Sensex up 473 points ahead of Union Budget; Nifty above 8800
27 February 2015
It was a fantastic Friday on Dalal Street as the bulls staged a come back just before the Union Budget. Banks, capital goods and auto stocks led the benchmarks higher whereas only FMCG was under pressure.
The 30-share BSE Sensex spiked 473.47 points or 1.65 percent to 29220.12 and the 50-share NSE Nifty jumped 160.75 points or 1.85 percent to 8844.60.
After having seen a pragmatic & a transformational railway budget, yesterday and painting an optimistic picture by the Macro-Economic Survey (for 2014-15) today, expectations raised from the Union Budget, say experts.
Finance Minister will be presented his Union Budget (FY16) speech on Saturday. The stock market will remain open tomorrow but bond markets will be shut.
Pratik Gupta of Deutsche Equities feels Union Budget will be growth oriented like the Rail Budget was. He expects much higher allocation to banks for recapitalization and says fiscal consolidation will remain a key. He also says the brokerage will buy Indian markets on every dip.
The Macro-Economic Survey for FY15 painted an optimistic picture says India has reached a sweet spot and there is scope for big bang reforms now. FY16 GDP growth is estimated at 8.1-8.5 percent. Economic Survey also says the government will adhere to a fiscal deficit target of 4.1 percent of GDP in FY15.
It also opens up space for the Reserve Bank of India to cut interest rates. Coupled with the forecast of a normal monsoon, this is likely to boost growth in the coming financial year.
''The investing community was clearly encouraged by the Economic Survey which pointed out that the current macroeconomic scenario in India is more favorable than in other economies,'' says Devang Mehta, Senior VP & Head - Equity Advisory, Anand Rathi Financial Services.
Meanwhile, Prime Minister Narendra Modi says the government is ready to change Land Acquisition Bill if it is proved anti-farmer. He urged opposition to support Land Bill.
He also says the government has cracked down on black money by successfully seeking information from Swiss authorities. He claims that the coal auction will raise more money than Comptroller and Auditor General of India's (CAG) estimated loss figure. He assures parliament that the fund flow will not stop to the UPA's flagship NREGA scheme.
Telecom Regulatory Authority of India (TRAI) issued draft amendment to telecom tariff order 1999 for tariff revision. TRAI intends to reduce ceiling tariffs for national roaming services.
Stocks in Action
All sectoral indices except FMCG closed in green. BSE Realty and Capital Goods topped the buying list, up 4 percent each. Auto, Bank, Metal and Power indices gained 2-3 percent.
Tata Power was the biggest gainer on Sensex, up 5.4 percent followed by Larsen and Toubro with 4.7 percent upside after defence ministry shortlisted a consortium of Tata Power-Strategic Electronics Division (SED) and L&T for the battlefield management project.
The consortium of Rolta and Bharat Electronics also shortlisted for a Rs 50,000 crore mega defence order. Rolta rallied 18.7 percent and BEL was up 3 percent.
Among bluechips, ICICI Bank was the biggest contributor to Nifty's gain, up 4 percent. State Bank of India gained 3.6 percent while its rivals HDFC Bank and Axis Bank were up 1.4 percent and 2.7 percent, respectively.
Sesa Sterlite, Tata Motors, Maruti Suzuki, Mahindra & Mahindra, NTPC, Hindalco, Coal India and BHEL gained 2-4 percent.
However, ITC lost 0.5 percent on fears of excise duty hike on cigarettes. GAIL fell 1 percent.
The broader markets too rallied in line with benchmarks. The BSE Midcap climbed 1.8 percent and Smallcap was up 1.4 percent. Advancing shares outnumbered declining ones on the Bombay Stock Exchange by 1821 to 1063.
On the global front, European markets were quiet in trade ahead of the second reading of the US Q4 GDP numbers today. Most Asian markets closed on a cautious note with the Kospi, Hang Seng and Straits Times registering minor declines. Oil staged a rebound after yesterday's rout with Brent crude trading above USD 61 a barrel.
