Firmness continued in morning trade as key benchmark indices retained positive zone after seeing a bout of initial volatility. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit their highest level in more than four weeks. The Sensex was currently up 168.62 points or 0.57% at 29,530.12. The market breadth indicating the overall health of the market was strong.
Global crediting rating agency Standard and Poor's reportedly said today, 2 March 2015, that a relatively heavy general government debt burden and large budgetary subsidies could constrain its sovereign credit ratings on India. The rating agency said that India's budget for 2015/16 highlighted the government's commitment to keeping the fiscal deficit low.
Finance Minister Arun Jaitley provided a thrust on infrastructure sector, sharply increased the government's capital expenditure for 2015-16 and announced a road map for cut in corporate tax rate by five per cent over four years along with phasing out of exemptions when he presented Union Budget 2015-16 in parliament.
Capital goods stocks advanced after the Union Budget 2015-16 announced on Saturday, 28 February 2015, proposed setting up 5 new ultra mega power projects of 4,000 megawatts (MW) each in the plug-and-play mode. Aviation stocks edged lower after jet fuel price was hiked by a steep 8.2% on 1 March 2015.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 614.03 crore on Saturday, 28 February 2015, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 740.74 crore on Saturday, 28 February 2015, as per provisional data. A special live trading session was held on that day due to presentation of the Budget.
In the foreign exchange market, the rupee edged lower against the dollar.
Brent crude oil futures edged lower after previous trading session's sharp rally.
In overseas markets, Asian stocks edged higher today, 2 March 2015, buoyed by an interest rate cut in China.
At 10:19 IST, the S&P BSE Sensex was up 168.62 points or 0.57% at 29,530.12. The index jumped 212.08 points at the day's high of 29,573.58 in morning trade, its highest level since 30 January 2015. The index rose 53.04 points at the day's low of 29,414.54 in early trade.
The CNX Nifty was up 58.10 points or 0.65% at 8,959.95. The index hit a high of 8,970.30 in intraday trade, its highest level since 30 January 2015. The index hit a low of 8,923.30 in intraday trade.
The BSE Mid-Cap index was up 86.74 points or 0.8% at 10,897.59. The BSE Small-Cap index was up 82.51 points or 0.73% at 11,348.95. Both these indices outperformed the Sensex.
The market breadth indicating the overall health of the market was strong. On BSE, 1,272 shares gained and 673 shares fell. A total of 91 shares were unchanged.
Capital goods stocks advanced after the Union Budget 2015-16 announced on Saturday, 28 February 2015, proposed setting up 5 new ultra mega power projects of 4,000 megawatts (MW) each in the plug-and-play mode. L&T (up 2.38%), Bharat Heavy Electricals (up 2.42%), Sadbhav Engineering (up 7.36%), Suzlon Energy (up 2.94%), Siemens (up 1.56%), ABB (up 1.55%), Alstom T&D India (up 1.4%), Crompton Greaves (up 0.31%), and Thermax (up 0.79%) edged higher.
All clearances and linkages will be in place before the project is awarded by a transparent auction system. Similar plug-and-play projects in other infrastructure projects such as roads, ports, rail lines, airports etc will also be considered, Finance Minister Arun Jaitley said in his first full-fledged Union Budget 2015-16 announced on Saturday, 28 Februrary 2015.
Plug and play projects in core infrastructure sectors and to start with 5 UMPP projects will be good for capital goods industry that is hurt by subdued order finalization in domestic market.
Aviation stocks edged lower after jet fuel price was hiked by a steep 8.2% on 1 March 2015. SpiceJet (down 4.56%) and Jet Airways (India) (down 3.19%) edged lower.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was hiked by Rs 3,849.97 per kilolitre, or 8.2%, to Rs 50,363 per kilo litre with effect from midnight of 28 February 2015/1 March 2015.
Eicher Motors rose 2.12% at Rs 16,570. Eicher Motors before market hours today, 2 March 2015, said that the total sales of its subsidiary VE Commercial Vehicles rose 9.2% to 3,100 units in February 2015 over February 2014. Domestic sales rose 9.6% to 2,774 units in February 2015 over February 2014. Exports rose 5.5% to 326 units in February 2015 over February 2014.
Separately, Eicher Motors before market hours today, 2 March 2015 said that its total sales jumped 49% to 30,240 units in February 2015 over February 2014. Exports rose 49% to 749 units in February 2015 over February 2014.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.8375, compared with its close of 61.83 during the previous trading session on Friday, 27 February 2015.
Brent crude oil futures edged lower after previous trading session's sharp rally. Brent for April settlement was off 42 cents at $62.16 a barrel. The contract had jumped $2.53 a barrel or 4.21% to settle at $62.58 a barrel during the previous trading session on Friday, 27 February 2015.
Both the Houses of Parliament will take up the important legislative business of considering the Bills to replace the Ordinances promulgated during the inter-session period in the second week of the ongoing Budget session beginning today, 2 March 2015, Parliamentary Affairs Minister M.Venkaiah Naidu said on Sunday, 1 March 2015. He said that Bills to replace six Ordinances on different issues will be taken up first in the Lok Sabha.
Asian stock markets edged higher today, 2 March 2015, buoyed by an interest rate cut in China. Key indices in China, Japan, Hong Kong, South Korea, and Indonesia were up 0.13% to 0.34%. Key indices in Taiwan and Singapore were off 0.15% to 0.3%.
China's central bank cut benchmark interest rates for the second time in three months as disinflation gives room to step up support for the nation's slowing economy. The People's Bank of China on Saturday, 28 February 2015, cut the benchmark interest rate by 25 basis points (bps) to 5.35% and reduced the benchmark saving rate by a similar margin to 2.5%.
HSBC's final reading of China's manufacturing sector in Febuary came in at 50.7, much higher than the flash reading of 50.1 and the official February reading announced over the weekend, latest data today, 2 March 2015 showed.
Trading in US index futures indicated that the Dow could gain 23 points at the opening bell today, 2 March 2015.
In Europe, German finance minister Wolfgang Schaeuble reportedly softened his hard-line attitude towards Greece, saying its new Left-wing Syriza government needs a bit of time but appears to be able to work towards resolving its debt crisis.
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