Key benchmark indices could rise today, 16 February 2015. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 6.50 points at the opening bell.
The stock market remains closed tomorrow, 17 February 2015, on account of Mahashivratri.
Among corporate news, shares of public sector oil marketing companies (PSU OMCs) will be in focus after petrol price was hiked by Rs 0.82 a litre and diesel by Rs 0.61 in Delhi with corresponding increase in other states. The petrol and diesel price hike, which was effective from midnight of Sunday, 15 February 2015, is the first increase since August 2014 and follows firming of oil prices in the international market. PSU OMCs review fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
ONGC's net profit fell 49.88% to Rs 3571.20 crore on 13.66% decline in total income to Rs 20302.02 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015. The impact on ONGC's gross revenue due to subsidy burden declined 31.28% to Rs 9458 crore in Q3 December 2014 over Q3 December 2013. The impact on profit after tax (PAT) declined 29.58% to Rs 5386 crore in Q3 December 2014 over Q3 December 2013.
Sun Pharmaceutical Industries' (Sun Pharma) consolidated net profit fell 6.92% to Rs 1425.07 crore on 1.91% decline in total income to Rs 4361.85 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.
HDFC Bank's net profit rose 20.2% to Rs 2794.50 crore on 21.4% growth in net revenue (net interest income plus other income) to Rs 8234.80 crore in Q3 December 2014 over Q3 December 2013. The result was announced on Saturday, 14 February 2015.
HDFC Bank's net interest income rose 23% to Rs 5699.90 crore in Q3 December 2014 over Q3 December 2013. Net interest margin (NIM) improved to 4.4% in Q3 December 2014, from 4.2% in Q3 December 2013.
The bank's other income (non-interest revenue) rose 18% to Rs 2534.90 crore in Q3 December 2014 over Q3 December 2013.
HDFC Bank's gross non-performing assets (NPAs) were at 0.99% of gross advances as on 31 December 2014, as against 1.02% as on 30 September 2014 and 1.01% as on 31 December 2013. Net NPAs were at 0.26% of net advances as on 31 December 2014. Total restructured loans (including applications under process for restructuring) were at 0.1% of gross advances as of 31 December 2014 as against 0.2% as of 31 December 2013.
Provisions and contingencies rose 44.13% to Rs 560.40 crore in Q3 December 2014 over Q3 December 2013.
HDFC Bank's current account and savings account (CASA) mix was 40.9% as on 31 December 2014.
The bank's total Capital Adequacy Ratio (CAR) as per Basel III guidelines as at 31 December 2014 stood at 15.7% as against a regulatory requirement of 9%. Of this, Tier-I CAR was 11.97%.
HDFC Bank had on 5 February 2015 made concurrent Qualified Institutions Placement (QIP) of 1.87 crore equity shares at Rs 1,067 per equity share and a public offering of 2.20 crore American Depository Shares (ADSs), each representing three equity shares, at a price of $57.76 per ADS. The aggregate funds received from these issuances were Rs 9766 crore, HDFC Bank said.
Eicher Motors' consolidated net profit surged 59.76% to Rs 153.77 crore on 36.29% growth in total income to Rs 2308.86 crore in Q4 December 2014 over Q4 December 2013. The result was announced after market hours on Friday, 13 February 2015.
Eicher Motors' consolidated net profit jumped 56.2% to Rs 615.36 crore on 28.1% growth in total income to Rs 8845.76 crore in the year ended 31 December 2014 over the year ended 31 December 2013.
Eicher Motors' board of directors at its meeting held on Friday, 13 February 2015, changed the financial year of the company from January-December to April-March. Accordingly, the current financial year of the company will be of a period of fifteen months commencing on 1 January 2015 and ending on 31 March 2016.
In terms of RBI Circular dated 19 March 2012, Eicher Motors said that its board of directors on Friday, 13 February 2015, approved a proposal to increase the aggregate foreign institutional investment limit, under the portfolio investment scheme, to 49% of the company's total paid up share capital subject to the approval of shareholders by special resolution.
Eicher Motors' board of directors recommended dividend of Rs 50 per share for the year ended 31 December 2014.
Rural Electrification Corporation's (REC) net profit rose 12.39% to Rs 1379.83 crore on 19.04% growth in total income to Rs 5244.32 crore in Q3 December 2014 over Q3 December 2013. The result was announced after market hours on Friday, 13 February 2015. REC's board of directors at its meeting held on Friday, 13 February 2015, declared payment of interim dividend of Rs 8 per share for the year ending 31 March 2015. The record date for the purpose of payment of interim dividend is 20 February 2015.
Reliance Communications' consolidated net profit rose 31% to Rs 201 crore on 1.2% growth in revenue to Rs 5469 crore in Q3 December 2014 over Q2 September 2014. The result was announced after market hours on Friday, 13 February 2015.
The company's consolidated EBITDA (earnings before interest, taxation, depreciation, and amortization) rose 1.3% to Rs 1851 crore in Q3 December 2014 over Q2 September 2014. EBITDA margin of 33.8% maintained at the same level as Q2 September 2014, the company said in a statement.
Revenue from India operations rose 2.5% to Rs 4799 crore in Q3 December 2014 over Q2 September 2014. Revenue from global operations rose 23% to Rs 1236 crore in Q3 December 2014 over Q2 September 2014.
