Key benchmark indices could rise today, 18 February 2015. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 11 points at the opening bell.
Among corporate news, Lupin and Celon Pharma S.A. (Celon) announced on Tuesday, 17 February 2015, that they have entered into a definitive agreement under which the companies will jointly develop fluticasone/salmeterol dry powder inhaler (DPI) product which is a generic version of GlaxoSmithKline's Advair Diskus. Lupin will be responsible for commercialization of the product. Celon will supply the product to Lupin for its commercialization in the United States, Canada, Mexico, and other key markets. GlaxoSmithKline's Advair Diskus had global sales of over $7 billion as of last fiscal.
Public sector banks will be in focus. The Union Finance Minister Arun Jaitley will review various key financial sector issues like credit off take in the economy, achievement under priority sector lending (PSL) and progress made under Pradhan Mantri Jan Dhan Yojana (PMJDY) etc. with the Chief Executive Officers (CEOs) of public sector banks (PSBs)/Financial Institutions (FIs) on 5 March 2015 during the quarterly review meeting, a statement from the government yesterday, 17 February 2015 said. The periodic review meeting will also focus on taking forward the intention of the Department of Financial Services (DFS) to improve the performance of PSBs and FIs through steps like the recent additional infusion of Rs 6990 crore in PSBs on the basis of performance measured by return on assets/equity, the statement from the government said.
Jaiprakash Associates will be in focus after the company won the Mandla North coal block in Madhya Pradesh for Rs 2,505 per tonne, according to the results of e-Auction for Schedule II coal mines announced by the Ministry of Coal on Monday, 16 February 2015. The coal ministry has started auctioning coal blocks after the Supreme Court in September last year cancelled the allocation of more than 200 coal mines allotted between 1993 and 2010 after ruling that they were arbitrary and illegal.
Mahindra & Mahindra (M&M) before market hours today, 18 February 2015 announced the upgradation of the side curtain airbag software on all the XUV500 vehicles manufactured on or before July 2014. The upgrade will be carried out free of cost for customers who will be individually contacted by the company, M&M said. This upgrade will be limited only to a software change and no parts will be replaced, it added. The proactive inspection/upgradation is in keeping with M&M's customer-centric approach, the company said in a statement.
Tata Motors before market hours today, 18 February 2015 said that its global wholesales in January 2015, including Jaguar Land Rover (JLR) were at 80,499 units, remained flat, compared to January 2014. Global wholesales of all Tata Motors' commercial vehicles and Tata Daewoo range rose 2% to 30,678 units in January 2015 over January 2014. Global wholesales of all passenger vehicles remained flat at 49,821 units in January 2015 over a year ago. Global wholesales for JLR declined 5.44% to 36,527 units in January 2015 over January 2014. The reduction in the JLR sales is more than explained by the sales run out of the Land Rover Freelander model while retails of the new Land Rover Discovery Sport will start this month in some markets, Tata Motors said.
HCL Infosystems said on Tuesday, 17 February 2015, that the company and Nokia India Sales (NISPL, subsidiary of Microsoft Mobile OY) extended their engagement by 3 years to distribute Microsoft Lumia and Nokia first & feature devices and accessories across India. NISPL and HCL Infosystems has signed a contract that will enhance the footprint of Microsoft Mobile devices across the Organized Trade and General Trade channels and rural India. This engagement strengthens HCL Infosystems' partnership with NISPL for distribution of mobile devices and is geared to trigger significant business growth and synergy for both companies. The partnership also enables both companies to explore new channels to enhance their last-mile connect.
Shares of fertilizers manufacturers will be in focus after the Ministry of Chemicals and Fertilizers after trading hours on Monday, 16 February 2015, said that there is no shortage of fertilizers in the country. In the month of February 2015 against the requirement of 16.71 lakh metric tonnes (MT) of urea, the supply plan has been made for 29.6 lakh MT out of which 14.71 lakh MT has already been made available till 15 February 2015, the Ministry of Chemicals and Fertilizers said. To ensure adequate availability of urea during the ensuing Kharif season of 2015, the Department of Fertilizers has planned in advance to procure 10.5 lakh MT of urea in February and March 2015 in the tender floated through MMTC in January 2015.
