Chances of a further fall will reduce, if Nifty closes above 8,800 and Bank Nifty above 19,200
We had mentioned in Monday’s closing report that NSE’s CNX Nifty may go down a bit, while Bank Nifty may weaken further. Ahead of the February futures and options expiry on Thursday and the rail budget that will be placed on the same day, the 50-share benchmark witnessed a highly volatile session on Tuesday with the index making occasional plunges in the negative. However, it finally managed to close marginally higher.
S&P BSE Sensex opened at 29,017 while Nifty opened at 8,773. Sensex moved in the range of 28,876 and 29,131 and closed at 29,005 (up 30 points or 0.10%). Nifty moved between 8,727 and 8,801 and closed at 8,762 (up 7 points or 0.08%). NSE recorded a volume of 89.60 crore shares. India VIX fell 0.38% to close at 21.5500. Bank Nifty fell 0.16% to close at 18,884.
The Economic Survey will be tabled in the Parliament on Friday. The Telecom Regulatory Authority of India (TRAI) in a notification, on Monday, slashed domestic and international termination call charges.
Bharatiya Janata Party (BJP) has reportedly formed a committee to seek farmers' suggestion on land acquisition bill after the Narendra Modi-led government introduced the Land Acquisition (Amendment) Bill in the Lok Sabha Tuesday amid uproar by the Opposition.
The Finance Commission has suggested raising share of states in central taxes to 42% from current 32%. As per the increased devolution suggested in the report of the 14th Finance Commission, the states will get Rs3.48 lakh crore in 2014-15 and Rs5.26 lakh crore in 2015-16.
The proceedings for the second phase of the auction of Schedule III coal blocks have been postponed till 2nd March. The auction proceedings were supposed to begin on 25th February.
Gold prices dipped below the Rs27,000-mark by losing another Rs100 to trade at a 10-week low of Rs26,970 per 10 gram.
The government is considering direct transfer of fertiliser subsidy to farmers on the lines of LPG, Chemicals and Fertilisers Minister Ananth Kumar told Parliament. He said that any issues related to distribution of fertilisers will be the responsibility of respective states.
The union government said that it was hopeful that the much-delayed Goods and Services Tax (GST) bill will be passed during the ongoing budget session.
Coming back to stock markets, Central Bank of India (8.11%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today.
TVS Motor (6.77%) was the top loser in ‘A’ group on the BSE. Venu Srinivasan, chairman and managing director recently sold 1.5 million shares for about Rs45 crore.
Hindustan Unilever (3.15%) was the top gainer in the Sensex 30 pack while Sesa Sterlite (3.49%) was the top loser in the pack.
US indices had a mixed closing on Monday. The market awaits US Federal Reserve Chair Janet Yellen's semi-annual monetary policy testimony to the Congress.
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 annualised rate, the least since April, according to figures from the National Association of Realtors yesterday, 23 February 2015.
Except for Hang Seng (0.35%) and NZSE 50 (0.55%), all the Asian indices which were trading today closed in the green. Taiwan Weighted (1.05%) was the top gainer.
Markit Economics will announce Wednesday preliminary reading of China's HSBC PMI index for February 2015, indicating the health of China's manufacturing activity for that month.
European indices were trading in the green. US Futures too were trading marginally in the positive.
Greece has unveiled an outline summary of reforms demanded by eurozone leaders in order to secure a bailout extension. The list must be approved by international creditors today to secure a four-month loan extension.