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Australian share market on four-day losing streak

2011-11-03T11:06:00.000-07:00

THE Australian share market lost ground today for the fourth consecutive day as investor worries about Europe trumped a rebound in the US overnight.
The benchmark S&P/ASX200 index closed down 12.7 points, or 0.3 per cent, at 4,171.9, while the broader All Ordinaries index was 13.7 points, or 0.3 per cent, lower at 4,237.6.
On the ASX 24, at 1629 AEDT the December share price index futures contract was 12 points stronger at 4,181 with 36,735 contracts traded.
Trading volumes had been light and about 30 per cent below average values, with national turnover of 1.65 billion shares worth $4.25 billion, with 380 stocks up, 545 down and 357 unchanged.
Macquarie Private Wealth client adviser James Rosenberg said the level of today's light volumes had been the case for most days for the past few weeks.
While Europe's debt crisis was weighing on the market, a positive for Australia was talk about China allowing more credit liquidity, with Shanghai's stock market rising on Thursday subsequently, he said.

"We have a substantially greater reliance on what happens in China than what happens in Greece," Mr Rosenberg told AAP.
European leaders last week put together a deal to wipe 100 billion euros ($A133.17 billion) from Greek debt, as well as strengthen banks and doubling the firepower of the European Union bailout fund.
Greece is now planning to hold a referendum on the bailout package, including unpopular austerity measures, which has reignited concerns about the extent of the Greek debt fallout.
Locally, most sectors of the ASX were down, with gold companies and consumer discretionaries bucking the trend.
ANZ Bank reported a 19 per cent lift in full year profit to a record $5.36 billion, which was below expectations. The bank said market volatility and consumer caution was likely to be a factor for some time.
ANZ shares performed the worst of the major banks, closing 41 cents, or 1.96 per cent, lower at $20.49.
All the banks were softer, after earnings reports that had been slightly below expectations and "muted" outlook statements for credit growth, Mr Rosenberg said.
Wealth manager Perpetual retreated 56 cents to $20.74 after it forecast a drop in first half underlying profit due to weakening equity markets.
News Corporation lifted 70 cents, or 4.24 per cent, to $17.21, and its non-voting shares were up 59 cents at $16.77. The company maintained earnings guidance for 2011/12, after reporting a "great start" the current financial year.
Supermarket giant Woolworths rebounded and gained 52 cents to $23.91 after the competition watchdog admitted it might be tough to prove the company was abusing its market dominance by stocking more Home brand products.
Rival Wesfarmers - owner of Coles - lost 48 cents to $31.40.
Shares in Logistics group Brambles climbed six cents to $6.49 as it launched an aerospace division for its CHEP pallet business.
Building products maker Boral dropped eight cents to $3.60 after it said its first half performance in financial 2012 would be broadly similar to the second half of financial 2011.
Fashion retailer Country Road was untraded at $3.20 as it said sales so far this financial year were down and it expected difficult trading conditions to carry on through to Christmas.
On Wall Street on Wednesday, stocks rebounded after the US Federal Reserve's policymakers kept ultra-low interest rates and said they were prepared to do more if needed to stimulate the sluggish economy.
The Dow Jones Industrial Average rose 178.08 points, or 1.53 per cent, to 11,836.04.

Source : http://www.heraldsun.com.au/business/australian-share-market-on-four-day-losing-streak/story-fn7j19iv-1226184966411

Today’s Market Movers: EK, HL, LGF And More

2011-11-03T08:23:00.000-07:00

It looks like stocks are attempting to stage a tepid attempt at rebounding from Monday and Tuesday's sell off this morning — but investors beware, nothing has really changed at this point. Europe remains a major problem for U.S. investors, and until that's actually resolved, investors should expect volatility to be a major concern in stocks.
This is a news-heavy week, with employment numbers and the result of the Fed's latest FOMC meeting hitting Wall Street today alone. With so many factors pushing stocks around, it's crucial to be tactical about stocks right now.
To that end, let's take a look at some of the small-cap stocks in play right now:

Eastman Kodak (NYSE:EK : 1.125, -0.075): This stock has been under fire in the last few weeks, as bankruptcy rumors swirl with an already anxious investor base. Forget the (still uncertain) fundamentals for a second — there's a trade shaping up in this stock for more advanced readers…
A descending triangle in shares makes EK a worthwhile short candidate, but only if shares can move below $1.10. That's the nearest support level of significance right now. If that breakdown happens, 75 cents is a high probability price target for the near-term.

Hecla Mining (NYSE:HL : 6.42, 0.26): Hecla is another small-cap name worth watching this week. Junior miners have been under pressure for much of the last quarter, and Hecla's chart gives a good example of what the industry is dealing with. Watch for a break above the upper trendline in Hecla. When that move happens, it could be marking a change in trend for this stock (and other junior miners as well).
Barring a technical shift in these names, we wouldn't be buyers of mining stocks right now…

Lions Gate Entertainment Corp. (NYSE:LGF : 8.59, 0.1): Lions Gate continues to ignore the market pullback, posting new 52-week highs this morning. Today's action builds on the accelerating uptrend that has been in place since mid-October. LGF could be a solid bet in the near future, but beware — this stock looks overbought today. Watch for a pullback or sideways consolidation before you make your move…
Penny Promotions
Raystream Inc. (OTC:RAYS): RAYS is one of the strongest promotions we've seen in months:

Aside from a couple of controlled dips, RAYS has drawn a stair-step chart — perfect for attracting unsuspecting new buyers. This heavily-promoted stock recorded another day of record volume Tuesday, leading me to believe that a shakeout could be coming soon. If you bought into this promotion, it would be wise to cash in your paper gains now.
Legend Oil & Gas (OTC:LOGL): A paid mailer making the rounds right now claims that LOGL could break $10 by the end of the year. At $2.60 per share and going nowhere, we would be shocked if the stock topped $3. Promotions for LOGL have been floating around since earlier this year, but the stock price appears to be too erratic to attract any buyers.

Sources: http://www.istockanalyst.com/finance/story/5517928/today-s-market-movers-ek-hl-lgf-and-more

Cues that will impact Indian market today

2011-11-03T08:20:00.000-07:00

Moneycontrol Bureau:
The US markets recovered from their day's lows to close higher with more than 1% gains after FED Chairman Ben Bernanke said that the FED may look to reinvest in mortgage backed securities to provide additional support to the weak housing market.
Stocks shaved their gains earlier after the FED slashed its growth forecasts and following a report that said the sixth tranche of loans to Greece may not be paid until after Greek referendum is held.
At the close, the Dow Jones Industrial Average rose 1.53%, the S&P 500 index gained 1.61%, while the Nasdaq 100 index climbed 0.87%.
FED statement:
The FED leaves interest rates unchanged and announces that they are holding off on any new actions to aid the economy, but left open the possibility of taking further steps in the near future.
In addition, the FED cut its growth forecast to between 1.6 and 1.7% for 2011.
US economic data:
US private-sector employers added 110,000 jobs in October. Weekly mortgage applications rose last week, as demand for both purchases and refinancing gained.
Data to watch out for:
Jobless claims for the week is expected to come out today. Consensus figures indicate a decline from 402,000 to 400,000.
Factory orders for September is expected to remain the same month on month.
Meanwhile, the ISM Manufacturing data for October is expected to indicate an uptick to 53.5 from 53.
Also productivity and costs data for the third quarter is expected to come out today. NPN Farm Productivity is expected to improve.
European markets:
European markets closed higher as the FED leaves the rates unchanged.
French President Nicolas Sarkozy says that the referendum must be a decision on whether or not Greece stays in the Euro.
The European Union in the meantime appears to be preparing for the worst, German Chancellor Angela Merkel said that the group will meet on Monday to discuss firewall options.
Meanwhile, European Union and the International Monetary Fund said they will consider the sixth tranche of Greece's loan after a Greek referendum on a new bailout plan.
Asian markets:
At 8:03 hours IST, Asian markets were trading lower after the sixth tranche of loans to Greece worth USD 178 billion was put on hold till early December referendum.
Hang Seng fell 432.25 points or 2.19% to 19,301.46 and Jakarta Composite declined 59.87 points or 1.59% to 3,703.17.
Straits Times slipped 39.85 points or 1.41% to 2,794.90 and Seoul Composite was trading at 1,873.22, down 24.79 points or 1.31%. Japanese stock market is shut today for public holiday.
Currency check:
Euro maintains its losses versus the dollar at 1.36 to the dollar. Meanwhile, dollar index hold steady above 77.
Commodities market:
Brent crude hovers around USD 109 per barrel levels while gold is at USD 1,730 an ounce in trade.
Local market:
Yesterday, the Indian markets displayed some resilience. The Nifty recovered from a weak start to close flat. The Sensex ended just 15 points in the red.
Stock specific action:
Diesel, LPG prices are set to rise again, EGOM will decide later this month.
AV Birla group weighs USD 5 billion bid for Australia's New Hope. The move may pit company against JSW Steel .
SAIL , POSCO have settled differences over Bokaro plant.
Steel companies are unlikely to hike prices this month.
GAIL will invest USD 1 billion in Shale Gas.
Power Grid is eyeing firms in South America.
Results today:
SAIL , Ashok Leyland , TVS Motor , Sun TV , Tata Teleservices Maharashtra , Jubilant Foodworks , Welspun Corp , and Prestige Estates will declare their results today.

Source : http://www.moneycontrol.com/news/market-edge/check-out-cues-that-will-impact-indian-market-today_610330.html

U.S. Stocks Rise After Two-day Rout, Fed

2011-11-02T12:39:00.000-07:00

By Kate Gibson, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks retained about half of Wednesday'sstrong gains after the Federal Reserve held interest rates as is and data hadcompanies adding more jobs than expected in October.
While not making any further moves to ease monetary policy, Fed policy makerssaid in a statement that the economy has improved, although significant downsiderisks remain.
"While much of November's statement is identical to September's, the FOMC [Federal Open Market Committee] is clearly inching towards easing further," notedDan Greenhaus, chief global strategist at BTIG LLC.
"Today's press conference is going to shed some light on this subject in termsof how universal is the belief that what ails the economy can be aided byfurther steps from the FOMC," Greenhaus added of Bernanke's news conferenceslated for 2:15 p.m. Eastern.
After rising nearly 220 points, the Dow Jones Industrial Average (DJI) waslately up 124.12 points to 11,782.08, with all but four of its 30 components inthe green.
The blue-chip benchmark lost 573 points -- nearly 4.7% -- in the prior twosessions.
The S&P 500 Index (SPX) rose 13.07 points to 1,231.35, with financials leadinggains that included all 10 of its major industry groups.
MasterCard Inc. (MA) shares gained 6.9% after the payments processor reportedquarterly results that exceeded Wall Street's expectations.
The Nasdaq Composite (RIXF) added 16.70 points to 2,623.66.
For every stock that fell, four rose on the New York Stock Exchange, where 397million shares traded as of 1:15 p.m. Eastern.
U.S. stocks started the session sharply higher after Automatic Data Processing(ADP) reported U.S. companies added 110,000 workers in October, with the bulk ofthe increase in private payrolls coming in the service sector. ADP also revisedhigher its count for September.
"The labor market is in better shape than we thought two months ago, which isgood news for the economy, corporate earnings and the stock market," said PhilOrlando, chief equity market strategist at Federated Investors.
European leaders planned emergency talks with Greek Prime Minister GeorgePapandreou in France, a day before the Group of 20 summit.
Papandreou rattled global markets earlier this week by calling for a nationalvote on Europe's bailout package for the country.

  (END) Dow Jones Newswires
  11-02-111321ET
  Copyright (c) 2011 Dow Jones & Company, Inc.

Sensex up more than 1 pc on firm Asian markets

2011-02-28T21:56:00.000-08:00

Source ET
Indian shares were up more than 1 percent in early trade on Tuesday tracking firm Asian equities, and after the finance minister said he expects the economy to grow by nearly 9 percent in the next fiscal year.

At 9:16 a.m. (0346 GMT), the 30-share BSE index, or Sensex, was up 1.03 percent at 18,006.32 points, with 29 components advancing. It started up 0.96 percent.

The 50-share NSE index was up 1 percent at 5386.80 points.

Budget 2011-12 Speech of Pranab Mukherjee

2011-02-28T21:50:00.000-08:00

Budget 2011-2012
Speech of Pranab Mukherjee
Minister of Finance
February 28, 20111
http://indiabudget.nic.in
Madam Speaker,
I rise to present the Union Budget for 2011-12. We are reaching the end of a remarkable fiscal year. In a globalised world with its share of uncertainties and rapid changes, this year brought us some opportunities and many challenges as we moved ahead with steady steps on the chosen path of fiscal consolidation and high economic growth.
2. Our growth in 2010-11 has been swift and broad-based. The economy is back to its pre-crisis growth trajectory. While agriculture has shown a rebound, industry is regaining its earlier momentum. Services sector continues its near double digit run. Fiscal consolidation has been impressive. This year has also seen significant progress in those critical institutional reforms that would set the
pace for double-digit growth in the near future.
3. While we succeeded in making good progress in addressing many areas of our concern, we could have done better in some others. The total food inflation declined from 20.2 per cent in February 2010 to less than half at 9.3 per cent in January 2011, but it still remains a concern. In the medium term perspective, our three priorities of sustaining a high growth trajectory; making development more
inclusive; and improving our institutions, public delivery and governance practices, remain relevant. These would continue to engage the Indian policyplanners for some time. However, there are some manifestations of these challenges that need urgent attention in the short term.
4. Though we have regained the pre-crisis growth momentum, there is a need to effect adjustments in the composition of growth on demand and supply side. We have to ensure that along with private consumption, the revival in private investment is sustained and matches pre-crisis growth rates at the earliest. This requires a stronger fiscal consolidation to enlarge the resource space for private enterprise and addressing some policy constraints. We also have to improve the supply response of agriculture to the expanding domestic demand. Determined measures on both these issues will help address the structural concerns on inflation management. It will also ensure a more stable macroeconomic environment for continued high growth.
5. The UPA Government has significantly scaled up the flow of resources to rural areas to give a more inclusive thrust to the development process. The impact is visible in the new dynamism of our rural economy. It has helped India navigate itself rapidly out of the quagmire of global economic slowdown. Yet, there is much that still needs to be done, especially in rural India. We have to reconcile legitimate environmental concerns with necessary developmental needs. Above all, there is the 'challenge of growing aspiration' of a young India.
6. To address these concerns, I do not foresee resources being a major constraint, at least not in the medium-term. However, the implementation gaps, leakages from public programmes and the quality of our outcomes are a serious challenge.
7. Certain events in the past few months may have created an impression of drift in governance and a gap in public accountability. Even as the Government is engaged in addressing specific concerns emanating from some of these events in the larger public interest and in upholding the rule of law, such an impression is misplaced. We have to seize in these developments, the opportunity to improve
our regulatory standards and administrative practices. Corruption is a problem that we have to fight collectively.
8. In a complex and rapidly evolving economy, the Government can not profess to be the sole repository of all knowledge. Indeed, in a democratic polity, it stands to benefit from inputs from colleagues on both sides of the House. They must lend their voice and expertise to influence public policy in the wider national interest. In some areas, good results depend on coordinated efforts of the Centre and the State Governments and in some others, on favourable external developments.
9. I see the Budget for 2011-12 as a transition towards a more transparent and result oriented economic management system in India. We are taking major steps in simplifying and placing the administrative procedures concerning taxation, trade and tariffs and social transfers on electronic interface, free of discretion and bureaucratic delays. This will set the tone for a newer, vibrant and
more efficient economy.
10. At times the biggest reforms are not the ones that make headline, but the ones concerned with the details of governance, which affect the everyday life of aam aadmi. In preparing this year's Budget, I have been deeply conscious of this fact. I am grateful for the able guidance of the Hon’ble Prime Minister and the strong support lent by UPA Chairperson Smt. Sonia Gandhi in my endeavour. I
would now begin with a brief overview of the economy.

