Volatility ruled the roost as key benchmark indices trimmed gains soon after extending intraday gains in mid-afternoon trade. The market breadth indicating the overall health of the market was weak. The barometer index, the S&P BSE Sensex, was currently trading above the psychological 29,000 mark, having alternately moved above and below that level in intraday trade so far. The Sensex had fallen below the psychological 29,000 mark after yesterday's slide. The Sensex was currently up 57.55 points or 0.2% at 29,032.66. The BSE Small-Cap and Mid-Cap indices, both, hovered in red.
Meanwhile, the BJP has reportedly formed committee to seek farmers' suggestion on land acquisition bill after the government introduced the land acquisition amendment bill in the Lok Sabha today, 24 February 2015, amid uproar by the Opposition.
Shares of FMCG major Hindustan Unilever (HUL) edged higher. Capital goods stocks were mixed. Realty stocks were in demand on renewed buying, with Oberoi Realty scaling record high. Godfrey Phillips India hit 52-week low.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 601.91 crore yesterday, 23 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 163.79 crore yesterday, 23 February 2015, as per provisional data.
The market may remain volatile this week 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 on Thursday, 26 February 2015.
In the foreign exchange market, the rupee edged higher against the dollar.
Brent crude oil futures edged lower in choppy trade amid oil supply glut.
In overseas markets, European shares edged higher after Greece submitted a list of proposals on the overhaul the nation's economy to European institutions and the International Monetary Fund in line with the country's bailout program. Asian stocks edged higher ahead of US Federal Reserve Chairwoman Janet Yellen's testimony before the Senate Banking Committee which begins later in the global day. Most US stocks edged lower in choppy trading session yesterday, 23 February 2015, as crude oil prices dropped.
At 14:15 IST, the S&P BSE Sensex was up 57.55 points or 0.2% at 29,032.66. The index jumped 155.56 points at the day's high of 29,130.67 in mid-afternoon trade. The index fell 57.48 points at the day's low of 28,917.63 in mid-morning trade.
The CNX Nifty was up 20.35 points or 0.23% at 8,775.30. The index hit a high of 8,800.50 in intraday trade. The index hit a low of 8,736.90 in intraday trade.
The market breadth indicating the overall health of the market was weak. On BSE, shares 1,623 declined and 1,057 shares gained. A total of 120 shares were unchanged.
The BSE Mid-Cap index was off 5.92 points or 0.06% at 10,739.50. The BSE Small-Cap index was off 66.74 points or 0.59% at 11,322.74. Both these indices underperformed the Sensex.
FMCG major Hindustan Unilever rose 2.2% to Rs 905.55. The stock hit high of Rs 907 and low of Rs 887 so far during the day.
Capital goods stocks were mixed. Bharat Heavy Electricals (Bhel) (up 2.11%), BEML (up 1%), L&T (up 2.12%) gained. Thermax (down 1.01%), Crompton Greaves (down 0.51%) and Siemens (down 0.59%) declined.
ABB India fell 1.68%. ABB India announced during trading hours that it became the first company to reach sales of a cumulative capacity of 1 gigawatt (GW) solar inverters. This milestone was marked today, 24 February 2015, with the roll out of an order for Tata Power Solar's project for Kiran Energy Solar Power. ABB India commenced local manufacturing of solar inverters in 2012 and has since grown in partnership with key industry customers, the company said in a statement.
Realty stocks were in demand on renewed buying. Housing Development and Infrastructure (up 1.14%), Unitech (up 3.11%), Parsvnath Developers (up 4.88%), Godrej Properties (up 0.53%), D B Realty (up 0.61%) and DLF (up 0.07%) gained. Indiabulls Real Estate fell 0.18%.
Oberoi Realty gained 2.84% to Rs 316.50 after scaling a record high of Rs 334 in intraday trade.
Godfrey Phillips India fell 1.83% to Rs 487 after hitting a 52-week low of Rs 484 in intraday trade.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 62.2725, compared with its close of 62.3125 during the previous trading session.
Brent crude oil futures edged lower in choppy trade amid oil supply glut. Brent for April settlement was off 53 cents at $58.37 a barrel. The contract had dropped $1.32 a barrel to settle at $58.90 a barrel during the previous trading session.
Meanwhile, the BJP has reportedly formed committee to seek farmers' suggestion on land acquisition bill after the government introduced the land acquisition amendment bill in the Lok Sabha today, 24 February 2015, amid uproar by the Opposition. The Right to Fair Compensation and Transparency in Land Acquisition Rehabilitation and Resettlement (Amendment) Bill 2015 will replace an ordinance which had been promulgated by the NDA government on 30 December 2014. The Opposition parties, led by the Congress, vociferously opposed the bill on the floor of the house.
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 on Thursday, 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.
European shares rose today, 24 February 2015, after Greece submitted a list of proposals on the overhaul the nation's economy to European institutions and the International Monetary Fund in line with the country's bailout program. Key benchmark indices in UK, France and Germany were up 0.01% to 0.2%.
Greece remained firmly in focus. Greece yesterday, 23 February 2015, submitted a list of proposals on how to overhaul its economy in line with the country's bailout program. The Greek government needs its creditors to approve its proposals to secure a four-month extension to its bailout, which expires at the end of the month. Euro zone finance ministers would today, 24 February 2015, discuss Greece's plans as scheduled earlier.
Asian stocks edged higher today, 24 February 2015 before the US Federal Reserve Chair Janet Yellen speaks to lawmakers. Key benchmark indices in Singapore, Taiwan, Japan, Indonesia and South Korea rose by 0.14% to 1.05%. In Hong Kong, the Hang Seng index fell by 0.35%. China's mainland markets remain closed today, 24 February 2015 for the Lunar New Year holiday.
Markit Economics will tomorrow, 25 February 2015, announce preliminary reading of China's HSBC PMI index for February 2015, indicating health of China's manufacturing activity for that month.
Trading in US index futures indicated that the Dow could rise 18 points at the opening bell today, 24 February 2015. US stocks ended mixed yesterday, 23 February 2015 as lower oil prices dragged down energy shares. In economic data, sales of previously owned US homes fell in January as a tight supply forced up prices, showing the residential real-estate market faces an uneven recovery. Purchases slowed 4.9% to a 4.82 million annualized rate, the least since April, according to figures from the National Association of Realtors yesterday, 23 February 2015.
Investors will receive further clues on the central bank's assessment of the economy and the timing of a rate increase when Federal Reserve Chair Janet Yellen gives two days of testimony to Congressional finance committees starting today, 24 February 2015.
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