Russia boosts oil and gas output
Bombay Stock Exchange (BSE) in Mumbai. File | Photo Credit: PTI
Oil extends gains in Asian trading after rising for seven weeks. A global energy crunch due to a shortage of coal and gas ahead of winter is pushing the price of crude oil. Brent futures rose by over $1 to $85.89 a barrel.
China’s September oil processing rate fell on feedstock shortage and environmental inspections, which cut production. The country’s economy grew at the slowest pace in a year in the third quarter, hurt by power shortages, supply bottlenecks, and sporadic COVID-19 outbreaks.
Japan’s Prime Minister Fumio Kishida has urged the country’s oil producers to increase output to support industries hit by high energy costs.
In India, diesel consumption fell in the first half of October compared to the same period last year, according to preliminary sales data. Diesel sales by the country’s state fuel retailers came in at 2.4 million tonnes during Oct. 1-15, a decline of about 9.2% from last year and down 0.9% from the same period in 2019, the data showed. – John Xavier
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Carmaker Toyota announced an investment of $3.4 billion inti automotive batteries in the U.S. and build a factory in the country for production.
The 10-year investment is part of the company’s project announced last month to inject 1.5 trillion yen into the development and supply of batteries, at a time computer chip and in short supply.
Equity benchmark indices Sensex and Nifty soared to record highs today, led by banking, IT, and metal stocks. Sensex ended 0.75% higher at 61,765.59, while Nifty surged 0.76% to close at 18,477.05.
The rupee closed 9 paise lower at 75.35 against the U.S. dollar. Separately, gold prices rose marginally by ₹37 to ₹46,306 per 10 grams.
Taiwan’s Foxconn unveiled three electric vehicle prototypes under ‘Foxtron’ brand, indicating a bullish stance on the world’s EV market. Foxtron Vice-Chairman Tso Chi-sen added that he hoped electric vehicles would be worth a million Taiwan dollars to Foxconn in five years’ time.
It first mentioned its EV ambitions in November 2019. And, this year it announced deals to build cars with U.S. startup Fisker Inc and Thailand’s energy group PTT Pcl.
Shares of DMart’s owner Avenue Supermarts tumbled 8% briefly after hitting a record high, over investor concerns about valuation.
The company reported a 110% surge in consolidated net profit for the September quarter earlier today. However, several brokerages flagged limitations to the stock’s upside due to high valuation.
Sterlite Power has bagged a power transmission project worth ₹324 crores. The Nangalbibra-Bongaigaon interstate power transmission project consists of a new 220/132 kV substation at Nangalbibra and laying of 130 km of 400kV D/c transmission line connecting Bongaigaon in Assam to Nangalbibra in Meghalaya across the river Brahmaputra.
Russia has cranked up oil and gas condensate output to 10.84 million barrels per day (bpd) over October 1-17, an increase from 10.72 million bpd on average in the previous month. The country’s decision to increase production comes as the OPEC+ phases out supply cuts due to a rise in demand.
Housing sales in eight major cities in the country grew 59% to 55,907 units in the July-September period, compared with the year-ago period, indicating signs of recovery. Eight prime residential markets that witnessed a remarkable upswing during the period were Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai, and Pune. These cities showed a three-fold jump to 65,211 units.
The demand for residential properties bounced back in the September ending quarter after a drop in the previous quarter, PropTiger, one of the leading housing brokerage firms, said in a report. Housing units in the price bracket of less-than-₹45-lakh contributed the most to quarterly sales with a 40% share, as per the report.
Capital markets regulator Sebi has allowed six companies, including Adani Wilmar, Star Health & Allied Insurance, and Nykaa to launch initial public offerings (IPOs).
Adani Wilmar will issue new equity shares worth up to ₹4,500 crores. And, Star Health and Allied Insurance Company’s IPO will make a fresh issue of equity shares worth ₹2,000 crores.
The IPO of FSN E-Commerce Ventures, which runs an online marketplace for beauty and wellness products Nykaa, will offer new equity shares worth ₹525 crores.
Penna Cement Industries, Latent View Analytics, and Sigachi Industries are the other three firms that received Sebi’s clearance.
Japan’s Prime Minister Fumio Kishida said the country has to issue government bonds to fund the pandemic-relief measures in the world’s third-largest economy.