I. Overview of the Economy
11. On last Friday, I laid on the table of the House the Economic Survey
2010-11, which gives a detailed analysis of the economic situation of the country
over the past 12 months. The Gross Domestic Product (GDP) of India is estimated
to have grown at 8.6 per cent in 2010-11 in real terms. In 2010-11 agriculture is
estimated to have grown at 5.4 per cent, industry at 8.1 per cent and services at
9.6 per cent. All three sectors are contributing to the consolidation of growth.
More importantly, the economy has shown remarkable resilience to both external
and domestic shocks.
12. Our principal concern this year has been the continued high food prices.
Inflation surfaced in two distinct episodes. At the beginning of the year, food
inflation was high for some cereals, sugar and pulses. Towards the second half,
while prices of these items moderated and even recorded negative rates of
inflation, there was spurt in prices of onion, milk, poultry and some vegetables.
Of late prices of onion have crashed in wholesale markets and we have had to
remove the ban on their exports.
13. Despite improvement in the availability of most food items, consumers
were denied the benefit of seasonal fall in prices normally seen in winter months.
These developments revealed shortcomings in distribution and marketing systems,
which are getting accentuated due to growing demand for these food items with
rising income levels. The huge differences between wholesale and retail prices
and between markets in different parts of the country are just not acceptable.
These are at the expense of remunerative prices for farmers and competitive
prices for consumers.
14. Monetary policy stance in 2010-11, while being supportive of fiscal policy,
has succeeded in keeping core-inflation in check. As the transmission lag in
monetary policy tends to be long, I expect the measures already taken by the RBI
to further moderate inflation in coming months.
15. The developments on India's external sector in the current year have been
encouraging. Even as the recovery in developed countries is gradually taking
root, our trade performance has improved. Exports have grown at 29.4 per cent
to reach US Dollar 184.6 billion, while imports at US Dollar 273.6 billion have
recorded a growth of 17.6 per cent during April-January 2010-11, over the
corresponding period last year. The current account deficit is around the
2009-10 level and poses some concerns because of the composition of its
financing.
16. Policy making in a globalised world has to take into account the likely
international developments. To realise the desired outcomes, it is important that
there is convergence in expectations of our investors, entrepreneurs and consumers
on the macroeconomic prospects of the economy. Against this backdrop, the
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Indian economy is expected to grow at 9 per cent with an outside band of +/-
0.25 per cent in 2011-12. I expect the average inflation to be lower next year and
the current account deficit smaller and better managed with higher domestic
savings rate and stable capital flows. While, like last year, I seek the blessings of
Lord Indra to bestow on us timely and bountiful monsoons, I would pray to
Goddess Lakshmi as well. I think it is a good strategy to diversify one's risks.
II. Sustaining Growth
17. In my last Budget, I had started rolling back the fiscal stimulus
implemented over 2008-09 and 2009-10 to mitigate the impact of the global
financial crisis on economic slowdown in India. In the course of the year, I have
moved further on that path. I believe that a part of the current recovery must be
stored away to build future resilience. Indeed, a counter cyclical fiscal policy is
our best insurance against external shocks and localised domestic factors.
Fiscal Consolidation
18. The experience with Fiscal Responsibility and Budget Management Act,
2003 (FRBM Act) at Centre and the corresponding Acts at State level show that
statutory fiscal consolidation targets have a positive effect on macroeconomic
management of the economy. In the course of the year the Central Government
would introduce an amendment to the FRBM Act, laying down the fiscal road
map for the next five years.
19. The Thirteenth Finance Commission has worked out a fiscal consolidation
road map for States requiring them to eliminate revenue deficit and achieve a
fiscal deficit of 3 per cent of their respective Gross State Domestic Product latest
by 2014-15. It has also recommended a combined States’ debt target of 24.3 per
cent of GDP to be reached during this period. The States are required to amend
or enact their FRBM Acts to conform to these recommendations.
20. The Government has been in the process of setting-up an independent
Debt Management Office in the Finance Ministry. A Middle Office is already
operational. As a next step, I propose to introduce the Public Debt Management
Agency of India Bill in the next financial year.
Tax Reforms
21. The introduction of the Direct Taxes Code (DTC) and the proposed Goods
and Services Tax (GST) will mark a watershed. These reforms will result in
moderation of rates, simplification of laws and better compliance.
22. As Hon'ble Members are aware, the Direct Taxes Code Bill was introduced
in Parliament in August, 2010. After receiving the report of the Standing
Committee, we shall be able to finalise the Code for its enactment during
2011-12. This has been a pioneering effort in participative legislation. The Code
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is proposed to be effective from April 1, 2012 to allow taxpayers, practitioners
and administrators to fully understand the legislation and adjust to the revised
procedures.
23. Unlike DTC, decisions on the GST have to be taken in concert with the
States with whom our dialogue has made considerable progress in the last four
years. Areas of divergence have been narrowed. As a step towards the roll-out of
GST, I propose to introduce the Constitution Amendment Bill in this session of
Parliament. Work is also underway on drafting of the model legislation for the
Central and State GST.
24. Among the other steps that are being taken for the introduction of GST is
the establishment of a strong IT infrastructure. We have made significant progress
on the GST Network (GSTN). The key business processes of registration, returns
and payments are in advanced stages of finalisation. The National Securities
Depository Limited (NSDL) has been selected as technology partner for
incubating the National Information Utility that will establish and operate the IT
backbone for GST. By June 2011, NSDL will set up a Pilot portal in collaboration
with eleven States prior to its roll out across the country.
Expenditure Reforms
25. The effective management of public expenditure is an integral part of the
fiscal consolidation process. Expenditure has to be oriented towards the
production of public goods and services. The extant classification of public
expenditure between plan, non-plan, revenue and capital spending needs to be
revisited. This is necessary as one recognises the importance of service sector
and the knowledge economy for our development. A Committee under
Dr. C. Rangarajan has been set up by the Planning Commission to look into
these issues.
Subsidies
26. During the year 2010-11, the Nutrient Based Subsidy (NBS) policy was
successfully implemented for all fertilisers except urea. The policy has been
well received by all stakeholders, and the availability of fertilisers has improved.
The extension of the NBS regime to cover urea is under active consideration of
the Government.
27. The Government provides subsidies, notably on fuel and food grains, to
enable the common man to have access to these basic necessities at affordable
prices. A significant proportion of subsidised fuel does not reach the targeted
beneficiaries and there is large scale diversion of subsidised kerosene oil. A recent
tragic event has highlighted this practice. We have deliberated for long the
modalities of implementing such subsidies. The debate now has to make way for
decision. To ensure greater efficiency, cost effectiveness and better delivery for
both kerosene and fertilisers, the Government will move towards direct transfer
of cash subsidy to people living below poverty line in a phased manner.
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28. A task force headed by Shri Nandan Nilekani has been set-up to work
out the modalities for the proposed system of direct transfer of subsidy for
kerosene, LPG and fertilisers. The interim report of the task force is expected by
June 2011. The system will be in place by March 2012.
People’s Ownership of PSUs
29. The Government's programme to broadbase the ownership of Central
Public Sector Undertakings (CPSUs) has received an overwhelming response.
The six public issues of CPSUs in the current financial year have attracted around
50 lakh retail investors.
30. As against a target of `40,000 crore, the Government will raise about
`22,144 crore from disinvestment in 2010-11. A higher than anticipated realisation
in non-tax revenues has led us to reschedule some of the divestment issues planned
for the current year. I intend to maintain the momentum on disinvestment in
2011-12 by raising `40,000 crore. Let me reiterate here that the Government is
committed to retain at least 51 per cent ownership and management control of the
CPSUs, as stated earlier in my Budget speech for 2009-10.
Investment Environment
Foreign Direct Investment
31. To make the FDI policy more user-friendly, all prior regulations and
guidelines have been consolidated into one comprehensive document, which is
reviewed every six months. The last review has been released in September
2010. This has been done with the specific intent of enhancing clarity and
predictability of our FDI policy to foreign investors. Discussions are underway
to further liberalise the FDI policy.
Foreign Institutional Investors
32. Currently, only FIIs and sub-accounts registered with the SEBI and NRIs
are allowed to invest in mutual fund schemes. To liberalise the portfolio
investment route, it has been decided to permit SEBI registered Mutual Funds
to accept subscriptions from foreign investors who meet the KYC requirements
for equity schemes. This would enable Indian Mutual Funds to have direct
access to foreign investors and widen the class of foreign investors in Indian
equity market.
33. To enhance the flow of funds to the infrastructure sector, the FII limit for
investment in corporate bonds, with residual maturity of over five years issued
by companies in infrastructure sector, is being raised by an additional limit of
US Dollar 20 billion taking the limit to US Dollar 25 billion. This will raise the
total limit available to the FIIs for investment in corporate bonds to US Dollar
40 billion. Since most of the infrastructure companies are organised in the form
of SPVs, FIIs would also be permitted to invest in unlisted bonds with a minimum
lock-in period of three years. However, the FIIs will be allowed to trade amongst
themselves during the lock-in period.
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Financial Sector legislative Initiatives
34. The financial sector reforms initiated during the early 1990s have borne
good results for the Indian economy. The UPA Government is committed to
take this process further. Accordingly, I propose to move the following legislations
in the financial sector:
(i) The Insurance Laws (Amendment) Bill, 2008;
(ii) The Life Insurance Corporation (Amendment) Bill, 2009;
(iii) The revised Pension Fund Regulatory and Development Authority
Bill, first introduced in 2005;
(iv) Banking Laws Amendment Bill, 2011;
(v) Bill on Factoring and Assignment of Receivables;
(vi) The State Bank of India (Subsidiary Banks Laws) Amendment Bill,
2009; and
(vii) Bill to amend RDBFI Act 1993 and SARFAESI Act 2002.
35. In my last Budget speech, I had announced that Reserve Bank of India
would consider giving some additional banking licences to private sector players.
Accordingly, RBI issued a discussion paper in August, 2010, inviting feedback
from the public. RBI has proposed some amendments in the Banking Regulation
Act. I propose to bring suitable legislative amendments in this regard in this
session. RBI is planning to issue the guidelines for banking licences before the
close of this financial year.
Public Sector Bank Recapitalisation
36. During the year 2010-11, the Government is providing a sum of `20,157
crore for infusion in the Public Sector Banks to maintain Tier I Capital to Risk
Weighted Asset Ratio (CRAR) at 8 per cent and increase government equity in some
banks to 58 per cent. I propose to provide a sum of `6,000 crore for the year 2011-12
to enable Public Sector Banks to maintain a minimum Tier I CRAR at 8 per cent.
Recapitalisation of Regional Rural Banks
37. As a part of financial strengthening of Regional Rural Banks, an amount
of `350 crore was given to these banks during this year. I propose to provide
`500 crore during 2011-12 to enable them maintain a CRAR of at least 9 per
cent as on March 31, 2012.
Micro Finance Institutions
38. The Micro Finance Institutions (MFIs) have emerged as an important
means of financial inclusion. Creation of a dedicated fund for providing equity
to smaller MFIs would help them maintain growth and achieve scale and
efficiency in operations. I propose to create in the course of the year, "India
Microfinance Equity Fund" of `100 crore with SIDBI. To empower women and
promote their Self Help Groups (SHGs), I propose to create a “Women’s SHG’s
Development Fund” with a corpus of `500 crore. The Committee set up by RBI
to look into issues relating to micro finance sector in India has submitted its
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report. The Government is considering putting in place appropriate framework
to protect the interests of small borrowers.
Rural Infrastructure Development Fund
39. The Rural Infrastructure Development Fund (RIDF) is an important
instrument for routing bank funds for financing rural infrastructure. This is popular
among State Governments. I propose to raise the corpus of RIDF XVII to `18,000
crore in 2011-12 from `16,000 crore in the current year. The additional allocation
would be dedicated to creation of warehousing facilities.
Micro, Small and Medium Enterprises
40. Micro and Small enterprises play a crucial role in furthering the objective
of equitable and inclusive growth. Last year, `4,000 crore was provided to SIDBI
for refinancing incremental lending by banks to these enterprises. For the year
2011-12, I propose to provide `5,000 crore to SIDBI for the same purpose out of
the shortfall of banks on priority sector lending targets.
41. Handloom weavers have been facing economic stress. Consequently,
many of them have not been able to repay debts to handloom weaver cooperative
societies which have become financially unviable. I propose to provide `3,000
crore to NABARD, in phases for these cooperative societies. The initiative would
benefit 15,000 cooperative societies and about 3 lakh handloom weavers. The
details of the scheme would be worked out by the Ministry of Textiles in
consultation with Planning Commission.
42. I am happy to report that the outstanding loans to minority communities
which stood at 13 per cent of total priority sector lending at the end of last year
have increased to 13.6 per cent in the current year. I have directed the Public
Sector Banks to achieve the target of 15 per cent at the earliest.
Housing Sector Finance
43. To further stimulate growth in housing sector, I am liberalising the existing
scheme of interest subvention of 1 per cent on housing loans by extending it to
housing loan upto `15 lakh where the cost of the house does not exceed `25 lakh
from the present limit of `10 lakh and `20 lakh respectively.
44. On account of increase in prices of residential properties in urban areas,
I propose to enhance the existing housing loan limit from `20 lakh to `25 lakh
for dwelling units under priority sector lending.
45. To provide housing finance to targeted groups in rural areas at competitive
rates, I propose to enhance the provision under Rural Housing Fund to `3,000
crore from the existing `2,000 crore.
46. Credit enablement of Economically Weaker Sections (EWS) and LIG
households is a serious challenge. To address this issue, I propose to create a
Mortgage Risk Guarantee Fund under Rajiv Awas Yojana. This would guarantee
housing loans taken by EWS and LIG households and enhance their credit
worthiness.
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47. To prevent frauds in loan cases involving multiple lending from different
banks on the same immovable property, the Government has facilitated setting
up of Central Electronic Registry under the SARFAESI Act, 2002. This Registry
will become operational by March 31, 2011.
Financial Sector Legislative Reforms Commission
48. In pursuance of the announcement made in Budget 2010-11, the
Government has set up a Financial Sector Legislative Reforms Commission under
the Chair of Justice B. N. Srikrishna. It would rewrite and streamline the financial
sector laws, rules and regulations and bring them in harmony with the
requirements of a modern financial sector. The Commission will complete its
work in 24 months.
49. The Companies Bill introduced in the Parliament in 2009 has been
received from the Parliamentary Standing Committee. The proposed bill will be
introduced in the Lok Sabha in the current session.
Agriculture
50. Agriculture development is central to our growth strategy. Measures taken
during the current year have started attracting private investment in agriculture
and agro-processing activities. This process has to be deepened further.
51. In the Budget for 2010-11, I had delineated a four-pronged strategy
covering agricultural production, reduction in wastage of produce, credit support
to farmers and a thrust to the food processing sector. These initiatives have
started showing results but there are other issues in our food economy that require
attention. The recent spurt in food prices was driven by increase in the prices of
items like fruits and vegetables, milk, meat, poultry and fish, which account for
more than 70 per cent of the WPI basket for primary food items. Removal of
production and distribution bottlenecks for these items will be the focus of my
attention this year. I propose to make allocations for these schemes under the
ongoing Rashtriya Krishi Vikas Yojana (RKVY) for an early take off. The total
allocation of RKVY is being increased from `6,755 crore in 2010-11 to `7,860
crore in 2011-12.
Bringing Green Revolution to Eastern Region
52. The Green Revolution in Eastern Region is waiting to happen. To realize
the potential of the region, last year's initiative will be continued in 2011-12 with
a further allocation of `400 crore. The program would target the improvement in
the rice based cropping system of Assam, West Bengal, Orissa, Bihar, Jharkhand,
Eastern Uttar Pradesh and Chhattisgarh.
Integrated Development of 60,000 pulses villages in rainfed areas
53. Government's initiative on pulses has received a positive response from
the farmers. As per the second advance estimates, a record production of 165
lakh tonnes of pulses is expected this year as against 147 lakh tonnes last year.
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While consolidating these gains, we must strive to attain self-sufficiency in
production of pulses within next three years. I propose to provide an amount of
`300 crore to promote 60,000 pulses villages in rainfed areas for increasing crop
productivity and strengthening market linkages.
Promotion of Oil Palm
54. The domestic production of edible oil meets only about 50 per cent
demand. The gap in supply is met through imports, which are often at high
prices due to the quantum of our requirement. Our recent interventions and
good rains are expected to result in a higher oilseeds production of 278 lakh
tonnes in 2010-11 as against 249 lakh tonnes in 2009-10. To achieve a major
breakthrough, we have to pay special attention to oil palm as it is one of the
most efficient oil crops. I propose to provide an amount of `300 crore to bring
60,000 hectares under oil palm plantation, by integrating the farmers with the
markets. The initiative will yield about 3 lakh metric tonnes of palm oil annually
in 5 years.
Initiative on Vegetable Clusters
55. The growing demand for vegetables has to be met by a robust increase
in the productivity and market linkage. An efficient supply chain, to provide
quality vegetables at competitive prices will have to be established. I propose to
provide an amount of `300 crore for implementation of vegetable initiative to
set in motion a virtuous cycle of higher production and incomes for the farmers.
To begin with, this programme will be launched near major urban centres.
Nutri-cereals
56. While we ensure food for all, we must also promote balanced nutrition.
Bajra, jowar, ragi and other millets are highly nutritious and are known to possess
several medicinal properties. The availability and consumption of these Nutricereals
is, however, low and has been steadily declining over recent years. A
provision of `300 crore is being made to promote higher production of these
cereals, upgrade their processing technologies and create awareness regarding
their health benefits. This initiative would provide market linked production
support to ten lakh millet farmers in the arid and semi-arid regions of the country.
The programme would be taken up in 1000 compact blocks covering about 25,000
villages. This will help improve nutritional security and increase feed and fodder
supply for livestock.
National Mission for Protein Supplements
57. The consumption of foods rich in animal protein and other nutrients has
risen of late, with demand growing faster than production. The National Mission
for Protein Supplements is being launched in 2011-12 with an allocation of `300
crore. It will take up activities to promote animal based protein production through
livestock development, dairy farming, piggery, goat rearing and fisheries in
selected blocks.
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Accelerated Fodder Development Programme
58. Adequate availability of fodder is essential for sustained production of
milk. It is necessary to accelerate the production of fodder through intensive
promotion of technologies to ensure its availability throughout the year. I
propose to provide `300 crore for Accelerated Fodder Development Programme
which will benefit farmers in 25,000 villages.
59. Hon'ble Members may be curious as to why all these new initiatives
are being launched with an allocation of `300 crore. Well, the number 3 happens
to be my lucky number !
National Mission for Sustainable Agriculture
60. While the need to maximize crop yields to meet the growing demand
for food grains is critical, we have to sustain agricultural productivity in the
long run. There has been deterioration in soil health due to removal of crop
residues and indiscriminate use of chemical fertilizers, aided by distorted prices.
61. To address these issues, the Government proposes to promote organic
farming methods, combining modern technology with traditional farming
practices like green manuring, biological pest control and weed management.
Agriculture Credit
62. To get the best from their land, farmers need access to affordable credit.
Banks have been consistently meeting the targets set for agriculture credit flow
in the past few years. For the year 2011-12, I am raising the target of credit
flow to the farmers from `3,75,000 crore this year to `4,75,000 crore in 2011-
12. Banks have been asked to step up direct lending for agriculture and credit
to small and marginal farmers.
63. The existing interest subvention scheme of providing short term crop
loans to farmers at 7 per cent interest will be continued during 2011-12. In the
last budget, I had provided an additional 2 per cent interest subvention to those
farmers who repay their crop loans on time. The response to this scheme has
been good. In order to provide further incentive to these farmers, I propose to
enhance the additional subvention to 3 per cent in 2011-12. Thus, the effective
rate of interest for such farmers will be 4 per cent per annum.
64. In view of the enhanced target for flow of agriculture credit, I propose
to strengthen NABARD's capital base by infusing `3000 crore, in a phased
manner, as Government equity. This would raise its paid-up capital to `5,000
crore. To enable NABARD refinance the short-term crop loans of the
cooperative credit institutions and RRBs at concessional rates, I propose a
contribution of `10,000 crore to NABARD’s Short-term Rural Credit Fund for
2011-12 from the shortfall in priority sector lending by Scheduled Commercial
Banks.
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Mega Food Parks
65. Despite growing production of vegetables and fruits, their availability is
inadequate due to bottlenecks in retailing capacity. An estimated 40 per cent of
the fruit and vegetable production in India goes waste due to lack of storage,
cold chain and transport infrastructure. To address these issues, the Eleventh
Plan target for number of Mega Food Parks was set at 30. So far, 15 such parks
have been sanctioned. During 2011-12, approval is being given to set up 15
more Mega Food Parks.
Storage Capacity and Cold Chains
66. The years 2008 to 2010 saw very high levels of foodgrain procurement.
On January 1, 2011, the foodgrain stock in Central pool reached 470 lakh metric
tonnes, 2.7 times higher than 174 lakh metric tonnes on January 1, 2007. The
storage capacity for such large quantities requires augmentation. Process to create
new storage capacity of 150 lakh metric tonnes through private entrepreneurs
and warehousing corporations has been fast tracked. Decision to create 20 lakh
metric tonnes of storage capacity under Public Entrepreneurs Guarantee (PEG)
Scheme through modern silos has been taken. While we will be able to add
about 2.6 lakh tonnes of capacity by March 2011, based on existing sanctions,
the addition will reach 40 lakh tonnes by March 2012. During 2010-11, another
24 lakh metric tonnes of storage capacity has been created under the Rural
Godown Scheme.
67. Investment in cold storage projects is now gaining momentum. During
this year, 24 cold storage projects with a capacity of 1.4 lakh metric tonnes have
been sanctioned under National Horticulture Mission. In addition, 107 cold
storage projects with a capacity of over 5 lakh metric tonnes have been approved
by the National Horticulture Board.
68. To attract investment in this sector, henceforth, capital investment in the
creation of modern storage capacity will be eligible for viability gap funding
scheme of the Finance Ministry. It is also proposed to recognize cold chains and
post-harvest storage as an infrastructure sub-sector.
Agriculture Produce Marketing Act
69. The recent episode of inflation in vegetables and fruits has exposed serious
