Dalal Street

Punj Lloyd just a while ago informed us that a consortium led by Punj Lloyd has been awarded the Sabah Sarawak gas pipeline project for an approximate value of US$ 500 million by Petronas Carigali Sdn Bhd, a subsidiary of Petronas, the State Oil and Gas Major in Malaysia.

The scope of the work involves engineering, procurement, construction and commissioning of a 512 km, 36″ diameter onshore natural gas pipeline from the proposed Sabah Oil and Gas Teminal in Kimanis, Sabah to Petronas Liquefied Natural Gas complex in Bintulu, Sarawak State and associated facilities.

Reliance Energy [down 10.5%] virtually a shell [empty] company after promoter Mr. Anil Ambani looted the projects to his private venture Reliance Power Ltd. We raised our voice against Reliance Energy transferring business and assets to Reliance Power where Mr. Anil Ambani gained a back door entry at Rs 17 / share in Reliance Power Ltd and you public bought it at Rs 430.

Anil Ambani more of a speculator and a Trader [currently] without any project execution track record announced yet another speculative move – Buy Back of Reliance Energy shares. Reliance Energy is starving for CASH for CAPEX and why is Ambani going for a Buy Back ? Reasons is obvious – Boost the stock price. [God Damm Ambani must know that no where in the world Utlility companies trade at a forward P/E more than 15 while his REL is traded close to 30 and RPL more than 200 on FY2010 earnings estimate]

The BSE Sensex is down 645 points to 15,896.63 at 2:05 IST. Weak global cues are pulling the market down very badly.

Out of 758 stocks that were locked in lower circuit filter, 93.13% or 706 are from BSE ‘B’ and BSE ‘S’ group.

Lower circuit is the day’s minimum possible level to which stock can fall with no buyers available at that point.