Key benchmark indices trimmed gains after an initial upmove. The barometer index, the S&P BSE Sensex was up 165.88 points or 0.58% at 28,912.53. The market breadth indicating the overall health of the market was strong. The key event for the day is the Economic Survey for 2014-15, which will be tabled in the Parliament today, 27 February 2015. Most Asian stocks edged higher today, 27 February 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 2312.15 crore yesterday, 26 February 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data.
At 9:27 IST, the S&P BSE Sensex was up 165.88 points or 0.58% at 28,912.53. The index gained 244.75 points at the day's high of 28,991.40 in early trade. The index rose 116.78 points at the day's low of 28,863.43 in early trade.
The CNX Nifty was up 49.30 points or 0.57% at 8,733.15. The index hit a high of 8,758.20 in intraday trade. The index hit a low of 8,722.90 in intraday trade.
The market breadth indicating the overall health of the market was strong. On BSE, 923 shares gained and 367 shares fell. A total of 42 shares were unchanged.
The BSE Mid-Cap index was up 58.14 points or 0.55% at 10,674.42, underperforming the Sensex. The BSE Small-Cap index was up 76.96 points or 0.69% at 11,240.72, outperforming the Sensex.
The total turnover on BSE amounted to Rs 196 crore by 09:25 IST.
NTPC rose 0.52%. NTPC announced after market hours yesterday, 26 February 2015 that the Unit-III of 500 megawatt (MW) of Vallur Thermal Power Project of NTPC Tamil Nadu Energy Co. (NTECL), a joint venture of the company, and TANGEDCO, is declared on commercial operation from the midnight of 26 February 2015. With this the total commercial capacity of Vallur Thermal Power Project has become 1,500 MW and that of NTPC Group- 43,143 MW.
Engineering & construction major L&T gained 2.63%. Tata Power Company gained 3.14%. Tata Power Company announced after market hours yesterday, 26 February 2015 that its Strategic Engineering Division (Tata Power SED), in a consortium with L&T, is one of the two down-selected Development Agencies for Ministry of Defence's prestigious "MAKE" Program "Battlefield Management System (BMS)". Tata Power SED is the lead of the consortium.
BMS is a Network Centric Program being indigenously developed for the Indian Army under the MAKE category of Defence Procurement Procedure. It is the second such Program that Tata Power SED and L&T are collaborating for. In next 5-7 years, when BMS will be deployed by the Army, it will cover more than 70% of soldiers while digitizing the Tactical Battlefield and creating a secure IoT (Internet of Things) for the Army.
The down-selection of Tata Power SED - L&T consortium enables it to participate in the Prototype Development Phase of this MAKE Program followed by a Production Order, which will be decided by the MoD after successful completion of the Prototype. Tata Power SED is one of the few private companies with a track record of over four decades in Defence R&D and Production. Project BMS is of special importance as it gives an opportunity to serve a very large section of the Indian Army.
GAIL (India) shed 0.67%. GAIL (India) after market hours yesterday, 26 February 2015, said its board of directors at a meeting held today, 26 February 2015, approved payment of interim dividend of Rs 3 per equity share for the year ending 31 March 2015. The company has fixed 3 March 2015 as record date for the purpose of payment of interim dividend.
Reliance Industries (RIL) rose 0.33%. With respect to the recent media reports Corporate Espionage referring to information leakage of classified documents from the petroleum ministry. RIL said that the media reports have referred to investigation being currently carried out in the matter and action initiated against certain corporate executives. RIL clarified after market hours yesterday, 26 February 2015, that it has been informed in the media that one personnel has been arrested. The company is ascertaining more details through an internal enquiry. The company remains committed to communicate all material developments impacting the company to its stakeholders in a timely and appropriate manner, RIL said.
Bharti Airtel slipped 0.13%. Bharti Infratel rose 1.27%. Bharti Airtel announced after market hours yesterday, 26 February 2015, that it has yesterday, 26 February 2015, sold 5.50 crore shares of its subsidiary Bharti Infratel at Rs 350 each through a secondary share sale in the stock market for a total consideration of Rs 1925 crore. Post the transaction Bharti Airtel's equity holding in Bharti Infratel stands at 71.9%. Allocation was done to global tower company investors, fund managers and long only funds, including many repeat investors. Bharti Airtel said it will use proceeds primarily to reduce debt.
DLF fell 1.56% after the Securities and Exchange Board of India (Sebi) imposed a total fine of Rs 86 crore on DLF, its chairman KP Singh and several other related entities, including subsidiaries and its top management for not disclosing certain material information and facts in its IPO document.
Meanwhile, DLF before market hours today, 27 February 2015 said that the company has been made aware of adjudication orders passed by Sebi under Section 15 of the Sebi Act, 1992 against DLF, its directors and other notices. The company is presently reviewing the said Orders and after taking appropriate legal advice, the company will challenge the said Orders in appeal, DLF said. On similar facts, Sebi had earlier passed an Order dated 10 October 2014 inter alia under Section 11 of the Sebi Act, 1992 against DLF and its directors, which Order was challenged by the company before the Hon'ble Securities Appellate Tribunal. DLF will defend itself to the fullest extent against any adverse findings and measures contained in the Orders passed by Sebi, the company said.
Bank of Baroda rose 1.06%. Bank of Baroda said 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%.
Rural Electrification Corporation (REC) rose 0.85%. REC said that its wholly owned subsidiary, REC Transmission Projects Company (RECTPCL), has transferred 50,000 equity shares of Vindhyachal Jabalpur Transmission (VJTL) to Power Grid Corporation of India (PGCIL) and their nominees on 26 February 2015, upon the terms and conditions as detailed in the Share Purchase Agreement executed between RECTPCL, VJTL and PGCIL, for establishment of transmission system strengthening associated with Vindhyachal-V.
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.
The Economic Survey for 2015-16 will be tabled in the 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.
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, Singapore, China and Japan rose by 0.01% to 0.58%. Key benchmark indices in Indonesia and South Korea fell by 0.12% to 0.16%. 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.
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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