flaws in our supply chains. The government regulated mandis sometimes prevent
retailers from integrating their enterprises with the farmers. There is need for the
State Governments to review and enforce a reformed Agriculture Produce
Marketing Act urgently.
Infrastructure and Industry
70. Infrastructure is critical for our development. For 2011-12, an allocation
of over ` 2,14,000 crore is being made for this sector, which is 23.3 per cent
higher than current year. This amounts to 48.5 per cent of the Gross Budgetary
Support to plan expenditure.
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71. Our experience with PPP model for creation of public sector assets in the
country has been good. We have recently launched the National Capacity Building
Programme to enhance capacities of public functionaries in identifying,
conceptualising, structuring and managing PPPs. It is our endeavour to come up
with a comprehensive policy that can be used by the Centre and the State
Governments in further developing public-private partnerships.
72. Government established India Infrastructure Finance Company Limited
(IIFCL) to provide long term financial assistance to infrastructure projects. It is
expected to achieve a cumulative disbursement target of `20,000 crore by March
31, 2011 and `25,000 crore by March 31, 2012. The take out financing scheme
announced in the Budget 2009-10 has been implemented and seven projects
have been sanctioned with a debt of `1,500 crore. Another `5,000 crore will be
sanctioned during 2011-12.
73. In order to give a boost to infrastructure development in railways, ports,
housing and highways development, I propose to allow tax free bonds of `30,000
crore to be issued by various Government undertakings in the year 2011-12.
This includes Indian Railway Finance Corporation `10,000 crore, National
Highway Authority of India `10,000 crore, HUDCO `5,000 crore and Ports `5,000
crore.
74. To attract foreign funds for the infrastructure financing, I propose to create
Special Vehicles in the form of notified infrastructure debt funds. I will come to
the details in Part B of my speech.
National Manufacturing Policy
75. For sustained growth of GDP and productive employment for younger
generation, it is imperative that the growth in manufacturing sector picks up. We
expect to take the share of manufacturing in GDP from about 16 per cent to 25
per cent over a period of ten years. Government will come out with a
manufacturing policy, which will bring down the compliance burden on the
industry through self-regulation and help make Indian industry globally
competitive.
76. To address the need for greater transparency and accountability in
procurement policy and allocation, pricing and utilisation of natural resources,
the Government has set up two committees. The recommendations will be
available within three months.
77. A Group of Ministers has been set up to consider all issues relating to
reconciliation of environmental concerns emanating from various departmental
activities including those related to infrastructure and mining. This Group will
also suggest changes in the existing statutes, rules, regulations and guidelines
and make its recommendations in a time bound manner.
78. The Indian automobile market is the second fastest growing in the world
and has shown nearly 30 per cent growth this year. World over, substantial
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investments are being made in the field of hybrid and electric mobility. To provide
green and clean transportation for the masses, National Mission for Hybrid and
Electric Vehicles will be launched in collaboration with all stakeholders.
79. The funding of 15,260 modern low floor and semi-low floor buses under
JNNURM, besides adding to passenger comfort, has transformed the urban
transport across India. In 2011-12, Delhi Metro Phase-III and Mumbai Metro
Line III are proposed to be taken up. The ongoing Metro projects of Bengaluru,
Kolkata and Chennai will be provided financial assistance for speedy
implementation.
80. Investment in fertilizer sector is capital intensive and is considered high
risk. It is proposed to include capital investment in fertiliser production as an
infrastructure sub-sector.
Exports
81. The Task Force on Transactions Cost set up by the Department of
Commerce to identify and suggest ways to achieve improvement in efficiency of
our export processes, has completed its work. Twenty one suggestions made by
the Task Force have already been implemented. Action on remaining two will be
taken in next few months. This will mitigate transactions cost by about `2,100
crore.
82. To quicken the clearance of the cargo by Customs authorities and further
modernise the Customs administration, I propose to introduce self-assessment
in Customs. Under this, importers and exporters will themselves assess their
duty liabilities while filing their declarations in the EDI system. The Department
will verify such assessments on a selective system driven basis.
83. There have been considerable difficulties in the sanction of refunds
relating to tax paid on services used for export of goods. I propose to shortly
introduce a scheme for the refund of these taxes on the lines of drawback of
duties in a far more simplified and expeditious manner. A new scheme is also
being introduced by which units in SEZs will be able to obtain tax-free receipt of
services wholly consumed within the zone and get their refunds in a much easier
manner.
84. Mega clusters have large employment and export potential. I propose to
extend the Mega Cluster Scheme for development of leather products. Seven
mega leather clusters would be set up during the year 2011-12. I also propose to
include Jodhpur for the development of a handicraft mega cluster.
Black Money
85. The generation and circulation of black money is an area of serious
concern. To deal with this problem effectively, Government has put into operation
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a five-fold strategy which consists of Joining the global crusade against 'black
money'; Creating an appropriate legislative framework; Setting up institutions
for dealing with illicit funds; Developing systems for implementation; and
Imparting skills to the manpower for effective action.
86. We secured Membership of the Financial Action Task Force (FATF) in
June last year. This is an important initiative of G-20 for anti-money laundering.
We have also joined the Task Force on Financial Integrity and Economic
Development, Eurasian Group (EAG) and Global Forum on Transparency and
Exchange of Information for Tax Purposes.
87. During the year, we have concluded discussions for 11 Tax Information
Exchange Agreements (TIEAs) and 13 new Double Taxation Avoidance
Agreements (DTAAs) along with revision of provisions of 10 existing DTAAs.
To effectively handle the increase in tax information exchange and transfer
pricing issues, Foreign Tax Division of CBDT has been strengthened. A
dedicated Cell for exchange of information is being set up to work on this
agenda.
88. The amendment in our Money Laundering Legislation in 2009 has
significantly increased its scope and application. The number of cases registered
under this law has increased from 50 between 2005 to 2008 to over 1200 by
January this year. The strength of the Enforcement Directorate has been increased
three-fold to deal effectively with the increased workload.
89. The Ministry of Finance has commissioned a study on unaccounted
income and wealth held within and outside our country. It would suggest methods
to tax and repatriate this illicit money.
90. Trafficking in narcotic drugs is also a contributor to the generation of
black money. To strengthen controls over prevention of trafficking and improve
the management of narcotic drugs and psychotropic substances, I propose to
announce a comprehensive national policy in the near future.
III. Strengthening Inclusion
91. The UPA Government has engineered a major directional change in public
policy by its focus on inclusive development. Creation of legal entitlements for
an individual's right to work has added to resilience and dynamism in our rural
economy. The right to information and the right to education are effective tools
of empowerment for removing social imbalances. The country has carried for
long enough the burden of hunger and malnutrition. After detailed consultations
with all stakeholders including State Governments, we are close to the finalisation
of National Food Security Bill (NFSB) which will be introduced in the Parliament
during the course of this year. The proposed allocation of ` 1,60,887 crore for
social sector in 2011-12 is an increase of 17 per cent over current year. It amounts
to 36.4 per cent of the total plan allocation.
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Bharat Nirman
92. The UPA Government's flagship programmes have been the principal
instrument for implementing its agenda for inclusive development. For the
year 2011-12, Bharat Nirman, which includes Pradhan Mantri Gram Sadak
Yojna (PMGSY), Accelerated Irrigation Benefit Programme, Rajiv Gandhi
Grameen Vidyutikaran Yojna, Indira Awas Yojna, National Rural Drinking
Water Programme and Rural telephony have together been allocated `58,000
crore. This is an increase of `10,000 crore from the current year. A plan has
been finalised to provide Rural Broadband Connectivity to all 2,50,000
Panchayats in the country in three years.
MGNREGA
93. In pursuance of my earlier budget announcement to provide a real wage
of `100 per day, the Government has decided to index the wage rates notified
under the MGNREGA to the Consumer Price Index for Agricultural Labour.
The enhanced wage rates have been notified by the Ministry of Rural
Development on January 14, 2011. It has resulted in significant enhancement
of wages for the beneficiaries across the country.
94. The Anganwadi workers and Anganwadi helpers are the backbone of
Integrated Child Development Services Scheme. I am happy to announce an
increase in the remuneration of Anganwadi workers from `1,500 per month to
`3,000 per month and for Anganwadi helpers from `750 per month to `1,500
per month. This will be effective from April 1, 2011. Around 22 lakh Anganwadi
workers and helpers will benefit from the increase.
Scheduled Castes and Tribal Sub-plan
95. In the Budget for 2011-12, for the first time, specific allocations are
being earmarked towards Scheduled Castes Sub-plan and Tribal Sub-plan.
These will be shown in the Budget of the relevant Ministries and Departments
under separate minor heads of account. Further, I propose to increase the Budget
allocation for primitive tribal groups from `185 crore in 2010-11 to `244 crore
in 2011-12.
Education
96. Our “demographic dividend” of a relatively younger population
compared to developed countries is as much of an opportunity as it is a
challenge. Over 70 per cent of Indians will be of working age in 2025. In this
context, universalising access to secondary education, increasing the percentage
of our scholars in higher education and providing skill training is necessary.
For education, I propose an allocation of ` 52,057 crore, which is an increase
of 24 per cent over the current year.
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Sarva Shiksha Abhiyan
97. The existing operational norms of Sarva Shiksha Abhiyan have been
revised to implement the right of children to free and compulsory education
which has come into force with effect from April 1, 2010. For the year 2011-12,
I propose to allocate `21,000 crore which is 40 per cent higher than `15,000
crore allocated in the Budget for 2010-11. A revised Centrally Sponsored Scheme
“Vocationalisation of Secondary Education” will be implemented from 2011-12
to improve the employability of our youth.
98. Empowerment flows from Education. While the Scheduled Castes and
Scheduled Tribes had access to post matric scholarships, there was so far a lack
of pre matric scholarship scheme. In 2011-12, I propose to introduce a scholarship
scheme for needy students belonging to the Scheduled Castes and Scheduled
Tribes studying in classes ninth and tenth. It would benefit about 40 lakh
Scheduled Caste and Scheduled Tribe students.
National Knowledge Network
99. Approved in March 2010, the National Knowledge Network (NKN) will
link 1500 Institutes of Higher Learning and Research through an optical fibre
backbone. During the current year, 190 Institutes will be connected to NKN.
Since the core will be ready by March 2011, the connectivity to all 1500
institutions will be provided by March 2012.
Innovations
100. To move beyond the formal R&D paradigm, a National Innovation
Council under Shri Sam Pitroda has been set up to prepare a roadmap for
innovations in India. The process of setting up State Innovation Councils in
each State and Sectoral Innovation Councils aligned to Central Ministries is
underway.
101. The Government has been providing special grants to recognise excellence
in universities and academic institutions. In the course of 2011-12, I propose to
provide:
• `50 crore each to upcoming centres of Aligarh Muslim University
at Murshidabad in West Bengal and Malappuram in Kerala;
• `100 crore as one-time grant to the Kerala Veterinary and Animal
Sciences University at Pookode, Kerala;
• `10 crore each for setting up Kolkata and Allahabad Centres of
Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya, Wardha;
• `200 crore as one time grant to IIT, Kharagpur;
• `20 crore for Rajiv Gandhi National Institute of Youth
Development, Sriperumbudur, Tamil Nadu
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• `20 crore for IIM, Kolkata, to set up its Financial Research and
Trading Laboratory;
• `200 crore for Maulana Azad Education Foundation;
• `10 crore for Centre for Development Economics and Ratan Tata
Library, Delhi School of Economics, Delhi; and
• `10 crore for Madras School of Economics.
Skill Development
102. I am happy to inform the House that National Skill Development Council
(NSDC) is well on course to achieve its mandate of creation of 15 crore skilled
workforce two years ahead of 2022, the stipulated target year. It has already
sanctioned 26 projects with a total funding of `658 crore. These projects alone
are expected to create more than 4 crore skilled workforce over the next ten
years. In the current year, skill training has so far been provided to 20,000 persons.
Of these, 75 per cent have found placements. I will provide an additional `500
crore to the National Skill Development Fund during the next year.
103. National celebrations of 150th Birth Anniversary of Gurudev
Rabindranath Tagore will commence from May 7, 2011 in New Delhi.
Important events will be held in several countries in Europe, America and
Asia. A series of events are also proposed to be organized under the aegis of
joint India-Bangladesh Celebrations Committee. An international award with
prize money of `1 crore is being instituted for promoting values of Universal
Brotherhood in the memory of Gurudev Rabindranath Tagore.
Health
104. For health, I propose to step up the plan allocations in 2011-12 by 20 per
cent to `26,760 crore. The Rashtriya Swasthya Bima Yojana has emerged as an
effective instrument for providing a basic health cover to poor and marginal
workers. It is now being extended to MGNREGA beneficiaries, beedi workers
and others. In 2011-12, I propose to further extend this scheme to cover
unorganized sector workers in hazardous mining and associated industries like
slate and slate pencil, dolomite, mica and asbestos etc.
Financial Inclusion
105. In my last budget speech I had advised Banks to provide banking
facilities to habitations having a population of over 2000 by March, 2012. The
Banks have identified about 73,000 such habitations for providing banking
facilities using appropriate technologies. A multi-media campaign,
“Swabhimaan”, has been launched to inform, educate and motivate people to
open bank accounts. During this year, banks will cover 20,000 villages.
Remaining will be covered during 2011-12.
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Unorganised sector
106. I had announced a co-contributory pension scheme “Swavalamban” in
the Budget 2010-11. This scheme has been welcomed by the workers in
unorganised sector. Over 4 lakh applications have already been received. On the
basis of the feedback received, I am relaxing the exit norms whereby a subscriber
under Swavalamban will be allowed exit at the age of 50 years instead of 60
years, or a minimum tenure of 20 years, whichever is later. I also propose to
extend the benefit of Government contribution from three to five years for all
subscribers of Swavalamban who enroll during 2010-11 and 2011-12. An
estimated 20 lakh beneficiaries will join the scheme by March 2012.
107. Under the on-going Indira Gandhi National Old Age Pension Scheme
for BPL beneficiaries, the eligibility for pension is proposed to be reduced
from 65 years at present to 60 years. Further, for those who are 80 years and
above, the pension amount is being raised from ` 200 at present to ` 500 per
month.
Environment and Climate Change
Forests
108. Protection and regeneration of forests has great ecological, economic
and social value. Our Government has launched an ambitious ten-year Green
India mission. I propose to allocate `200 crore from the National Clean Energy
Fund to begin its implementation in 2011-12.
Environmental Management
109. Environmental pollution has emerged as a serious public health concern
across the country. I propose to allocate `200 crore from the National Clean
Energy Fund as Centre's contribution in 2011-12 for launching environmental
remediation programmes.
Cleaning of Rivers and Lakes
110. A number of projects under the National Ganga River Basin Authority
have been approved in 2010-11. This momentum will be further stepped up.
There are many rivers and lakes of cultural and historical significance that need
to be cleaned. In the course of the year 2011-12, I propose to provide a special
allocation of `200 crore for the clean-up of some important lakes and rivers
other than the Ganga.
Some Other Initiatives
111. In order to boost development in the North Eastern Region and Special
Category States, the allocation for special assistance has been almost doubled to
`8,000 crore for 2011-12. Out of this, `5,400 crore has been allocated as untied
Special Central Assistance.
112. The Government’s special support to Jammu & Kashmir is anchored in
`28,000 crore Prime Minister's Reconstruction Plan. In addition, for the current
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year, about `8,000 crore has been provided for the State's development needs. A
Task Force to assess infrastructure needs that can be addressed within a time
horizon of 24 months for Ladakh and Jammu regions of the State has
recommended projects amounting to `416 crore and `497 crore, respectively. I
am providing `100 crore for Ladakh and `150 crore for Jammu for these identified
projects in 2011-12.
113. To give a boost to the development of backward regions, the allocation
under the Backward Regions Grant Fund has been increased from `7,300 crore
to `9,890 crore amounting to an increase of over 35 per cent.
114. To address problems related to Left Wing Extremism affected districts,
an Integrated Action Plan (IAP) for 60 selected tribal and backward districts
has been launched in December 2010. The scheme is being implemented with
100 per cent block grant of `25 crore and `30 crore per district during the
years 2010-11 and 2011-12, respectively. The allocated funds are placed at the
disposal of the district level committees who in consultation with local MPs
will have the flexibility to spend the amount on development schemes as per
the local needs.
115. In recognition of the sacrifices made by Central Para-military Forces
engaged in tackling Left Wing Extremism, a lump sum ex-gratia compensation
of `9 lakh for 100 per cent disability will now be granted to personnel of the
Defence and para-military forces who are discharged from service on medical
grounds on account of disability attributable to or aggravated in government
service. For personnel with disability ranging from 20 to 99 per cent, a
proportionate amount would be given.
116. In the Budget 2011-12, a provision of `1,64,415 crore has been made
for Defence services which include `69,199 crore for capital expenditure.
Needless to say, any further requirement for the country's defence would
be met.
117. In order to speed up delivery of justice, the Plan provision for
Department of Justice for 2011-12 has been increased three-fold to `1,000
crore. The enhanced provision will help in building judicial infrastructure and
the project on E-courts.
Census 2011
118. The 15th Census in the country is being conducted from 9th February. It
is the largest administrative exercise in the country providing statistical data on
different socio-economic parameters of population.
119. In response to the overwhelming demand for enumeration of castes other
than Scheduled Castes and Scheduled Tribes in Census 2011, it has been decided
to canvass ‘caste’ as a separate time bound exercise. This exercise will start in
June 2011 and will be completed by 30th September 2011.
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IV. Improving Governance
I now turn to some important measures being taken for improving
governance.
UID Mission
120. The UID Mission has taken off and Aadhaar numbers are being generated
in large numbers. So far 20 lakh Aadhaar numbers have been given and from 1st
October 2011, ten lakh numbers will be generated per day. The stage is now set
for realising the potential of Aadhaar for improving service delivery, accountability
and transparency in governance of various schemes.
IT Initiatives
121. The backbone of an efficient tax administration is a robust IT infrastructure
and its deployment for enhanced taxpayer services. Towards this objective, both
the Central Boards of Direct Taxes (CBDT) and Excise and Customs (CBEC)
have put in place the following measures:
• The on-line preparation and e-filing of income tax returns,
e-payment of taxes through 32 agency banks, ECS facility for
electronic clearing of refunds directly in taxpayers’ bank accounts
and electronic filing of TDS returns are now available throughout
the country. These measures have empowered taxpayers to meet
their tax obligations without visiting an income tax office.
• The Centralized Processing Centre (CPC) at Bengaluru has
increased its daily processing capacity from 20,000 to 1.5 lakh
returns in 2010-11. This project has won a Gold Award for
e-Governance in 2011. Two more CPCs will become operational
in Manesar and Pune by May 2011 and a fourth CPC will come up
in Kolkata in 2011-12.
• With the completion of its IT Consolidation Project, CBEC can
now centrally host its key applications in Customs, Central Excise
and Service Tax. The Customs EDI system now covers 92 locations
across the country. CBEC's e-Commerce portal ICEGATE, has
also been conferred a Gold Award for e-Governance.
• The 'Sevottam' concept has been adopted by both Boards. The three
pilot projects of Aaykar Seva Kendras (ASKs) under CBDT have
come of age. CBDT will commission eight more such centres this
year. In 2011-12, another fifty ASKs will be set up across the
country. CBEC has also launched a similar initiative and four of
their pilot projects have been commissioned.
• The electronic filing of Tax Deduction at Source (TDS) statements
has stabilized. The Board shall soon notify a category of salaried
taxpayers who will not be required to file a return of income as
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their tax liability has been discharged by their employer through
deduction at source.
• CBDT will provide a separate web-based facility to enable a direct,
stand-alone interface for taxpayers with the Income Tax Department
so that they can report and track the resolution of their refunds and
credit for prepaid taxes.
122. Mission Mode Projects for computerization of Commercial Taxes in
States that I announced in my last Budget, will allow States to align with the
roll out of GST. Funds have been released for 31 projects received from the
States and Union Territories. Most of the States and UTs have already enabled
the facility of dealers making electronic payments. A number of States have
already started accepting Electronic Tax Returns and issuing forms required
for inter-state trade.
123. With the development of the economy, the need to review the provisions
of the Indian Stamp Act, 1899 has been felt over the years. I propose to introduce
a Bill shortly to amend the Indian Stamp Act.
124. Five years ago, we took an initiative to introduce a modern and peoplefriendly
e-stamping facility in the country. Only six States have introduced this
system so far. I propose to launch a new scheme with an outlay of `300 crore to
provide assistance to States to modernise their stamp and registration
administration and roll out e-stamping in all the districts in the next three years.
125. I propose to introduce a new simplified return form 'Sugam' to reduce
the compliance burden of small taxpayers who fall within the scope of
presumptive taxation.
126. The increase in scope of cases admitted by the Settlement Commissions
has provided relief to several taxpayers. This has also increased the workload of
the Commission. To fast track the disposal of cases, three more Benches of the
Commission are being set up.
127. Substantial amounts of revenue in both direct and indirect taxes, remain
locked up in appeals at different levels. Both Boards also invest substantial effort
and money in litigation with their employees. In keeping with the National
Litigation Policy, several steps have been initiated in 2010-11 for reducing
litigation and focusing attention on high revenue cases. Instructions have been
issued raising limit of tax effects below which, tax disputes will not be pursued
by Government in higher Courts of Appeal. These measures would enhance
productivity of resources employed in raising revenue.
Corruption
128. A Group of Ministers has been constituted to consider measures for
tackling corruption. The Group has been tasked with addressing issues relating
to State funding of elections, speedier processing of corruption cases of public
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servants, transparency in public procurement and contracts, discretionary powers
of Central ministers and competitive system for exploiting natural resources.
The Group will make its recommendations in a time bound manner.
Performance Monitoring and Evaluation System
129. Pursuant to the recommendations of Second Administrative Reforms
Commission, the Government has set up a Performance Monitoring and
Evaluation System (PMES) to assess the effectiveness of Government
departments in their mandated functions. It involves preparation of a Results
Framework Document (RFD) by each department, highlighting its objectives
and priorities for the financial year and achievements against pre-specified
