BSE Small-Cap, Mid-Cap indices up 1% each

capital market | Mumbai |

BSE Small-Cap, Mid-Cap indices up 1% each

Intraday volatility continued as key benchmark indices once again recovered from lower level after trimming intraday gains in mid-morning trade. The market breadth indicating the overall health of the market was strong. The barometer index, the S&P BSE Sensex, was currently up 141.29 points or 0.49% at 28,887.94. The BSE Mid-Cap index was up 1%. The BSE Small-Cap index was up 1.02%. Both these indices outperformed the Sensex.

Metal and mining stocks edged higher. Shares of Coal India also edged higher. Auto stocks were also in demand.

The finance ministry will table the Economic Survey for 2014-15 in parliament today, 27 February 2015. Economic Survey reviews the developments in the economy over the previous 12 months, summarizes the performance on major development programmes, and highlights the policy initiatives of the government and the prospects of the economy in the short to medium term.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 2312.15 crore yesterday, 26 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 340.79 crore yesterday, 26 February 2015, as per provisional data.

In the foreign exchange market, the rupee edged lower against the dollar.

Brent crude oil futures edged higher as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices.

In overseas markets, Asian stocks edged lower after a raft of data painting diverging pictures of Japan's economy and amid prospect of a slowdown in Chinese economy. In the US yesterday, 26 February 2015, small-cap companies outperformed large as downbeat economic reports and selling pressure from the energy sector weighed on the benchmark S&P 500 index.

At 11:16 IST, the S&P BSE Sensex was up 141.29 points or 0.49% at 28,887.94. The index jumped 244.75 points at the day's high of 28,991.40 at the onset of the trading session. The index rose 90.41 points at the day's low of 28,837.06 in mid-morning trade.

The CNX Nifty was up 47.75 points or 0.55% at 8,731.60. The index hit a high of 8,758.20 in intraday trade. The index hit a low of 8,717.45 in intraday trade.

The market breadth indicating the overall health of the market was strong on BSE. 1,447 shares gained and 797 shares fell. A total of 85 shares were unchanged.

The BSE Mid-Cap index was up 105.89 points or 1% at 10,722.17. The BSE Small-Cap index was up 114.39 points or 1.02% at 11,278.15. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 1688 crore by 11:15, compared with turnover of Rs 803 crore by 10:15 IST.

Metal stocks edged higher. Hindustan Copper (up 0.98%), National Aluminium Company (up 0.23%), Hindustan Zinc (up 1.39%), and Hindalco Industries (up 2.81%) edged higher.

Among steel stocks, Jindal Steel & Power (up 9.68%), JSW Steel (up 1.32%), Tata Steel (up 1.78%), Steel Authority of India (Sail) (up 2.51%) gained.

Among iron ore miners, Sesa Sterlite (up 3.02%) and NMDC (up 2.41%) rose.

Railway freight rates have been hiked by 0.8% for transport of iron ore and steel from 1 April 2015 after the government rationalized freight rates in the Railway Budget 2015-16 presented in the parliament yesterday, 26 February 2015.

Coal India gained 2.75% to Rs 394.75. The stock hit high of Rs 394.85 and low of Rs 384.40 so far during the day. Railway freight rates have been hiked by 6.3% for coal transport from 1 April 2015 after the government rationalized freight rates in the Railway Budget 2015-16 presented in the parliament yesterday, 26 February 2015.

Auto stocks were in demand. Tata Motors (up 1.02%), Maruti Suzuki India (up 0.35%), and Eicher Motors (up 2.07%), Ashok Leyland (up 1.61%) gained. Among two-wheeler stocks, shares of Bajaj Auto (up 0.44%), Hero MotoCorp (up 1.38%) and TVS Motor Company (up 1.57%) rose.

Mahindra & Mahindra (M&M) rose 1.87%. With respect to media reports titled “Mahindra & Mahindra is in talks with British Aerospace for an alliance, M&M during market hours today, 27 February 2015, clarified that the report is highly speculative in nature and there are no arrangements which the company has entered into.

