A bout of volatility was witnessed as key benchmark indices retained positive zone in morning trade. The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. The barometer index, the S&P BSE Sensex was currently up 158.88 points or 0.55% at 28,905.53.
Index heavyweight and cigarette major ITC edged lower. PSU bank stocks rose. Shares of private sector banks were mixed.
The finance ministry will table the Economic Survey for 2014-15 in parliament today, 27 February 2015. Economic Survey reviews the developments in the economy over the previous 12 months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 2312.15 crore yesterday, 26 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged higher as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices.
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In overseas markets, Asian stocks edged higher. In the US yesterday, 26 February 2015, small-cap companies outperformed large as downbeat economic reports and selling pressure from the energy sector weighed on the benchmark S&P 500 index.
At 10:18 IST, the S&P BSE Sensex was up 158.88 points or 0.55% at 28,905.53. The index jumped 244.75 points at the day's high of 28,991.40 at the onset of the trading session. The index rose 111.17 points at the day's low of 28,857.82 in morning trade.
The CNX Nifty was up 54.80 points or 0.63% at 8,738.65. The index hit a high of 8,758.20 in intraday trade. The index hit a low of 8,721.20 in intraday trade.
The market breadth indicating the overall health of the market was strong, with more than two gainers for every loser on BSE. 1,385 shares gained and 672 shares fell. A total of 77 shares were unchanged.
The BSE Mid-Cap index was up 94.82 points or 0.89% at 10,711.10. The BSE Small-Cap index was up 98.10 points or 0.88% at 11,261.86. Both these indices outperformed the Sensex.
The total turnover on BSE amounted to Rs 803 crore by 10:15, compared with turnover of Rs 196 crore by 09:25 IST.
Index heavyweight and cigarette major ITC lost 2.2% to Rs 386.95. The stock hit high of Rs 396.45 and low of Rs 385.50 so far during the day.
PSU bank stocks edged higher. State Bank of India (SBI) (up 1.07%), Vijaya Bank (up 1.15%), and Union Bank of India (up 1.95%) gained.
Punjab National Bank, Bank of India, IDBI Bank, Canara Bank and Bank of Baroda edged higher after the finance ministry after trading hours yesterday, 26 February 2015, said that the Appointments Committee of Cabinet (ACC) has approved the criterion and method of selection of Managing Director and Chief Executive Officers of Bank of Baroda, Punjab National Bank, Bank of India, Canara Bank and IDBI Bank. Shares of Punjab National Bank were up 0.47%. Bank of India rose 2.43%. IDBI Bank gained 1.92%. Canara Bank was up 1.63%. The criterion and method of selection of Managing Director and Chief Executive Officers of these five public sector banks envisage that both governmental and non-governmental candidates can apply. The candidate should have at least 15 years of mainstream banking experience, of which three years should at least be at the board level. The candidate should be in the age group of 45 to 55 years and will have a fixed tenure of three years, subject to normal age of superannuation of 60 years.
Bank of Baroda rose 1.07%. Bank of Baroda said after market hours yesterday, 26 February 2015 that the government will acquire 6.44 crore equity shares of the bank on preferential basis at an issue price of Rs 195.59 per share aggregating to Rs 1260 crore. Post allotment, the government's stake in the bank will rise by 1.27% to 57.53%.
Shares of private sector banks were mixed. HDFC Bank (up 1.45%), Axis Bank (up 0.23%), Yes Bank (up 0.98%) and ICICI Bank (up 0.96%) gained.
ING Vysya Bank (down 0.24%), Kotak Mahindra Bank (down 0.25%) and IndusInd Bank (down 0.18%) slipped.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.80, compared with its close of 61.76 during the previous trading session.
Brent crude oil futures edged higher as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices. Brent for April settlement was up 81 cents at $61.86 a barrel. The contract had declined $1.58 a barrel or 2.56% to settle at $60.05 a barrel during the previous trading session.
Meanwhile, the stock exchanges have decided to keep the stock market open on tomorrow, 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 tomorrow, 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.
Most Asian stocks edged higher today, 27 February 2015. Key benchmark indices in Hong Kong, Indonesia, China and Japan rose by 0.05% to 0.58%. Key benchmark indices in Singapore and South Korea fell by 0.03% to 0.14%. Markets in Taiwan are closed today, 27 February 2015 in observance of Peace Memorial Day.
Japanese industrial production rose 4% in January 2015 -the second straight on-month increase, following the 0.8% increase in December 2014, data showed today, 27 February 2015.
Trading in US index futures indicated that the Dow could fall 18 points at the opening bell today, 27 February 2015. US stocks ended mixed yesterday, 26 February 2015 in another lackluster performance, amid uncertainty about the near-term outlook for the markets.
Investors are now waiting on revised fourth quarter US gross domestic product data due later today, 27 February 2015 for another health check of the world's largest economy.
In economic news, the consumer-price index fell 0.7% in January 2015 from December 2014, the Labor Department said yesterday, 26 February 2015. Prices slipped 0.1% from a year earlier, marking the first year-over-year decline since October 2009. Another data showed that weekly jobless claims rose to 313,000 last week, above the 283,000 in the previous week. Durable goods orders figures for January increased 2.8%, after a 3.4% decline in the prior month.
In Europe, German lawmakers reportedly signaled that they will approve an extension of Greece's bailout with an overwhelming majority in parliament today, 27 February 2015 although many will do so reluctantly amid fears Athens will not deliver on its reform promises. Eurozone finance ministers on Tuesday, 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. Several parliaments, including Germany's, must now approve the extension before the current bailout expires tomorrow, 28 February 2015.
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