targets at the end of the year. This document would be available for public
information on the departmental websites. In the first phase, 62 departments
have been covered under PMES.
TAGUP
130. In pursuance of the announcement made in the Budget 2010-11, I had
set up a Technology Advisory Group for Unique Projects (TAGUP). The Group
has submitted its report and its recommendations have been accepted in
principle. The modalities of implementation are being worked out.
131. Indian Rupee now has a new symbol which has been notified for use by
the Central and State Governments, business entities and the general public. A
new series of coins carrying this symbol will be issued shortly. The Government
has approached Unicode Standards Authority for inclusion of the symbol in
international standards.
V. Budget Estimates 2011-12
I now turn to the Budget Estimates for 2011-12.
132. The Gross Tax Receipts are estimated at `9,32,440 crore which is an
increase of 24.9 per cent over the Budget Estimates for 2010-11. After
devolution to States, the net tax to Centre in 2011-12 is `6,64,457 crore. The
Non Tax Revenue Receipts for 2011-12 are estimated at `1,25,435 crore.
133. The total expenditure proposed for 2011-12 is `12,57,729 crore, which
is an increase of 13.4 per cent over the Budget Estimates for 2010-11. The
Plan Expenditure at `4,41,547 crore marks an increase of 18.3 per cent and the
Non Plan Expenditure at `8,16,182 crore is an increase of 10.9 per cent over
BE 2010-11. As 2011-12 is the last year of the Eleventh Plan, I am happy to
share that Eleventh Plan expenditure in nominal terms is more than 100 per
cent of the expenditure envisaged for the Plan period.
134. The total plan and non-plan transfers of `2,01,733 crore to States and UT
Governments in 2011-12 have increased by 23 per cent over the Budget Estimates
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2010-11. This includes grants of `13,713 crore in 2011-12 to local bodies as per
the recommendation of the Thirteenth Finance Commission.
135. Hon'ble Members are aware that in the course of 2010-11, I had the
opportunity to effect a further improvement in the fiscal balance, due to the
higher than anticipated non-tax revenues from 3G spectrum auctions. I chose
to do that and much more. While I provided additional resources of about
`50,000 crore to critical infrastructure and social sectors and also to meet the
expenditure on subsidies, I have brought down the fiscal deficit from 5.5 per
cent to 5.1 per cent of the GDP for 2010-11. For 2011-12, I have kept it at 4.6
per cent of GDP, which improves upon my own target for 2011-12 indicated in
the fiscal road map presented in the last Budget. In the Medium Term Fiscal
Policy Statement being presented to the House today, the rolling targets for
fiscal deficit are placed at 4.1 per cent for 2012-13, and 3.5 per cent for
2013-14.
136. There has been some concern expressed regarding the stickiness of
Government's revenue deficit in the post-global crisis phase of the economy.
For 2010-11 as against a target of 4 per cent, the revenue deficit is estimated at
3.4 per cent of GDP. In the past few years the transfers to States and other
developmental expenditure have grown significantly. These are classified as
revenue expenditure even though a considerable part of the expenditure from
these transfers is in the nature of capital expenditure. In 2010-11, `90,792
crore from such revenue expenditures were in the nature of capital expenditure.
Similarly, in 2011-12 grants-in-aid for creation of capital assets, which are
now shown separately in the Budget documents, are about `1.47 lakh crore.
Taking these budget provisions into account, the “effective revenue deficit” is
estimated at 2.3 per cent in the Revised Estimates for 2010-11 and 1.8 per cent
for 2011-12.
137. In my last Budget, I had stated that Government would avoid issuing
bonds in lieu of subsidies to oil and fertiliser companies. I have adhered to this
decision, thereby bringing all subsidy related liabilities into our fiscal
accounting.
138. The fiscal deficit of 4.6 per cent of GDP in 2011-12 works out to
`4,12,817 crore. Taking into account the various other financing items for
fiscal deficit, the net market borrowing of the Government in 2011-12 would
be `3.43 lakh crore. In addition, `15,000 crore is proposed to be financed
through Treasury Bills. Accordingly, the Central Government debt as a
proportion of GDP is estimated at 44.2 per cent for 2011-12 as against 52.5 per
cent recommended by the Thirteenth Finance Commission.
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PART - B
Madam Speaker,
I shall now present my tax proposals.
139. In the formulation of these proposals, my priorities are directed towards
making taxes moderate, payments simple for the taxpayer and collection of
taxes easy for the tax collector.
VI. Direct Taxes
I shall now deal with direct taxes.
140. As Government's policy on direct taxes has been outlined in the DTC,
which is before Parliament, I have limited my proposals to initiatives that require
urgent attention.
141. Last year I provided relief to individual taxpayers by broadening the
tax slabs. To take us closer to DTC rates, I propose to enhance the exemption
limit for the general category of individual taxpayers from `1,60,000 to
`1,80,000 this year. This measure will provide a uniform tax relief of `2,000
to every taxpayer of this category.
142. Senior citizens deserve our special attention. For them, I propose
• to reduce the qualifying age, from 65 years to 60 years;
• to enhance the exemption limit from `2,40,000 to `2,50,000;
• To create a new category of Very Senior Citizens, eighty years
and above, who will be eligible for a higher exemption limit of
`5,00,000.
143. In the case of corporates, my initiative of phasing out the surcharge
continues. I propose to reduce the current surcharge of 7.5 per cent on domestic
companies to 5 per cent. Simultaneously, I propose to increase the rate of
Minimum Alternate Tax (MAT) from the current rate of 18 per cent to 18.5 per
cent of book profits to keep the effective rate of the MAT at the same level. As
a measure to ensure equal sharing of the corporate tax liability, I propose to
levy MAT on developers of Special Economic Zones as well as units operating
in SEZs.
144. To attract foreign funds for financing of infrastructure, I propose to:
• create special vehicles in the form of notified infrastructure debt
funds;
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• subject interest payment on the borrowings of these funds to a
reduced withholding tax rate of 5 per cent instead of the current
rate of 20 per cent;
• exempt the income of the fund from tax.
145. In order to promote savings and raise funds for infrastructure, an additional
deduction of `20,000 for investment in long-term infrastructure bonds was
notified by the Central Government in 2010-11. I propose to extend this window
for one more year.
146. It has been represented that the taxation of foreign dividends in the
hands of resident taxpayers at full rate is a disincentive for their repatriation to
India and they continue to remain invested abroad. For the year 2011-12, I
propose a lower rate of 15 per cent tax on dividends received by an Indian
company from its foreign subsidiary. I do hope these funds will now flow
to India.
147. In order to give a boost to production in the agriculture sector, I propose
to extend the benefit of investment linked deduction to businesses engaged in
the production of fertilisers.
148. Considering the importance of housing, I also propose investment linked
deduction to businesses which develop affordable housing under a notified
scheme.
149. In this Decade of Innovation, I enhanced the weighted deduction on
payments made to National Laboratories, universities and Institutes of technology,
for scientific research, to 175 per cent in the last budget. I propose to further
enhance this to 200 per cent.
150. In order to strengthen our system of collection of information from foreign
tax jurisdictions, I propose to provide a toolbox of counter measures to discourage
transactions with entities located in non-cooperative jurisdictions as may be
notified by the Government.
151. My proposals on direct taxes are estimated to result in a net revenue loss
of `11,500 crore for the year.
VII. Indirect Taxes
I shall now turn to my indirect tax proposals.
152. In view of the healthy growth in indirect taxes in 2010-11, I had the
option to roll back the Central excise duty to levels prevailing in November
2008. I have chosen not to do so for two reasons. I would like to see improved
business margins translated into higher investment rates. I would also like to
stay my course towards GST. I have therefore decided to maintain the standard
rate of Central excise duty at 10 per cent.
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153. I propose certain changes in the Central Excise rate structure to prepare
the ground for the transition to GST, beginning with a reduction in the number
of exemptions. At present, there are about 100 items that are exempt from Central
Excise as well as State VAT. In addition, there are as many as 370 items that
enjoy exemption from Central Excise duty but are chargeable to VAT. I propose
to withdraw the exemption on 130 of these items that are mainly in the nature of
consumer goods. The remaining 240 items would be brought into the tax net
when GST is introduced.
154. A nominal Central Excise duty of 1 per cent is being imposed on the 130
items that are entering the tax net. No Cenvat credit would be available for the
manufacture of these items. Basic food and fuel would continue to be exempt.
This levy would also not apply to precious metals and stones. In case of jewellery
and articles of gold, silver and precious metals, the levy would apply only to
goods sold under a brand name.
155. Most of the States have increased their merit rate of VAT from 4 per cent
to 5 per cent. In line with this, I also propose to enhance the lower rate of Central
Excise duty from 4 per cent to 5 per cent.
156. Ready-made garments and made-ups of textiles are currently under an
optional excise duty regime. A manufacturer is required to pay duty only if he
wishes to avail of Cenvat credit. Our garment and made-ups industry has come
of age and has shown handsome growth in recent years. As part of base expansion,
I propose to convert the optional levy into a mandatory levy at a unified rate of
10 per cent. The levy would however, apply only to branded garments or madeups
and not to those tailored or made to order for a retail customer. Credit of tax
paid on inputs, capital goods and input services would be available to
manufacturers of these products. Keeping in mind the fragmented nature of this
industry, full SSI exemption is also being extended to these products. Export of
these items would continue to be zero-rated.
157. We have a long term commitment to align our customs duty rates to
those prevailing in ASEAN countries. The peak rate of customs duty has
been reduced over the years and has settled at 10 per cent. In view of
continued uncertainties in the global economy, I propose to hold the peak
rate at its current level. However, some rationalization is being done to unify
three rates namely, 2 per cent, 2.5 per cent and 3 per cent at the middle level
of 2.5 per cent.
158. I now turn to proposals that are aimed at encouraging some of the thrust
sectors that are in need of attention.
Agriculture & Related Sectors
159. Hon'ble Members would recall that, in the last Budget, I had announced
a package of measures to improve the availability of storage and warehouse
facilities for agricultural produce as well as to incentivize food processing.
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I have received encouraging feedback on the impact of these measures. I propose
to enlarge the scope of these exemptions by:
• extending full exemption from excise duty to air-conditioning
equipment and refrigeration panels for cold chain infrastructure;
• including conveyor belts in the full exemption from excise duty to
equipment used in cold storages, mandis and warehouses.
160. A concessional rate of basic customs duty of 5 per cent was provided to
specified agricultural machinery in the last budget. This duty is being reduced
further to 2.5 per cent and the concession is also being extended to parts of such
machinery to encourage their domestic production.
161. Micro-irrigation is an environment-friendly and efficient means of
irrigation especially for dry land farming. I propose to reduce the basic customs
duty on micro-irrigation equipment from 7.5 per cent to 5 per cent.
162. De-oiled rice bran cake constitutes an important ingredient of cattle feed
and its improved availability would have a positive impact on milk production.
I propose to provide full exemption from basic customs duty to this item.
Simultaneously, an export duty of 10 per cent would be levied to discourage its
export.
Manufacturing Sector
163. For the manufacturing sector, my proposals seek to encourage domestic
value addition vis-a-vis imports, to remove duty inversions and anomalies and
to provide a level playing field to the domestic industry. The major proposals
are to:
• reduce basic customs duty on raw silk (not thrown) from 30 to 5
per cent;
• reduce basic customs duty from 5 per cent to 2.5 per cent on certain
textile intermediates and inputs for chemicals, ferro-alloys and
paper;
• reduce basic customs duty on certain specified inputs for
manufacture of certain technical fibre and yarn from 7.5 per cent
to 5 per cent;
• fully exempt stainless steel scrap from basic customs duty;
• reduce import duties on specified raw material for the manufacture
of syringes and needles to 5 per cent basic and 4 per cent CVD;
• extend the concession available to parts, components and
accessories for manufacture of mobile handsets till 31st March,
2012 and to include few more items in its ambit;
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• expand the raw material list for manufacture of specified electronic
components that are fully exempt from basic customs duty;
• reduce excise duty (and hence CVD) on parts of ink-jet and laserjet
printers from 10 per cent to 5 per cent.
164. Iron ore attracts an export duty of 15 per cent in the case of lumps and 5
per cent in the case of fines. This is a natural resource which needs to be conserved.
I propose to enhance the rate of export duty for all types of iron ore and unify it
at 20 per cent ad valorem. Iron ore is also exported in a value-added, pelletized
form. Full exemption from export duty is being provided to iron ore pellets to
encourage the value addition process for fines.
165. As a measure of relief to cement industry, I propose to replace the existing
excise duty rates with composite rates having an ad valorem and specific
component with some rationalization. The basic customs duty on two critical
raw materials of this industry viz. petcoke and gypsum is proposed to be reduced
to 2.5 per cent.
166. To drive the financial inclusion agenda of the Government, I propose to
fully exempt cash dispensers from basic customs duty. Full exemption is also
being extended to parts of such machines to encourage their domestic production.
Environment
167. Full exemption from basic customs duty and a concessional rate of Central
Excise duty of 4 per cent was provided to specified parts of electrical vehicles in
the last Budget on actual-user basis. I propose to extend the concession to batteries
imported by such manufacturers for the replacement market.
168. Fuel cell or Hydrogen cell technology is a promising green technology
for the automobile sector. I propose to extend the concessional excise duty of 10
per cent to vehicles based on this technology.
169. Hybrid vehicles enjoy a concessional excise duty rate of 10 per cent.
However, import dependence for their critical parts/ sub-assemblies is still quite
high. It is proposed to grant specified parts of such vehicles full exemption from
basic customs duty and special CVD. In addition, a concessional rate of excise
duty of 5 per cent is being prescribed to incentivise their domestic production.
170. In response to the growing demand for green products, a technology has
been developed indigenously for the conversion of fossil fuel vehicles into Hybrid
vehicles through the fitment of a kit. I propose to reduce the excise duty on such
kits and their parts from 10 per cent to 5 per cent.
171. In the last Budget, Central Excise duty on LED lights was reduced from
8 per cent to 4 per cent to promote their use. The basic component of these lights
viz. the LED attracts an excise duty (hence, CVD) of 10 per cent and a special
CVD of 4 per cent. The excise duty on LEDs is being reduced to 5 per cent and
special CVD is being fully exempted.
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172. The solar lantern enables our countrymen in far-flung villages to partake
of developments in green technology. The basic customs duty on such lanterns
is being reduced from 10 per cent to 5 per cent. Basic customs duty on a few
more inputs used in the manufacture of solar modules/ cells is being reduced
to Nil.
173. Environmental considerations demand promotion of laundry soaps which
conserve water and are gentle on the soil. To this end, full exemption from basic
customs duty is being provided to Crude Palm Stearin for use in the manufacture
of laundry soap.
174. Pre-tanning or tanning processes in the leather industry use chemicals
which are pollutants. To encourage use of green processes, full exemption from
basic excise duty is being granted to enzyme based preparations for pre-tanning.
Infrastructure
175. Capital goods imported for the expansion of existing mega or ultra mega
power projects enjoy a concessional basic customs duty of 2.5 per cent and full
exemption from CVD. This creates a disability for the domestic suppliers who
are required to pay Central Excise duty on supplies to such projects. I propose to
correct this anomaly by providing a parallel excise duty exemption.
176. Bio-based asphalt is an emerging, green technology for the surfacing of
roads. Full exemption from basic customs duty is being extended to bio-asphalt
and specified machinery for its application in the construction of national
highways. Tunnel-boring machines required for the construction of highways
are also being included in this exemption.
Other Proposals
177. Works of art and antiquities are exempt from customs duties when
imported for exhibition in a public museum or national institution. In recent
years, many organisations have joined the cause of promoting and popularising
both traditional and contemporary art. Some of them have been active in locating
heritage works of Indian art and antiquities in foreign countries and bringing
them back home. To encourage such initiatives, I propose to expand the scope of
this exemption for works of art and antiquities to also apply to imports for
exhibition or display, in private art galleries or similar premises that are open to
the general public. Department of Culture will notify details of the scheme
separately.
178. Full exemption from import duty is available to spares and capital goods
required for ship-repair units. This exemption is being extended to imports by
ship owners too.
179. The concessional basic customs duty of 5 per cent and CVD of 5 per
cent, presently applicable to high-speed printing presses imported by newspaper
establishments is being extended to mailroom equipment.
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180. The Indian film industry has represented that colour, unexposed jumbo
rolls of cinematographic film are not manufactured domestically and have to
be imported. I propose to exempt jumbo rolls of 400 feet and 1000 feet from
CVD by providing full exemption from excise duty.
181. I propose to provide outright concession to factory-built ambulances in
place of the existing refund-based concession from excise duty. A refund-based
concession is available to taxis having a seating capacity not exceeding 7
persons including the driver. I propose to extend this to vehicles upto a seating
capacity not exceeding 13 persons including the driver.
182. Some of the other relief measures that I propose are:
• Reduction in basic customs duty on raw pistachio from 30 per
cent to 10 per cent;
• Reduction in basic customs duty on bamboo for agarbatti from
30 per cent to 10 per cent;
• Reduction in basic customs duty on lactose for the manufacture
of homeopathic medicines from 25 per cent to 10 per cent; and
• Reduction in central excise duty on sanitary napkins, baby and
adult diapers from 10 per cent to 1 per cent.
183. My proposals relating to customs and Central excise are estimated to
result in a net revenue gain of `7,300 crore for the year.
VIII. Service Tax
184. The actual collections of Service Tax do not reflect the full potential of
this sector. While retaining the standard rate of service tax at 10 per cent, I
seek to achieve a closer fit between the present service tax regime and its GST
successor by:
• Bringing in a few new services into the tax net to expand the tax
base while ensuring that the impact is predominantly on sections
of society that have the ability to pay;
• Suitably expanding or rationalizing the scope of existing service
categories;
• Rationalizing certain provisions relating to import of services and
valuation;
• Modifying provisions of the Cenvat Credit scheme to achieve a
more realistic balance between input credits and output tax and
harmonising the provisions of the scheme across goods and
services;
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• Rationalizing penal provisions to reinforce the message that honest
taxpayers would be facilitated and deviants would be dealt with
severely; and
• Adoption of Point of Taxation rules for services which would shift
the basis for tax collection from “cash” towards “accrual” basis as
with Central Excise duty.
185. I propose to levy service tax on the following new services:
• Hotel accommodation, in excess of declared tariff of `1,000 per
day with an abatement of 50 per cent so that the effective burden is
only 5 per cent of the amount charged;
• Service provided by air-conditioned restaurants that have license
to serve liquor, by giving an abatement of 70 per cent. Thus, the
effective burden will be 3 per cent of the bill.
186. I imposed service tax in 2010-11 on health check up or treatment. This
levy has resulted in differential treatment between persons who make payments
themselves and others where payments are made by an insurance company or a
business entity. Thus, I propose to replace it with a tax on all services provided
by hospitals with 25 or more beds that have the facility of central air-conditioning.
Though the tax is on high- end treatment, I propose to sweeten the pill by an
abatement of 50 per cent so that the actual burden is kept at 5 per cent of the
value of service. I also propose to extend the levy to diagnostic tests of all kinds
with the same rate of abatement. However, all Government hospitals shall be
outside this levy.
187. I propose to raise the service tax on air travel by `50 in the case of domestic
air travel and `250 on international journeys by economy class. I also propose to
tax travel by higher classes on domestic sector at the standard rate of 10 per cent
to bring it on par with journeys by higher classes on international air travel.
188. Services provided by life insurance companies in the area of investment
are also proposed to be brought into tax net on the same lines as ULIPs. I propose
to expand the scope of legal services to include services provided by business
entities to individuals as well as representational and arbitration services by
individuals to business entities. There shall, however, be no tax on services
provided by individuals to other individuals.
189. There are certain other changes mainly by way of rationalisation or
expansion in the scope of certain services or by plugging existing loopholes. I do
not wish to take the valuable time of the House in further elaboration here.
190. The strength of a good value-added-tax lies in the free flow of the credit
of the tax paid at the previous stage. Due to complexities, there have been many
legal disputes on the availability of credit on a number of inputs or input services.
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These provisions are being rationalized by laying down clear definitions so that
the scope of inputs and input services that are eligible and those that are not, is
clear. Allocation of CENVAT credit to exempt and taxable goods and services is
also being streamlined.
191. The number of assessees in service tax has grown manifold. I find that a
large number of them comprise individuals or sole proprietors with small
turnovers. Any audit at their premises tends to dislocate their activities for the
duration of the audit. I therefore, propose to free all individual and sole proprietor
taxpayers with a turnover upto `60 lakh from the formalities of audit. This will
give relief to a large number of taxpayers. I also intend to give all assessees with
turnover upto `60 lakh, the benefit of 3 percentage points in interest on delayed
payment.
192. In keeping with our thrust to encourage voluntary compliance, the penal
provisions for Service Tax are being rationalised. A key component of this strategy
would be to treat less harshly those who have maintained truthful records but
have fallen short of discharging their tax liability. Simultaneously, deliberate
evaders with unrecorded business transactions will be dealt with more severely.
Similar changes are being carried out in Central Excise and Customs laws. The
details of the provisions are in the Finance Bill.
193. My proposals relating to service tax are estimated to result in net revenue
gain of `4,000 crore for the year.
194. Many experts have argued that it will be desirable to tax services based
on a small negative list, so that many untapped sectors are brought into the tax
net. Such an approach will be very conducive for a nationwide GST. I propose to
initiate an informed public debate on the subject to help us finalise the approach
to GST.
195. Copies of notifications giving effect to the changes in Customs, Central
Excise and Service Tax will be laid on the Table of the House in due course.
196. My proposals on direct taxes are estimated to result in a revenue loss of
`11,500 crore for the year. Proposals relating to indirect taxes are estimated to
result in a net revenue gain of `11,300 crore, leaving a net loss of `200 crore in
the Budget.
197. As an emerging economy, with a voice on the global stage, India stands
at the threshold of a decade which presents immense possibilities. We must not
let the recent strains and tensions hold us back from converting these possibilities
into realities. With oneness of heart, let us all build an India, which in not too
distant a future, will enter the comity of developed nations.
Madam Speaker, with these words, I commend the Budget to the House.

