Larsen and Toubro (LandT) has won two offshore platform contracts worth over Rs 5,300 crore ($1.18 billion) from Oil and Natural Gas Corporation (ONGC (ONGC.NS : 1141.8 -37.5)). The order, the single largest in the Indian hydrocarbons sector.Hyundai, Samsung and National Projects Construction Corporation were the other bidders for the contracts. The company secured the turnkey order for the Mumbai High North process platform and living quarters project, with an additional order to build three process gas compression modules in the same complex. The projects have to be completed within three years.
With large exploration and production companies planning big investments in offshore business, the segment offers huge opportunities for engineering and construction companies such as LandT, both domestically and globally.
U.S. stocks finishing sharply and broadly lower on weakness in financial stocks and General Motors (GM). The Standard & Poor's 500-stock index closed at its lowest level since Sep, 1996, and the Dow Jones industrial average posted its lowest close since Apr, 1997. On Thursday, the 30-stock Dow Jones industrial average finished lower by 281.40 points, or 4.09%, at 6,594.44. The broad S&P 500 index was down 30.32 points, or 4.25%, at 682.55. The tech-heavy Nasdaq composite index shed 54.15 points, or 4.00%, to 1,299.59. On the New York Stock Exchange, 29 stocks were lower for every two that advanced. Nasdaq breadth was 23-4 negative. Bonds and gold rose on safe-heaven buying. The dollar index rose after two European central banks cut interest rates. Crude oil futures fell. The market remained jittery Thursday about the auto and financial sectors. Market sentiment was slammed by the latest update on GM's terrible condition, including the possibility of bankruptcy for the troubled giant. In the annual audit report it is said that continuance of the company is quite difficult. Financial stocks were hit with steep declines, including a drop in Citigroup's (C) stock price to under $1 during the session. The shares finished the session down 9.7% at $1.02. Thursday brought a mixed batch of U.S. economic data: January factory Orders fell a less than expected 1.9%; weekly initial jobless claims fell 31,000 to 639,000; and fourth-quarter productivity fell to 0.4% from 3.9%. In a Form 10-K filing, GM said its independent public accounting firm states that GM's recurring losses from operations, stockholders' deficit, and inability to generate sufficient cash flow to meet its obligations and sustain operations raise substantial doubt about its ability to continue as a going concern. GM shares closed lower by 15% at $1.86. ======================
Indian Share Market on ThursdayHuge selling of FIIs in Bank, Reliance, Tata, FMCG and heavy weight shares pulled the market down inspite of good inflation figures and RBI's announcement on rate cut. Better cues from Asian markets couldn't help domestic market.IT raided at commercial places of Anand Jain of Jai Corp. It was learnt that the raids were in connection with dealing SEZ plots. Mukesh Ambani is friend of Anand Jain. With the rumors in the market about a big scandal in one bank, bans shares tumbled.Nifty cash made low of 2564 quite below a support around 2600.Goldman Sachs reported that government is doing as per its will in ONGC. The governemnt had withdrawn US $ 2000 crore. No permission was taken from share holders. ONGC, as usual, has denied. Chairman of ONGC R R Sharma said the report is baseless and Goldman Sachs must confirm informations before publishing.
