Market may open flat to slightly higher

Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could gain 4 points at the opening bell.

In overseas markets, Asian stocks were mixed today, 18 June 2015. US stocks inched higher in a choppy session yesterday, 17 June 2015, following the Federal Reserve's policy statements.

Foreign portfolio investors (FPIs) sold shares worth a net Rs 940.91 crore yesterday, 17 June 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 1447.07 crore yesterday, 17 June 2015, as per provisional data.

Among corporate news, NTPC after market house yesterday, 17 June 2015 said that the company has signed an agreement on 15 June 2015 with Jammu and Kashmir State Power Development Corporation (JKSPDCL) for promoting a Joint Venture Company with 67:33 equity participation for undertaking exploration, development and operation of jointly allocated Kudanali-Luburi Coal Block at Odisha by Ministry of Coal.

Tech Mahindra after market house yesterday, 17 June 2015 announced that it is recognized as a Preferred Design House for automotive safety critical applications for the Asia Pacific region by Infineon Technologies Asia Pacific Pte, a leading semiconductor company that offers semiconductor and system solutions addressing three central challenges to modern society: energy efficiency, mobility, and security for automotive, industrial, computing and digital security market segments.

This recognition is also followed by establishment of a Center of Excellence (CoE) where automotive embedded engineering solutions in the area of active safety and passive safety will be developed based on Infineon innovative multicore microcontroller architecture.

Bharti Airtel said after market hours yesterday, 17 June 2015, that the agreements for sale of tower assets in Tanzania and Tchad between the respective subsidiaries of Bharti Airtel and Helios Towers Africa have lapsed and therefore stands terminated. On 9 July 2014 Bharti had said Airtel divested telecoms tower assets to Helios Towers Africa/

Shares of Kotak Mahindra Bank turn ex-dividend today, 18 June 2015 for dividend of Rs 0.90 per share for the year ended 31 March 2015.

Shares of Union Bank of India turn ex-dividend today, 18 June 2015 for dividend of Rs 6 per share for the year ended 31 March 2015.

Shares of power generation companies will be in focus after the government announced at the fag end of the trading session yesterday, 17 June 2015, a sharp increase in India's solar power capacity target under the Jawaharlal Nehru National Solar Mission (JNNSM) by five times, reaching 1,00,000 megawatts (MW) by 2022. The Union Cabinet yesterday, 17 June 2015, approved increase in cumulative targets under National Solar Mission from 20,000 MW to 1,00,000 MW by 2021-22. The target will principally comprise of 40 GW Rooftop and 60 GW through Large and Medium Scale Grid Connected Solar Power Projects. With this ambitious target, India will become one of the largest Green Energy producers in the world, surpassing several developed countries.

The total investment in setting up 100 GW will be around Rs 6 lakh crore. In the first phase, the Government of India is providing Rs 15050 crore as capital subsidy to promote solar capacity addition in the country, according to a government statement. This capital subsidy will be provided for Rooftop Solar projects in various cities and towns, for Viability Gap Funding (VGF) based projects to be developed through the Solar Energy Corporation of India (SECI) and for decentralized generation through small solar projects. The Ministry of New and Renewable Energy (MNRE) intends to achieve the target of 1,00,000 MW with targets under the three schemes of 19,200 MW.

Apart from this, solar power projects with investment of about Rs 90,000 crore would be developed using Bundling mechanism with thermal power. Further investment will come from large Public Sector Undertakings and Independent Power Producers (IPPs). State governments have also come out with state specific solar policies to promote solar capacity addition.

Separately, the Cabinet Committee on Economic Affairs yesterday, 17 June 2015, gave its approval for setting up of over 2,000 megawatts (MW) of Grid-Connected Solar PV Power Projects on Build, Own and Operate basis by Solar Power Developers (SPDs) with Viability Gap Funding (VGF) under Batch-III of Phase-II of the Jawaharlal Nehru National Solar Mission (JNNSM). This would help in creation of additional 2000 MW capacity of grid-connected solar PV power generation projects, according to a government statement.