Indian markets up ahead of union budget

2011-02-28T08:32:00.000-08:00

Indian shares were up 0.2 percent in early trade on Monday ahead of the federal budget.

Finance Minister Pranab Mukherjee , who is scheduled to begin the budget speech at 11 a.m. (0530 GMT), faces the daunting task of appeasing voters weary of high inflation while trying to tame fiscal deficit.

At 9:16 a.m. (0346 GMT), the 30-share BSE index, or Sensex, was up 0.24 percent at 17,743.58 points, with 18 components advancing. It started up 0.6 percent.

The 50-share NSE index was up 0.3 percent at 5,320.60.

Nifty moves higher; IDFC, RCapital, ONGC, HDFC up

Indian markets were witnessing buying activity across ahead of the Union Budget to be tabled in the parliament today. All the sectoral indices except the auto space were in the positive terrain. According to analysts, the market may turn volatile as the session progresses.

At 9:45 am; National Stock Exchange’s Nifty was at 5342.35, up 38.80 points or 0.73 per cent. The broader index touched a low of 5316.55 and high of 5346.25 in trade so far.

Bombay Stock Exchange’s Sensex was at 17787.52, up 86.61 points or 0.49 per cent. The 30-share index touched a low of 17732.38 and high of 17832.72 in trade so far.

“The trend deciding level for the day is 17661 / 5292 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 17852 – 18004 / 5350 - 5397 levels. However, if NIFTY trades below 17661 / 5292 levels for the first half-an-hour of trade then it may correct up to 17510 – 17319 / 5245 - 5186 levels,” said Angel Broking note.

BSE Midcap Index was up 1.06 per cent and BSE Smallcap Index moved 1.17 per cent higher.

Amongst the sectoral indices, BSE Capital Goods Index was up 1.35 per cent, BSE Oil&gas Index moved 1.23 per cent up and BSE Power Index gained 0.96 per cent. BSE Auto Index was down 1.10 per cent.

IDFC (4.31%), Reliance Capital (3.43%), Power Grid (2.82%), ONGC (2.61%) and HDFC (2.10%) were amongst the major Nifty gainers.

Tata Motors (-2.58%), Hero Honda (-2.52%), Hindalco (-1.62%), ACC (-1.43%) and Ambuja Cement (-1.29%) were the top losers.

Market breadth was positive on the NSE with 1378 advances against 491 declines.

Sensex firm as FM begins budget speech

Benchmarks held on to early morning gains as Finance Minister, Pranab Mukherjee began his budget speech in the parliament. The rally was led by gains in PSU, capital goods and oil&gas space while auto and metals stocks lagged behind.

At 11:05 am; Bombay Stock Exchange’s Sensex was at 17839.38, up 138.47 points or 0.78 per cent. The 30-share index touched a low of 17732.38 and high of 17871.41 in trade so far.

National Stock Exchange’s Nifty was at 5342.75, up 39.20 points or 0.74 per cent. The broader index touched a low of 5316.55 and high of 5356.05 in trade so far.

BSE Midcap Index was up 1.02 per cent and BSE Smallcap Index moved 1.07 per cent higher.

Amongst the sectoral indices, BSE PSU Index was up 2.35 per cent, BSE Capital Goods Index moved up 2.06 per cent and BSE Oil&gas Index gained 2.03 per cent. BSE Auto Index was down 1.19 per cent and BSE Metal Index slipped 0.03 per cent.

Nifty gains momentum; PSU, realty, oil&gas up

Markets reacted positively to the union budget presented by the finance minister Pranab Mukherjee in the Lok Sabha. PSU, realty and oil&gas sectoral indices led the rally while auto space was marginally lower.

At 12 pm; National Stock Exchange’s Nifty was at 5378.10, up 74.55 points or 1.41 per cent. The broader index touched a low of 5316.55 and high of 5395.85 in trade so far.

Bombay Stock Exchange’s Sensex was at 17934.14, up 233.23 points or 1.32 per cent. The 30-share index touched a low of 17732.38 and high of 17983.62 in trade so far.

BSE Midcap Index was up 1.19 per cent and BSE Smallcap Index moved 1.28 per cent higher.

Amongst the sectoral indices, BSE PSU Index was up 2.75 per cent, BSE Realty Index moved up 2.74 per cent and BSE Oil&gas Index gained 2.37 per cent. BSE Auto Index was down 0.37 per cent.

Reliance Capital (7.46%), IDFC (6.45%), BPCL (4.06%), ONGC (3.99%) and HDFC (3.95%) were amongst the major Nifty gainers.

Hero Honda (-3.16%), Tata Motors (-2.53%), ACC (-1.62%), Ranbaxy Laboratories (-1.48%) and Tata Power (-1.27%) were the top losers.

Market breadth was positive on the NSE with 1692 advances against 723 declines.

Sensex touches 18000; M&M, ITC, Maruti, L&T up

Indian markets reacted positively to the Union Budget presented by the Finance Minister Pranab Mukherjee in the parliament. The minister has proposed to raise Rs 40,000 crores through disinvestment. He added that fiscal deficit for FY 11-12 is seen at seen at 4.6%.

At 1:17 pm; Bombay Stock Exchange’s Sensex was at 18091.12, up 390.21 points or 2.20 per cent. The 30-share index touched a low of 17718.88 and high of 18128.97 in trade so far.

National Stock Exchange’s Nifty was at 5418.50, up 114.95 points or 2.17 per cent. The broader index touched a low of 5312.25 and high of 5430.25 in trade so far.

BSE Midcap Index was up 0.91 per cent and BSE Smallcap Index moved 1.06 per cent higher.

Amongst the sectoral indices, BSE FMCG Index advanced 4.34 per cent, BSE PSU Index moved up 2.70 per cent and BSE Realty Index gained 2.51 per cent. BSE Auto Index was up 2.41 per cent.

Shares of auto companies bounced back in positive territory as the Finance Minister didn’t hike the excise duty on automobiles as feared by the industry, say analysts.

M&M (7.45%), ITC (6.95%), Maruti (4.55%), L&T (3.50%) and HDFC (3.19%) were amongst the major Sensex gainers.

Tata Power (-1.25%), Reliance Infrastructure (-0.86%) and Hero Honda (-0.22%) were the only losers.

Market breadth was positive on the BSE with 1760 advances against 866 declines.

Sensex erases gains, below 18000 points

Benchmarks gave away most of intraday gains as post-budget euphoria came to an end and as traders booked profit near crucial resistance levels. The Finance Minister Pranab Mukherjee in his budget speech said fiscal deficit for FY 11-12 is seen at 4.6%. He has proposed to raise Rs 40,000 crores through disinvestment.

At 3 pm; National Stock Exchange’s Nifty was at 5318.95, up 15.40 points or 0.29 per cent. The broader index touched a low of 5312.25 and high of 5477 in trade so far.

Bombay Stock Exchange’s Sensex was at 17797.20, up 96.29 points or 0.54 per cent. The 30-share index touched a low of 17718.88 and high of 18296.53 intraday.

"The budget is positive for equity markets, the budget is positive for the bond markets as well and I do believe that he has made some changes including on the equity side which the major change which I think is path breaking is the whole change on mutual funds being allowed to borrowed or to raise money in equities from foreign investors I think that is a big plus.," said Uday Kotak, Executive Vice Chairman & MD, Kotak Mahindra Bank

BSE Midcap Index was up 0.26 per cent and BSE Smallcap Index moved 0.33 per cent higher.

Amongst the sectoral indices, BSE FMCG Index advanced 4.08 per cent, BSE PSU Index moved up 1.78 per cent and BSE Realty Index gained 1.21 per cent. BSE Metal Index was down 0.52 per cent and BSE Auto Index moved 0.30 per cent lower.

"It is a pleasant surprise in fact this budget is sentiment changer for the market. There are quite a few things that have come in the budget were not expected and on the fiscal deficit front there is bit of accounting but still it is very positive. Mutual funds will get foreign investors to invest directly. So market is expecting that there will be more equity flow into the market," said Nirmal Jain, chairman & MD, IIFL.

Sesa Goa (-8.16%), Ambuja Cement (-5.51%), Reliance Infrastructure (-4.40%), Ranbaxy Laboratories (-3.62%) and Tata Motors (-3.26%) were the top Nifty losers.

ITC (6.14%), IDFC (5.22%), Reliance Capital (4.23%), M&M (2.82%) and Cairn India (2.46%) were the top gainers.

Market breadth was positive on the NSE with 1561 advances against 1051 declines.

Sensex ends above 17800; PSU, FMCG, realty up

Benchmarks ended in the positive territory after paring most of intraday gains as post-budget euphoria came to an end. FMCG, PSU and realty space led the rally while auto and power space closed marginally lower.

The Finance Minister Pranab Mukherjee in his budget speech said fiscal deficit for FY 11-12 is seen at 4.6%. He has proposed to raise Rs 40,000 crores through disinvestment.

Bombay Stock Exchange’s Sensex closed at 17832.12, up 131.21 points or 0.74 per cent. The 30-share index touched a low of 17718.88 and high of 18296.53 intraday.

National Stock Exchange’s Nifty ended at 5334.20, up 30.65 points or 0.58 per cent. The broader index touched a low of 5308.60 and high of 5477 in today’s trade.

BSE Midcap Index was up 0.37 per cent and BSE Smallcap Index moved 0.40 per cent higher.

Amongst the sectoral indices, BSE FMCG Index advanced 4.57 per cent, BSE PSU Index moved up 1.99 per cent and BSE Realty Index gained 1.29 per cent. BSE Auto Index was down 0.18 per cent and BSE Power Index moved 0.10 per cent lower.

ITC (8.55%), Maruti (4.80%), ONGC (3.46%), M&M (2.84%) and SBI (2.40%) were the top gainers.

Reliance Infrastructure (-5.19%), Jaiprakash Associates (-3.51%), Hero Honda (-2.79%), Tata Motors (-2.45%), and Reliance Communications (-2.06%) were the top Nifty losers.

Market breadth was positive on the BSE with 1545 advances against 1228 declines.

Source ET

World Stock Market Updates : TOKYO; HONG KONG; SEOUL; CHINA; LONDON; US MARKET UPDATES

2011-02-16T09:10:00.000-08:00

Source : economictimes

Nikkei hits 9-mth high on weaker yen, foreign buying
TOKYO: Japan's Nikkei stock average climbed to a nine-month high above 10,800 on Wednesday helped by a softer yen, with the benchmark's strong run encouraging foreign investors to broaden their buying to financial shares.

It was a third straight day http://www.blogger.com/post-create.g?blogID=8843738645395069893of gains for the Nikkei, which has climbed some 18 percent since November when foreigners began snapping up lagging Tokyo stocks, with recent momentum coming from a big shift in market focus to developed economies from emerging ones.

The gains were underscored by high volume with the day's total set to come in above last week's daily average of 2.2 billion shares. The Tokyo stock exchange's first section has seen more than 2.0 billion shares change hands for seven consecutive sessions.

"Looking at trading volumes in banking, securities or property sectors we can see a clear pattern of systematic, sector-wide buying of these shares from foreign investors that has at last emerged."

The dollar climbed against the yen to its highest in eight weeks on Tuesday, boosted by the recent rise in U.S. Treasury yields, with more gains seen likely if bond markets continue to factor in inflation.

By mid afternoon, the Nikkei average was up 0.5 percent, or 56.91 points at 10,803.57, after hitting an intraday high of 10,842.31, its highest level since May 6, 2010.

Immediate resistance now lies at the May 6 intraday high of 10,847.90, traders said.

The broader Topix rose 0.6 percent to 968.16.

Hong Kong shares gain 0.62% in morning

HONG KONG: Hong Kong shares rose 0.62 percent in the morning session on Wednesday, in line with most regional markets, boosted by upbeat economic data out of the United States.

The benchmark Hang Seng Index added 141.30 points to 23,041.08 on turnover of HK$36.85 billion ($4.72 billion).

Seoul shares dip as autos, refiners fall

SEOUL: Seoul shares slipped after volatile trade on Wednesday, pressured by a second straight session of foreign selling and falls in automakers and crude refiners like SK Innovation.

The Korea Composite Stock Price Index (KOSPI) finished down 1.06 percent or 21.41 points at 1,989.11 points.

China shares end up 0.9 per cent, supported on steel firms

SHANGHAI: China's main stock index closed up 0.9 per cent on Wednesday, after trading mostly rangebound near a crucial psychologically level.

The benchmark Shanghai Composite Index was at 2,924.2 points, breaking above a key psychologically level of 2,900 points.

European stocks firm at open, London up 0.19%

LONDON: European stock markets rose in opening trade on Wednesday, with London's benchmark FTSE 100 index up 0.19 per cent at 6,049.43 points.

In Paris, the CAC 40 gained 0.34 per cent to 4,124.26 points while Frankfurt's DAX 30 added 0.19 per cent to 7,414.23 points.

US markets open higher on earns, M&A

NEW YORK: U.S. stocks opened higher on Wednesday after strong results from Dell and a burst of merger and acquisition activity.

The Dow Jones industrial average was up 18.77 points, or 0.15 percent, at 12,245.41. The Standard & Poor's 500 Index rose 4.10 points, or 0.31 percent, at 1,332.11. The Nasdaq Composite Index gained 10.55 points, or 0.38 percent, at 2,814.90.

Asian shares head higher despite weak Wall Street

2011-02-16T08:55:00.000-08:00

Source : Economicstimes
TOKYO: Asian stock markets rose Wednesday, reversing course after an indecisive opening following a sluggish day on Wall Street .

Oil prices rose to near $85 a barrel Wednesday in Asia after a report showed U.S. crude supplies unexpectedly fell last week, suggesting demand may be improving.

The Nikkei 225 stock average in Tokyo added 0.4 percent to 10,788.13. Exporters, including electronics makers, generally rose as the dollar hovered in the upper 83-yen range. Toshiba Corp. was up 2.8 percent, Pioneer Corp. rose 2.6 percent, and Sharp Corp. rose 0.9 percent. Financial issues also advanced, with Sumitomo Mitsui Financial Group Inc. up 2.3 percent.

Hong Kong's Hang Seng index rose 0.4 percent to 22,996.87, and the Shanghai Composite index was up 0.1 percent to 2,902.59. South Korea's Kospi index was nearly flat at 2,011.36, while benchmarks in Singapore and Indonesia retreated.

Australia's S&P/ASX 200 was up narrowly to 4,932.60. Among the day's worst performers, BHP Billiton Ltd. shed 1.8 percent despite reporting robust earnings. The world's biggest mining company said its first half net profit soared more than 71 percent in the six months through December.

