Watch out for a close below 6,085 on the Nifty for a change in the trend
A higher than forecast climb in a measure of US manufacturing in February boosted the sentiments in India stock market. Back of the positive performance from the US on Thursday and over all optimism among the Asian indices on Friday made the indices back home zoom up and cover up almost all of the loss of Thursday.
The BSE 30-share Sensex opened at 20,601 while the NSE Nifty opened at 6,108. The day’s low was almost at the same level. The indices hit the intra-day high at near the end of the session at 20,725 and 6,160. The benchmark closed almost at the near the day’s high. Sensex closed at 20,701 (up 164 points or 0.80%) while the Nifty closed at 6,155 (up 64 points or 1.05%). The NSE recorded a volume of 47.10 crore shares.
On the political front, lawmakers passed a bill to create India's 29th state on Thursday despite chaos in the Parliament, as opponents made a futile last attempt to stop the upper house carving landlocked Telangana from coastal Andhra Pradesh. Thursday's vote fulfils a promise made by the government in 2009, and comes just weeks before a national election in April.
The government's allocation of Rs11,200 crore for capital injection into state-run banks is credit negative as it is much smaller than estimated requirements, global credit rating agency Moody's Investors Service said on Thursday.
India should prepare a plan to respond to volatility in global currency markets that may come as the US Federal Reserve reduces monetary stimulus, the International Monetary Fund staff said in a report. While India’s finances have improved since last year, a coordinated plan is needed in case capital account pressures re-emerge, the IMF said. High inflation remains a “central macroeconomic challenge,” and reducing that “will require a tightening of the monetary stance, possibly over a protracted period, which inevitably will weigh on growth prospects,” the IMF said. The IMF estimates Asia’s third-biggest economy will expand 4.6% in the year to March 2014 and 5.4% in the next year.
India is "stuck in a rut" as weaker consumption and stalled investments prevent the economy from building any sort of momentum, HSBC said in a report on Friday adding "slow recovery" could start post elections. HSBC for now is "underweight" on Indian equities but some of its preferred sectors include energy which is likely to gain from subsidy changes, power (stands to benefit from distribution reform), non-ferrous metals (corporate restructuring) and telecoms (more clarity post the auctions).
US Indices closed in the positive on Thursday. US factory activity accelerated in February at its fastest pace in nearly four years.
The Markit Economics preliminary index of US manufacturing increased to 56.7 in February. On the other hand the Labor Department figures indicated fewer applications for unemployment benefits last week.
Except for Shanghai Composite (down 1.17%) all the other Asian indices closed in the positive. Nikkei 225 (up 2.88%) was the top gainer.
Group of 20 finance ministers meet in Sydney this weekend, with US stimulus cuts and political turmoil from Ukraine to Venezuela stoking concern over emerging-market volatility.
German Finance Minister Wolfgang Schaeuble said in a TV interview broadcast today, 21 February 2014, that emerging markets should get their own houses in order before demanding solidarity from other nations. The troubles in emerging markets would be the main topic discussed by finance ministers and central bank chiefs at the G20 summit in Sydney this weekend, Schaeuble said.
Meanwhile, global rating agency Standard & Poor's today, 21 February 2014, cut its long-term foreign currency rating on Ukraine by one notch to CCC, saying the country's worsening political situation is putting the government's capability to service its debt at increasing risk.
European indices were showing a mix performance, while the US Futures were trading higher.
UK retail sales fell more than economists forecast in January, led by a drop in demand at food and clothing stores. Sales including fuel plunged 1.5% from December, when they surged 2.5%, the Office for National Statistics said on Friday in London. The drop is the biggest since April 2012.
“I believe that it is important to ask this question to oneself. We often feel wronged or cheated and believe that a legal course of action will be right. But when you are coming from a feeling being wronged, you going to end up meeting a lawyer or a doctor or somebody who’s intend going to wrong you further,” pointed out Ms Mookhey.
“We should rather ask ourselves: 'Do I really want to get into litigation? Do we really want to fight against something or do I really want to put my energy, all my emotional charge into something else that I rather believe in,” said Ms Mookhey who has been involved in a tough divorce battle.
“I felt that had I been in different time and place I could have dealt with my personal life situation very differently. I may feel I am right and I need to prove that I am right and the law says this are my rights and this what I should get and this is what has been done wrongly etc. But those who want to fight legal battles also should know that letting go is also a great act. So, I would really want to suggest among the various things being offered at Moneylife Foundation LRC, one of the things which must always be offered is emotional counselling!"
A clarification on delinking Aadhaar account from disbursal of subsidised LPG cylinders would be issued within a week, the minister told the Lok Sabha
Consumers across the country can buy subsidised LPG cylinders without an Aadhaar-linked bank account, the government informed the Lok Sabha on Friday.
A clarification on delinking Aadhaar account from disbursal of subsidised LPG cylinders would be issued within a week, Petroleum and Natural Gas Minister Veerappa Moily said during the Question Hour.
As far as direct benefit transfer (DBT) is concerned, Cabinet has decided to delink Aadhar account from disbursal of subsidised LPG cylinders. Now, subsidised cylinders can be purchased without Aadhaar account, the minister said.
He said there have been some problems in DBT programme, mainly related to banks, which have been given Rs435 per cylinder (for subsidy) which is not enough since the subsidised price of one cylinder has increased to Rs700.
He also emphasised that the government has not increased the price of subsidised cylinders for consumers.
Under DBT, about 4.86 crore accounts have been made and around 2.06 crore households have received subsidised cylinders.
Regarding know your customer (KYC) norms for LPG connections, the minister said the government has already issued clarifications regarding multiple connections and would liberally look into the matter if required.
“If there are two separate LPG connections in the same address, it would be allowed if there are separate kitchens or separate households... A declaration has to be made (by the consumer),” he added.