Key benchmark indices edged higher in early trade on positive Asian stocks. The barometer index, the S&P BSE Sensex was currently up 160.03 points or 0.55% at 29,164.69. The market breadth indicating the overall health of the market was strong.
Asian stocks edged higher today, 25 February 2015 taking their cues from Wall Street's gains after Federal Reserve Chair Janet Yellen suggested the Fed would not rush into raising interest rates.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 697.28 crore yesterday, 24 February 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 146.98 crore yesterday, 24 February 2015, as per provisional data.
The market may remain volatile in the near future as traders roll over positions in the futures & options (F&O) segment from the near month February 2015 series to March 2015 series. The near month February 2015 derivatives contracts expire tomorrow, 26 February 2015.
At 9:25 IST, the S&P BSE Sensex was up 160.03 points or 0.55% at 29,164.69. The index gained 183.07 points at the day's high of 29,187.73 in early trade. The index rose 110.66 points at the day's low of 29,115.32 in early trade.
The CNX Nifty was up 55.45 points or 0.63% at 8,817.55. The index hit a high of 8,818.45 in intraday trade. The index hit a low of 8,798 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 908 shares gained and 254 shares fell. A total of 46 shares were unchanged.
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The BSE Mid-Cap index was up 63.54 points or 0.59% at 10,788.24. The BSE Small-Cap index was up 76.03 points or 0.67% at 11,376.14. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 175 crore by 09:25 IST.
All the 30 shares from the Sensex pack logged gains. HDFC (up 0.91%), Sesa Sterlite (up 0.86%) and Reliance Industries (up 0.86%) edged higher from the Sensex pack.
Asian Paints rose 1.01%. Asian Paints after market hours yesterday, 24 February 2015 said that the company is exploring the possibilities of setting up of a paint manufacturing plant in the southern states of the country. To meet the demand in the southern and eastern parts of the country, the company is exploring the possibility of setting up integrated paint manufacturing plants in the states of Karnataka and Andhra Pradesh. The company is in the advanced stage of negotiations with the respective state governments. Based on the availability of land, other factors and regulatory approvals, the company will decide the location of the plant. The approximate investment at current prices for setting up a plant with a capacity of 6 lakh KL (kilo litre of paints) per annum would be Rs 2300 crore over a period of 5 to 7 years. The company will make necessary disclosures on any material developments in this regard, the company said in a statement.
Mangalore Refinery and Petrochemicals (MRPL) rose 0.54%. MRPL after market hours yesterday, 24 February 2015 said that ONGC Mangalore Petrochemicals (OMPL) offered 101.99 crore equity shares on rights basis at Rs 14.20 per share to all its existing shareholders in proportion to their respective shareholding. Accordingly, MRPL was offered 45.89 crore rights shares at Rs 14.20 per share. MRPL said its board approved subscribing the entire rights offer made by OMPL, including MRPL's portion of rights shares at Rs 14.20 per share. Hence, consequent upon the allotment of rights shares, MRPL will be holding controlling stake in OMPL.
On 9 February 2015, MRPL announced that its board approved raising its stake in OMPL from 3% to 46%, by purchasing fully paid up equity shares from individual shareholders.
Meanwhile, the stock exchanges have decided to keep the stock market open on Saturday, 28 February 2015, just like any other normal trading session when the Finance Minister Arun Jaitley presents the first full-fledged Budget of the Narendra Modi government. Trading will start at 9:15 IST and conclude at 15:30 IST. Jaitley will begin his speech at 11:00 IST in Lok Sabha on 28 February 2015 as he tables the Union Budget 2015-16 in the parliament.
The Railway Budget 2015-16 will be tabled in the parliament by rail minister Suresh Prabhu tomorrow, 26 February 2015. The Economic Survey will be tabled on Friday, 27 February 2015.
The next major event for the financial markets is Union Budget for 2015-16. Finance Minister Arun Jaitley will present Union Budget 2015-16 in Parliament on Saturday, 28 February 2015. Analysts will scrutinize measures in the Budget for financing infrastructure projects as well as the government's own capital expenditure on infrastructure for the year ahead. This is the first full fledged Budget of the Narendra Modi government and analysts will look for a roadmap for economic growth for the next few years.
Changes in rates of dividend distribution tax, capital gains tax on sale of shares, Securities Transaction Tax (STT) and Minimum Alternate Tax (MAT), if any, will be closely watched. The dividend distribution tax is currently at 15%. The minimum alternate tax is currently at 18.5% of book profits. Short term capital gains tax on sale of shares is currently at 15% while there is zero long capital gains tax on sale of shares held for a period of more than one year.
Analysts are awaiting further progress on the Goods and Services Tax (GST) during the ongoing Budget session of Parliament after the Constitution Amendment Bill for the introduction of GST was tabled in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.
Asian stocks edged higher today, 25 February 2015 taking their cues from Wall Street's gains after Federal Reserve Chair Janet Yellen suggested the Fed would not rush into raising interest rates. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia, South Korea, China and Hong Kong rose by 0.03% to 0.75%.
The preliminary HSBC China Manufacturing Purchasing Managers' Index, a gauge of nationwide manufacturing activity, rose to 50.1 in February compared with a final reading of 49.7 in January, HSBC Holdings PLC said today, 25 February 2015. A reading below 50 indicates a contraction in manufacturing activity from the previous month, whereas a reading above indicates expansion. HSBC will release its final PMI data on Monday, 2 March 2015.
US stocks moved higher yesterday, 24 February 2015 with the S&P 500 and Dow industrials closing at records, as the market read Federal Reserve Chairwoman Janet Yellen's testimony before Congress as a reassurance that a rate hike might not occur until the second half of the year.
Federal Reserve Chairwoman Janet Yellen yesterday, 24 February 2015 took another step closer to the first rate hike since 2006. In testimony to the Senate, Yellen signaled to financial markets the Fed would soon drop the word patient from its forward guidance. She softened the blow with several dovish comments that suggest no hurry about actually moving. Yellen signaled the outlook of inflation will be the deciding factor of when the Fed will hike rates for the first time since 2006.
In economic data, the US services sector expanded in February 2015 at its fastest pace since October, according to a preliminary reading from financial data firm Markit. US consumer confidence fell more than expected in February 2015 from a multi-year high, according to industry group the Conference Board.
Eurozone finance ministers yesterday, 24 February 2015 backed new reforms proposed by Greece in exchange for a four-month financial lifeline that will keep the country afloat and in the single currency for the time being. The 19 eurozone ministers signed off in a telephone conference on the plan, which the new left-wing government submitted on Monday, 23 February 2015 to meet a demand made by Greece's creditors at 11th-hour talks last week. Several parliaments, including Germany's, must now approve the extension before the current bailout expires on Saturday, 28 February 2015 while key details must be hammered out in coming weeks.
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