Markets May Open Positive Ahead Of Budget Announcement
DSIJ Intelligence / 16 Mar 2012
Indian markets may open positive ahead of the Union Budget 2012-13 announcements expected by noon today. The SGX Nifty is trading up by 24 points at 5429 indicating a gap up opening to markets today.
Opening Bias
Indian markets may open positive ahead of the Union Budget 2012-13 announcements expected by noon today. The SGX Nifty is trading up by 24 points at 5429 indicating a gap up opening to markets today.
| Benchmark Indices | ||
|---|---|---|
| Index | Closing | % Change |
| SENSEX | 17675.85 | -1.36 |
| NIFTY | 5380.50 | -1.53 |
| Dow Jones | 13252.76 | 0.44 |
| S&P 500 | 1402.60 | 0.60 |
| NASDAQ | 3056.37 | 0.51 |
| Bovespa | 67749.50 | -0.74 |
| FTSE | 5940.74 | -0.08 |
| DAX | 7144.45 | 0.92 |
| CAC | 3580.21 | 0.44 |
| LIVE | ||
| Hang Seng | 21393.84 | 0.19 |
| Nikkei | 10134.99 | 0.12 |
| Shanghai | 2388.39 | 0.62 |
With its back against the wall and very little options left to explore, the govt. under normal circumstances would have undertaken some reformist measures to reduce its expenditure, spur up the revenue receipts and put India back on the path of growth. But, given the recent defeat that it received at the state assembly elections of UP, Goa and Punjab, the govt. may be compelled to adopt a more populist approach which would be aimed at salvaging its image in the build-up to the 2014 Lok Sabha elections.
| Key Global Indicators | ||
|---|---|---|
|
| Gold (Rs/10gm) | Crude ($/bbl) |
| Spot | 27150 | 123.43 |
| % change | - | 0.21 |
| Future | 27700 | 105.44 |
| % change | 0.94 | 0.31 |
However, judging by the optimism shown yesterday in the Economic Survey 2011-12, it does give a feeling that the govt. looks very serious to speed up the reforms process, but is being faced by unfavorable hindrances from its allies as well as the opposition. According to the survey, the Indian economy is expected to have grown at 6.9 per cent in 2011-12, but it once again predicted sunny days ahead as it projected GDP to grow at 7.6 per cent in 2012-13 and 8.6 per cent in 2013-14. It suggested that growth would start picking up from the second quarter of FY13 as investment activity and industrial production take center stage. It also highlighted the need to set up mechanisms to facilitate direct transfer of subsidies and de-regulate the subsidized fuel to some extent.
Among the other major developments on the domestic front, the initial numbers for the last installment of advance tax payment by top corporates present a tepid growth in the levy mop-up, with banking and financial institutions leading the pack. The initial list of the payout is dominated by the banking and financial institutions, such as State Bank of India, which paid Rs 1,650 crore this year against Rs 1,500 crore last year, followed by insurance giant LIC, which paid Rs 1011 crore as compared to Rs 971 crore last year. Others who saw a decent jump in their advance tax outgo were IT giant TCS and auto major Tata Motors.
| Currency Rates | ||||
|---|---|---|---|---|
|
| Rs/$ | Rs/Euro | Rs/GBP | Rs100/JYP |
| RBI Rate | 50.2225 | 65.5355 | 78.6384 | 59.9200 |
| Future | 50.5325 | 66.0300 | 79.1800 | 60.6425 |
In conclusion, we expect markets to remain volatile as the finance minister announces the budget by noon today. Our advice to readers is to adopt the wait and watch strategy as these events would turn the markets highly volatile and it’s best not to take any bold positions at such times. For those who wish to play the situation, we recommend the use of F&O strategies.
Stocks In Action
State owned oil companies have hiked jet fuel price by 2%, the second increase in rates this month. The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 1,298.88 per kilolitre (kl), or 2%, to Rs 65,949.34 per kl with effect today. The increase in price comes on back of a 3.2% jump in rates from March 1 on back of firming international oil prices. In Mumbai, ATF will cost Rs 66,989.74 per kl against the current rate of Rs 65,636.74 per kl.
According to press release on the BSE, State-owned Oil and Natural Gas Corp (ONGC) today declared the second interim dividend of 30%, which will net the government over Rs 888 crore. The Board of Directors of the company at its meeting held on March 15, 2012, have approved second interim dividend Rs 1.50 per equity share of Rs 5 each, for the financial year 2011-12. ONGC, which had in January paid the first interim dividend of Rs 6.25 per share, would give the government Rs 888.38 crore by way of the second interim dividend. It had paid a total of Rs 8.75 a share dividend in the previous year.
According to Economic Times, the income-tax department yesterday searched the premises of Lupin Pharma on suspicion of tax evasion. The company has not responded to any email queries on the issue. An IT official however said that the raids were simultaneously carried out at the company’s premises in Goa and Gujarat.
According to Economic Times, SKS Microfinance has received sanctions from lenders to securitize Rs 200 crore worth of its receivables. These Rs 200-crore sanctions from two different entities are SKS’ 10th and 11th securitization transactions after the AP MFI Act.
Corporate Action
| Stocks Paying Dividend (Ex-Date) | ||
|---|---|---|
| Scrip Name | Action | Rs |
| Best Eastern Hot | Interim Dividend | 0.30 |
| Gujarat Gas | Special Dividend | 12 |
| BSE Institutional Turnover | ||||||
|---|---|---|---|---|---|---|
|
| FII | DII | ||||
| Trade Date | Buy | Sales | Net | Buy | Sales | Net |
| 15-Mar-12 | 2,375.95 | 2,219.93 | 156.02 | 809.83 | 1,199.00 | -389.17 |
| 14-Mar-12 | 3,813.19 | 2,153.91 | 1,659.28 | 1,285.06 | 2,142.17 | -857.11 |
| 13-Mar-12 | 2,758.88 | 1,886.20 | 872.68 | 943.46 | 1,377.20 | -433.74 |
| Mar , 12 | 28,643.19 | 23,549.60 | 5,093.59 | 10,314.82 | 12,098.07 | -1,783.25 |
| FII DERIVATIVES STATISTICS FOR 15-Mar-2012 | |||||
|---|---|---|---|---|---|
|
| Buy | Sell | OI (End of day) | Net Position | |
|
| Rs (crore) | Rs (crore) | No. of contracts | Rs (crore) | Rs (crore) |
| Index Futures | 2144.02 | 2646.93 | 561434 | 15169.26 | -502.91 |
| Index Options | 21061.75 | 21122.74 | 1828495 | 49188.72 | -60.99 |
| Stock Futures | 1649.45 | 1914.19 | 1034565 | 30514.84 | -264.74 |
| Stock Options | 981.33 | 972.57 | 62564 | 1830.54 | 8.76 |
| Total | 25836.55 | 26656.44 | 3487058 | 96703.37 | -819.89 |
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