In New York Tuesday, a surprisingly weak retail sales report drove stocks lower on Tuesday, giving the Dow Jones industrial average its second straight day of losses.

The Dow fell 41.55, or 0.3 percent, to close at 12,226.64. The broader Standard & Poor's 500 index fell 4.31, or 0.3 percent, to 1,328.01. The Nasdaq composite index fell 12.83, or 0.5 percent, to 2,804.35.

In currencies, the dollar eased to 83.75 yen from 83.82 yen late Tuesday. The dollar rose from the lower-83 yen level overnight, at one point hitting a two-month high of 83.91 yen. The euro stood at $1.3532 from $1.3492.

Benchmark crude oil for March delivery was up 35 cents at $84.67 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 49 cents to settle at $84.32 a barrel Tuesday.

Sensex ends in green; realty, metals, capital goods up

2011-02-16T08:49:00.000-08:00

Indian shares up; Tata Steel rebounds, Unitech down

Indian shares edged 0.2 percent higher early on Wednesday, with Tata Steel rebounding after falling initially.

At 9:17 a.m. (0347 GMT), the 30-share BSE index was up 0.15 percent at 18,301.73 points, with 17 components advancing.

Tata Steel reversed early losses and climbed more than 1 percent. The world's No. 7 steelmaker said late on Tuesday its quarterly net profit more than doubled, driven by demand and pricing in Europe and robust growth at its Indian operations.

But the company lagged estimates as higher raw material costs squeezed margins.

Unitech slipped 2.7 percent after Indian police on Tuesday questioned a top executive of the real estate developer as part of a probe into a telecoms corruption scandal that has roiled politics.

The 50-share NSE index was up 0.04 percent at 5,483.25.

Nifty choppy; Tata Steel, Ambuja Cement, L&T up

At 10:41 am; National Stock Exchange’s Nifty was at 5490.15, up 9.15 points or 0.17 per cent. The broader index touched a low of 5466.80 and high of 5497.50 in trade so far.

Bombay Stock Exchange’s Sensex was at 18276.37, up 2.57 points or 0.01 per cent. The broader index touched a low of 18238.73 and high of 18349.17 intraday.

“On the daily chart we are observing that prices have marginally closed above the downward sloping channel but have formed a “Doji” pattern. This suggests indecisiveness prevailing at current levels.

In coming trading session if indices trade above 18370 / 5510 levels then they are likely to test 18542 – 18600 / 5566 - 5580 levels. On the downside, 18050 – 17990 / 5400 – 5380 may act as support for the day,” said Angel Broking note.

BSE Midcap Index was up 0.45 per cent and BSE Smallcap Index moved 1.03 per cent higher.

Amongst sectoral indices, BSE Metal Index was up 0.97 per cent, BSE Capital Goods Index gained 0.79 per cent and BSE Healthcare Index gained 0.67 per cent. BSE Realty Index was down 0.81 per cent and BSE Auto Index declined 0.59 per cent.

Tata Steel (3.29%), Ambuja Cement (2.43%), Jindal Steel (2.24%), Jaiprakash Associates (2.07%) and L&T (1.92%) were amongst the major Nifty gainers.

HDFC (-2.51%), IDFC (-2.36%), M&M (-1.69%), Hindalco (-1.41%) and DLF (-1%) were the top losers.

Market breadth was positive on the NSE with 1486 gainers against 772 losers.

Sensex moves up; realty, metals, capital goods gain

At 12:50 pm; Bombay Stock Exchange’s Sensex was at 18339.72, up 65.92 points or 0.36 per cent. The broader index touched a low of 18216.12 and high of 18358.84 intraday.

National Stock Exchange’s Nifty was at 5495.65, up 14.65 points or 0.27 per cent. The broader index touched a low of 5460.35 and high of 5504.80 in trade so far.

“Yesterday’s market action hints that, Nifty entered into a consolidation zone after 2-days sharp rally. Consolidation is expected sideways between 5400 (which is also a 13-DMA) & 5550. During this consolidation, mid-caps are expected to take charge of market,” said Arihant Capital Market report.

BSE Midcap Index was up 0.51 per cent and BSE Smallcap Index moved 1.07 per cent higher.

Amongst sectoral indices, BSE Realty Index was up 2.13 per cent, BSE Metals Index gained 1.14 per cent and BSE Capital Goods Index gained 0.94 per cent. BSE Auto Index was down 0.19 per cent.

Jaiprakash Associates (4.08%), Tata Steel (2.63%), Jindal Steel (2.30%), Bajaj Auto (1.34%) and L&T (1.30%) were amongst the major Nifty gainers.

M&M (-2.31%), HDFC (-2.18%), Hindalco (-1.69%), Reliance Communications (-1.04%) and Tata Motors (-0.86%) were the top losers.

Market breadth was positive on the BSE with 1636 gainers against 1026 losers.

Nifty rangebound; JP Asso,Tata Steel,Axis Bank up

At 2:50 pm; National Stock Exchange’s Nifty was at 5489.15, up 8.15 points or 0.15 per cent. The broader index touched a low of 5460.35 and high of 5504.80 in trade so far.

Bombay Stock Exchange’s Sensex was at 18315.84, up 42.04 points or 0.23 per cent. The broader index touched a low of 18216.12 and high of 18358.84 intraday.

BSE Midcap Index was up 0.48 per cent and BSE Smallcap Index moved 0.90 per cent higher.

Sensex ends in green; realty, metals, capital goods up

Benchmarks ended lackluster session on a positive note due to lack of buying interest at current levels. Meanwhile some retail participation saw midcaps outperforming the frontliners.

Bombay Stock Exchange’s Sensex ended at 18316.44, up 42.64 points or 0.23 per cent. The broader index touched a low of 18216.12 and high of 18358.84 in today’s trade.

National Stock Exchange’s Nifty was at 5487.40, up 6.40 points or 0.12 per cent. The broader index touched a low of 5460.35 and high of 5504.80 intraday.

BSE Midcap Index was up 0.58 per cent and BSE Smallcap Index moved 1.09 per cent higher.

Amongst sectoral indices, BSE Realty Index was up 2.14 per cent, BSE Metals Index gained 1.67 per cent and BSE Capital Goods Index moved 0.44 per cent higher. BSE Healthcare Index was down 0.72 per cent.

Jaiprakash Associates (6.79%), Tata Steel (4.37%), Jindal Steel (3.97%), Wipro (2.99%) and Tata Power (1.74%) were amongst the major Sensex gainers.

HDFC (-2.53%), Reliance Communications (-1.73%), M&M (-1.55%), Hero Honda (-1.24%) and ONGC (-1.18%) were the top losers.

Market breadth was positive on the BSE with 1551 gainers against 1124 losers.

Source: economictimes.indiatimes.com

Nifty ends higher; RCap, RCom, RIL, Kotak, PNB up

2011-02-15T09:10:00.000-08:00

Sensex edges up; Reliance Comm, Unitech fall

Indian shares edged up 0.4 percent in choppy early trade on Tuesday, with financials leading the rise.

At 9:21 a.m. (0351 GMT), the 30-share BSE index was up 0.39 percent at 18,273.45 points, with 19 components advancing. It had briefly turned negative.

The 50-share NSE index was up 0.2 percent at 5,466.50

Nifty turns choppy; realty, capital goods down

At 9:35 am; National Stock Exchange’s Nifty was flat at 5456.10, up 0.10 points. The broader index touched a low of 5443.85 and high of 5474.45 in trade so far.

Bombay Stock Exchange’s Sensex was at 18199.40, down 2.80 points or 0.02 per cent. The broader index touched a low of 18191.62 and high of 18278.62 intraday.

BSE Midcap Index was up 0.02 per cent and BSE Smallcap Index moved 0.28 per cent higher.

Amongst sectoral indices, BSE Oil&gas Index was up 0.42 per cent, BSE IT Index edged 0.30 per cent higher and BSE Bankex gained 0.15 per cent. BSE Realty Index was down 1.74 per cent and BSE Capital Goods Index declined 0.69 per cent.

BPCL (1.52%), Tata Power (1.09%), Sesa Goa (0.93%), IDFC (0.86%) and Tata Motors (0.81%) were amongst the major Nifty gainers.

Jaiprakash Associates (-3.37%), Reliance Communications (-1.95%), M&M (-1.93%), Reliance Capital (-1.82%) and Hindalco (-1.80%) were the only losers.

Market breadth was positive on the NSE with 1048 gainers against 702 losers.

Sensex rangebound; RCom, RInfra, ICICI, SBI gain

At 1:15 pm; Bombay Stock Exchange’s Sensex was at 18245.62, up 43.42 points or 0.24 per cent. The broader index touched a low of 18050.48 and high of 18307.44 intraday.

National Stock Exchange’s Nifty was flat at 5471.45, up 15.45 points or 0.28 per cent. The broader index touched a low of 5408.35 and high of 5491.95 in trade so far.

“On the daily chart, we are witnessing that prices have tested the upper trendline of the channel. Any breakout of the channel could lead the indices to test 18400 – 18542 / 5512 – 5566 levels. On the downside, 17871 – 17761 / 5357 – 5322 may act as support for the day,” said Angel Broking note.

BSE Midcap Index was down 0.06 per cent and BSE Smallcap Index moved 0.41 per cent higher.

Amongst sectoral indices, BSE Bankex was up 1.58 per cent, BSE Oil&gas Index edged 0.71 per cent higher. BSE Capital Goods Index fell 1.21 per cent and BSE Realty Index was down 0.76 per cent.

Reliance Communications (5.75%), Reliance Infrastructure (3.09%), ICICI Bank ( 2.31%), Tata Motors (1.83%) and SBI (1.79%) were amongst the major Sensex gainers.

Jaiprakash Associates (-2.46%), M&M (-2.44%), BHEL (-2.16%), TCS (-1.94%) and Hindalco (-1.55%) were the only losers.

Market breadth was positive on the BSE with 1379 gainers against 1298 losers.

Nifty hits 5500; RCap, RCom, RPower, RIL, Kotak up

At 3 pm; National Stock Exchange’s Nifty was at 5490.95, up 34.95 points or 0.64 per cent. The broader index touched a low of 5408.35 and high of 5506.50 in trade so far.

Bombay Stock Exchange’s Sensex was at 18307.14, up 104.94 points or 0.58 per cent. The broader index touched a low of 18050.48 and high of 18361.66 intraday.

BSE Midcap Index was up 0.03 per cent and BSE Smallcap Index moved 0.78 per cent higher.

Amongst sectoral indices, BSE Oil&gas Index was up 1.92 per cent, BSE Bankex gained 1.68 per cent higher and BSE Auto Index moved 0.87 per cent higher. BSE Capital Goods Index was down 1.34 per cent and BSE Realty Index declined 0.77 per cent.

Reliance Capital (9.66%), Reliance Communications (5.14%), Reliance Power (3.70%), Kotak Bank (3.16%) and Reliance Industries (2.96%) were amongst the major Nifty gainers.

Jaiprakash Associates (-3.37%), Hindalco (-3.06%), BHEL (-2.24%), DLF (-1.95%) and L&T (-1.55%) were the only losers.

Market breadth was positive on the NSE with 1602 gainers against 1213 losers.

Sensex ends in green; RCom, RIL, Tata Motors gain

Benchmarks ended in the green for third consecutive day as investors accumulated index heavy-weights at lower levels. Losses in capital goods, realty and IT space were offset by gains in oil&gas, banks and auto sotcks.

Bombay Stock Exchange’s Sensex ended at 18271.21, up 69.01 points or 0.38 per cent. The broader index touched a low of 18050.48 and high of 18361.66 intraday.

National Stock Exchange’s Nifty closed at 5478.55, up 22.55 points or 0.41 per cent. The broader index touched a low of 5408.35 and high of 5506.50 in trade so far.

BSE Midcap Index was down 0.19 per cent and BSE Smallcap Index moved 0.60 per cent higher.

Amongst sectoral indices, BSE Oil&gas Index was up 1.81 per cent, BSE Bankex gained 1.47 per cent higher and BSE Auto Index moved 0.80 per cent higher. BSE Capital Goods Index was down 1.83 per cent and BSE Realty Index declined 1.65 per cent.

Reliance Communications (3.59%), Tata Motors (3.01%), Reliance (2.98%), Tata Power (2.31%) and Bajaj Auto (2.26%) were amongst the major Sensex gainers.

DLF (-3.24%), Jaiprakash Associates (-3.09%), Hindalco (-2.89%), BHEL (-2.45%) and L&T (-2.38%) were the top index losers.

Market breadth was positive on the BSE with 1389 gainers against 1291 losers.

15 Feb, 2011, 04.47PM IST,PTI

Sensex extends gain for third session; ends 72 points up

In volatile trading, the BSE benchmark Sensex today surged for the third session in a row, rising almost 72 points to close at 18,273.80 on capital inflow by foreign funds as blue-chips, led by RIL, were available at attractive values.

The Bombay Stock Exchange benchmark Sensex, which gained nearly 740 points in the previous two sessions, gathered another 71.60 points to 18,273.80 supported by a strong comeback by most-weighed Reliance Industries stocks.

The gauge moved between 18,361.66 and 18,050.48 during the session, showing volatile movements in stocks.

In a similar fashion, the broad-based National Stock Exchange index Nifty shot up 25.00 points to 5,481.00 after crossing the psychological mark of 5,500 points to touch the session's high of 5,506.50 and a low of 5,408.35.

Brokers said that apart from sustained buying by foreign funds and retail investors, hectic short-covering in the recently beaten oil and gas, banking and auto sector stocks was also responsible for the ongoing rally on the market.

RIL, which had been trading in the negative zone for the past several sessions, bounced back on emergence of buying at prevailing levels and ended 2.90 per cent to Rs 941.75.

Tata Power, the largest power producer in the private sector, gained 2.14 per cent to Rs 1,267.90 on a flurry of buying, triggered by a three-fold increase in net profit for the third quarter ended December 31, 2010, while State Bank of India , country's biggest lender, surged 1.38 per cent to Rs 2,728.40.

Tata Motor shares ended 2.41 per cent higher at Rs 1,237.85 after its global sales increased 16 per cent in January.

The oil and gas sector gained the most, up 1.85 per cent at 9,497.05, followed by banking index that was up by 1.53 per cent to 12,429.32. The PSU index gained 1.10 per cent to 8,637.79, auto index by 0.71 per cent to 8,875.58 and power index by 0.14 per cent to 2,639.59 points.

However, capital goods sector index which had been rising in the past two sessions, fell by 1.75 per cent to 13,068.59 as BHEL and Larsen and Toubro succumbed to profit-booking. The realty sector index also shed 1.33 per cent to 2,112.90 and the IT sector Index closed lower by 0.40 per cent to 6,245.08.

Nifty ends higher; RCap, RCom, RIL, Kotak, PNB up

Benchmarks ended in the positive terrain for third consecutive day as investors bought frontline stocks at relatively lower levels. Losses in capital goods, realty and IT space were offset by gains in oil&gas, banks and auto sotcks. According to analysts, the market is likely to remain volatile in the run-up to budget session.

Markets opened higher tracking cues from Asian peers and turned choppy due to lack of buying activity. However, by afternoon some smart hands bought stocks of ADAG group companies and index heavy weight Reliance Industries. This helped the benchmarks to breach psychological resistance levels intraday. Oil&gas, banks and auto space ended higher while capital goods and realty stocks lagged behind.

National Stock Exchange’s Nifty closed at 5481, up 25 points or 0.46 per cent. The broader index touched a low of 5408.35 and high of 5506.50 in today’s trade.

Bombay Stock Exchange’s Sensex ended at 18273.80, up 71.60 points or 0.39 per cent. The broader index touched a low of 18050.48 and high of 18361.66 intraday.

“We are in a pull-back rally and it can take the Nifty upto 5750-5800 levels. However, the rally is not likely to last long long and the recent support levels may be challenged. From short term perspective we see potential of 10-15 per cent upmove in small banking counters like Vijaya Bank and Dena Bank ,” said Dwaipayan Poddar, technical analyst, LKP Shares .

BSE Midcap Index was down 0.07 per cent and BSE Smallcap Index ended 0.59 per cent higher.

Amongst sectoral indices, BSE Oil&gas Index was up 1.85 per cent, BSE Bankex gained 1.53 per cent higher and BSE Auto Index moved 0.71 per cent higher. BSE Capital Goods Index was down 1.75 per cent and BSE Realty Index declined 1.33 per cent.

Reliance Capital (8.22%), Reliance Communications (3.85%), Punjab National Bank (3.46%), Kotak Bank (3.23%) and Reliance Industries (2.94%) were amongst the major Nifty gainers.

Jaiprakash Associates (-3.31%), DLF (-3.20%), Hindalco (-3.03%), BHEL (-2.78%) and L&T (-2.36%) were the top index losers.

Market breadth was positive on the NSE with 1587 gainers against 1298 losers.

Source ET

Nifty tanks below 5400; Realty, FMCG, tech decline

2011-02-04T09:46:00.000-08:00

Sensex down 0.3 per cent, ICICI Bank drops

Indian shares fell 0.3 percent in early trade on Friday, led by losses in No. 2 lender ICICI Bank , on lingering worries about surging inflation and interest rates in Asia's third-largest economy.

The main 30-share BSE index was trading 0.3 percent down at 18,394.60 points by 0350 GMT, with 21 of the components in the red.

The broader 50-share NSE index was down 0.2 percent at 5,514.25.

Nifty rangebound; RPower, Tata Steel, IDFC up

At 9:45 am: Bombay Stock Exchange’s Sensex was at 18,421.33, down 27.98 points or 0.15 per cent. The 30-share index touched a low of 18351.93 and high of 18450.07 in trade so far.

National Stock Exchange’s Nifty was at 5528.55, up 1.80 points or 0.03 per cent. The 50-share index touched a low of 5502.10 and high of 5529.45 in trade so far.

“The market has short-term upside risk that can last up to the 200-SDMA at 5626 from where fresh selling is likely to occur. Sectoral trends were mixed on the back of relief rallies across various counters,” said Edelweiss report.

BSE Midcap Index was up 0.53 per cent and BSE Smallcap Index edged 0.52 per cent higher.

Amongst the sectoral indices, BSE Metal Index gained 1 per cent, BSE Bankex moved 0.27 per cent higher and BSE Auto advanced 0.16 per cent. BSE IT Index was down 0.62 per cent and BSE FMCG Index slipped 0.51 per cent.

Reliance Power (2.57%), Reliance Capital (1.93%), Tata Steel (1.85%), Tata Motors (1.75%), and IDFC (1.64%) were the top Nifty gainers.

HCL Tech (-1.28%), Ambuja Cement (-1.24%), M&M (-1.20%), Cairn India (-1.08%) and Hindustan Unilever (-1.06%) were the top losers.

Market breadth was positive on the NSE with 993 gainers against 648 losers.

Sensex volatile; FMCG, realty, oil&gas decline

At 11:15 am; Bombay Stock Exchange’s Sensex was at 18340.46, down 108.85 points or 0.59 per cent. The 30-share index touched a low of 18336.79 and high of 18542.20 in trade so far.

National Stock Exchange’s Nifty was at 5,498.75, down 28 points or 0.51 per cent. The 50-share index touched a low of 5498.40 and high of 5556.30 in trade so far.

