Key benchmark indices edged higher in early trade ahead of the Union Budget 2015-16 today, 28 February 2015. The barometer index, the S&P BSE Sensex was currently up 194.27 points or 0.66% at 29,414.39. The market breadth indicating the overall health of the market was strong.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 1957.10 crore yesterday, 27 February 2015, as per provisional data. Domestic institutional investors (DIIs) sold shares worth a net Rs 491.93 crore yesterday, 27 February 2015, as per provisional data.
The stock exchanges have decided to keep the stock market open today, 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 began at 9:15 IST and will conclude at 15:30 IST.
At 9:25 IST, the S&P BSE Sensex was up 194.27 points or 0.66% at 29,414.39. The index gained 262.33 points at the day's high of 29,482.45 at onset of the day's trading session. The index rose 176.88 points at the day's low of 29,397 in early trade.
The CNX Nifty was up 59.80 points or 0.68% at 8,904.40. The index hit a high of 8,919.25 in intraday trade. The index hit a low of 8,894.70 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 896 shares gained and 264 shares fell. A total of 26 shares were unchanged.
The BSE Mid-Cap index was up 81.85 points or 0.76% at 10,893.31. The BSE Small-Cap index was up 78.76 points or 0.7% at 11,398.32. Both these indices outperformed the Sensex.
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The total turnover on BSE amounted to Rs 246 crore by 09:25 IST
Among the 30-share Sensex pack, 27 stocks gained and rest of them declined.
Bharat Heavy Electricals (Bhel) (up 2.9%), ICICI Bank (up 1.9%) and L&T (up 1.91%) edged higher from the Sensex pack.
Coal India rose 0.33%. Coal India after market hours yesterday, 27 February 2015, said that the company's board of directors at its meeting held today, 27 February 2015, approved payment of interim dividend of Rs 20.70 per share for the year ending 31 March 2015 as recommended by the Audit Committee of the company in its meeting held yesterday, 27 February 2015.
Tata Motors rose 0.39%. Tata Motors after market hours yesterday, 27 February 2015, announced a Voluntary Retirement Scheme for the workmen. The company said its new people initiatives are designed to enhance the company's competitiveness at a time when the business environment and macro-economic pressures have resulted in depressed growth of the commercial vehicle and passenger car businesses in India.
Power Grid Corporation of India rose 0.73%. Power Grid Corporation of India said before market hours today, 28 February 2015 that the company, pursuant to its selection as the successful bidder under Tariff Based Completive Bidding, has acquired 'Vindhyachal Jabalpur Transmission', the Special Purpose Vehicle on 26 February 2015 from REC Transmission Projects Company (the Bid Process Coordinator), to establish 'Transmission System Strengthening associated with Vindhyachal-V' on build, own operate and maintain (BOOM) basis. The transmission system comprising 765kV D/C transmission line is to traverse the State of Madhya Pradesh and is to be constructed over a period of 40 months.
National Buildings Construction Corporation (NBCC) rose 3.26%. NBCC after market hours yesterday, 27 February 2015, said the company has signed MOU (Memorandum of Understanding) with DDA for development of "East Delhi Hub" at Karkardooma. The East Delhi Hub, mega project of Delhi will be developed on 30 hectare land and it would be the first project based on Transit Oriented Development (TOD) norms and Smart City features. The project will be self -sustainable, comprising of tallest tower of Delhi including residential, commercial, recreational & social infrastructures etc. NBCC will be paid PMC at 10% and marketing fee at 1%. After getting statuary approvals, the project shall be completed in a period of approx. three years.
All eyes are now on Union Budget 2015-16. Finance Minister Arun Jaitley will begin his speech at 11:00 IST in Lok Sabha today, 28 February 2015, as he tables the Union Budget 2015-16 in the parliament. 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.
US stocks ended lower yesterday, 27 February 2015 as US economic growth slowed more sharply than initially thought in the fourth quarter.
The US economy grew a revised 2.2% in the final three months of 2014, mostly because companies restocked warehouse shelves at a slower pace than the government originally reported. Gross domestic product was marked down from an original estimate of 2.6%, Commerce Department said yesterday, 27 February 2015. For all of 2014, the US economy grew at a 2.4% clip, compared to 2.2% in 2013 and 2.3% in 2012.
In Europe, German lawmakers have approved a four-month extension of Greece's 240 billion ($269 billion) bailout program, according to reports. The vote in the Bundestag was 542 in favor of the extension, 32 against and 13 abstaining. The vote comes after eurozone finance ministers earlier this week approved Greece's list of proposed economic reforms that was required for the extension. The announcement hit the market after trading hours yesterday, 27 February 2015.
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