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Fundamentals May 27, 2013

Nik's Diary
The Indian markets opened flat to negative tracking negative opening in most of the Asian markets owing to concerns about the outlook for the Federal Reserve's asset purchase program.US markets recovered from an early decline and ended in positive territory on Friday. The markets recovered after the release of a report from the Commerce Department that showed a larger-than-expected rebound in durable goods orders which surged by 3.3% in April after tumbling by a revised 5.9% in March. However, amidst an impending recovery in manufacturing activity following a recent pullback, the data added to worries that the Fed will taper its stimulus in the near future. Nevertheless, European markets ended the day lower, thereby extending the weakness from the previous day. Meanwhile Indian markets ended higher on Friday, as sentiments improved a bit after two senior U.S. central bankers said that the Fed is in no hurry to start winding down its bond-buying program and policymakers have flexibility to increase the pace of bond buying should the economy weaken again. 

RIL announces significant gas condensate discovery in deepwater KG D6 block
Media reports suggest that Reliance Industries (RIL) and its partners BP and NIKO have struck a significant gas and condensate discovery in the KG D6 block. The discovery named D-55 lies over 2000 meters below the already producing reservoirs in D1-D3 gas fields. The company however has not stated the amount of possible reserves the discovery may hold but the discovery has been notified with the government authorities. We await further clarity on this matter and until then maintain our Neutral view on RIL. Source: Equity bulls

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