Stocks
Nifty, Sensex, Bank Nifty turn around on Economic Survey – Friday closing report

Nifty’s bullishness will stall if it closes below 8,760

 

We had mentioned in Thursday’s closing report that the move on NSE’s CNX Nifty maybe weak but it may regain strength on a close above 8,750. The 50-share benchmark opened Friday in the positive and made a gradual upmove throughout the session. At the end of the session, it hit its day’s high and closed near to it. The market was waiting for the Economic Survey for 2014-15 to be tabled in the Parliament. The Survey was welcomed by the market.
 
S&P BSE Sensex opened at 28,865 while Nifty opened at 8,730. After hitting a low at 28,837 and 8,717, the benchmarks moved higher to hit a high at 29,254 and 8,857, respectively. Sensex closed at 29,220 (up 473 points or 1.65%) while Nifty closed at 8,845 (up 161 points or 1.85%). Bank Nifty too followed similar pattern of trading. It opened at 18,660 and moved from the low of 18,655 to a high of 19,114 and closed at 19,075 (up 536 points or 2.89%). NSE recorded a higher volume of 126.82 crore shares. India VIX fell 4.91% to close at 19.5700.
 
The stock exchanges will be open on Saturday as the Finance Minister presents the first full-fledged budget of the Narendra Modi government.
 
While tabling the Economic Survey 2014-15, Finance Minister Arun Jaitley stated that the government remains committed to fiscal consolidation and that the deficit target of 4.1% as envisaged in the Budget 2014-15 will be met. As per a medium-term fiscal strategy, there is a need to reduce fiscal deficit to the established target of 3% of GDP.
 
Annual GDP growth was seen at over 8% for 2015-16 and double-digit economic growth trajectory maybe possible in future, hoped the survey.
 
According to the Economic Survey the e-commerce sector in the country is likely to witness a growth of over 50% in the next five years.
 
Coming back to Indian stock markets, Unitech (17.07%) was the top gainer in ‘A’ group on the BSE, despite the fact that a police probe was ordered for Unitech allegedly cheating its buyers. However, the upcoming budget and anticipation of sops for the sector moved the stock higher. Hathway Cable & Datacom (8.49%) was the top loser in ‘A’ group on the BSE.
 
Tata Power (5.43%) was the top gainer in the Sensex 30 pack. Tata Power SED in consortium with L&T is one of the two selected development agencies for prestigious “MAKE” program Battlefield Management System for the Indian Army. L&T (4.67%) was among the top two gainers in the pack.
 
Gail (1.07%) was the top loser in the Sensex 30 stock. The board of directors have approved payment of interim dividend for the FY 2014-15 @ 30% (Rs3 per equity share) on the paid-up equity share capital.
 
On Thursday, US indices had a mixed closing. The consumer-price index fell 0.7% in January 2015 from December 2014, the Labor Department said yesterday. Prices slipped 0.1% from a year earlier, marking the first year-over-year decline since October 2009. 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.
 
Asian indices had mixed closing. Shanghai Composite (0.36%) was the top gainer while Straits Times (0.68%) was the top loser. 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. European indices were showing mixed trading. US Futures were trading marginally in the red.
 
German lawmakers reportedly signalled that they will approve an extension of Greece's bailout with an overwhelming majority in parliament today, although many will do so reluctantly amid fears that Athens will not deliver on its reform promises.
 

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Economic Survey sees eCommerce growing 50% in next five years

Inventory management, logistics planning and resource availability are important hurdles for online retail in India, the Survey says

 

As Internet penetration in India is on the rise, the eCommerce sector in the country is likely to witness a growth of over 50% over the next five years, says the Economic Survey.
 
The Survey, however, raised concerns over consumer safeguards and proposed amendments to the Consumer Protection Act.
 
"India's eCommerce market is expected to grow by more than 50% in the next five years," the Economic Survey 2014-15, tabled in Parliament today by Finance Minister Arun Jaitley, said.
 
As per industry body Internet and Mobile Association of India (IAMAI), as of October 2014 India had 278 million internet users.
 
On the hurdles being faced by the sector, the Economic Survey said: "Inventory management, logistics planning and resource availability are important hurdles for online retail in India."
 
It further said: "Consumer safeguards being another concern for consumers of eCommerce, the government proposes including sufficient provisions in the ongoing amendment to the Consumer Protection Act, 1986."
 
Prime Minister Narendra Modi had set up a Task Force last year to give suggestions to drive up revenues of India Post in with various services including eCommerce.
 
The Task Force, which submitted its report in January this year, recommended setting up a holding company under the Department of Posts to roll out of banking, insurance and e-commerce services by the world's largest postal network.
 
The task force added that rural India should be the main target area. India has a postal network of over 1,55,015 post offices of which (89.76%) are in the rural areas.
 
Telecom Minister Ravi Shankar Prasad has on several occasions said India Post with its unparalleled rural, urban and semi-urban reach is best suited to offer delivery services to e-commerce players.
 
According to consultancy firm PwC, the eCommerce sector has grown by 34% (CAGR) since 2009 to touch $16.4 billion in 2014 and is further expected to touch $22 billion in 2015.
 

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PM Modi says ready to make changes in Land Bill

Modi said his government wanted to make changes in the Land Act passed during the UPA tenure because all Chief Ministers had said it was against farmers’ interest and hampered development and infrastructure creation

 

Facing resistance on the Land Acquisition Bill, Prime Minister Narendra Modi on Friday expressed readiness to make changes in the proposed legislation as he reached out to opposition for support, saying they should shed politics and not make it a prestige issue.
 
“We should not have ego that there can be nothing better than what we did. When you passed the Land Act (in 2013), we stood shoulder to shoulder with you. We knew that you want to take political mileage out of it. Still we stood by you,” he told Congress in the Lok Sabha.
 
Modi, who was replying to a debate on the Motion of Thanks to the President’s address, said his government wanted to make changes in the Land Act passed during the UPA tenure because all the Chief Ministers had said it was against farmers’ interest and hampered development and infrastructure creation.
 
“...When our government was formed, CMs of all parties said in one voice: Please think about farmers, they want irrigation and infrastructure. You made such a law which is against farmers’ interest."
 
“Are we so arrogant that we will ignore the voice of CMs in a federal structure? Can we ignore farmers’ interest? Is it not our responsibility to correct the mistake, if any? Whatever you have done, we are not rejecting it. Do not weigh this in the balance of politics,” he said.
 
Seeking the support of opposition in the passage of the bill, which he claimed was in farmers’ interests, he said, “If you feel there are still any shortcomings, I am ready for any changes in it....Don’t make it an issue of your prestige.
 
He said there should be no ego and all parties should work together to correct the mistakes in the previous act.
 
His expression of readiness to make changes in the proposed new Land Acquisition bill comes against the backdrop of opposition by some allies as well as opposition parties.
 
The new bill is aimed at amending the law passed over a year back. 
 

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