“The Nifty breached short term resistance of 5470 and closed above 5500. Some short covering is expected around 5550, which may take the Nifty to 5570. A close above 5650 might just shore up investor confidence. However, any major up-trend will take a while to develop and won’t be without hiccups. Resistance is likely at 5600 and later around 5700-5750.

Be careful as the undertone remains jittery and avoid getting hit by intraday volatility. FII flows will continue to have a bearing on overall sentiment and so will the upcoming budget,” said IIFL report.

BSE Midcap Index was up 0.35 per cent and BSE Smallcap Index moved 0.35 per cent higher.

Amongst the sectoral indices, BSE FMCG Index fell 1.19 per cent, BSE Realty Index was down 0.98 per cent and BSE Oil&gas Index declined 0.86 per cent. BSE Metal Index gained 0.61 per cent and BSE Healthcare Index advanced 0.20 per cent.

Sensex losers included M&M (-2.61%), DLF (-1.80%), ITC (-1.66%), TCS (-1.57%) and L&T (-1.43%).

Bajaj Auto (1.92%), Tata Steel (1.58%), Tata Motors (1.49%), Jindal Steel (1.48%) and ONGC (0.92%) were the top gainers.

Market breadth was positive on the BSE with 1444 gainers against 1083 losers.

Sensex falls 1 pc; Reliance Industries drops

By 12:18 p.m. (0648 GMT), the 30-share BSE index was down 0.93 percent at 18,277.84 points, with 20 of its components in the negative zone. The index started marginally negative and then rose as much as 0.5 percent.

"There is no fresh money coming into the market as investors prefer to stay on the sidelines on Egypt and inflation worries," said Arun Kejriwal, director of research firm KRIS. "Rising oil prices have added to the poor sentiment in the markets."

Oil was headed for a second straight week of gains as Egypt's volatile situation kept markets on edge ahead of Friday prayers, while investors awaited U.S. employment data expected to give direction to prices later in the day.

The BSE index is down more than 11 percent in 2011, hit by foreign fund outflows of $1.5 billion, after rising 17 percent last year.

Data on Thursday showed India's food price index rose 17.05 percent and the fuel price index climbed 11.61 percent in the year to Jan. 22.

Shares in energy major Reliance, India's largest listed company, was down 1.8 percent at 927 rupees. The company may challenge Chevron's bid for Atlas Energy, according to a letter disclosed by the U.S. natural gas producer.

Cement makers Ambuja Cements and ACC fell as much as 1.8 percent and 2.4 percent, respectively, after they met estimates for 2010 earnings, but said oversupply and rising input costs would keep margins under pressure in the short term.

Both companies, 46 percent-owned by Switzerland's Holcim, said they continued to bet on long-term demand growth from India's housing and infrastructure sectors, but growing excess supply would result in pricing pressure in the near term.

Reliance Power rose 2.3 percent to 133.30 rupees, after the utility said one of its power project had got approval for carbon credits estimated at more than 20 billion rupees ($439 million) over a 10-year period.

In the broader market, there were 1,356 gainers compared with 1,204 losers on low volume of about 110 million shares.

Nifty slips below 5450; M&M, TCS, L&T, HCL down

At 1:10 pm; National Stock Exchange’s Nifty was at 5447.85, down 78.90 points or 1.43 per cent. The 50-share index touched a low of 5439.50 and high of 5556.30 in trade so far.

Bombay Stock Exchange’s Sensex was at 18202.94, down 246.37 points or 1.34 per cent. The 30-share index touched a low of 18157.77 and high of 18542.20 in trade so far.

BSE Midcap Index was down 0.32 per cent and BSE Smallcap Index moved 0.49 per cent lower.

All the sectoral indices were in the red. BSE Realty Index fell 1.84 per cent, BSE IT Index was down 1.69 per cent and BSE FMCG Index slipped 1.59per cent.

M&M (-3.28%), Tata Power (-2.82%), TCS (-2.51%), L&T (-2.49%) and HCL Tech (-2.38%) were amongst the top Nifty losers.

Bajaj Auto (2.41%), Suzlon Energy (1.23%), Reliance Power (0.96%), Tata Steel (0.72%) and Tata Motors (0.29%) were the top gainers.

Market breadth was negative on the NSE with 1583 declines against 1108 gainers.

At 3:25 pm; National Stock Exchange’s Nifty was at 5382.25, down 144.50 points or 1.43 per cent.

Bombay Stock Exchange’s Sensex was at 17988.60, down 460.71 points or 1.34 per cent.

M&M , Tata Power, TCS, L&T and HCL Tech were amongst the top Nifty losers.

Bajaj Auto, Suzlon Energy, Reliance Power , Tata Steel and Tata Motors were the top gainers.

Sensex plunges 445 points; realty,capital goods down

Bombay Stock Exchange’s Sensex ended at 18001.92, down 447.39 points or 2.42 per cent. The 30-share index touched a low of 17926.98 and high of 18542.20 intraday.

National Stock Exchange’s Nifty closed at 5388.95, down 137.80 points or 2.49 per cent. The 50-share index touched a low of 5369.05 and high of 5556.30 in today’s trade.

BSE Midcap Index was down 1.52 per cent and BSE Smallcap Index moved 1.72 per cent lower.

BSE Realty Index fell 3.69 per cent, BSE FMCG Index was down 2.81 per cent and BSE Capital Goods Index slipped 2.39 per cent.

M&M (-4.36%), ITC (-4.23%), Reliance Infrastructure (-4.04%), Tata Power (-3.80%) and L&T (-3.61%) were amongst the top Sensex losers.

Bajaj Auto (0.95%) was the only gainer.

Market breadth was negative on the BSE with 1743 declines against 1026 gainers.

Nifty tanks below 5400; Realty, FMCG, tech decline

National Stock Exchange’s Nifty ended at 5395.75, down 131 points or 2.37 per cent. The 50-share index touched a low of 5369.05 and high of 5556.30 in today’s trade.

Bombay Stock Exchange’s Sensex closed at 18008.15, down 441.16 points or 2.39 per cent. The 30-share index touched a low of 17926.98 and high of 18542.20 intraday.

”As long as Nifty is below 5470 the trend will remain bearish and we may even slip to 5250. Only if it breaches 5470 on closing basis, immediate trend may possibly change to sideways” said, Rizwan Khan, Technical and Derivative Strategist, Aditya Birla Money.

BSE Midcap Index was down 1.37 per cent and BSE Smallcap Index moved 1.57 per cent lower.

According to experts the market is likely to drift further down in coming sessions and investors can start nibbling stocks at attractive levels.

“We have been buying in small quantities in capital goods, infrastructure and banks and will start looking at auto stocks after some more correction. Investments will be for longer term,” said Ambareesh Baliga, vice president, Karvy Stock Broking.

BSE Realty Index fell 3.37 per cent, BSE FMCG Index was down 3.08 per cent and BSE IT Index slipped 2.26 per cent.

Sun Pharma (-5.79%), Kotak Bank (-4.97%), Ambuja Cement (-4.51%), M&M (-4.34%) and Hindalco (-4.19%) were amongst the top Nifty losers.

Bajaj Auto (0.99%) was the only gainer.

Meanwhile shares of Spicejet and DB Realty plunged on reports that these companies are under CBI scanner for dealings with people related to DMK chief M Karunanidhi.

The low cost airline SpiceJet was purchased by media czar and Sun TV promoter Kalanithi Maran. He is the grand nephew of DMK chief M Karunanidhi and brother of Union Textiles Minister Dayanidhi Maran.

Investigating agencies probing the alleged irregularity in allocation of 2G licences are examining a transaction in which over Rs 200 crore was transferred from Mumbai-based DB group to Kalaignar TV , a broadcaster majority-owned by family members of DMK party chief M Karunanidhi.

Market breadth was negative on the NSE with 2011 declines against 876 gainers.

S&P 500 ends lower after recent gain

2011-02-03T09:00:00.000-08:00

The S&P 500 index ended lower on Wednesday, with charts suggesting the index's five-month rally was growing long in the tooth.

Based on the latest available data, the Dow Jones industrial average was up 2.27 points, or 0.02 percent, at 12,042.43. The Standard & Poor's 500 Index was down 3.58 points, or 0.27 percent, at 1,304.01. The Nasdaq Composite Index was down 1.03 points, or 0.04 percent, at 2,750.16.

The index is starting to look overbought again after touching 2-1/2-year highs Tuesday. A key measure of the rally's strength suggests stocks are vulnerable to a correction, analysts said.

The PHLX Semiconductor Index is running into resistance around 450, a level not surpassed since 2007. Chips are considered a leading indicator for the broader market.

Dow Jones above 12k after 2 years

2011-02-03T08:47:00.000-08:00

NEW YORK: The Dow Jones Industrial Average closed above 12,000 for the first time since June 2008, after American and Chinese manufacturing expanded and United Parcel Service Inc beat analysts' earnings estimates.

UPS, the package-delivery company considered a proxy for economic growth, advanced 4.2%. The S&P 500 rose 1.7%, the most since December 1, to 1,307.59. The benchmark gauge for US equities has rallied 2.5% in the past two days, erasing the January 28 slump that was driven by Egyptian riots. The Dow added 148.23 points, or 1.3%, to 12,040.16.

The S&P 500 has risen 4% this year, extending a 13% advance in 2010, on government stimulus measures and higher-than-estimated corporate profits. About 74% of the 204 companies that reported earnings since January 10 topped analysts' projections, according to data compiled by Bloomberg.

Shares extended gains on Tuesday after the ISM's factory index rose to 60.8 in January, beating the median economist projection of 58.

US gross domestic product growth accelerated to 3.2% in the fourth quarter from 2.6% during the prior three months, the Commerce Department said on January 28. On Monday, reports showed American businesses expanded at the fastest pace since 1988 and consumer spending beat economist estimates.

The last time the S&P 500 closed above 1,300 was in August 2008.

The Dow Jones Transportation Average of 20 stocks had the biggest gain in two months, rallying 2%.

An index of raw-materials producers in the S&P 500 added 2.8%, the biggest gain among 10 industries.

Commodities beat stocks for three months, the longest stretch since June 2008. The S&P GSCI Total Return Index of 24 raw materials gained 3.1% in January and rose for a fifth month, the longest streak since 2004, according to data compiled by Bloomberg. The MSCI All-Country World Index of equities climbed 1.6% including dividends. The Global Broad Market Index for corporate and government bonds lost 0.3%, Bank of America Merrill Lynch data show.

source : Bloomberg

Quarter 3 Result : Brigade Enterprises, ACC, EIL, Ambuja Cements, Cummins India, ICSA

2011-02-03T08:28:00.000-08:00

Brigade Enterprises Q3 net profit at Rs 58.1cr

Brigade Enterprises Q3 net profit was up at Rs 58.1 crore versus Rs 5.9 crore, year-on-year.
Its net sales were up at Rs 136 crore versus Rs 57.2 crore.

ACC Q3 cons net profit down 31% at Rs 1077 cr

ACC Q3 consolidated net profit was down 31% at Rs 1077 crore versus Rs 1,564 crore, year-on-year.
Its consolidated net sales were down 3% at Rs 8,259 crore versus Rs 8,479 crore.

EIL Q3 net profit up at Rs 122.5 cr

EIL Q3 net sales were up at Rs 677.1 crore versus Rs 493.8 crore, year-on-year, YoY.
Its net profit was up at Rs 122.5 crore versus Rs 111.1 crore, YoY.

Ambuja Cements Q4 net profit up 7% at Rs 258 cr

Ambuja Cements, one of India's major cement companies, has reported net profit of Rs 258 crore for the quarter ended December 2010, up 7% as compared to Rs 241 crore in same period the previous year.

Net sales went down nearly 0.85% at Rs 1,788 crore versus Rs 1,773 crore on year-on-year basis.\

Cummins India Q3 net profit down at Rs 140 cr

Cummins India Q3 net profit was down at Rs 140 crore versus Rs 150 crore, year-on-year, YoY.
Its net sales were up at Rs 958 crore versus Rs 825 crore, YoY.

ICSA Q3 net profit up at Rs 31.6 cr

ICSA (India) has reported net profit of Rs 31.6 crore for the quarter ended December as against Rs 30.2 crore in same quarter the previous year.
Net sales went up to Rs 365 crore from Rs 313 crore on year-on-year basis.

Nifty Close above 5525; DLF, JP Asso, Bharti gain

2011-02-03T08:10:00.000-08:00

NEW DELHI: Indian shares were choppy in early trade on Thursday with little direction from world markets and as an escalation of violence in Egypt kept investors wary.

The main 30-share BSE index was trading 0.3 percent up at 18,144.01 points by 0349 GMT, with 24 of the components gaining. The index opened marginally higher but quickly turned negative before rebounding.

Infosys Technologies and Housing Development Finance Corp were leading the gainers.

The 50-share NSE index was up 0.15 percent at 5,440.10.

Nifty lackluster; RCom, ACC, Sun Pharma, BPCL down
At 9:45 am: National Stock Exchange’s Nifty was at 5425.55, down 6.45 points or 0.12 per cent. The 50-share index touched a low of 5418 and high of 5443.45 in trade so far.

Bombay Stock Exchange’s Sensex was at 18110.08, up 19.46 points or 0.11 per cent. The 30-share index touched a low of 18064.61 and high of 18158.01 in trade so far.

“The trend deciding level for the day is 18146/5446 levels. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 18250 - 18410/5477 - 5521 levels.
However, if Nifty trades below 18146/5446 levels for the first half-an-hour of trade then it may correct up to 17987 - 17883/5402 - 5371 levels,” said Angel Broking note.

BSE Midcap Index was down 0.11 per cent and BSE Smallcap Index edged 0.09 per cent lower.

Amongst the sectoral indices, BSE Realty Index gained 0.33 per cent, BSE Auto Index moved 0.31 per cent higher and BSE Bankex advanced 0.16per cent. BSE Oil&gas Index was down 0.70 per cent and BSE Power Index slipped 0.55 per cent.

Bharti Airtel (2.76%), Hero Honda (2.04%), DLF (1.58%), Cipla (0.81%), and Hindustan Unilever (0.80%) were the top Nifty gainers.

Reliance Communications (-2.05%), ACC (-1.81%), Sun Pharma (-1.80%), BPCL (-1.63%) and Dr Reddy’s Laboratories (-1.48%) were the top losers.

Market breadth was positive on the NSE with 901 gainers against 864 losers.

Sensex surges; realty, metals, banks, oil & gas lead

At 11:11 am: Bombay Stock Exchange’s Sensex was at 18369.87, up 279.25 points or 1.54 per cent. The 30-share index touched a low of 18064.61 and 18393.56 high of in trade so far.

National Stock Exchange’s Nifty was at 5502.75, up 70.75 points or 1.30 per cent. The 50-share index touched a low of 5418 and high of 5514.25 intraday.

BSE Midcap Index was up 0.67 per cent and BSE Smallcap Index advanced 0.72 per cent higher.

All the sectoral indices were in the green. BSE Realty Index gained 2.67 per cent, BSE Metal Index moved 1.58 per cent higher and BSE Bankex was up 1.37 per cent.

DLF (5.39%), Hindalco (3.32%), Bharti Airtel (2.77%), Hero Honda (2.73%), and Jaiprakash Associates (2.60%) were the top Sensex gainers. There were no index losers.

IIFL is of the view that Bharti Airtel has formed bullish ‘piercing line’ pattern on candlestick which corroborates trend reversal from the down trend. It has reiterated ‘Buy’ for target of Rs 335.

Market breadth was positive on the BSE with 1480 gainers against 902 losers.

Nifty holds 5500; DLF, Hindalco, L&T, RInfra gain

At 1:10 pm: National Stock Exchange’s Nifty was at 5508.10, up 76.10 points or 1.40 per cent. The 50-share index touched a low of 5418 and high of 5520.15 in trade so far.

Bombay Stock Exchange’s Sensex was at 18383.97, up 293.35 points or 1.62 per cent. The 30-share index touched a low of 18064.61 and high of 18418.36 in trade so far.

BSE Midcap Index was up 0.60 per cent and BSE Smallcap Index gained 0.61 per cent.

Amongst the sectoral indices, BSE Realty Index advanced 2.69 per cent, BSE Capital Goods Index rose 2.21 per cent and BSE Metal Index gained 1.84 per cent.

DLF (5.57%), Hindalco (3.49%), Jaiprakash Associates (3.33%), L&T (3.33%) and Reliance Infrastructure (3.03%) were the top Nifty gainers.

HCL Tech (-1.38%), ACC (-1.32%), BPCL (-1.17%), Dr Reddy’s Laboratories (-0.95%) and IDFC (-0.35%) were the top losers.

Market breadth was positive on the NSE with 1620 gainers against 1023 losers.

Meanwhile, European markets are likely to open in the red. FTSE 100 futures was down 0.20 per cent, CAC 40 slipped 0.30 per cent and DAX declined 0.13 per cent.

Sensex up over 300 points; realty, capital goods up

At 2:30 pm: Bombay Stock Exchange’s Sensex was at 18424.85, up 334.23 points or 1.85 per cent. The 30-share index touched a low of 18064.61 and high of 18443.21 in trade so far.

National Stock Exchange’s Nifty was at 5520.30, up 88.30 points or 1.63 per cent. The 50-share index touched a low of 5418 and high of 5528.05 in trade so far.

BSE Midcap Index was up 1.03 per cent and BSE Smallcap Index gained 0.94 per cent.

Amongst the sectoral indices, BSE Realty Index moved 3.12 per cent higher, BSE Capital Goods Index rose 2.50 per cent and BSE Bankex gained 1.88 per cent.

DLF (5.72%), Jaiprakash Associates (4.08%), Hindalco (4.02%), L&T (3.83%) and Tata Motors (3.49%) were the top Sensex gainers.

Bajaj Auto (-0.63%) was the only index loser.

Market breadth was positive on the NSE with 1620 gainers against 1023 losers.

Meanwhile, European markets were witnessing profit booking. FTSE 100 was down 0.58 per cent, CAC 40 slipped 1.04 per cent and DAX declined 0.42 per cent.

Nifty Close above 5525; DLF, JP Asso, Bharti gain

National Stock Exchange’s Nifty closed at 5527.85, up 95.85 points or 1.76 per cent. The 50-share index touched a low of 5418 and high of 5532.65 in trade so far.

Bombay Stock Exchange’s Sensex ended at 18458.04, up 367.42 points or 2.03 per cent. The 30-share index touched a low of 18064.61 and high of 18466.21 in trade so far.

BSE Midcap Index was up 1.08 per cent and BSE Smallcap Index gained 1.29 per cent.

Amongst the sectoral indices, BSE Realty Index moved 4.09 per cent higher, BSE Metal Index rose 2.31 per cent and BSE Capital Goods gained 2.20 per cent.

DLF (8.30%), Jaiprakash Associates (6.72%), Bharti Airtel (5.89%), Hindalco (5.11%) and Ambuja Cement (3.55%) were the top Nifty gainers.

HCL Tech (-1.26%), Dr Reddy’s Laboratories (-0.83%), ACC (-0.81%), Ranbaxy Laboratories (-0.57%) and IDFC (-0.57%) were amongst the top sectoral losers.

Market breadth was positive on the NSE with 1801 gainers against 1032 losers.
Source ET

Middle East Stock Market Dubai Updates

2011-01-30T09:42:00.000-08:00

DUBAI: Investors nervous about instability gripping Egypt drove Middle Eastern stocks down sharply Sunday as markets reopened following a weekend of violent protests.