3:30 pm Market closing: It was a super run up to the Budget as bulls seem excited ahead of FM arun Jaitley's speech tomorrow. The Sensex was up 473.47 points or 1.6 percent at 29220.12,and the Nifty ended 160.75 points or 1.8 percent at 8844.60. About 1817 shares have advanced, 1065 shares declined, and 204 shares are unchanged.
PSU banks lead the upmove while HDFC Bank twins, ICICI Bank and Axis Bank were top gainers in the Sensex. Among the losers were ITC, GAIL, Wipro and HUL.
3:28 pm Market Expert: "After having seen a pragmatic & a transformational Railway Budget which laid down a vision for modernization/up gradation of overall rail infrastructure & enhancement of customer experience, which was beyond the announcement of new trains, the investing community was clearly encouraged by the Economic Survey which pointed out that the current macroeconomic scenario in India is more favorable than in other economies," says Devang Mehta, Senior VP & Head - Equity Advisory at Anand Rathi Financial Services.
"India has reached a sweet spot and that there is a scope for Big Bang reforms now. It also opens up space for the Reserve Bank of India to cut interest rates. Coupled with the forecast of a normal monsoon, this is likely to boost growth in the coming financial year. This also raises the expectations from the Union Budget due to be presented tomorrow," he adds.
3:25 pm Market extends gains: Realty and PSU banks led the market upmove today with the BSE Realty Index rising over 4 percent. All sectoral indices except FMCG are trading in green.
ICICI Bank and L&T are top contributors to Nifty's gain.
3:21 pm Clean Energy: India's renewable energy industry is likely to generate business opportunities worth $160 billion in the next five years, the Economic Survey said on Friday, the day before a budget that is set to boost clean energy funding.
Prime Minister Narendra Modi is banking on renewables to fight climate change rather than committing to emission cuts like China. He has set ambitious clean-energy targets including raising solar capacity fivefold to 100 gigawatts (GW) by 2022.
"It offers a very good opportunity for businesses to set and scale up industry, leapfrog technologies and create volumes," the economic survey report said.
The report, authored by the government's chief economic adviser, Arvind Subramanian, said "immediate plans" include scaling up total renewable capacity to 170 GW from 33.8 GW.
U.S.-based SunEdison and First Solar have already said they would build more than 20,000 megawatts of clean energy capacity in India by 2022.
3:18 pm Chief Economic Advisor says: Economic Survey was written without being constrained by politics. According to advisor, the big picture today is that India is in a sweet spot.
3:14 pm Market Extends gains: The Sensex is up 488.65 points or 1.70 percent at 29235.30, and the Nifty up 166.90 points or 1.92 percent at 8850.75.
3:10 pm TRAI says: Telecom Regulatory Authority of India (TRAI) issues draft amendment to telecom tariff order 1999 for tariff revision. TRAI intends to reduce ceiling tariffs for national roaming services.
TRAI proposes ceiling tariff of 65 paise per minute for outgoing local calls, ceiling tariff of Re 1 per minute for outgoing inter-circle call.
The regulator proposes ceiling tariff of 45 paise per minute for incoming roaming calls. It proposes ceiling tariff of 20 paise per SMS for outgoing local SMS and 25 paise per SMS for outgoing inter-circle SMS.
3:06 pm PM Modi says: The Government is ready to change Land Bill if it is proved anti-farmer, says PM, adding, "We can make changes to Land Acquisition in interest of farmers."
The Government has altered Land Acquisition Bill based on demands of chief ministers. PM Modi urged opposition to support Land Bill.
3:04pm Expert on Economic Survey: The Economic Survey indicates much larger fiscal headroom becoming available to the Government on account of expected growth in the economy, lower oil prices and better targeting of subsidies, says Ranen Banerjee Partner - Public Finance and Urban Development, PwC India.
The Finance Commission Report, Railway Budget and now the Economic Survey convey a lot of confidence among the policy makers, he adds.