“Japan is still in a crisis situation. To protect people’s lives and livelihood, we should decisively resort to government bond issuance to fund necessary policies,” Kishida said
After posting gains for two straight days last week, the Indian rupee was trading marginally lower against the U.S. dollar today. The domestic unit opened on a steady note against the greenback and traded cautiously between a high of 75.26 and a low of 75.29. The Indian currency is tracking a stronger greenback.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was up 0.17% at 94.09.
Oil prices surged, hitting their highest level in years on rising gas and coal prices, and an increase in demand. Brent crude rose 1.1% to $85.76 a barrel, while the U.S. WTI gained 1.5%, to $83.51 a barrel.
Brent hit a session-high of $86.04, the highest since October 2018. WTI touched a session high of $83.73, the highest since October 2014. Both contracts rose by at least 3% last week.
Japan’s Prime Minister Fumio Kishida urged oil producers to increase output and take measures to support industries facing high energy costs.
Kishida said he has instructed his cabinet to take “necessary action flexibly” to ease the pain caused by high oil prices, which could potentially damage the country’s economic recovery.
“We’re closely watching the impact oil price moves have on the domestic industry and people’s livelihood,” Kishida noted.
China’s coal output dipped in September compared to August, as production was curbed in some of the major coal-producing regions due to tighter safety inspections.
China, the world’s biggest coal producer and consumer-produced 334.1 million tonnes of the fuel last month, from 335.24 million tonnes in August, the National Bureau of Statistics data showed. The coal output in September was 0.9% lower than the year-ago period.
As China continues to suffer from power shortages, the government has initiated measures to increase coal output. China’s data last week showed that “current” daily coal output rose to over 11.2 million tonnes, the highest since February.
Petrol and diesel prices in the country are at record highs after another round of rate hikes on Sunday. Prices of petrol and diesel were increased by 35 paise per liter. Auto fuels now cost 33% more than the rate at which aviation turbine fuel or jet fuel is sold to airlines.
In Delhi, Petrol is now sold at ₹105.84 per liter, and diesel at ₹94.57 a liter, both prices touching record high levels.
With this rise, petrol is now at ₹ 100-a-liter mark or more in all State capitals while diesel has touched the 100-mark in over a dozen states.
China’s economy grew at the slowest pace in a year in the third quarter, hurt by power shortages, supply bottlenecks, and sporadic COVID-19 outbreaks. The country’s gross domestic product (GDP) grew 4.9% in July-September from a year earlier. China’s recovery is losing steam after a rebound.
A slowing property sector is also weighing on the country’s economy. Property stocks in the country plunged even as the People’s Bank of China said spillover effects from Evergrande Group’s debt woes were controllable.
The CSI300 Real Estate Index, which tracks China’s biggest developers, fell more than 2%, while an index tracking the broader sector was down roughly 1.7%.
The People’s Bank of China Governor Yi Gang said on Sunday the economy faces challenges such as default risks for certain firms due to “mismanagement”, and that authorities are keeping a close eye “so they do not become systematic risks”.
Indian indices opened on a strong note today amid mixed global cues. The BSE Sensex hit a new all-time high at 61,894.33, after opening over 500 points higher than its previous close at 61,817.32. Similarly, NSE Nifty gained 161.55 points to open at 18,500.10, a fresh record high.
Shares in mainland China and Hong Kong plunged following the release of Chinese economic data for the third quarter, which showed that the world’s second-largest economy grew slower than expected.
China’s gross domestic product grew 4.9% in July-September from a year earlier. Chinese blue chips fell 1.53%. Hong Kong’s Hang Seng lost 0.45% in early trade after opening in green.
MSCI’s broadest index of Asia-Pacific shares outside Japan was last down 0.2%, while Japan’s Nikkei lost 0.3%. South Korea’s Kospi opened at 3,017.48, marginally higher than its previous close.
The decline in the Asian market comes after stocks globally ended last week in a bullish mood posting their best day in five months on Friday.
—- Edited by John Xavier
(With inputs from Reuters, PTI and other news agencies.)
Printable version | Oct 19, 2021 7:09:33 AM | https://www.thehindu.com/business/business-news-live/article37048200.ece
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Host of reasons, including economic recovery and geopolitics, behind the trend