The losses, led by a drop of more than 4 percent in the regional business hub Dubai, reflect concerns the unrest that has roiled the Arab world's most populous country and nearby Tunisia could spread, jeopardizing an economic recovery across the region.

``There's this contagion effect, where investors are thinking: 'Well, is this going to spread out across the Arab world?''' said Haissam Arabi, chief executive of Gulfmena Alternative Investments, a fund management firm in Dubai.

Egypt's market remained closed because of the protests, leaving investors to pull money off the table elsewhere.

The benchmark index for the Dubai Financial Market tumbled 4.3 percent to close at 1,543.02.

Among the biggest losers in Dubai were real estate developer Emaar Properties, the builder of the world's tallest tower, which sank 8.3 percent to 3.11 dirhams (85 cents). Shares of discount carrier Air Arabia, which is growing its operations in Egypt, dropped 6.1 percent to 0.79 dirhams (22 cents).

DP World, the global port operator, tumbled 6.2 percent to close at 62 cents on the Nasdaq Dubai exchange. The Dubai World subsidiary is heavily dependent on shipping in the Middle East and Africa, including at the Egyptian Red Sea port of Sokhna, which it manages near the southern entrance to the Suez Canal.

Ann Wyman, head of emerging market research at Nomura in London, said protests in the city of Suez at the mouth of the strategic waterway _ a key chokepoint for cargo ships and oil tankers _ are making investors nervous.

``You can imagine that it is a top priority in Egypt to keep the canal open, safe and well-protected,'' Wyman said. ``Disruption in the flow of oil is one thing that people worry about.''

Other Mideast markets also suffered losses. Abu Dhabi's main index sank 3.7 percent to close at 2,561.06. Shares of the exchange's biggest loser, Emirati natural gas producer Dana Gas, plunged 9.9 percent to finish at 0.64 dirhams (17 cents) despite assurances that its Egyptian operations haven't stopped amid the protests.
Source : ET

Stock Market Today 13th January 2010

2011-01-13T10:40:00.000-08:00

Sensex Open 117 Point Down : The Bombay Stock Exchange Sensex slipped by nearly 117 points in the opening trade today.

The 30-share BSE Index , which had gained 337.76 points in the previous day, declined by 116.95 points at 19,417.15 points.

National Stock Exchange index Nifty declined by 32.15 points to 5,831.10 level.

Infosys Technologies today reported 14.17 per cent growth in its consolidated net profit at Rs 1,780 crore for the third quarter ended December 31, 2010.

The company share was trading at Rs 3257.65, which was down by over three per cent since its closing price yesterday.

Meanwhile, in other markets in Asia, Japan's Nikkei was 0.56 per cent up while Hong Kong's Hang Seng index rose by 0.71 per cent in the morning trade today.

In the US, Dow Jones Industrial Average ended 0.72 per cent higher in the yesterday's trade.

Nifty Turn Choppy : ACC, Ambuja Cement , Jaiprakash Associates, Reliance Communications and Tata Motors top Nifty gainers

At 9:45 am; National Stock Exchange’s Nifty was at 5825.65, down 37.60 points or 0.64 per cent. The broader index touched a high of 5857.35 and low of 5817.95 in early trade.

Bombay Stock Exchange’s Sensex was at 19415.09, down 119.01 points or 0.61 per cent. The 30-share index touched a high of 19511.27 and low of 19415.09 in trade so far.

BSE Midcap Index was up 0.33 per cent and BSE Smallcap Index moved 0.46 per cent higher.

Amongst the sectoral indices, BSE IT Index was down 2.23 per cent, BSE Bankex slipped 0.65 per cent and BSE Oil&gas Index moved 0.37 per cent lower. BSE Capital Goods Index was up 0.64 per cent.

ACC (2.19%), Ambuja Cement (2.06%), Jaiprakash Associates (1.66%), Reliance Communications (1.66%) and Tata Motors (1.32%) were amongst the top Nifty gainers.

Infosys Technologies (-3.94%), HCL Technologies (-1.85%), Hero Honda (-1.84%), Dr Reddy’s Laboratories (-1.76%) and SBI (-1.35%) were amongst the losers.

Market breadth was positive on the NSE with 1052 advances against 680 declines.

Meanwhile, other Asian peers were in the positive territory. Nikkei 225 was up 0.66 per cent, Hang Seng gained 0.64 per cent and Seoul Composite moved up 014 per cent.

Sensex Rangebound : Tech, Bank, Farma Down

At 11:15 am; Bombay Stock Exchange’s Sensex was at 19437.82, down 96.28 points or 0.49 per cent. The 30-share index touched a high of 19511.27 and low of 19352.24 in trade so far.

National Stock Exchange’s Nifty was at 5823, down 40.25 points or 0.69 per cent. The broader index touched a high of 5857.35 and low of 5809.50 intraday.

BSE Midcap Index was up 0.44 per cent and BSE Smallcap Index moved 0.70 per cent higher.

BSE IT Index was down 1.94 per cent, BSE Bankex slipped 1.07 per cent and BSE Healthcare Index moved 0.29 per cent lower. BSE Capital Goods Index was up 0.44 per cent.
Infosys Technologies (-3.93%), ICICI Bank (-2.05%), HDFC Bank (-2%), Jindal Steel (-1.50%) and SBI (-1.45%) were amongst the losers.

Reliance Communications (2.31%), Reliance Infrastructure (1.49%), Tata Motors (1.48%), Jaiprakash Associates (1.45%) and Bajaj Auto (1.27%) were amongst the top losers.

Market breadth was positive on the BSE with 1429 advances against 1001 declines.
Nifty Below 5800
At 1 pm; National Stock Exchange’s Nifty was at 5791.45, down 71.80 points or 1.22 per cent. The broader index touched a high of 5857.35 and low of 5788.55 intraday.

Bombay Stock Exchange’s Sensex was at 19306.15, down 227.95 points or 1.17 per cent. The 30-share index touched a high of 19511.27 and low of 19304.94 in trade so far.

BSE Midcap Index was down 0.13 per cent and BSE Smallcap Index moved 0.43 per cent higher.

Amongst the sectoral indices, BSE IT Index was down 2.51per cent, BSE Bankex fell 2.32 per cent and BSE Metal Index moved 0.85 per cent lower. BSE Capital Goods Index was down 0.08 per cent.

Infosys Technologies (-4.41%), SBI (-2.73%), PNB (-2.72%), SAIL (-2.60%) and ICICI Bank (-2.57%) were amongst the losers.

Ambuja Cement (2.88%), Tata Motors (1.31%), Reliance Communications (1.26%), ACC (1.23%), and ONGC (0.79%) were amongst the top gainers.

Market breadth turned negative on the NSE with 1341 declines against 1295 declines.

At 2:30 pm; Bombay Stock Exchange’s Sensex was at 19216.16, down 317.94 points or 1.63 per cent. The 30-share index touched a high of 19522.38 and low of 19165.84 in trade so far.

National Stock Exchange’s Nifty was at 5766.90, down 96.35 points or 1.64 per cent. The broader index touched a high of 5857.35 and low of 5744.35 intraday.

BSE Midcap Index was down 0.69 per cent and BSE Smallcap Index moved 0.32 per cent lower.

Amongst the sectoral indices, BSE Bankex fell 3.33 per cent, BSE IT Index was down 2.79 per cent and BSE Healthcare Index moved 1.17 per cent lower. BSE Realty Index was down 0.04 per cent.

ICICI Bank (-4.31%), Infosys Technologies (-4.27%), SBI (-3.22%), HDFC Bank (-2.90%) and Mahindra & Mahindra (-1.87%) were amongst the losers.

ONGC (0.77%), DLF (0.76%), Tata Motors (0.54%), Sterlite Industries (0.38%), and Bajaj Auto (0.33%) were amongst the top gainers.

Market breadth was negative on the BSE with 1697 declines against 1104 advances.

Meanwhile, the European markets were also witnessing a lackluster session. FTSE 100 was down 0.41 per cent, CAC 40 was up 0.10 per cent and DAX moved 0.01 per cent higher.

Sensex Close 351 points lower :
National Stock Exchange’s Nifty ended at 5751.90, down 111.35 points or 1.90 per cent. The broader index touched a high of 5857.75 and low of 5736.70 intraday.

Bombay Stock Exchange’s Sensex closed at 19182.82, down 351.28 points or 1.80 per cent. The 30-share index touched a high of 19522.38 and low of 19136.27 in today’s trade.

Stock Market Today 12th January 2011

2011-01-11T23:32:00.000-08:00

At 9:19 a.m. (0349 GMT), the 30-share BSE index was up 0.7 percent at 19,331.63 points, with 21 components advancing.

The 50-share NSE index was up 0.7 percent at 5,796.05 points.

Indian markets rose 0.8 percent early on Wednesday, after they lost more than 6 percent in the past six trading sessions, tracking stronger Asian markets.

Tata Steel was trading 1.5 percent lower after the world's No. 7 steelmaker said it expects operating results for the December quarter to decline compared with the preceding quarter, hurt by rising raw material prices and weak demand.

At 9:40 am : National Stock Exchange’s Nifty was at 5791.20, up 37.10 points or 0.64 per cent. The broader index touched a high of 5815.75 and low of 5784.30 in early trade.

Bombay Stock Exchange’s Sensex was at 19283.66, up 87.32 points or 0.45 per cent. The 30-share index touched a high of 19379.55 and low of 19272.39 in trade so far.

BSE Midcap Index was up 0.72 per cent and BSE Smallcap Index moved 0.93 per cent higher.

Amongst the sectoral indices, BSE Bankex was up 1.12 per cent, BSE IT Index gained 0.92 per cent and BSE Oil&gas Index moved 0.88 per cent higher. BSE Capital Goods Index was down 0.69 per cent.

Suzlon Energy (3.37%), Cairn India (2.72%), Sterlite Industries (2.57%), Tata Motors (2.15%) and Kotak Bank (2.12%) were amongst the top Nifty gainers.

Tata Power (-2.18%), L&T (-1.70%), Tata Steel (-1.69%), Hero Honda (-1.24%) and Bajaj Auto (-1.16%) were amongst the losers.

Market breadth was positive on the NSE with 1237 advances against 515 declines.

Meanwhile, other Asian peers were also in the green. Nikkei 225 was up 0.48 per cent, Hang Seng gained 0.91 per cent and Taiwan Weighted moved up 0.58 per cent.

Sensex Slips : Reliance Communications, Tata Steel, Bajaj Auto, L&T and Tata Power major Sensex losers

At 11 am: National Stock Exchange’s Nifty was at 5717.05, down 37.05 points or 0.64 per cent. The broader index touched a high of 5815.75 and low of 5715.55 intraday.

Bombay Stock Exchange’s Sensex was at 19080.52, down 115.82 points or 0.60 per cent. The 30-share index touched a high of 19379.55 and low of 19056.39 in trade so far.

BSE Midcap Index was up 0.07 per cent and BSE Smallcap Index moved 0.11 per cent higher.

Amongst the sectoral indices, BSE Capital Goods Index fell 1.34 per cent, BSE Health Care Index slipped 1.04 per cent and BSE Realty Index moved 0.69 per cent lower. BSE IT Index was up 0.83 per cent, BSE Bankex gained 0.59 per cent

Reliance Communications (-3.13%), Tata Steel (-3.09%), Bajaj Auto (-2.99%), L&T (-2.66%) and Tata Power (-2.09%) were amongst the major Sensex losers.

Tata Motors (2.21%), TCS (1.86%), ICICI Bank (1.64%), Sterlite Industries (1.22%) and SBI (0.67%) were amongst the top gainers.

Market breadth was flat on the BSE with 1287 advances against 1254 declines.

Nifty Came Near to 5700

At 1 pm: Bombay Stock Exchange’s Sensex was at 19094.85, down 101.49 points or 0.53 per cent. The 30-share index touched a high of 19379.55 and low of 19048.56 in trade so far.

National Stock Exchange’s Nifty was at 5731.30, down 22.80 points or 0.40 per cent. The broader index touched a high of 5815.75 and low of 5711.30 intraday.

BSE Midcap Index was down 0.28 per cent and BSE Smallcap Index moved 0.40 per cent lower.

Amongst the sectoral indices, BSE Capital Goods Index was down 1.61 per cent, BSE Healthcare Index slipped 1.19 per cent and BSE Realty Index moved 1.10 per cent lower. BSE IT Index gained 0.33 per cent.

Reliance Communications (-3.12%), ONGC (-2.88%), L&T (-2.55%), Bajaj Auto (-2.50%) and Dr Reddy’s Laboratories (-2.39%) were amongst the losers.

Suzlon Energy (7.16%), Sterlite Industries (3.28%), Cairn India (3.19%), Tata Motors (3%) and TCS (2.13%) were amongst the top Nifty gainers.

Market breadth was negative on the NSE with 1718 losers as compared to 1028 gainers.

Sensex Gain Early : Sterlite Industries, Tata Motors, TCS, ICICI Bank and Bharti Airtel top gainers.

At 2:30 pm: National Stock Exchange’s Nifty was at 5841.45, up 87.35 points or 1.52 per cent. The broader index touched a high of 5846.35 and low of 5711.30 intraday.

Bombay Stock Exchange’s Sensex was at 19476.20, up 279.86 points or 1.46 per cent. The 30-share index touched a high of 19486 and low of 19048.56 in trade so far.

BSE Midcap Index was up 1.33 per cent and BSE Smallcap Index moved 1.06 per cent higher.

Amongst the sectoral indices, BSE Realty Index gained 2.87 per cent and BSE Metal Index moved 2.40 per cent higher and BSE Bankex advanced 2.02 per cent. BSE Capital Goods Index was down 1.61 per cent.

Sterlite Industries (6.17%), Tata Motors (4.60%), TCS (4.15%), ICICI Bank (3.63%) and Bharti Airtel (2.74%) were amongst the top sectoral gainers.

Bajaj Auto (-1.33%) L&T (-1.29%), HUL (-1.10%), Cipla (-0.76%), and ONGC (-0.71%) were amongst the losers.

Market breadth was negative on the BSE with 1712 advances against 1138 declines.

Meanwhile, the European markets opened in the green. FTSE 100 was up 0.54 per cent, CAC 40 gained 1.30 per cent and DAX moved 1.22 per cent higher.

Nifty Close 100 point Higher : Suzlon Energy, Sterlite Industries, Tata Motors, ICICI Bank and Reliance Capital were top gainers of the day

National Stock Exchange’s Nifty ended at 5862.30, up 108.20 points or 1.88 per cent. The broader index touched a high of 5874.20 and low of 5711.30 intraday.

Bombay Stock Exchange’s Sensex was at 19522.49, up 326.15 points or 1.70 per cent. The 30-share index touched a high of 19574.63 and low of 19048.56 in trade so far.

BSE Midcap Index was up 1.79 per cent and BSE Smallcap Index moved 1.48 per cent higher.

Amongst the sectoral indices, BSE Realty Index moved 3.32 per cent higher, BSE Metal Index moved 2.78 per cent up and BSE Bankex advanced 2.65 per cent. BSE Capital Goods Index was down 0.15 per cent,

Suzlon Energy (12.53%), Sterlite Industries (7.37%), Tata Motors (5.52%), ICICI Bank (4.52%) and Reliance Capital (3.95%) were amongst the top sectoral gainers.

Shares of Suzlon Energy rallied after JP Morgan turned ‘overweight’ on the stock and raised its price target to Rs 64 from Rs 41 earlier.

Bajaj Auto (-1.68%) HUL (-1.09%), L&T (-0.98%), Tata Power (-0.79%), and Maruti (-0.31%) were amongst the losers.

Market breadth was positive on the NSE with 1832 advances against 1066 declines.
Source ET

Nifty close at 6150

2011-01-04T07:39:00.000-08:00

MUMBAI: Benchmarks snapped four-day long winning streak and ended choppy session in the negative territory as traders booked profits at higher levels. Rate sensitives like banks, realty and auto led the decline while FMCG, oil&gas and pharma provided resistance.

“Nifty is likely to witness some amount of correction to the levels of 5900 in the near term. With last week’s recovery along with improvement in sentiments (locally and globally), traders are expecting a new high very soon (bullish hype generally associated with every pullback). However, with key indexes approaching key resistance levels, traders should consider taking some caution for 2011,” said IIFL note.

National Stock Exchange’s Nifty closed at 6146.35, down 11.25 points or 0.18 per cent. The broader index touched a high of 6181.05 and low of 6124.40 in today’s trade.

Bombay Stock Exchange’s Sensex closed at 20498.72, down 62.33 points or 0.30 per cent. The 30-share index touched a high of 20651.21 and low of 20449.01 intraday.

BSE Midcap Index was down 0.26 per cent and BSE Smallcap Index moved 0.04 per cent lower.

Amongst the sectoral indices, BSE Bankex was down 2.48 per cent and BSE Realty Index declined 1.12 per cent and BSE Auto Index slipped 0.55 per cent. BSE FMCG Index was up 1.70 per cent and BSE Oil&gas Index was up 1.29 per cent.

Nifty gainers included Suzlon Energy (2.86%), HCL Tech (2.11%), Hindustan Unilever (2.01%), Reliance Industries (1.93%) and Reliance Infrastructure (1.69%).

Shares of Suzlon Energy moved higher after reports that Spain's Gamesa Corporacion Tecnologica is interested in picking up some stake in the company. Meanwhile, Suzlon Energy has called the reports as speculative in nature.

Reliance Industries is mulling the establishment of a $1.2 billion liquefied natural gas import terminal on either the east or west coast to meet demand at its refineries and petrochemical plants.

ICICI Bank (-3.28%), SBI (-3.21%), Reliance Communications (-3.17%), Bajaj Auto (-2.94%), HDFC Bank (-2.41%) and were amongst the losers.

Market breadth was flat on the NSE with 1453 advances against 1498 declines.

Meanwhile, the European markets moved higher in line with other peers and the Wall Street is expected to follow suit. At 4:30 pm IST, Dow Jones was up 0.30 per cent, S&P 500 moved 0.24 per cent higher and Nasdaq moved 0.14 per cent higher.

source economics times

Stock Market Today - 4th January 2010

2011-01-04T00:33:00.000-08:00

Index	Prev Close	Open	High	Low	Last	% Change
S&P CNX NIFTY	6157.60	6172.75	6181.05	6124.40	6168.85	0.18
CNX NIFTY JUNIOR	12261.00	12278.45	12338.25	12210.35	12245.30	-0.13
CNX IT	7492.45	7500.30	7560.65	7499.55	7552.30	0.80
BANK NIFTY	11855.75	11868.40	11872.80	11605.85	11651.05	-1.73
INDIA VIX	16.99	16.99	17.52	15.76	16.73	-1.53
CNX 100	6056.20	6068.75	6080.20	6025.55	6064.40	0.14
S&P CNX DEFTY	4770.15	4789.70	4795.65	4731.55	4757.15	-0.27
S&P CNX 500	4967.30	4975.60	4988.25	4947.10	4975.45	0.16
CNX MIDCAP	8919.00	8965.65	8978.45	8892.40	8925.50	0.07
NIFTY MIDCAP 50	2958.05	2969.25	2977.30	2948.60	2963.15	0.17
CNX INFRA	3479.55	3487.75	3496.60	3456.10	3483.75	0.12
CNX REALTY	381.35	381.90	384.50	378.65	380.80	-0.14