PwC expects that the Finance Minister will be able to reverse the decline in gross capital formation and also give further push to local consumption by leaving more money in the hands of the taxable population in his first full year budget.
3:00 pm Market Update: Buying interest continued in the market. The Sensex shot up 411.47 points or 1.43 percent to 29158.12 and the Nifty climbed 143.05 points or 1.65 percent to 8826.90 while the BSE Midcap gained 1.5 percent and Smallcap rose 1.23 percent.
Advancing shares outnumbered declining ones on the Bombay Stock Exchange by a ratio of 1735 to 1067 on the BSE.
Tata Power, Bank of Baroda and JSPL topped the buying list on Sensex, up 5 percent each followed by Larsen & Toubro, Sesa Sterlite, ICICI Bank, SBI, NMDC and IDFC with 3.5-4.5 percent.
2:50 pm Interview: "Housing for all should be demand booster for sanitation industry, says Cera Sanitaryware. The management told CNBC-TV18 that there are no orders from government yet, but the company is seeing enquiries from corporates who want to build toilets for CSR (corporate social responsibility).
Margins from orders for low cost housing will be lower than other products, it adds.
2:49 pm Expert on Economic Survey: ''Economic Survey rightly highlights the need for big bang reforms and focus on investment cycle to revive to economy," says Rajat Rajgarhia,MD - Institutional Equities at Motilal Oswal Securities.
The Economic Survey also highlights the need for fiscal consolidation and delivering the subsidies in a proper manner so it meets the purpose, he adds.
"With inflation below target levels and space for monetary easing, the Budget can well lay out clear roadmap to accelerate the growth momentum for India. Investors across the globe are looking at this event with lot of interest and will surely have a favorable view, once the Budget lays out the growth agenda," Rajgarhia says.
2:47 pm PM Modi says: Government believes in optimum utilisation of infrastructure. Have prevailed on black money issue in G20. Nobody will be shielded in black money probe.
2:42 pm Economic Survey: The Economic Survey 2014-15 has recommended that private investment must remain primary engine of the economy's long-term growth. It expects growth to be boosted from FY17 onwards once the Goods and Services Tax is implemented.
It said that greater public investment in Railways will boost manufacturing competitiveness. The Rail Budget has hiked its Plan outlay for FY16 by 52 percent to Rs 1 lakh crore and set a capex target of Rs 8.5 lakh crore over the next five years. The Survey expects liquidity conditions in FY16 to remain comfortable and said that lower inflation has opened up space for reduction in interest rates.
2:37 pm Brokerage view: Deutsche Bank has buy rating on Jubilant Foodworks with a target of Rs 1850 per share. Bedrock of longstanding positive view on Jub Food is from higher operating leverage resulting in a 53 percent earnings CAGR over FY15-17E forms.
2:32 pm Economic Survey: Indian firms mopped up Rs 2.81 lakh crore from the markets during April-December period of the ongoing fiscal, with debt emerging as the most preferred route to garner funds for business needs, says the Economic Survey 2014-15. The trends remained sluggish in the primary stock market ' where the companies raise funds through the sale of shares via instruments like IPOs and FPOs ' despite a bullish equity market. It has been private placement of corporate bonds that was used the most to meet funding requirements of businesses during April-December period of the current fiscal (2014-15).
2:27 pm Gainers & losers: Tata Power is up 5.5 percent, L&T, ICICI Bnak, SBI and Sesa Sterlite are top gainers in the Sensex. Among the losers are ITC, GAIL, Wipro, TCS and HUL.
2:20 pm PM Modi says: Have raised over Rs 1 lakh crore from coal block auctions so far. Land acquisition ordinance is not anti-farmer. MNREGA will stay and we will take it forward.
2:15 pm PM Modi says: The nation has progressed due to efforts of every govt. Corruption remains an issue of concern.
2:10 pm PM Modi addresses Lok Sabha ahead of Budget. He says issue is about development, not about names of schemes. Stressing on Swach Bharat campaign, the PM also adds that cleanliness is key issue, need to address the root problem.
