producing around 6.4 million tonnes per annum from the Rajasthan block, targets to reach 9-MTPA level by end-March. The increase in cess will add a burden of Rs 1,700 crore for the JV. (ET)

The IMF issues a warning on the world economy. (Bloomberg) Tying into Goldman Sachs prediction that QE3 is going to happen. (PragCap)

The 2nd Greece is Portugal? (Telegraph) Or is it going to be Spain? (FT)

Be careful out there!

Sunder’s List: The Economist Edition

English: World map showing the Democracy Index...

Image via Wikipedia

Picks from The Economist this weekend

Credit rating in India: the rot has just not had time to set in? (link)

It is easy to create new money but you cannot be sure where it will end up. Low interest rates in the West has led to an emerging market debt boom. (link)

The rise of the “sin tax” and a liquor store in every street corner. (link)

A match made in heaven? Italy is packed with financially precarious firms that make desirable products with glamorous brand names. Many Chinese firms have cash, but few have global brands. (link)

“Never tell a client what they own.” – Walter Schloss, RIP (link)


[stockquote]CRISIL[/stockquote] [stockquote]ICRA[/stockquote]

Sunder’s List

platinum

platinum (Photo credit: mdxdt)

You can soon start trading Brazil and Russia index futures from the comfort of your home: Five of the world’s leading emerging market indices, will start to cross list their derivative indices from March 30, in a bid to expand their product offerings beyond their home markets. (ET)

Investors are turning towards riskier assets amid stronger economic data from the US and Europe. That shift has pushed gold to its lowest level in two months as economic data damp hopes of a third round of “quantitative easing” in the US. Platinum, on the other hand, which is used by the automotive industry in catalytic converters that clean exhaust fumes, has benefited from the improved economic outlook as well as supply disruptions in South Africa, the largest producer. (FT)

But don’t sell gold [stockquote]GOLDBEES[/stockquote] just yet. The time to sell gold will be when fear about government debts reaches a crescendo. (PragCap)

As China slows down: car sales are down, cement production is down, steel production is down, construction stocks are down (Bloomberg), US long-term interest rates go higher as China does not have the investable dollars it once had. So it is no longer buying US Treasuries at the previous fast pace. (FT)

Sunder’s List

India Gate

India Gate (Photo credit: bijoy mohan)

Nifty 50 [stockquote]NIFTYBEES[/stockquote] changes: Reliance Communications [stockquote]RCOM[/stockquote] and Reliance Power [stockquote]RPOWER[/stockquote] out; Asian Paints [stockquote]ASIANPAINT[/stockquote] and Bank of Baroda [stockquote]BANKBARODA[/stockquote] in. (ET)

Inflation up: inflation picked up for the first time in five months on higher food prices, giving the RBI a reason to hold off on a much-awaited interest rate cut when it reviews its policy today. (CNBC)

The RBI is trying to do what the government should be doing: managing fiscal policy. (ET)

A Dream(liner) shot in the arm for Air India? Apparently, Boeing agreed to pay Air India Ltd. $500 million in compensation because of delays delivering 27 composite-plastic Dreamliners. (Bloomberg)