Sensex lacklustre

The benchmark Sensex was lacklustre in the opening trade on first day of the week, following mixed Asian cues. Indices are waiting for more earnings, clarity on inflation, RBI policy (next week), global event etc to get direction on either side.

Wipro, Reliance Industries, ICICI Bank, Reliance Power, L&T, Reliance Capital and Reliance Communications were putting pressure on the market.

However, Hindalco, SAIL, Tata Motors, TCS, Bajaj Auto, Hero Honda, Infosys and HCL Tech were on buyers' radar in early trade.

The CNX Midcap rose 15 points to 8,190 in early trade. Nifty Junior gained 24 points at 11,414. About 469 shares advanced as against 255 shares declined on National Stock Exchange.

Euro rises on relief on bank stress tests

The euro edged up against the dollar on Friday after results of European bank stress tests eased some worries about the outlook for the region's financial system, while on Wall Street stocks struggled to hold gains.

Gold prices rose for a 10th straight session as fears over the outcome of talks to avert a U.S. default fueled safe-haven buying, which accelerated after President Barack Obama and Republicans traded demands for a serious deficit plan.

Only eight of the 90 European banks surveyed by the European Banking Authority failed the stress tests, well below market expectations that as many as 15 lenders would need more capital to withstand a prolonged recession.

"It's a relief not more banks failed," said Thomas Roth, executive director of U.S. government bond trading at Mitsubishi UFJ Securities USA Inc. in New York.

The test results, which were released after European stock markets had closed, measured the banks' ability to withstand a prolonged recession that did not build in the impact of a Greek default.

European bank ADRs mostly gained, including Barclays, up 0.3 percent at $14.60.

Italian oil giant to invest $7 bn in Venezuela

 Italian oil major ENI plans to invest $7 billion in projects in Venezuela with the aim of boosting its output there to 240,000 barrels per day by 2018, company CEO Paolo Scaroni said.

ENI's boss spoke at a press conference in Caracas with Venezuelan Energy Minister Rafael Ramirez, who is also head of state-owned Petroleos de Venezuela SA (PDVSA).

Scaroni said the investment plan includes projects with PDVSA-controlled joint ventures Petrojunin and Petrobicentenario to develop crude reserves in the Orinoco Belt of northeastern Venezuela and build a refinery in Anzoategui state to process that output.

The investment programme will 'allow us to reach 240,000 barrels per day of output by 2018', he said, noting that an early production phase called for in the plan - originally slated to begin in 2013 - will be pushed up to next year.

According to Scaroni, Petrobicentenario's refinery will process extra-heavy crude extracted by the Petrojunin upstream unit in the Orinoco Belt into diesel for the European market.

Ramirez said that in the first phase of the investment program ENI will contribute $2 billion in financing to the two joint ventures and PDVSA will provide another $1 billion.

He added that $1.5 billion of the Italian firm's investment outlay will finance development costs for the Junin 5 heavy oil block's early production phase, as well as construction of the refinery.

The minister estimated that output in Junin 5's early production phase would reach 50,000 bpd in 2012 and said the block's production capacity eventually will climb to 300,000 bpd.

PDVSA's investment will support those same two projects, while the remaining $500 million from ENI will finance construction of an electricity generation plant to power the offshore Rafael Urdaneta gas project.

Scaroni said that power plant will support development of that 'super-giant gas deposit'm whose reserves are estimated at 15 trillion cubic feet.

The companies will maintain high-level contact, Ramirez said, stressing their 'very important projects that require extremely significant (joint) investment' of more than $19 billion.

He added that Venezuela is committed to deepening energy ties with Italy and providing the hydrocarbons that oil-consuming, industrialized nation needs for its development.

Ramirez noted that Venezuela has an estimated 187 trillion cubic feet (tcf) of gas reserves - although that total could reach 400 tcf if other reserves are certified - and 297 billion barrels of proven oil reserves.

Auto stocks slip

Automobile stocks closed lower this week, reflecting worries of traders over a slowdown in the sector with sales growth rising only about 12 percent in June.

The auto index on the Bombay Stock Exchange (BSE), closed 1.19 percent lower Friday at 8,993.51 points, compared to the previous weekly close at 9,101.45 points.

According to data available with the Society of Indian Automobile Manufacturers (SIAM), auto companies saw sales growing at a lower rate of 12.84 percent in June as compared to the like month of 2010.

While passenger cars recorded a substantially lower growth of 1.62 percent, utility vehicles sales grew by a meagre 4.36 percent.

As a segment, passenger vehicles grew under double digits in the April-June quarter, logging a growth rate of 8.77 percent over the similar quarter last year.

Rising cost of inputs and the incessant rate hikes by the Reserve Bank of India have strained the margins of auto companies. Banks too have passed on the rate hikes to its customers making auto loans that much costlier for the price sensitive small car buyer -- which is the largest constituent in the passenger vehicle segment.

The government's decision to free petrol prices, resulting in some big hikes of late, has also not helped this segment's sales.

Among top auto firm listed on the bourses, as on July 15, Maruti Suzuki has lost 10 percent over a year while Hero Honda has dipped 7.1 percent.

'Going ahead, hikes in product prices, increased fuel price along with higher interest rates would be the major headwinds that could impact performance of the players,' said leading brokerage firm Angel Broking in a report.

Inventure IPO price band at Rs 100-117/share

Inventure Growth & Securities, the flagship company of Inventure Group today announced price band of Rs 100 to Rs 117 per equity share for its initial public offer (IPO) of 70 lakh equity shares of Rs 10 each.

The issue opens for subscription for all bidders on July 20, 2011 and closes on July 22, 2011. The issue is being made through 100% book building process.

"The price band of the issue has been fixed at Rs 100 to Rs 117 per equity share of Rs 10. The company is expected to raise Rs 70 crore at lower price band and Rs 81.80 crore on upper price band of the issue," Intensive Fiscal Services, Vice President-Investment Banking, Brijesh Parekh said.

Major portion of the IPO proceeds will be utilised as an investment in one of the subsidiaries Inventure Finance Private Limited and for augmenting long term working capital requirements, Parekh said.

The equity shares of the company are proposed to be listed on BSE and NSE. Intensive Fiscal Services Private Limited is the sole Book Running Lead Manager to the IPO.

Inventure was incorporated in 1995 as a public limited company promoted by Nagji K Rita, who was a member of the governing board of the BSE for the period 2004 to 2006.

Inventure offers a host of services under one roof such as trading services in equity-cash and derivatives market, PMS, debt market and currency futures segment. The company has membership in the cash and derivatives segment of both BSE and NSE, currency futures segment of NSE, MCX-SX and wholesale debt market segment of BSE and NSE.

The company is also a member of OTCEI and registered as a depository participant with CDSL. Its subsidiaries offer services such as commodity broking, financing activity, wealth management and distribution of financial and insurance products. One of its subsidiaries is also a commodity trading member of NCX, NCDEX, NMCE and NSEL.

Inventure has its major client base in Maharashtra and Gujarat. Its clientele includes institutional clients, high net worth individuals and retail investors across the country.