It's a terrific day on Dalal Street as the market is enthused by the Economic Survey and government's commitment to fiscal consolidation. The Nifty scored a century hitting 8800 while the Sensex rose more than 400 points.
The Macro-Economic Survey for FY15 painted an optimistic picture says India has reached a sweet spot and there is scope for big bang reforms now. FY16 GDP growth is seen at 8.1-8.5 percent. Economic Survey says the government will adhere to a fiscal deficit target of 4.1 percent of GDP in FY15.
The Sensex climbed up 401.94 points or 1.40 percent to 29148.59 and the Nifty rose 130.40 points or 1.50 percent to 8814.25. About 1713 shares have advanced, 989 shares declined, and 199 shares are unchanged on the BSE.
The market will have special trading session on Saturday for Union Budget FY16.
Pratik Gupta of Deutsche Equities says Union Budget will be growth oriented like the Rail Budget was. He expects much higher allocation to banks for recapitalisation. He also says the brokerage will buy Indian markets on every dip.
Shares of ICICI Bank, L&T, Sesa Sterlite, Tata Power, Tata Motors, SBI and Hindalco topped the buying list on Sensex, up 3-5 percent.
Global markets are quietly positive. China closed with gains of more than 0.3 percent while European markets too traded in the green. Investors are closely watching the second reading of the US Q4 GDP numbers later today. Analysts expect US GDP growth of 2.1 percent after 3.9 percent in third quarter.
1:55 pm Economic Survey: India ranks lower than most BRICS nations in terms of innovation despite logging a double digit growth in the Research and Development (R&D) sector in the past few years, says the Economic Survey 2014-15. "According to the Global Competitiveness Report 2014-15, India's capacity for innovation has been lower than that of many countries like the US, UK, South Korea, and even other BRICS countries (Brazil, Russia, India, China, and South Africa) except Russia," the Survey said. The report ranked India 48th in terms of innovation with score of 4, compared to China's ranking at 40 (score 4.2) and Brazil 44 (score 4.1).
1:50 pm Market flex muscles: The Sensex is up 401.94 points or 1.4 percent at 29148.59, and the Nifty is up 130.40 points or 1.5 percent at 8814.25. About 1715 shares have advanced, 987 shares declined, and 199 shares are unchanged.
1:40 pm Economic Survey: The rate of stalling of projects has reduced over the last three quarters, said the Economic Survey. Stall projects accounted for 7 percent of GDP in the December quarter, compared with 8.3 percent during the same period last year. The key now was to revive public investment to grow infrastructure, the Survey said. It said, the revival of interest by private players and banks in public private partnership (PPP) would require a review of contracts. It said the risk in PPP model should be transferred to those who can manage it.
1:30 pm Reaction to Economic Survey: Siddhartha Sanyal, Chief India Economist, Barclays says there is a lot of foreign institutional investor (FII) interest in fixed income instruments and the government should launch these soon in order to pool in significant capital.
In an interview to CNBC-TV18, Sanyal says areas like defence and railways can get a lot of capital by means of bonds.
Furthermore, Sanyal expects the real growth rate for FY16 to be at 7.8 percent; WPI inflation at 3 percent and revenue growth in the low teens.
1:22 pm Market check: The Sensex is up 361.58 points or 1 percent at 29108.23 and the Nifty is up 122.60 points or 1 percent at 8806.45. About 1683 shares have advanced, 982 shares declined, and 198 shares are unchanged.
1:15 pm Market outlook: The expectations from the Union Budget 2015-16 have come off slightly in the past few days, says Pratik Gupta, head of equities, Deutsche Bank. Speaking to CNBC-TV18, Gupta says the Union Budget is expected to be growth-oriented, just like the Railway Budget, but long-term investors are more worried about the pending legislations. However, investors are positive on the Indian equity market given the global backdrop, commodity prices and flow of funds. ''So, we would recommend buying the Indian market on every dip. India will see a good recovery though the timing of the recovery is not clear,'' he adds.