Exports during January, 2015 were valued at $23883.60 million (Rs 148617.82 crore) which was 11.19% lower in dollar terms (10.97% lower in rupee terms) than the level of $26891.58 million (Rs 166932.15 crore) during January 2014. Cumulative value of exports for the period April-January 2014-15 was $265037.38 million (Rs 1613789.24 crore) as against $258721.45 million (Rs 1562119.12 crore) registering a growth of 2.44% in dollar terms and growth of 3.31% in rupee terms over the same period last year.
Imports during January 2015 were valued at $32205.63 million (Rs 200402.44 crore) which was 11.39% lower in dollar terms and 11.18% lower in rupee terms over the level of imports valued at $36346.32 million (Rs 225623.44 crore) in January 2014. Cumulative value of imports for the period April-January 2014-15 was $383411.33 million (Rs 2334685.06 crore) as against $375253.67 million (Rs 2253984.83 crore) registering a growth of 2.17% in dollar terms and growth of 3.58% in rupee terms over the same period last year.
The trade deficit for April-January 2014-15 was estimated at $118373.95 million which was higher than the deficit of $116532.22 million during April-January 2013-14.
The rate of inflation based on the wholesale price index (WPI) is seen accelerating to 0.4% in January 2015 from 0.1% in December 2014, as per the median estimate of a poll of economists carried out by Capital Market. The government will unveil WPI data for January 2015 at 12.10 noon today, 16 February 2015.
The next major event for the financial markets is Union Budget for 2015-16. Finance Minister Arun Jaitley will present Union Budget 2015-16 in Parliament on 28 February 2015. 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.
The upcoming Budget session of the parliament assumes utmost importance as the government intends to replace the ordinances it had promulgated after the conclusion of the winter session of the parliament with Bills and get them cleared by both Houses of Parliament during the budget session. The Narendra Modi government promulgated a slew of ordinances after the last session of Parliament. Some of the key ordinances include raising the FDI in the insurance sector from 26% to 49%, e-auctioning of coal mines and amendment to the Land Acquisition Act.
The government has already kickstarted the process of coal block e-auction for captive mining. The Coal Mines (Special Provisions) Bill that was moved to replace an ordinance issued earlier was passed by the Lok Sabha in the winter session but it could not be taken up in the Rajya Sabha. The government promulgated the Coal Mines (Special Provisions) Ordinance, 2014, in October to facilitate coal block auctions after the Supreme Court cancelled 204 coal blocks in September.
Through another ordinance, the government has raised the ceiling on foreign investment in the insurance sector to 49% from 26%. The government was unable to get the Insurance Laws (Amendment) Bill, 2008, passed in parliament during the winter session.
Amendments to the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 were brought in via an ordinance after the winter session of the parliament.
Analysts are also awaiting further progress on the Goods and Services Tax (GST) in the Budget session 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.
Key benchmark indices surged on Friday, 13 February 2015, on positive cues from Asian and European markets. The S&P BSE Sensex rose 289.83 points or 1.01% to settle at 29,094.93, its highest closing level since 2 February 2015.
Foreign portfolio investors bought shares worth a net Rs 390.26 crore on Friday, 13 February 2015, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 95.82 crore on Friday, 13 February 2015, as per provisional data released by the stock exchanges.
Asian markets edged higher today, 16 February 2015, with Japanese shares charging up to an 8-year high. Key benchmark indices in China, Hong Kong, Indonesia, Japan, Singapore and South Korea were up by 0.04% to 0.66%.
Data showed China's foreign direct investment surged in January. China attracted $13.92 billion of foreign direct investment in January, up 29.4% from a year earlier, the Ministry of Commerce said today. The figure was above December's $13.32 billion, which was 10.3% higher than a year earlier. Chinese investments overseas reached $10.17 billion in the first month of the year, up 40.6% from a year ago, according to the ministry. It didn't say whether this included financial investments, which are normally calculated separately.
Japan managed to pull out of recession in the last quarter of last year, data out Monday morning showed, though the growth proved to be less than what many economists has suspected. The first read of Japan's gross domestic product for the October-December period indicated growth at a 2.2% annualized rate, or 0.6% on a quarterly basis. Likewise, the deflator for the quarter rose to 2.3% compared to 2.0% in July-September.
US stocks rose on Friday, 13 February 2015, boosted by a positive lead from European markets, including upbeat eurozone GDP data and optimistic signs regarding Greek debt negotiations. The Dow Jones Industrial Averages closed above 18,000 points for the first time in 2015 and the S&P 500 reported a new all-time closing high.
However, the buying interest was partly offset by the release of a report from the University of Michigan showing a sharp pullback in US consumer sentiment in the month of February. The University of Michigan said its preliminary consumer sentiment index for February tumbled to 93.6 from the final January reading of 98.1.
In Europe, Greece and its international creditors held talks on Friday, 13 February 2015, on reforms needed to keep the country financed. The talks are said to increase the possibility of reaching an interim compromise deal at another euro-zone finance ministers meeting today, 16 February 2015.
The talks between eurozone finance ministers and Greece are key, because they are the last moment for the new Greek government to ask for a technical extension of the current bailout program, which expires on 28 February 2015.
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