Crude Oil

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What is 'Crude Oil'

Crude oil is a naturally occurring, unrefined petroleum product composed
of hydrocarbon deposits and other organic materials. Crude oil can be refined to
produce usable products such as gasoline, diesel and various forms of
petrochemicals. It is anonrenewable resource, also known as a fossil fuel, which
means that it can't be replaced naturally at the rate we consume it and is
therefore a limited resource.

BREAKING DOWN 'Crude Oil'

Crude oil is typically obtained through oil drilling, where it is usually found
alongside other resources, such as natural gas (which is lighter, and therefore
sits above the crude oil) and saline water (which is denser, and sinks below). It is
then refined and processed into a variety of forms, such as gasoline, kerosene,
and asphalt, and sold to consumers.

Although it is often called "black gold," crude oil has ranging viscosity and can
vary in color to various shades of black and yellow depending on its hydrocarbon
composition. Distillation, the process by which oil is heated and separated in
different components, is the the first stage in refining.

History of Crude Oil Usage

Although fossil fuels like coal have been harvested in one way or another for
centuries, crude oil was first discovered and developed during the Industrial
Revolution, and it's industrial uses were first developed in the 19th century. Newly
invented machines revolutionized the way we do work, and they depended on
these resources to run. Today, the world's economy is largely dependent on fossil
fuels such as crude oil, and the demand for these resources often spark political
unrest, since a small number of countries control the largest reservoirs. Like any
industry, supply and demand heavily affects the prices and profitability of crude
oil. The United States, Saudi Arabia, and Russia are the leading producers of oil
in the world.
The Organization of Petroleum Exporting Countries (OPEC), which consists of
the worlds largest producers of crude oil by volume, used to be the most
influential oil producers in the world, and as such, they had a lot of economic
leverage in determining supply and therefore oil prices. In the late 19th and early
20th centuries, however, the United States was one of the world's leading oil
producers, and U.S. companies developed the technology to make oil into useful
products like gasoline. During the middle and last decades of the century, U.S. oil
production fell dramatically, and the U.S. became an energy importer. In the early
21st century, the development of new technology, particularly hydro-fracturing,
has created a second U.S. energy boom, largely decreasing the importance and
influence of OPEC. (For more, see How Does Crude Oil Affect Gas Prices?)

Adverse Effects of Reliance on Oil

Heavy reliance on fossil fuels is cited as one of the main causes of global
warming, a topic that has gained traction in the past twenty years. Risks
surrounding oil drilling include oil spills and ocean acidification, which damage
the ecosystem. Many manufacturers have begun creating products that rely on

alternative sources of energy, such as cars run by electricity, homes powered by

solar panels, and communities powered by wind turbines.

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Crude Oil
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Oil Refinery

An industrial plant that refines crude oil into petroleum products such as diesel,
gasoline and heating oils. Oil refineries essentially serve as the second stage in
the production process following the actual extraction by oil rigs. The first step in

the refining process is distillation where crude oil is heated at extreme

temperatures to separate the different hydrocarbons.

BREAKING DOWN 'Oil Refinery'

The crude oil components, once separated can be sold to different industries for
a broad range of purposes. Lubricants can be sold to industrial plants
immediately after distillation, but other products require more refining before
reaching the final user. Major refineries have the capacity to process hundreds of
thousand barrels of crude oil a day.

Benchmark Crude Oil

Benchmark crude oil is crude oil that serves as a pricing reference, making it
easier for sellers and buyers to determine the prices of multitudes of crude oil
varieties and blends.

BREAKING DOWN 'Benchmark Crude Oil'

According to the Energy Intelligence Group, there exist nearly 200 varieties of
crude oil. West Texas Intermediate (WTI), Brent Crude, and Dubai Crude are
primarily used as benchmarks, although there are others that are sometimes
used as well.

Downstream

Downstream operations are oil and gas operations that take place after the
production phase, through to the point of sale. Downstream operations can
include refining crude oiland distributing the byproducts, such as gasoline, natural
gas liquids, diesel and a variety of other energy sources, down to the retail level.
The closer an oil and gas company is to the process of providing consumers with
petroleum products, the further downstream the company is said to be.