The market is gearing up with full gusto ahead of Union Budget as the government projected an impressive FY16 GDP growth target. According to Economic Survey, FY16 GDP growth is seen at 8.1-8.5 percent. The Sensex is up 338.88 points or 1 percent at 29085.53 and the Nifty is up 113.60 points or 1 percent at 8797.45. About 1659 shares have advanced, 972 shares declined, and 190 shares are unchanged.
Tata Power, L&T, Hindalco, ICICI Bank and Sesa are top gainers in the Sensex. Among the losers are ITC, GAIL, Wipro, TCS and HDFC.
Crude oil futures rebounded on Friday, with Brent heading for its biggest monthly gain since May 2009, as supply outages in the North Sea and renewed fears of gas supply disruption in Europe supported prices. A reduction in rig counts and expectations for better oil demand have helped Brent prices rise by around 15 percent so far this month from January's close of $52.99.
US crude is also on course for its first monthly rise in eight, but with a more modest gain of about 1.3 percent.
01:00pm The market extended southward journey after the government promised to keep the fiscal deficit target at 4.1 percent for FY15. The Sensex rose 318.35 points or 1.11 percent to 29065.00 and the Nifty jumped 106.60 points or 1.23 percent to 8790.45.
About 1652 shares have advanced, 972 shares declined, and 188 shares are unchanged on the BSE.
12:59pm Divestment is expected to bring in revenue in balance part of FY15. The government must meet medium-term fiscal gap aim of 3 percent of GDP.
Government started revenue mobilisation & augmentation efforts and expects surge in revenue from spectrum sale.
Enhanced revenue generation is a priority going forward. Eliminating or phasing down subsidy not feasible, desirable, says Economic Survey.
12:55pm Likely normal monsoon will help boost FY16 economic growth.
12:52pm Economic Survey: Stalling of projects is severely affecting the balance sheets of the corporate sector and public sector banks, which in turn is constraining future private investment, completing a vicious circle, characterised by an investment slowdown leading to less financing back to weak investment.
Despite high rates of stalling, and weak balance sheets, the equity market seems to be performing quite well. A plausible hypothesis being that equity valuations of affected companies are not being sufficiently priced in. Through an event study we show that the stalling of projects is indeed not having a significant impact on firm equity. This may potentially be due to the pure political economy reason that the market is internalising the expectations of bailouts.
12:50pm Economic Survey: The data shows that manufacturing and infrastructure dominate in the private sector, and manufacturing dominates in total value of stalled projects even over infrastructure.
The government's stalled projects are predominantly in infrastructure. Unfavourable market conditions (and not regulatory clearances) are stalling a large number of projects in the private sector, and in contrast regulatory reasons explain bulk of stalling in the public sector. Also, clearing the top 100 stalled projects will address 83 percent of the problem of stalled projects by value.
12:49pm Economic Survey: The stalling rate of projects has been increasing at an alarmingly high rate in the last five years, and the rate is much higher in the private sector.
The good news is that the rate of stalling seems to have plateaued in the last three quarters. Moreover, the stock of stalled projects has come down to about 7 percent of the GDP at the end of the third quarter of 2014-15 from 8.3 percent the previous year.
12:48pm PSU Banks in focus: The government approved a new method to select PSU bank chiefs. For the first time, non-governmental candidates with minimum of 15 years experience can apply. Top jobs at 5 state-run banks are up for grabs.
12:47pm Buzzing: Rolta and BEL surged 5-12 percent today as a consortium which includes both companies is shortlisted for a Rs 50,000 crore mega defence order.
12:46pm Economic Survey says greater public investment in railway will boost manufacturing competitiveness, adding private investment must remain primary engine of long-term growth in India.
It expects food subsidy to total Rs 1.08 lakh crore in FY15.
12:43pm Economic Survey says excise hike in fuel products will increase revenue going forward.
"Growth will gather pace in FY17 following GST implementation. Liquidity conditions are expected to remain comfortable in FY16," it adds.