Meanwhile, finance Minister Arun Jaitley has approved the formation of two separate committees for facilitating implementation of a nationwide Goods and Services Tax (GST) from 1 April 2016. The finance ministry said in a statement issued after trading hours yesterday, 17 June 2015, that progress is underway to finalise various aspects of GST design like business processes, payment systems, matters relating to dual control, threshold, exemptions, place of supply rules and also making of model GST, SGST and IGST laws and rules. A Steering Committee been formed under the co-chairmanship of Additional Secretary, Department of Revenue and Member Secretary, Empowered Committee of State Finance Ministers. This committee will monitor the progress of IT preparedness of Goods and Services Tax Network (GSTN)/CBEC/tax authorities, finalisation of reports of all the Sub-Committees constituted on different aspects relating to the mechanics of GST and drafting of CGST, IGST and SGST laws/rules. The committee will also monitor the progress on consultations with various stakeholders like trade and industry and training of officers.

Another committee has been formed under the chairmanship of the Chief Economic Advisor, Ministry of Finance to recommend possible tax rates under GST that would be consistent with the present level of revenue collection of the Central Government and the state governments. While making recommendations, this committee would take into account expected levels of growth of economy, different levels of compliance and broadening of tax base under GST, the finance ministry said in a statement. This committee would also analyse the sector-wise and state-wise impact of GST on the economy. The committee is expected to give its report within two months.

Meanwhile, the India Meteorological Department (IMD) said in its daily monsoon update issued yesterday, 17 June 2015, that the Southwest Monsoon was active over Marathwada, Vidarbha and Telangana during past 24 hours ending at 0830 hrs. Conditions are favourable for further advance of southwest monsoon into some more parts of Chhattisgarh, Odisha and West Bengal, remaining parts of Coastal Andhra Pradesh and Bay of Bengal during next 2-3 days, the IMD said.

For the country as a whole, the cumulative rainfall during this year's monsoon season was 12% above the Long Period Average (LPA) until 16 June 2015. Region wise, the southwest monsoon was 19% above the LPA in East & Northeast India, 17% above the LPA in Central India, 1% above the LPA in South Peninsula and 5% below the LPA in Northwest India until 16 June 2015.

The June-September southwest monsoon is critical for the country's agriculture because a considerable part of the country's farmland is dependent on the rains for irrigation.

Comments by Central Board of Direct Taxes (CBDT) chairman Anita Kapur that the income tax department would not attempt any coercive recovery of the minimum alternate tax (MAT) demands placed on foreign institutional investors (FIIs) boosted sentiment on the domestic bourses with key benchmark indices registering decent gains yesterday, 17 June 2015. The S&P BSE Sensex rose 146.15 points or 0.55% to settle at 26,832.66, its highest closing level since 10 June 2015.

Asian stocks were mixed today, 18 June 2015. Key benchmark indices in China, Hong Kong, Japan, and Singapore shed by 0.13% to 1.06%. Key benchmark indices in Indonesia, Taiwan and South Korea rose by 0.17% to 0.7%.

China attracted $9.33 billion worth of foreign direct investment in May, up 7.8% from a year earlier, the Ministry of Commerce said today, 18 June 2015. The figure was down from April's $9.61 billion, which was 10.5% higher from a year earlier.

US stocks inched higher in a choppy session yesterday, 17 June 2015, following the Federal Reserve's policy statements.

In a press conference following the end of the Federal Reserve's two-day policy meeting yesterday, 17 June 2015, Fed Chairwoman Janet Yellen said she wanted "more decisive evidence" that labour markets were healing, and that wages would increase beyond their current "subdued pace." Fed Chair Janet Yellen, however, emphasized that the rate decision was still up in the air and rested squarely on further improvement in the labour market - renewing her focus on a longstanding concern.

The US economy is growing moderately after a winter swoon and likely strong enough to support an interest rate increase by the end of the year, but concerns remain over the recovery of the labour market, US Federal Reserve officials reportedly said. With the economy still on track to grow as much as 2% for the year, the central bank's latest policy statement keeps it on track for at least one and perhaps a second rate increase later this year.

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