Market off day's high

Volatility continued as the key benchmark indices trimmed gains in mid-morning trade after Finance Minister Arun Jaitley continued to outline various measures in the Union Budget 2015-16 in his speech in parliament. The market breadth indicating the overall health of the market turned negative from positive. The Finance Minister said that the credibility of the Indian economy has been re-established in the last 9 months and said that the government is targeting a reduction of fiscal deficit to 3% of GDP in 3 years. The path of fiscal consolidation is on track, he added. Jaitley began his budget speech in Lok Sabha at 11:00 IST as he tables Union Budget 2015-16 in parliament. The Sensex was currently up 97.61 points or 0.33% at 29,317.73.

Jaitley said that the world is acknowledging that India is rising. Credibility of Indian economy has been re-established, Arun Jaitley said. The Finance Minister said that GDP growth is expected to accelerate to 8% to 8.5% in FY 2015-16 from 7.4% expected in the current year based on new series. Aiming for double-digit growth now seems feasible, he added. Jaitley said that the government is considering upscaling of PSU divestment programme. The government has to aim to making India manufacturing hub, he said. He further said that goods and services (GST) tax is likely to be implemented by April 2016.

Road construction stocks rose after Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015 said that work on building 1 lakh kilometers of roads is in process and will need to build another 1 lakh kilometers of roads. Power generation stocks rose after Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015 said that the government aims to complete electrification by 2020 in villages that are still lacking power.

Due to the major event viz. the Budget, stock exchanges are conducting a live trading session today, 28 February 2015, despite it being a Saturday. Trading began at 9:15 IST and will conclude at 15:30 IST.

Earlier, the Sensex, and the 50-unit CNX Nifty, had, both surged in morning trade and hit their highest level in more than four weeks after Jaitley began his speech in parliament.

At 11:53 IST, the S&P BSE Sensex was up 97.61 points or 0.33% at 29,317.73. The index jumped 303.75 points at the day's high of 29,523.87 in morning trade, its highest level since 30 January 2015.

The CNX Nifty was up 20.60 points or 0.23% at 8,865.20. The index hit a high of 8,930.65 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,855.50 in intraday trade.

The market breadth indicating the overall health of the market turned negative from positive in mid-morning trade. On BSE, 1,188 shares declined and 1,177 shares rose. A total of 97 shares were unchanged.

The BSE Mid-Cap index was off 11.76 points or 0.11% at 10,799.70. The BSE Small-Cap index was off 10.49 points or 0.09% at 11,309.07. Both these indices underperformed the Sensex

The total turnover on BSE amounted to Rs 1608 crore by 11:55 IST, compared with turnover of Rs 1169 crore by 11:15 IST.

Coal India (down 1%), Tata Motors (down 0.88%) and Hindalco Industries (down 0.52%) edged lower from the Sensex pack. Tata Steel (up 1.78%), HDFC (up 1.33%) and Axis Bank (up 1.01%) edged higher from the Sensex pack.

Road construction stocks rose after Finance Minister Arun Jaitley in Union Budget 2015-16 today, 28 February 2015 said that work on building 1 lakh kilometers of roads is in process and will need to build another 1 lakh kilometers of roads. J Kumar Infraprojects (up 2.18%), Hindustan Construction Company (up 1.5%), NCC (up 2.35%), L&T (up 1.43%), IRB Infrastructure & Developers (up 1.97%), and IL&FS Transportation Networks (up 2.78%) gained.

Power generation stocks rose after Finance Minister Arun Jaitley in Union Budget 2015-16 said that the government aims to complete electrification by 2020 in villages that are still lacking power. The Finance Minister also proposed five ultra mega power projects for 4,000 megawatt (MW) each.

GVK Power & Infrastructure (up 1.57%), NHPC (up 1.41%), Adani Power (up 1.74%), Reliance Infrastructure (up 2.29%), NTPC (up 0.41%) edged higher. Tata Power Company (down 0.34%) and Reliance Power (down 0.55%) declined.

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