12:41pm The Sensex rose 247.08 points or 0.86 percent to 28993.73 and the Nifty climbed 84 points or 0.97 percent to 8767.85.
About 1624 shares have advanced, 943 shares declined, and 193 shares are unchanged.
12:40pm The government needs medium/long-term fiscal policy framework. According to Economic Survey, inflation is likely to be below RBI target by 0.5-1 percent.
Lower inflation opens up space for monetary policy easing, it adds.
12:34pm Highway projects should shift to e-tolling, escrow accounts. Economic survey recommends revival of public investment in short-term to grow infra. Stalling rate of projects rose at alarming rate over last 5 years.
12:29pm Government needs modification in PPP model. It should transfer risk in PPP to those who can manage it. Efforts are needed to reform direct tax system. PPP financing structure should attract pension/insurance funds.
12:26pm Government needs to monitor risks from US monetary policy easing and needs to monitor risks from Eurozone turmoil.
12:23pm Divestment is expected to bring in revenue in balance part of FY15. Rationalisation of food subsidies needs more effort, says Economic Survey, adding rationalisation of non-plan expenditure will play vital role.
Expenditure compression may have to be made for fiscal.
12:20pm Savings-investment dynamics will be crucial for growth, says the government in Economic Survey. Government should ensure expenditure control to reduce fiscal deficit that has been retained at 4.1 percent for FY15.
Outlook for external financing is currently favourable and decline in oil prices provides incentive for overall growth, says Economic Survey.
12:17pm The government sees FY16 retail inflation in range of 5-5.5 percent and says will adhere to fiscal deficit target of 4.1 percent of GDP in FY15.
It estimates current account deficit at 1.3 percent of GDP in FY15.
12:15pm In its Economic Survey 2014-15, the government says it remains committed to fiscal consolidation. According to them, outlook for domestic macro-economic scenario is optimistic.
12:10pm According to Economic Survey 2014-15, savings-investment dynamics will be crucial for growth. The government sees FY15 GDP growth at 7.4 percent and FY16 growth at 8.1-8.5 percent.
12:05pm Economic survey says inflation shows declining trend during FY15. "There is scope for big bang reforms now. India farm output growth is likely to lag behind 4 percent aim and double-digit economic growth trajectory is now a possibility," it adds.
12:00pm Market Check: It's a strong session on Dalal Street. Equity benchmarks bounced back from yesterday's lows as investors await the macro economic survey from the government.
The 30-share BSE Sensex rose 229.79 points to 28976.44 and the 50-share NSE Nifty climbed 83.15 points to 8767. The broader markets outperformed benchmarks, up more than one percent.
About 1565 shares have advanced, 892 shares declined, and 179 shares are unchanged on the BSE.
The government presented Economic Survey 2014-15 in parliament. The government says it remains committed to fiscal consolidation.
11:55 am Buzzing: Shares of DLF fell 2 percent intraday after market watch dog Securities and Exchange Board of India (SEBI) has slapped fines amounting to Rs 86 crore. In the biggest-ever penalty in a single case, the market regulator imposed a penalty on DLF, its top executives, their family members and various other related entities for entering into "sham transactions" to mislead IPO investors about eight years ago. Those penalised include Chairman KP Singh, his son and Vice Chairman Rajiv Singh, daughter Pia Singh, as also three "housewives" married to 'key management personnel' of the DLF group for "fraudulent and unfair trade practices".
11:45 am Market outlook: The expectations from the Union Budget 2015-16 have come off slightly in the past few days, says Pratik Gupta, head of equities, Deutsche Bank. Speaking to CNBC-TV18, Gupta says the Union Budget is expected to be growth-oriented, just like the Railway Budget, but long-term investors are more worried about the pending legislations. However, investors are positive on the Indian equity market given the global backdrop, commodity prices and flow of funds. ''So, we would recommend buying the Indian market on every dip. India will see a good recovery though the timing of the recovery is not clear,'' he adds.