In a separate announcement, with respect to media reports titled “M&M wants to milk dairy sector; eyes up to Rs. 750 crore buyout,” M&M during market hours today, 27 February 2015, clarified that the article referring to a senior official of the company commenting about the investment size, brand name and supply chain on the sidelines of a CII organized SME summit is incorrect. The contents in the report are very generic in nature and the company will not be in a position to comment on the same, M&M said. Media reports had quoted a senior official of the Mahindra Group firm on 25 February 2015 as saying that the group can invest anything between Rs 150 crore and Rs 750 crore to enter dairy sector.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.805, compared with its close of 61.76 during the previous trading session.

Brent crude oil futures edged higher as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices. Brent for April settlement was up 95 cents at $61 a barrel. The contract had declined $1.58 a barrel or 2.56% to settle at $60.05 a barrel during the previous trading session.

Meanwhile, the stock exchanges have decided to keep the stock market open on tomorrow, 28 February 2015, just like any other normal trading session when the Finance Minister Arun Jaitley presents the first full-fledged Budget of the Narendra Modi government. Trading will start at 9:15 IST and conclude at 15:30 IST. Jaitley will begin his speech at 11:00 IST in Lok Sabha tomorrow, 28 February 2015 as he tables the Union Budget 2015-16 in the parliament.

Analysts will scrutinize measures in the Budget for financing infrastructure projects as well as the government's own capital expenditure on infrastructure for the year ahead. This is the first full fledged Budget of the Narendra Modi government and analysts will look for a roadmap for economic growth for the next few years.

Changes in rates of dividend distribution tax, capital gains tax on sale of shares, Securities Transaction Tax (STT) and Minimum Alternate Tax (MAT), if any, will be closely watched. The dividend distribution tax is currently at 15%. The minimum alternate tax is currently at 18.5% of book profits. Short term capital gains tax on sale of shares is currently at 15% while there is zero long capital gains tax on sale of shares held for a period of more than one year.

Analysts are awaiting further progress on the Goods and Services Tax (GST) during the ongoing Budget session of Parliament after the Constitution Amendment Bill for the introduction of GST was tabled in the Lok Sabha during the winter session of parliament. GST, touted as the single biggest indirect taxation reforms since independence, will simplify and harmonise the indirect tax regime in the country. Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the state level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would be subsumed in GST.

Asian stocks edged lower today, 27 February 2015. Key benchmark indices in South Korea, Indonesia, Singapore and Japan were off 0.01% to 0.08%. Key benchmark indices in Hong Kong and China were up 0.23% to 0.68%. Markets in Taiwan are closed today, 27 February 2015 in observance of Peace Memorial Day.

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, 27 February 2015.

Trading in US index futures indicated that the Dow could fall 9 points at the opening bell today, 27 February 2015. US stocks ended mixed yesterday, 26 February 2015 in another lackluster performance, amid uncertainty about the near-term outlook for the markets.

Investors are now waiting on revised fourth quarter US gross domestic product data due later today, 27 February 2015 for another health check of the world's largest economy.

In economic news, the consumer-price index fell 0.7% in January 2015 from December 2014, the Labor Department said yesterday, 26 February 2015. Prices slipped 0.1% from a year earlier, marking the first year-over-year decline since October 2009. Another data showed that 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.

In Europe, German lawmakers reportedly signaled that they will approve an extension of Greece's bailout with an overwhelming majority in parliament today, 27 February 2015 although many will do so reluctantly amid fears Athens will not deliver on its reform promises. Eurozone finance ministers on Tuesday, 24 February 2015, backed new reforms proposed by Greece in exchange for a four-month financial lifeline that will keep the country afloat and in the single currency for the time being. Several parliaments, including Germany's, must now approve the extension before the current bailout expires tomorrow, 28 February 2015.

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