Bank of India after market hours on Monday, 16 February 2015 in a clarification with regard to news item titled "BOI Keen to Buy 20% Stake in Payment Bank" said that during press meet held on 12 February 2015 specific query was raised about the bank's intention to participate in payment bank. It is clarified that while the bank intends to participate by way of strategic investment in the payment bank by taking stake upto 19.9% of the equity of the proposed entity, however the matter is only in initial stage and presently the bank has not entered into any binding agreement, Bank of India said. The matter will be finalized only on the proposed entity getting in-principle approval from RBI for setting up payment bank and Bank of India getting approval from RBI and Government of India to make the said investment, the bank added. Thereafter Bank of India will carry out necessary due diligence and comply with other statutory norms as applicable, it said. Therefore the same has no immediate bearing on the performance/operations of the bank, Bank of India said. In case the bank finalizes in the matter of investing in the payment bank the same will be informed to stock exchange in terms of listing norms, Bank of India said.
Tata Steel after market hours on Monday, 16 February 2015 in a clarification with regard to news item titled "Tata Steel to Cash out Mozambique Asset" said that post Tata Steel's earning release on 6 February 2015, Mr. Koushik Chatterjee, Group Executive Director (Finance and Corporate) in the investor/analyst call, stated that, there has been a change in ownership of Benga Investment and that the company is currently engaged with ICVL to understand their plans for the future after which the company would be looking at taking strategic view on the portfolio. The recording of the call (audio file) is available on the company's website, Tata Steel said. The statement of Mr. T. V. Narendran, Managing Director, which appeared in the new article, is on similar lines as was disclosed to the investors on 6 February 2015, Tata Steel said.
Crompton Greaves after market hours on Monday, 16 February 2015 said that it has been awarded a prestigious contract by National Thermal Power Corporation (NTPC), for the design, manufacturing and supply of generator step-up transformers for NTPC's largest capacity, 800 megawatts (MW) super-critical thermal power plant at Darlipali in Odisha. The project is scheduled to be completed in thirty two months. The contract value is Rs 119 crore.
Also Read
Essar Oil will be watched. With respect to news titled "Gulf Petrochem acquires Essar's Kenyan Operations," Essar Oil clarified after market hours on Monday, 16 February 2015, that the company neither directly nor through its subsidiary is having any marketing operations in Kenya. These operations are being carried on by a group company, Essar Petroleum East Africa. The company's name has been wrongly quoted by the print media in the article, Essar Oil added.
Punjab National Bank announced after market hours on Monday, 16 February 2015, that consequent upon the decision of the Government of India (GoI) to infuse capital funds to the tune of Rs 870 crore in the bank during 2014-15, up to 4.42 crore shares of Rs 196.80 per share on preferential basis shall be issued to GoI subject to regulatory approvals including approval of shareholders in the EGM to be held on 19 March 2015. The issue price has been determined in accordance with Regulation 76(1) of SEBI ICDR Regulations.
Steel Authority of India (Sail) turns ex-dividend today, 18 February 2015, for interim dividend of Rs 1.75 per share for the year ending 31 March 2015.
NMDC turns ex-dividend today, 18 February 2015, for interim dividend of Rs 4.25 per share for the year ending 31 March 2015.
Rural Electrification Corporation (REC) turns ex-dividend today, 18 February 2015, for interim dividend of Rs 8 per share for the year ending 31 March 2015.
Prime Minister Narendra Modi and former Mayor of New York City, Mr. Michael Bloomberg on Monday, 16 February 2015, announced a partnership between Bloomberg Philanthropies and the Ministry of Urban Development, Government of India (GoI) to advance the Smart Cities initiative in India. Under the partnership, Bloomberg Philanthropies will provide assistance to the Ministry of Urban Development to select cities for Smart Cities Mission funding on a continuous basis, the Prime Minister's Office (PMO) said in a statement. The Smart Cities initiative is a historic effort to promote economic growth, improve governance, and deliver more effective and efficient public services to India's urban residents, the PMO said.