11:30 am Defence deal: With the current government's focus on defence programme, the ministry has awarded battlefield management system (BMS) development contracts worth Rs 50,000 crore to two consortiums. One comprises of BEL and Rolta India and the ot her consortium includes the Tata Power SED and Larsen and Toubro Defence. According to KK Singh, CMD of Rolta India, the government is moving really fast and for finalising the specifications the first meeting has been called on March 4, he said. After which the company will prepare a detailed report within a couple of months and post that prototype will be done, he added.
The market is still holding its gains as the Sensex is up 115.90 points at 28862.5. The Nifty is up 40.70 points at 8724.55. About 1413 shares have advanced, 791 shares declined, and 171 shares are unchanged. Investors will keep an eye on the economic survey that will be tabled in Parliament today.
L&T, Tata Power, Coal India, Sesa Sterlite and Hindalco are top gainers in the Sensex. Among the losesr are ITC, GAIL, TCS, Wipro and HUL.
Oil bounced back in Asia on bargain-hunting after tumbling in the previous session over a further surge in US crude reserves, adding to the global supply glut. Analysts attributed the plunge Yesterday to a delayed reaction by traders to a bigger-than-expected 9.4 million barrels increase in US crude stockpiles in the week to February 20. The US Department of Energy said Wednesday US crude reserves now stand at a record 434.1 million barrels.
Prices have risen above multi-year lows following a slowdown in US oil drilling activities, but analysts say volatility is likely to continue for some time.
10:50am DLF in Focus: SEBI imposed fines of Rs 52 crore on realty giant DLF and seven others, including Chairman K P Singh, for "fraudulent and unfair trade practices", while penalties totalling Rs 34 crore were slapped on 33 related entities.
These orders come after SEBI in October last year barred DLF and its six top executives from markets for three years for suppressing key information at the time of its IPO in 2007, including about certain "sham transactions" involving an associate company named Sudipti Estates.
10:35am Interview: With the current government's focus on defence programme, the ministry has awarded battlefield management system (BMS) development contracts worth Rs 50,000 crore to two consortiums. One comprises of BEL and Rolta India and the other consortium includes the Tata Power SED and Larsen and Toubro Defence.
According to KK Singh, CMD of Rolta India, the government is moving really fast and for finalising the specifications the first meeting has been called on March 4, he said. After which the company will prepare a detailed report within a couple of months and post that prototype will be done, he added.
Singh said the company is already ready with the products, so the prototypes for them would take less than a year and post that the testing by government will be done in another year.
Singh is hopeful that in two years from now the company would be able to deploy the system, post which the company is hopeful of getting Rs 2000-2500 crore incremental orders.
Currently, 20 percent of revenues of the company come in from defence.
In the Rolta-BEL consortium, the company is responsible for the complete battlefield management software, which constitutes the major portion of the project, said Singh.
10:20am Budget Expectations: The expectations from the Union Budget 2015-16 have come off slightly in the past few days, says Pratik Gupta, head of equities, Deutsche Bank.
Speaking to CNBC-TV18, Gupta says the Union Budget is expected to be growth-oriented, just like the Railway Budget, but long-term investors are more worried about the pending legislations.
However, investors are positive on the Indian equity market given the global backdrop, commodity prices and flow of funds.
''So, we would recommend buying the Indian market on every dip. India will see a good recovery though the timing of the recovery is not clear,'' he adds.
10:00am Market Check
The market bounced back today with the Nifty reclaiming 8700 level on first day of March series, supported by banking & financials, capital goods and metals stocks.
The 30-share BSE Sensex rose 132.66 points to 28879.31 and the 50-share NSE Nifty advanced 46.10 points to 8729.95. The BSE Midcap and Smallcap indices outperformed benchmarks, rising 0.8 percent each.
Advancing shares outnumbered declining ones by a ratio of 2 to 1 on the Bombay Stock Exchange.
The market will have a special trading session on Saturday on the back of Union Budget 2015-16.
Rakesh Arora, Macquarie says expectations are running high and an 'incremental' Budget may not enthuse the market. Though, it won't be a radical one either, according to him.
