Wednesday 18 February 2015

Sensex to open on a positive note

Investors may have overall become richer by Rs. 5.5 lakh crore so far this year following the rally in equities.

Bombay-Stock-Exchange-Building

















Investors may have overall become richer by Rs. 5.5 lakh crore so far this year following the rally in equities.  The whole of last year, investors added Rs. 28 lakh crore to their wealth.  Yet, the fear has set in some quarters regarding earnings disappointment and valuations. Global market attention seems to be on Greece these days. After a break-down in talks on Monday, expectations are that Greece will seek an extension to its loan agreement. The extension could be for a period of four to six months to prevent the current rescue deal from expiring at the end of the month, a report stated.

After a break, the indices will look at sticking to their winning ways at least at start. Hero Motocorp could see some swings as it plans to sell $300 million worth of shares today. Suzlon too could see a spurt in volumes following open offer plans by Dilip Shanghvi Family and Associates.  Meanwhile, the Nifty has shown strong resilience, reverting sharply from the lows of 8500 levels (futures). The next major event is undoubtedly the Union Budget and indices may prefer to consolidate in a range of 8650 to 8900 levels (on spot) for the next few trading session accompanied by bouts of volatility. Barring Oil and Gas sector, rest of the sectoral indices have remained positive with banking stocks showing signs of tiredness on the upside. However, FMCG and Pharma stocks continue to remain in traders’ focus.

Global cues are positive. Japanese markets are cheerful powered by a weak yen. The Bank of Japan policy decision is awaited though not much is expected here despite slowing inflation and lackluster consumer spending. Hong Kong's Hang Seng index is also trading higher. The Dow Jones ended flat but is a shy away from its record close. The S&P 500 and Nasdaq too ended on a flat note.

The government is looking to provide clarity over taxation of consortium, a structure commonly used to implement large turnkey projects. This could boost foreign investments in infra sector as taxation of consortium as 'association of persons' emerged as a key roadblock for foreign investors eyeing infrastructure sector, says a report.

The Centre may look to infuse about Rs 18,000 crore into public sector banks next fiscal, more than doubling the allocation from the current fiscal after a number of lenders expressed concerns over their fundraising ability due to lack of support from the government, says a report.

The annual rate of inflation, based on monthly WPI, stood at  -0.39% (provisional) for the month of January, 2015 (over January, 2014) as compared to 0.11% (provisional) for the previous month and 5.11% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was -1.11% compared to a build up rate of 5.23% in the corresponding period of the previous year.

The Associated Chamber of Commerce and Industry of India (ASSOCHAM) said it was time full benefit was taken of the crucial macro advantage accruing to the Indian economy.

Infosys announced a definitive agreement to fully acquire Panaya, Inc., a leading provider of automation technology for large scale enterprise software management, in cash, for an enterprise value of USD 200 mn.This acquisition reflects Infosys' execution of its Renew and New strategy to enhance the competitiveness and productivity of current service lines by leveraging automation , innovation and artificial intelligence. Panaya's CloudQuality suite uniquely positions Infosys to bring automation to several of its service lines via an agile Saas model, and helps mitigate risk, reduce costs and shorten time to market for clients.

Piyush Goyal Union Minister of State (IC) for Power, Coal & New and Renewable Energy in his opening address assured that the Government will make sure that the investments in India will be protected and encouraged. He said for a new investment destination the prerequisite is an atmosphere which makes to do business easier , consistency in policies, bankable contracts and prevalence of rule of law in the country .

The Minister assured the investors that though the Government is pro-poor it understands the problems of business and will act as a facilitator.

Shares of Suzlon Energy hit 20% upper circuit at Rs22 after Sun Pharmaceuticals promoter Dilip Shanghvi and family acquired 23% stake in Suzlon Energy for an equity investment of Rs 1,800 crore.

Shares of Oil Marketing Companies (OMCs) are trading on a buoyant note this morning on the back of fuel price hike.The oil marketing companies have hiked petrol and diesel prices by 82 and 61 paise respectively in Mumbai with effect from today. This is the first price hike since August 2014, after prices of Crude Oil started to slide.

Shares of Unitech gained 11% at Rs18 after company posted Q3 results.The Group has posted a profit after taxes, minority interest and share of profit / (loss) of associates of Rs. 433.380 million for the quarter ended December 31, 2014 as compared to Rs. 328.257 mn for the quarter ended December 31, 2013.

Shares of HDIL surged 6% at Rs117 after company posted Q3 results. Consolidated Profit before Tax was at 24.12% approximately, at Rs.86.71 crores.

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