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 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.
The upcoming Budget session of the parliament assumes utmost importance as the government intends to replace the ordinances it had promulgated after the conclusion of the winter session of the parliament with Bills and get them cleared by both Houses of Parliament during the budget session. The Narendra Modi government promulgated a slew of ordinances after the last session of Parliament. Some of the key ordinances include raising the FDI in the insurance sector from 26% to 49%, e-auctioning of coal mines and amendment to the Land Acquisition Act.
The government has already started auctioning coal blocks for captive mining. The Coal Mines (Special Provisions) Bill that was moved to replace an ordinance issued earlier was passed by the Lok Sabha in the winter session but it could not be taken up in the Rajya Sabha. The government promulgated the Coal Mines (Special Provisions) Ordinance, 2014, in October to facilitate coal block auctions after the Supreme Court cancelled 204 coal blocks in September.
Through another ordinance, the government has raised the ceiling on foreign investment in the insurance sector to 49% from 26%. The government was unable to get the Insurance Laws (Amendment) Bill, 2008, passed in parliament during the winter session.
Amendments to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 were brought in via an ordinance after the winter session of the parliament.
Analysts are also awaiting further progress on the Goods and Services Tax (GST) in the Budget session 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.
Amid a divergent trend among index heavyweight stocks, key benchmark indices registered small gains on Monday, 16 February 2015. The barometer index, the S&P BSE Sensex, attained its highest closing level in almost 2-1/2 weeks. The 50-unit CNX Nifty hit 2-1/2-week closing high. The S&P BSE Sensex rose 40.95 points or 0.14% to settle at 29,135.88, its highest closing level since 30 January 2015.
The stock market was shut on Tuesday, 17 February 2015, on account of Mahashivratri.
Foreign portfolio investors sold shares worth a net Rs 182.80 crore on Monday, 16 February 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 280.77 crore on Monday, 16 February 2015, as per provisional data released by the stock exchanges.
Asian stocks were trading higher, tracking gains in the US as fears eased over Greece leaving the eurozone. Key benchmark indices in Hong Kong, Indonesia, Japan and Singapore were up 0.16% to 0.96%.
The stock market in mainland China is closed for this entire week starting today, 18 February 2015, for the Lunar New Year holiday. The stock market in Hong Kong is open for trading for only half day today, 18 February 2015, and remains shut for the rest of the week for the Lunar New Year holiday.
US stocks closed slightly higher Tuesday, 17 February 2015, as investors continued to monitor talks between Greece and its creditors in hopes that a deal will be reached to keep the country from falling out of the eurozone.
In Europe, the new Greek government will reportedly apply for further aid from its European partners, although will not sign up to the painful austerity measures imposed on the country. In an interview with German public broadcaster ZDF, Greek Finance Minister Yanis Varoufakis was quoted as saying, "We should extend the credit programme by a few months to have enough stability so that we can negotiate a new agreement between Greece and Europe."
The news will come as a relief after eurozone finance ministers' meetings collapsed without agreement as Athens refused to continue with the bailout that imposed swingeing spending cuts and tax hikes. The apparent change of face also comes days before its financial lifeline package expires, which would leave Greece without any cash and unable to pay its bills, leading it to default and almost certainly leave the eurozone.
Debt talks between Greece and its creditors fell apart abruptly late Monday, 16 February 2015. Greece's new anti-austerity government rejected an extension to its 240-billion-euro ($272 billion) bailout program under the conditions offered by its European partners. A new Eurogroup meeting may be reportedly scheduled for Friday, 20 February 2015.
Greece is scrambling to reach a deal with creditors before it runs out of cash. Greece's current bailout plan expires on 28 February 2015.
Powered by Capital Market - Live News