"The market had run ahead of fundamentals, so a slight pullback would help cool things off. Industrial stocks are under owned and are best suited to play the India story," he adds.
Larsen & Toubro and Tata Power topped the buying list, up 3 percent as the Defence Ministry has shortlisted a consortium of Tata Power-Strategic Electronics Division (SED) and Larsen & Toubro for the battlefield management project, the order value of which in the production phase may be as much as Rs 50,000 crore.
9:50 am DLF falls: In the biggest-ever penalty in a single case, SEBI Thursday slapped fines totalling Rs 86 crore on realty giant DLF, its top executives, their family members and various other related entities for entering into "sham transactions" to mislead IPO investors about eight years ago.
Those penalised include Chairman KP Singh, his son and Vice Chairman Rajiv Singh, daughter Pia Singh, as also three "housewives" married to 'key management personnel' of the DLF group for "fraudulent and unfair trade practices".
DLF later said in a statement it did not violate any laws and it would challenge the order. DLF also said it was guided by the advice of "eminent legal advisors, merchant bankers and audit firms" while formulating its IPO documents.
In the same case, SEBI in October last year barred DLF and its six top executives, including Singh and his two children, from markets for three years for suppressing key information at the time of its IPO in 2007, including about certain "sham transactions" involving an associate firm, Sudipti Estates.
9:40 am Gold import: With a decline in Gold imports, Commerce Ministry has sought reduction in import duty on gold, a step that could boost exports and manufacturing of gems and jewellery.
"We have been asking for a cut in gold import duty," Commerce Secretary Rajeev Kher told reporters on the sidelines of a CII function. In its Budget proposals, the Ministry has suggested the Finance Minister to consider reduction in import duty on the yellow metal. The industry has sought reduction in customs duty on gold to two percent, from 10 percent now. The gems and jewellery sector, which employs about 35 lakh people, would get a boost from the move. Gold imports in December declined sharply to 39 tonnes, from 152 tonnes in November.
9:30 am Big deal: In order to give a push to government's defence programme, the ministry has awarded battlefield management system (BMS) development contracts to two consortiums. According to sources, one comprises of Tata Power SED and L&T Defence and the other consortium includes BEL and Rolta . The government will fund 80 percent of the prototype cost and partners will be expected to fork out the remaining 20 percent.
The two consortiums are required to develop the prototype in 18-24 months. MV Kotwal of L&T said share of Tata Power and L&T is same in the consortium. He also added that the final order win will be between one of the two consortiums.
The market has opened March series on a positive note. The Nifty is up 45.65 points at 8729.50. The Sensex is up 202.12 points or 0.7 percent at 28948.77. About 375 shares have advanced, 120 shares declined, and 110 shares are unchanged.
Tata Power, L&T, Tata Motors, Sesa Sterlite and SBI are top gainers whle NTPC, ITC and TCS are among the losers in the Sensex.
The Indian rupee opened lower by 11 paise at 61.86 per dollar on Friday against previous day's closing value of 61.75 a dollar.
The dollar rises to a one-month high against a basket of currencies as US inflation and business orders supported bets the Federal Reserve will raise interest rates in the middle of the year.
Pramit Brahmbhatt of Veracity said, "Reduced FII inflows coupled with profit booking in local equities may put pressure on the rupee to depreciate today. However, gains in Asian equities and some exporter selling may limit losses. The rupee is likely to trade today in a range of 61.30-62.20/dollar."
Globally, US stocks closed narrowly mixed, with stocks near recent highs, as lackluster economic data and oil concerns weighed on investor sentiment. Asian markets are mixed in morning trade as the Japanese index continues its march higher. For the month the Nikkei is up 6.5 percent and today it is holding with mild gains.
European equities gained as investors reacted to a raft of corporate earnings and fresh economic data. Nymex Crude slipped over 5 percent yesterday to USD 48 and Brent too slipped marginally to USD 61. And precious metal gold rose to USD 1210 an ounce.