Nifty remains weak, but it could make an effort to rally on Friday, after initial weakness
We had mentioned in Wednesday’s closing report that NSE’s CNX Nifty and S&P BSE Sensex were weak, but a sudden rally may be possible. Both the indices opened Thursday in the red, following a sharp decline in the US markets previous night and witnessed a gradual fall without much of a struggle to revive. The fall became stronger in the last few minutes of the session, when the indices plunged to hit its lowest since 14 January 2015.
The Sensex opened at 27,938 while the Nifty opened at 8,475. After hitting the high at the beginning of the session at 27,997 and 8,499, both Sensex and Nifty moved lower to hit a low at 27,385 and 8,325, respectively. Sensex closed at 27,458 (down 654 points or 2.33%), while Nifty closed at 8,342 (down 189 points or 2.21%). Bank Nifty too followed the same trading pattern. It opened at 18,139 and moved from the high of 18,224 to 17,729 and closed at 17,832 (down 478 points or 2.61%). NSE recorded a volume of 94.77 crore shares. India VIX rose 15.37% to close at 15.1625. Today, NSE futures and options segment expired for March 2015 series.
The Cabinet Committee on Economic Affairs (CCEA) approved reviving of and improving utilisation of the stranded gas-based power generation capacity in India. The mechanism envisages sacrifices to be made collectively by all stakeholders, including the Central and State Governments, by way of exemptions from certain applicable taxes and levies on the incremental RLNG being imported for the purpose. Besides, gas transporters and re-gasification terminals have agreed to reduce their transportation tariff, marketing margin and re-gasification charges on the incremental RLNG. Power developers would completely forego the return on their equity. With this arrangement, electricity generation in the country would be enhanced significantly by around 79 billion units, valued at about Rs42,000 crore, CCEA added.
Finance Minister Arun Jaitley had said that the union government hopes to pass the Constitution Amendment Bill for the introduction of a nationwide Goods and Services Tax (GST) in the country during the second half of the Budget session of the parliament which begins on 20 April 2015.
Banks will be shut for almost a week starting 28th March due to holidays and annual closing of accounts for the financial year.
The Supreme Court has allowed the government to conclude the auction of telecom airwaves and collect initial payments from operators. The government raised a record $17.6 billion from its sale of mobile airwaves in four spectrum bands, after a 19-day auction that ended on Wednesday. While the government has raised a lot of revenues, the "Telecom industry, which was already saddled with nearly Rs2.5 lakh crore, is now going to helplessly see it mount to nearly Rs3.5 lakh crore," Assocham Telecom Council Chairman TV Ramachandran said in a statement.
The government is hopeful that Coal India will surpass its one billion tonne excavation target by 2020. However, it may miss its output target of 507 million tonnes (MT) by 10 MT, during the current fiscal, on account of various delays in operationalising mines.
The Revenue Department has made public the names of 18 tax defaulters who collectively owe over Rs500 crore to the exchequer. Out of the 18 defaulters, 11 are Gujarat-based.
The US and India are planning to launch negotiations to sign a high quality bilateral investment treaty to create an enabling business environment in India.
Coming back to the Indian stock market, Amtek Auto (6.21%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week low on Tuesday. It was in the news for its plans to acquire TRW Automotive Holdings Corp.’s suspension business. TRW is based in the Detroit suburb of Livonia. Vakrangee (9.08%) was the top loser in ‘A’ group on the BSE. Bharti Airtel (0.98%) was the top gainer in the Sensex 30 pack, while HDFC (5.32%) was the top loser in the pack. It was also among the top two losers in the ‘A’ group on the BSE.
On Wednesday, US stock markets closed in the red. US economic data released yesterday raised concerns about US growth.
Except for Shanghai Composite (0.58%) and Straits Times (0.37%) all the other Asian indices closed in the red. Nikkei 225 (1.39%) was the top loser.
US business investment spending plans fell for a sixth straight month in February. The Commerce Department said yesterday that non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, dropped 1.4% in February after a revised 0.1% dip in January. European indices were trading deeply in the red so were the US Futures.