BREAKING DOWN 'Downstream'

Most large oil companies are described as "integrated" because they
combine upstream activities, which include exploration and production, with
downstream operations. Some prefer to divide downstream operations into
upstream, midstream and downstream, with the refining process taking place
either midstream or downstream and the distribution occurring in the downstream
phase.

Operations Overview
Companies in the downstream sector are those that provide the closest link to
everyday users. After crude oil is discovered and pumped in the midstream
process, the crude oil is shipped and transported, which is known as the
midstream process. Thereafter, the oil is refined, marketed, distributed and sold,
which is known as the downstream process. However, the refining of crude oil to
petroleum products may be conducted in midstream operations.
Read More +

Unconventional Oil

A type of petroleum that is produced or obtained through techniques other than

traditional oil well extraction. Unconventional oil production is commonly seen as
more costly than conventional oil production, less efficient, and is likely to cause
more environmental damage. This is because unconventional oil is considered
heavier and requires more complex procedures to process. However, the everincreasing global demand for petroleum, combined with its shrinking supply, has
more firms turning to unconventional oil. Sources of unconventional oil include
synthetic oil, oil sands, and shale formations.

BREAKING DOWN 'Unconventional Oil'

Historically, the exploration and production of oil and natural gas focused on the
sources that were easiest to access: pools of oil and gas that could be drilled into
and pumped to the surface. This type of production is considered conventional.
Unconventional sources of oil do not flow near the surface and require different
methods of extraction. Shale oil, for example, is produced by using steam or
acids to draw oil out of low permeability rocks.

Read more: Crude Oil Definition | Investopedia http://www.investopedia.com/terms/c/crudeoil.asp#ixzz4LiX1WTgi

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NIFTY 50
From Wikipedia, the free encyclopedia

NIFTY 50 Index
Foundation

1995

Operator

India Index Services and Products

Exchanges

National Stock Exchange of India

Constituents

50

Type

Large cap

Market cap

INR billion (2014)

Weighting method

Capitalization-weighted

Website

Official home page

The NIFTY 50 index is National Stock Exchange of India's benchmark stock market index for Indian
equity market. Nifty is owned and managed by India Index Services and Products (IISL), which is a
wholly owned subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing
and licensing agreement with Standard & Poor's for co-branding equity indices until 2013.
NIFTY 50 Index has shaped up as a largest single financial product in India, with an ecosystem
comprising: exchange traded funds (onshore and offshore), exchange-traded futures and options
(at NSE in India and at SGX and CME abroad), other index funds and OTC derivatives (mostly
offshore).NIFTY 50 is the worlds most actively traded contract. WFE, IOMA and FIA surveys
endorse NSEs leadership position.[1]
The NIFTY 50 covers 22 sectors of the Indian economy and offers investment managers exposure to
the Indian market in one portfolio. During 2008-12, NIFTY 50 50 Index share of NSE market
capitalisation fell from 65% to 29%[2] due to the rise of sectoral indices like NIFTY Bank, NIFTY IT,
NIFTY Next 50, etc. The NIFTY 50 Index gives 29.70% weightage to financial services, 0.73%
weightage to industrial manufacturing and nil weightage to agricultural sector.[3]
The NIFTY 50 index is a free float market capitalisation weighted index. The index was initially
calculated on full market capitalisation methodology. From June 26, 2009, the computation was
changed to free float methodology. The base period for the CNX Nifty index is November 3, 1995,
which marked the completion of one year of operations of National Stock Exchange Equity Market
Segment. The base value of the index has been set at 1000, and a base capital of Rs 2.06 trillion. [4] [5]
Contents
[hide]

1History

2Components

3Major falls

4See also

5References

6External links

History[edit]
Formerly known as the S&P CNX Nifty Index, it was renamed in 2013 with the expiration of
agreement between IISL and Standard and Poors Financial Service on 31st Jan 2013.

Components[edit]
List of 50 companies that form part of NIFTY 50 Index as on 11 March 2016:
Company Name

Symbol

Sector

ACC Limited

ACC

Cement

Adani Ports & SEZ Limited

ADANIPORTS

Infrastructure

Ambuja Cements Ltd.

AMBUJACEM

Cement

Asian Paints Ltd.

ASIANPAINT

Paint

Axis Bank Ltd.

AXISBANK

Banking

Bajaj Auto Ltd.

BAJAJ-AUTO

Automobiles

Bank of Baroda

BANKBARODA

Banking

Bharat Heavy Electricals Limited

BHEL

Electrical Equipment

Bharat Petroleum Corporation

BPCL

Oil & Gas

Bharti Airtel Ltd.

BHARTIARTL

Telecomunications

Company Name

Symbol

Sector

Bosch Ltd.

BOSCHLTD

Cairn India Ltd.

CAIRN

Oil & Gas

Cipla Ltd.

CIPLA

Pharmaceuticals

Coal India Ltd.

COALINDIA

Metals

Dr. Reddy's Laboratories Ltd.

DRREDDY

Pharmaceuticals

GAIL (India) Ltd.

GAIL

Grasim Industries Ltd.

GRASIM

HCL Technologies Ltd.

HCLTECH

Information Technology

HDFC Bank Ltd.

HDFCBANK

Banking & Financial Services

Hero MotoCorp Ltd.

HEROMOTOCO

Automobiles

Hindalco Industries Ltd.

HINDALCO

Metals

Hindustan Unilever Ltd.

HINDUNILVR

Consumer Goods

Housing Development Finance Corporation Ltd.

HDFC

Financial Services

ITC Limited

ITC

Consumer Goods

Company Name

Symbol

Sector

ICICI Bank Ltd.

ICICIBANK

Banking & Financial Services

Idea Cellular Ltd.

IDEA

Telecommunications

IndusInd Bank Ltd.

INDUSINDBK

Banking

Infosys Ltd.

INFY

Information Technology

Kotak Mahindra Bank Ltd.

KOTAKBANK

Financial Services

Larsen & Toubro Ltd.

LT

Lupin Limited

LUPIN

Pharmaceuticals

Mahindra & Mahindra Ltd.

M&M

Automobiles

Maruti Suzuki India Ltd.

MARUTI

Automobiles

NTPC Limited

NTPC

Electric Utility

Oil & Natural Gas Corporation Ltd.

ONGC

Oil & Gas

PowerGrid Corporation of India Ltd.

POWERGRID

Electric Utility

Punjab National Bank

PNB

Banking

Reliance Industries Ltd.

RELIANCE

Energy

Company Name

Symbol

Sector

State Bank of India

SBIN

Banking & Financial Services

Sun Pharmaceutical Industries Ltd.

SUNPHARMA

Pharmaceuticals

Tata Consultancy Services Ltd.

TCS

Information Technology

Tata Motors Ltd.

TATAMOTORS

Automobiles

Tata Power Co. Ltd.

TATAPOWER

Electric Utility

Tata Steel Ltd.

TATASTEEL

Steel

Tech Mahindra Ltd.

TECHM

Information Technology

UltraTech Cement Ltd.

ULTRATECH

Cement

Vedanta Ltd.

VEDL

Metals & Mining

Wipro

WIPRO

Information Technology

Yes Bank Ltd.

YESBANK

Banking & Financial Services

Zee Entertainment Enterprises Ltd.

ZEEL

Media & Entertainment

Major falls[edit]
On the following dates, the NIFTY 50 index suffered major single-day falls (of 150 or more points)
1. 24 June 2016 --- 181.85 Points (driven by the Brexit referendum) [6]
2. 24 Aug 2015 --- 490.95 Points (driven by meltdown in the Chinese stockmarket) [7]

3. 16 Aug 2013 --- 234.45 Points(because of rupee depreciation) [8]

4. 27 Aug 2013 --- 189.05 Points[9]
5. 03 Sep Aug 2013 --- 209.30 Points
6. 06 May 2015 - NSE Nifty slipped below the 8,200-level by falling 179.25 points or 2.15 per
cent to 8145.55. Besides, overnight losses in the US markets on worries about surging oil
prices, poor trade data and growing tensions over the Greek debt crisis weighed on
sentiments.[10]
7. In 1991, New Delhi kickstarted the economic reforms process owing mainly to the serious
balance of payments crisis it was facing.
8. 1997 Asian Financial Crisis - Investors deserted emerging Asian shares, including an
overheated Hong Kong stock market. Crashe