The market is likely to open on a firm note on positive global cues. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 39 points at the opening bell.
Meanwhile, a committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax rates under GST submitted its report to the Finance Minister on Friday, 4 December 2015. The Committee in its concluding observations has stated that this is a historic opportunity for India to implement a game-changing tax reform. Domestically, it will help improve governance, strengthen tax institutions, facilitate Make in India by Making One India, and impart buoyancy to the tax base. It will also set the global standard for a value-added tax (VAT) in large federal systems in the years to come. The committee recommended a two-rate structure. In order to ensure that the standard rate is kept close to the revenue neutral rate (RNR), the maximum possible tax base should be taxed at the standard rate. The Committee would recommend that lower rates be kept around 12% (Centre plus states) with standard rates varying between 17% and 18%. Meanwhile, the committee has recommended the revenue neutral rate in range between 15% and 15.5% (Centre and states combined) with a preference for the lower end of that range based on the analysis made in the report. The term revenue neutral rate (RNR) refers to that single rate, which preserves revenue at desired (current) levels.
In overseas markets, Asian share markets edged higher after Wall Street welcomed an upbeat US jobs report that suggested the world's biggest economy was well placed to handle an expected first increase in interest rates in almost a decade. US stocks surged on Friday, 4 December 2015 after another strong month of hiring by US employers. US non-farm payrolls data on Friday, 4 December 2015 showed the economy added 211,000 jobs in November and the unemployment rate held steady at 5%. Jobs growth in September and October was revised to be higher than previously estimated. Meanwhile, European Central Bank (ECB) President Mario Draghi reassured markets in a speech in Washington on Friday, 4 December 2015 saying that stimulus measures are here to stay with no particular limit. Some investors were disappointed on Thursday, 3 December 2015 when the ECB extended its bond-buying program without increasing the monthly amount, and reduced interest rates less than expected.
Closer home, foreign portfolio investors (FPIs) sold shares worth a net Rs 1745.73 crore on Friday, 4 December 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1069.01 crore on Friday, 4 December 2015, as per provisional data.
Maruti Suzuki India reported 11.80% fall in its production to 103,526 units in November 2015 as compared to 117,370 units in same month last year. Of total, the company manufactured 33,806 vehicles under mini segment (including Alto, A Star, Wagon R) in November 2015, as against 42,964 vehicles manufactured in corresponding month previous year. The company manufactured 42,622 vehicles under Compact segment; 8,566 vehicles under Super Compact and Midsize; 6,599 units under Utility Vehicles segment and 11,933 units under Vans category.
Recently, the company has registered a rise of 9.7% in its total car sales (Domestic and Export) for the month of November 2015 at 120,824 units, as against 110,147 units in 2014. The company's domestic sales rose by 10.6% in November 2015 at 110,599 units, as against 100,024 units in corresponding month last year.
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NMDC has reduced prices of lump ore by Rs 300 per tonne to Rs 1,800 per tonne with effect from 4 December 2015. In its monthly price review, the state-run iron ore miner has kept prices of iron ore fines unchanged at Rs 1,560 per tonne. The prices are excluding royalty, taxes, DMF, duties, levies etc.
Rural Electrification Corporation announced that 100% equity shares of Vemagiri II Transmission (V(II)TL) incorporated for strengthening of Transmission System beyond Vemagiri, held by REC Transmission Projects Company (a wholly owned subsidiary of Rural Electrification Corporation) and its nominees, have been transferred along with all assets and liabilities of (V(II)TL) to Power Grid Corporation of India and their nominees, on 4 December 2015. The announcement was made after market hours on Friday, 4 December 2015.
Key benchmark indices dropped on the last trading session of the week on Friday, 4 December 2015, tracking slide in global stocks after the European Central Bank (ECB)'s stimulus package announced after policy meet on 3 December 2015, fell well short of markets' high expectations. The Sensex lost 248.51 points or 0.96% to settle at 25,638.11, its lowest closing level since 18 November 2015.
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