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Market Update

India Faces Hurdles in Collecting $2.4 B for Lost Production in KG D6


Author: Mukesh Buch
ticker.com
Last Update: 9:23 AM ET December 16 2014

6:00 PM Mumbai IDBI Bank won the government. approval to sell its 5% stake in National Stock Exchange. Motherson Sumi plans to acquire Germany-based Scherer & Trier worth Rs 283 crore. RCapital sold its multiplex business to Carnival Group. Oil ministry faces hurdles in recovering $2.4 billion for the lost oil production from KG D6 block.

The Sensex Index declined 538.12 or 1.9% to close at 26,781.44. The CNX Nifty slipped 152 or 1.9% to 8,067.60.

Gainers & Losers

IDBI Bank Limited declined 4.9% to Rs 65.35 after the financial service provider said after the government approval to sell its 5% stake in National Stock Exchange.

Motherson Sumi Systems Limited jumped 2% to Rs 412.15 after the rearview mirror maker plans to acquire Germany-based Scherer & Trier worth Rs 283 crore.

Reliance Capital Ltd. plunged 8% to Rs 479.05 after the financial service provider sold its multiplex business to Carnival Group.

Reliance Industries Limited slipped 1.6% to Rs 864.10 after the government took steps to recover $2.4 billion from conglomerate.

Oil ministry faces difficulty in collecting penalties after Gail India and Chennai Petroleum Corp Ltd refused to meet the finance ministry directive to repay the proceeds of sale of oil from KG D6 oil block.

GAIL and CPCL said to the ministry that they are customers of the oil produced from the energy block.

Since 2011, Government of India is trying to recover fees totalling $2.37 billion for not meeting the target production set jointly by the government and the conglomerate.

In the current financial year. RIL invited all refineries in India for the auction sale of crude from the KG D6 block after the government requested higher price per barrel. RIL Jamnagar offered between $4 and $5 a barrel more than the competing bids and won the auction.

Tata Steel Limited dropped 2.8% to Rs 389.40 and the steel producer commenced operations at its mines in Jharkhand.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc