ECONOMY- BUDGET ANALYSIS

Sectoral Budget Impact

Sector	Proposal	Impact
Power	Proposal of zero customs duty for electrical plants and machinery To equalise duties on steam and bituminous coal to 2 pct customs duty and 2 pct cvd (countervailing duty) To reintroduce generation based incentive for wind power projects. Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy. 80 IA benefit for power plants extended.	Nonconventional source of power like wind based power generation to get a boost. Continuation of deduction u/s 80IA likely to help the sector.
Banking	Public Sector Banks to get Rs 14000 crore capital support in FY14 and Rs 12517, crore in FY2012-13. All Women's Bank to be set up via public sector with an initial capital of Rs 1000 crore.  4% farm loan scheme extended to private sector banks.	Capital infusion to help maintain bank's minimum tier - I capital of 8% under Basel III. In turn, lenders can expand their loans maintaining the growth in the balance sheet. This move is expected to empower women and is seen as as a move to foster entrepreneurship among women.
Capital  and Debt market	Plans to issue inflation-indexed bonds. Capital allowance of 15% to companies on investments of more than Rs 1 bln. Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements. Insurance, provident funds can trade directly in debt segments of stock exchanges FIIs can hedge forex exposure through exchange-traded derivatives. Investor with less than 10 pct stake in a company will be regarded as FII, more than 10 pct stake as FDI (foreign direct investment) The stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors. To implement quickly recommendations of financial sector legislative reforms commission STT on equity futures from 0.017% to 0.01%. STT on mutual fund redemption of Exchange Traded Fund (ETF) scheme has been reduced to Re 1 from Rs 250 per lakh, and on mutual fund non-redemption of ETF scheme the STT has reduced to Re 1 from Rs 100 per lakh. CTT of Rs 10 per lakh has been introduced in the Budget for FY 2014 on non-agri commodities.	Can give  a boost to FII investments, simplification of KYC a big positive. STT reduction will increase volumes in Exchange Traded Fund schemes, equity futures  and will reduce overall cost. Will have an adverse impact on the trade of commodity.
Realty	TDS of 1% on property deals above Rs 50 lakh. Additional tax deduction limit by Rs 1 lakh for the first time home buyers up to Rs 25 lakh during the period April 1, 2013 to March 31, 2014. Excise duty on marble slabs increased.	May curb black money generation in property deals but will adversely impact the demand. Likely to promote home ownership and give a fillip to low cost housing and a number of industries including steel, cement, brick, wood, and glass etc.
Infra	Proposal to set up Road Regulatory Authority. Infrastructure Debt Funds will be encouraged. To build roads in North Eastern states and connect them to Myanmar with assistance from WB & ADB.	Road construction companies to gain  Will help boost the economy
Shipping	To add 2 new ports in WB, AP; to add 100 mn tonne capacity. No duty on import of ships, vessels. Proposal for full exemption  of counter vailing duty (CVD) on imported ships and vessels.	Full  CVD exemption on imported ships will help the industry  because most Indian shipping companies purchase their vessels manufactured outside the country.
Electric and Electronics	Electronics chip maker plants to get incentives, zero customs duty for electronic chips. Higher customs duty on set top boxes.	Zero custom duty a negative news for semiconductor industry. Will  boost manufacturing of high tech electronic products in India.
FMCG	Excise duty raised by 18% for cigarettes. Similar increase on cigars, cheroots and cigarillos. Reduced Countervailing duty on dehulled Oat grains.	Mixed for the industry, increase in excise duty will impact all cigarette companies.
IT	Allocation of Rs 532 crore for IT Modernisation project of Post offices which are gearing up to offfer core banking sevices.	An added opportunity for the IT industry at home.
Gems & Jewellary	Imposition of 4% excise duty on silver manufactured from smelting zinc or lead. Baggage rules for bringing the duty-free jewellery limit increased to Rs 50,000 in the case of a male passenger and Rs 100,000 in the case of a female passenger. Reduction in import duty on pre-forms of precious and semi-precious stones from 10% to 2%.	Will bring the rate on par with the excise duty applicable to silver obtained from copper ores and concentrates. Positive for industry, will help the diamond and coloured gemstone industry and will give boost to the exports of precious and semi-precious stones from India.
Oil & Gas	Proposal to move to revenue-sharing from profit-sharing policy in oil and gas sector. A policy to encourage exploration and production of shale gas will be announced. Natural gas pricing policy will be reviewed and stalled NELP blocks will be cleared.	Negatively impact the industry and increase in risk profile for exploration and production companies.
Fertilizer  Sector	No any direct announcements. Rs. 200 crore pilot scheme announced for introducing micro-nutrients new crop varieties. Credit Guarantee Fund for Small Farmers' Agri Business Corporation with an initial corpus of Rs 100 crore.	Positive for the industry as it will increase the demand of the ferlizers.
Telecom -Equipment	Hike in the duty on mobile phones costing more than Rs 2000 from 1% to 6%.	Move is likely to marginally impact the smart phone demand.
Cement	No any direct announcements for the sector A person taking a loan for his first home from a bank or a housing finance corporation upto Rs 25,00,000 during the period 1.4.2013 to 31.3.2014 will be entitled to an additional deduction of interest of upto Rs 100,000. 3000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh will be awarded in the first six months of 2013-14.	Demand for Cement will increase.
Education	Education remained the highest priority in FY13-14 budget as FM proposed to allocate Rs 65,867 crore to the Ministry of Human Resource Development, which is an increase of 17 percent over the RE of the previous year.  Proposal to provide Rs 27,258 crore for Sarva Shiksha Abhiyan in 2013-14.  A grant of Rs 100 crore each to Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences and Indian National Trust for Art and Cultural Heritage.	With the help of higher allocation of fund educational  infrastructure can improve.
Healthcare	Proposal to allocate Rs 37,330 crore to the Ministry of Health and Family Welfare .  Of this, the new National Health Mission that combines the rural mission and the proposed urban mission will get Rs 21,239 crore, an increase of 24.3 percent over the RE.  Proposal to provide Rs  4,727 crore for medical education, training and research.  Proposal to allocate Rs 1,069 crore to the Department of AYUSH.	Increasing expenditure on healthcare and healthcare infrastructure will boost the industry and help in its growth.
Media and Entertainment	Proposal to expand private FM radio services to 294 more cities.  About 839 new FM radio channels will be auctioned in 2013-14 and, after the auction, all cities having a population of more than 100,000 will be covered by private FM radio services. Import duty on Set Top Boxes increased from 5 to 10 percent. Exemption of Service Tax on copyright on cinematography limited to films exhibited in cinema halls.	This is positive for media companies as expansion of FM radio services in smaller areas provide huge opportunities. This will encourage domestic production.
Textile	Technology Upgradation Fund Scheme (TUFS) to continue in the 12th Plan with an investment target of Rs 1,51,000 crore. To set up textile parks under the Scheme for Integrated Textile Parks (SITP). Working capital and term loans at a concessional interest of 6 per cent to handloom sector. Excise Duty on ready-made garments exempted.	Mostly positive for the sector. With TUFS extension more focus will be on modernisation of the powerloom sector.
Auto	Increase of duty on imported luxury goods such as high end motor vehicles, motorcycles, yachts and similar vessels from 75% to 100%. Increase in the excise duty on SUVs from 27% to 30%. However, the increase will not apply to SUVs registered as taxis. Extension of concession period now available for specified parts of electric and hybrid vehicles up to 31.3.2015. Increase to Rs 14,873 crore in 2013-14 from Rs.7,383 crore in the current year proposed in the allocation for the JNNURM programme.	Negative for the car makers as           SUV manufacturers will be impacted. This will also increase the unqualitative competition in SUV's and other vehicles.    This will encourage manufacturing and selling of environment-friendly vehicles.  Bus manufacturers to benefit as the fund will be used to support the purchase of up to 10,000 buses, specially by the hill states.
Agriculture	To allocate Rs 80194 crore for rural development in 2013-14. Plan to allocate Rs 27,049 crore  for agriculture in 2013-14.	Hike in budgetary allocation to boost agriculture and allied industries.

MID TIME MARKET

Indian markets trade flat in morning deals on Monday
Indian equity benchmarks have made a flat start and are hovering near their pre-close mark as market participants' trade cautiously on account of February month derivative expiry and the Union Budget 2013-14. The global cues remained supportive as the US markets bounced back and ended higher on Friday, reducing their weekly losses on some supportive European cues. Asian markets too traded firmly in the early trade on Monday with investors still picking up shares battered by last week's steep plunge.
Back home, sentiments got some support as select non-banking finance companies (NBFC) shares like Mahindra & Mahindra Financial Services, L&T Finance Holdings, Bajaj Finserv, Bajaj Finance and Reliance Capital all edged higher in early morning deals after the Reserve Bank of India (RBI) issued guidelines for the new bank licences, which will pave the way for both corporate entities and NBFC to begin banking operations. The most important thing is that RBI has not excluded companies or entities from any specific industry from applying for a new bank licence. In other development, the government has exempted merger and takeover plans for loss-making and failing banks from the purview of fair trade regulator Competition Commission for a period of five years.
On the sectoral front, software witnessed the maximum gain in trade followed by technology and auto while, oil and gas, realty and fast moving consumer goods remained the top losers on the BSE sectoral space. The broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,044 shares on the gaining side against 798 shares on the losing side while 97 shares remain unchanged.
The broader indices were outperforming benchmarks while, the market breadth on the BSE was positive; there were 1,005 shares on the gaining side against 739 shares on the losing side while 89 shares remain unchanged.
The BSE Sensex opened at 19,365.33; about 48 points higher compared to its previous closing of 19,317.01, and has touched a high and a low of 19,382.89 and 19,280.46 respectively. The index is currently trading at 19,323.23, up by 6.22 points or 0.03%. There were 17 stocks advancing against 13 declines on the index.
The overall market breadth has made a positive start with 55.31% stocks advancing against 39.69% declines. The broader indices too were outperforming with benchmarks; the BSE Mid cap and Small cap indices rose 0.38% and 0.28% respectively.
The top gaining sectoral indices on the BSE were, IT up by 1.44%, TECk up by 1.20%, Auto up by 0.64%, Power up by 0.63% and Health Care up by 0.11%. While, Oil & Gas down by 0.91%, Realty down by 0.36%, FMCG down by 0.31%, Capital Goods down by 0.17% and PSU down by 0.12%  were the only losers on the index.
The top gainers on the Sensex were Infosys up by 1.84%, Wipro up by 1.74%, Tata Motors up by 1.57%, Maruti Suzuki up by 0.87% and TCS up by 0.78%.
On the flip side, ONGC was down by 1.40%, Hero MotoCorp was down by 1.25%, Coal India was down by 1.13%, Cipla was down by 1.12% and RIL down by 1.00% were the top losers on the Sensex.
Meanwhile, concerned over the industrial unrest witnessed during the two-day nation-wide strike, Planning Commission Deputy Chairman Montek Singh Ahluwalia said, revival in economic growth will help combat industrial tension. As per Ahluwalia, when the industry is back into a normal state, many other tensions like strikes and spiraling prices will go down. 
Around 11 trade unions have called a strike on February 20 and 21 against strict enforcement of labour laws, spiraling prices, creation of social security net for workers in unorganized sector as well as raising minimum wages to Rs 10,000 per month, among others. Industry body Assocham said that the GDP may lose about Rs 26,000 crore due to the strike which has impacted industrial activity and services such as banking and finance.
While addressing an event on leveraging employment generation in the 12th Five Year Plan, Ahluwalia stated the need of public private partnership (PPP) for employment generation and skill development as the number of people in India is not skilled.
Earlier also Ahluwalia emphasized on the fact that the government need to make sure that the young generation are educated and equipped with both the educational and skill weapons in order to deal with rapidly changing and increasingly globalizing world, which is a huge challenge for the country.
The S&P CNX Nifty opened at 5,870.55; about 20 points higher as compared to its previous closing of 5,850.30 and has touched a high and a low of 5,874.25 and 5,837.30 respectively. The index is currently trading at 5,848.75, down by 0.03 points or 0.01%. There were 26 stocks advancing against 24 declines on the index.
The top gainers of the Nifty were Ranbaxy up by 4.10%, Power Grid up by 1.88%, Infosys up by 1.71%, Wipro up by 1.71% and Tata Motors up by 1.66%.
On the flip side, BPCL down by 1.63%, DLF down by 1.55%, UltraTech Cement down by 1.51%, ONGC down by 1.45% and CIPLA down by 1.29%, were the major losers on the index.
Most of the Asian equity indices were trading in the green; Shanghai Composite rose 6.96 points or 0.30% to 2,321.12, Hang Seng increased marginally by 1.27 points or 0.01% to 22,783.71, Jakarta Composite jumped 22.54 points or 0.48% to 4,673.66, KLSE Composite added 3.38 points or 0.21% to 1,625.46, Nikkei 225 surged 194.20 points or 1.71% to 11,580.14 and Straits Times was up by 1.54 points or 0.05% to 3,289.67.
On the flip side, KOSPI Composite dipped 3.15 points or 0.16% to 2,015.74 and Taiwan Weighted was up by 12.08 points or 0.15% to 7,974.81.

EQUITY OPENING BELL

Markets likely to get a cautious but positive start; NBFCs to be in action

The Indian markets remained in consolidation mood on Friday and traders opted to be on the sidelines. Today, the start of the crucial week is likely to be positive one, this week union budget will be presented, while the F&O series expiry too will take place on the same day. All eyes will be on the budget and lots of speculations getting unfolded from it. The key figure eyed in the budget would be fiscal deficit and divestment target for fiscal year 2013-14. Railways related stocks will be in action ahead of the Rail budget tomorrow. However, the real buzz is likely to be from the banking sector and the aspirants of new banking licences. Reserve Bank of India  has released final guidelines for issuing new bank licences paving the way for corporate houses to enter the banking sector.The most important thing is that RBI has not excluded companies or entities from any specific industry from applying for a new bank licence. Companies with a 10-year track record and "sound credentials" can apply by July 1. Foreign ownership will be capped at 49 percent for the first five years, and the lenders are required to set up one-in-four of their branches in villages with less than 10,000 people.

In other development, the government has exempted merger and takeover plans for loss-making and failing banks from the purview of fair trade regulator Competition Commission for a period of five years. The telecom stocks too are likely to be in action as the DoT has said that operators offering third-generation services on roaming will have to stop them immediately and should also pay a penalty of Rs 50 crore per service area for violating licence norms.

The US markets bounced back and ended higher on Friday, reducing their weekly losses on some supportive European cues. Most of the Asian markets have made a positive start, the Japanese market has taken the lead on speculation that the new Bank of Japan governor will go for aggressive monetary easing.

Back home, after witnessing biggest sell-off since July 2012 in the previous session, key Indian benchmarks ended the session on a flat-to-negative note on last trading day of the week as sentiments remained cautious ahead of the Union Budget and Economic Survey of India to be released in the coming week. Markets traded choppy in the first half as sentiments remained jittery after President Pranab Mukherjee, while addressing the joint sitting of the two Houses of Parliament, said that inflation is easing gradually, but is still a problem and expressed his hopes of recovery in economic growth. However, recovery witnessed in mid-noon trade proved short-lived as market participants booked all their gains at the end shrugging off firm cues from European counters. On the global front, European markets traded on a positive note after better-than-expected German business confidence data. Back home, selling in Aviation sector too dampened the sentiments as Jet Airways and Spicejet edged lower on concerns of increased competition after Malaysian budget carrier AirAsia recently announced the launch of its new airline in India in partnership with the Tata Group. Defensive sector FMCG also witnessed a sharp cut of around one and half a percent, while the metal stocks remained under pressure for the second consecutive day, losing another half a percent. However, the losses remain capped as investors kept themselves busy in piling up positions in software and technology counters on the back of Gartners' report that healthcare providers' spending on IT will increase by seven percent this year. Meanwhile, high beta realty bounced back, gaining over one and half a percent for the day, though the housing ministry looks determined to introduce the pending legislation in Parliament's budget session to set up a real estate watchdog, the private developers associations have disapproved the proposal saying that realty watchdog is only going to increase the number of clearances and checks, leading to further delay in housing projects. Finally, the BSE Sensex lost 8.35 points or 0.04% to settle at 19,317.01, while the CNX Nifty declined by 1.95 points or 0.03% to end at 5,850.30.

 

EQUITY OPENING BELL

Markets to get a weak start and remain cautious; may recover in late trade

The Indian markets witnessed a blood bath in last session, when major indices plunged to their new lows of the year, it was the biggest fall for the markets in more than six months as traders across the globe panicked about further plan of the US Federal Reserve over how much longer it would stick to its stimulus measures. Today, the start is likely to remain cautious, there will be some concern in the markets after the twin bomb blast in Hyderabad. However, there is likely to be some recovery in the late trades  and marketmen will go for some value buying at lower levels. President Pranab Mukherjee, addressing the joint sitting of the two Houses of Parliament has said that Inflation is easing gradually, but is still a problem and has expressed his hopes of recovery in economic growth. Meanwhile, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that to create more jobs, India needs an eco-system that encourages more and more mid-level enterprises.IT sector may get a boost with Gartners' report that heatlthcare providers' spending on IT will increase by seven percent this year. Commodities stocks will be watched on global reactions, while the PSU oil marketing companies are likely to get some support with plunge in crude prices.

The US markets extended their declining trend on Thursday, though there was some recovery in the late trade but traders continued cashing in on the recent strength in the markets and were concerned after Labor Department's report showing that initial jobless claims climbed to 362,000 in the week ended February 16. Most of the Asian markets have made a weak start on concern that China will take more steps to control economic growth and as the reports showed deepening recession in euro zone.

Back home, Indian markets witnessed butchery on Thursday with both the major indices losing over one and half a percent and closed near their lowest level in almost eight and a half weeks, breaching major crucial support levels, 19,400 (Sensex) and 5,900 (Nifty) on feeble global cues. A gap-down start of markets never looked in recovery mood and continued sliding till end, closing near the lowest point of the day. Selling was both brutal and wide-based as barring consumer durables, none of sectoral indices on BSE were spared. Counters, which featured in the list of worst performers, include Metal, Banking and Realty. Major reason behind the blood bath was sluggish global cues as European markets made a lethargic start after minutes from the US Federal Reserve's latest meeting illustrated different views over the bank's monetary-easing program. Back home, markets also remained jittery as the crucial Budget session of Parliament began today with the United Progressive Alliance (UPA) government set to face a stiff challenge because of the controversies surrounding the chopper deal. Metal shares like Jindal Steel, Tata Steel, Sterlite Industries and Hindalco melted between 3-5 per cent on news that the commodity prices have declined globally. Some pressure also came in after realty stocks tumbled as tussle over legislation to set up a real estate watchdog, pending since 2009, intensified after private developers rejected the proposal. Sentiments also remained under pressure as financial shares like ICICI Bank, SBI, HDFC Bank and HDFC all edged lower in the trade after RBI data showed that the sector's loan growth continues to be a concern. Moreover, RBI data showed banks registered an 8.7 per cent growth in advances this fiscal year, compared to 11.2 per cent in the previous year. Meanwhile, banks and financial institutions remained closed on the second day of two-day nationwide bandh called by major trade unions to protest against the anti-labour policies of the government. Shares of cigarette makers like VST Industries, Godfrey Phillips India and ITC also tumbled after the Gujarat state government proposed to increase the value-added tax on cigarettes. Finally, the BSE Sensex shaved off 317.39 points or 1.62% to settle at 19,325.36, while the CNX Nifty plunged by 90.80 points or 1.53% to end at 5,852.25.

EQUITY - MID DAY REVIEW

Benchmarks trade higher in early deals buoyed by firm global cues
Prolonging their previous session's rally, Indian equity benchmarks have made a decent start buoyed by firm global cues with frontline indices inching towards their crucial 6,000 (Nifty) and 19,700 (Sensex) levels. Overnight, the US markets went for a rally after a long weekend, supported by some merger-and-acquisitions news and gains in the European market after economic sentiment index for Germany rose in February. Traders even overlooked the report that homebuilders confidence unexpectedly fell in the month of February. The Asian markets were trading mostly in the green. Weaker yen boosted the earnings outlook of Japanese exporters, taking the markets higher by about a percent. 
Back home, major support came in from about two percent rally in index heavy weight Reliance Industries (RIL) after the company announced its joint venture with BP plans to invest more than $5 billion in the next three-five years to boost gas output in the KG D6 block in the Krishna-Godavari basin. Rally in Aviation space too supported the sentiments as stocks like Kingfisher, Spicejet and Jet Airways all edged higher on the back of the ongoing price war. Power stocks too remained on the buyers' radar as the ministry once again discussed the standard bidding documents for case-II Ultra Mega Power Projects with industry players before taking the approval from the Empowered Group of Ministers.
On the sectoral front, oil and gas witnessed the maximum gain in trade followed by realty and public sector undertaking while, consumer durables, auto and healthcare remained the top losers on the BSE sectoral space. The broader indices were going neck-to-neck with benchmarks while, the market breadth on the BSE was positive; there were 1,235 shares on the gaining side against 673 shares on the losing side while 85 shares remain unchanged.
The broader indices were outperforming benchmarks, while the market breadth on the BSE was positive; there were 1,127 shares on the gaining side against 557 shares on the losing side while 71 shares remain unchanged.
The BSE Sensex opened at 19,717.94; about 82 points higher compared to its previous closing of 19,635.72, and has touched a high and a low of 19,742.42 and 19,679.63 respectively.
The index is currently trading at 19,698.12, up by 62.40 points or 0.32%. There were 19 stocks advancing against 11 declines on the index.
The overall market breadth has made a strong start with 64.38% stocks advancing against 31.33% declines. The broader indices were outperforming with benchmarks; the BSE Mid cap and Small cap indices rose 0.32% and 0.57% respectively.
The top gaining sectoral indices on the BSE were, Oil & Gas up by 1.47%, Realty up by 1.07%, PSU up by 0.47%, IT up by 0.46% and TECk up by 0.33% While, Consumer Durables down by 0.35%, Auto down by 0.10% and Health Care down by 0.01% were the only losers on the index.
The top gainers on the Sensex were RIL up by 2.14%, Wipro up by 0.94%, Coal India up by 0.80%, ONGC up by 0.79% and HDFC Bank up by 0.70%.
On the flip side, Maruti Suzuki was down by 1.32%, Bharti Airtel was down by 0.81%, NTPC was down by 0.62%, Cipla was down by 0.58% and Bajaj Auto was down by 0.54% were the top losers on the Sensex.
Meanwhile, the Reserve Bank of India (RBI) is expected to come out with the final guidelines for new bank licences much before the end of the fiscal. RBI deputy governor Anand Sinha said 'we are in the process of issuing the licence guidelines. The consultation process with the finance ministry is over; everything is settled now, and we will be issuing the guidelines. It will be much before the end of this financial year.'
As per Sinha, banks are very important for the financial sector and eligible corporates have to meet all the criteria of licensing draft guidelines to enter the banking space. However, Sinha refused to quantify the possible number of licences, saying that the central bank will be selective in this process. Currently, Indian banking industry consists of 26 public sector banks, 22 private sector banks and over 40 foreign banks.
The S&P CNX Nifty opened at 5,966.30; about 26 points higher as compared to its previous closing of 5,939.70, and has touched a high and a low of 5,971.00 and 5,950.85 respectively.
The index is currently trading at 5,958.65, up by 18.95 points or 0.32%. There were 31 stocks advancing against 19 declines and one remains unchanged on the index.
The top gainers of the Nifty were Reliance Industries up by 1.96%, Ambuja Cements up by 1.71%, BPCL up by 1.45%, DLF up by 1.28% and HCL Tech up by 0.96%.
On the flip side, Maruti down by 1.32%, Cipla down by 0.75%, NTPC down by 0.72%, Bharti Airtel down by 0.72% and JP Associate down by 0.66%, were the major losers on the index.
Most of the Asian equity indices were trading in the green; Hang Seng rose 58.01 points or 0.25% to 23,201.92, Jakarta Composite strengthened 24.58 points or 0.53% to 4,626.64, Nikkei 225 increased 83.23 points or 0.73% to 11,455.57, Straits Times added 6.62 points or 0.20% to 3,302.39, KOSPI Composite surged 33.36 points or 1.68% to 2,019.19 and Taiwan Weighted was up by 53.10 points or 0.67% to 8,013.98.
On the flip side, Shanghai Composite slipped 1.72 points or 0.07% to 2,381.20 and KLSE Composite was down by 3.63 points or 0.22% to 1,611.44.

Source:AceEquity Disclaimer : Accord Fintech Pvt Ltd has taken all the necessary steps and measures in compilation of the Data present in the AceEquity.We have tried our level best to provide data from reliable source. However, Accord Fintech Pvt Ltd does not guarantee the accuracy,adequacy or completeness of any Data in the AceEquity and is not responsible for any errors or omissions or for the results obtained from the use of such Data. Accord Fintech especially states that it has no financial liability whatsoever to the users of AceEquity.Accord or any of its directors/ employees/ representatives does not accept any liability for any direct or consequential loss arising from the use of the Data contained in the AceEquity or any data generated from the AceEquity.

EQUITY OPENING BELL

 Markets likely to extend the rally mood with a positive start

The Indian markets took the lead of global rally and surged in the last session, coming out of the slumber of last more than a week. There was across the board buying with traders lapping stocks from high beta to defensive on attractive valuation.Today, the start is likely to be good on sanguine global cues and the markets may extend their gains. However, the volume is likely to remain low in view of the trade unions two-days nationwide strike. The unions have put forward a charter of 10 demands such as urgent steps to control price rise, strict enforcement of labour laws in all places of work, social security net for workers in the unorganised sector etc. After the Prime Minister, the Industry body Assocham too has urged central trade unions to call off the strike, saying that the economy would take a hit of Rs 15,000 crore to Rs 20,000 crore due to disruptions. There will be buzz in the money markets after they reopen from a break, as the government decided to cancel its last bond auction for 2012-13 in view of its improving cash position, bond yields are likely to move lower. There will be buzz in the power sector as the ministry once again discuss the standard bidding documents for case-II Ultra Mega Power Projects with industry players before taking the approval from the Empowered Group of Ministers. The aviation sector too will keep buzzing with the ongoing price war.
The re-energized US markets went for a rally on Tuesday after a long weekend, supported by some merger-and-acquisitions news and  gains in the European market after economic sentiment index for Germany rose in February.Traders even overlooked the report that homebuilders confidence unexpectedly fell in the month of February. The Asian markets have made mostly a positive start, though some of the indices are marginally in red too. Weaker yen has boosted the earnings outlook of Japanese exporters, taking the markets higher by about a percent.
Back home, stock markets in India showcased high degree of resilience on Tuesday as the benchmark equity indices finished an extremely volatile session on a sanguine note. The benchmark gauges showcased a strong performance by vehemently garnering close to a percentage point and the sharp rally looked even more prominent since it came on a day when equity indices across Asia largely exhibited mostly negative trends while European counterparts traded on a positive note, but failed to match the fervor with which the Indian bourses soared. The frontline indices, with the sharp upmove in late trade not only surpassed the psychological 5,900 (Nifty) and 19,500 (Sensex) levels but also regained most part of the ground lost in previous three weeks brutal sell-off. After getting off to a flat-to-negative opening, the markets traded in close proximity with the previous closing levels for most part of trade as cues from the Asian space remained sluggish. But, markets regained strength in last leg of trade and ended the session near intraday high supported by firm opening in European counterparts. Sentiments also got some support from continued buying in sugar stocks on news that Centre is likely to take a decision on giving freedom to the Rs 80,000 crore sugar industry to sell the sweetener in the open market in few days. Sugar stocks including Balrampur Chini, Triveni Engineering and Rana Sugar all edged higher in the trade. Meanwhile, government's decision to cancel its last bond auction for 2012-13 in view of its improving cash position also boosted the sentiments of the traders. On the global front, European counters traded firmly in the early trade and boosted the sentiments. Back home, gains of likely candidates for banking licences, IFCI, Mahindra and Mahindra Financial Services and Shriram Transport Finance Company, too bolstered the sentiment. NBFC rose a day after RBI Deputy Governor Anand Sinha said RBI would issue final guidelines on new bank licences before the end of March. Shares related to construction too remained on the buyers' radar on expectations that the government will provide thrust on infrastructure development in Union Budget 2013-14 to be tabled in the Parliament on February 28, 2013. On the flip side, Bharti Airtel and Idea Cellular edged lower on the bourses on Tuesday after the government cleared a proposal to allow 4G licence holders to also offer voice calling services, leading to more competition in the telecom sector. Finally, the BSE Sensex gained 134.64 points or 0.69% to settle at 19,635.72, while the S&P CNX Nifty rose by 41.50 points or 0.70% to end at 5,939.70.
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ONGC,GAIL AND KINGFISHER AIRLINES may witness for today some action

Six years after the $1 billion project was put in cold storage, state-owned Oil & Natural Gas Corporation (ONGC) will by this month-end revive plans to set up a liquid gas (LNG) import terminal near its Mangalore refinery in Karnataka. The 5 million tonne capacity liquefied natural gas (LNG) import facility will be set up through a joint venture of ONGC and BPCL and an international energy firm of repute. ONGC has already initiated talks with the Mitsui Group of Japan of setting up an LNG terminal in Mangalore and the two may also strengthen their partnership by further setting up a gas based power plant in India. Besides, ONGC drilled a well in record water depths using a rig it had hired from Reliance Industries. ONGC's chartered-hired ultra-deep water drillship DDKG1 has set a world record for drilling well in deepest water depth by an offshore drilling rig. The rig DDKG1 has spudded well NA7-1 in exploratory block KG-DWN-2004/1 in east coast India at a water depth of 3165 metres (10,385 feet) on January 23. The rig owned by Transocean surpassed Transocean's own prior record of 10,194 feet of water depth, set in 2011 by DDKG2 working for Reliance Industries on the east coast.

State-owned gas utility GAIL India commissioned a Rs 4,500 crore pipeline carrying gas from the just operationalised Dabhol LNG terminal into Bengaluru that promises to change the energy landscape of the region. The 1,000-km pipeline will feed industries at Belgaum, Dharwad, Gadag, Bellary, Davanagere, Chitradurga, Tumkuyr, Ramanagaram and Bengaluru who have till now been using costlier and polluting liquid fuels like naphtha and diesel as feedstock. Gas will help the state power generation utility save Rs 800 crore annually by reducing cost, improving efficiency and drastically cutting down pollution caused by using liquid fuels. The pipeline will be extended to Mangalore this year and further to Kochi in Kerala by the end of next year. The Dabhol-Bengaluru pipeline has a capacity to carry 16 million standard cubic meters of gas per day.

Realty major DLF aims to cut its net debt by half over the next three years to Rs 10,000-11,000 crore with the help of fresh issue of equity shares, sale of non-core assets and improved cash flows. In order to meet the market regulator SEBI guidelines of minimum 25 percent public shareholding by June 2013, DLF is planning to dilute promoter stake by issuing fresh equity shares in first quarter of next fiscal helping the company to raise over Rs 2,000 crore. The company is also expecting to raise another Rs 2,500 crore after the conclusion of its divestment of hospitality chain Amanresort and part of the wind energy business in this quarter. In December 2012, DLF announced the sale of Amanresorts back to founder Adrian Zecha for about Rs 1,650 crore. Last month, the company announced the sale of part of its wind turbine business in Gujarat to Bharat Light & Power for Rs 282.3 crore. Apart from that, DLF is also in negotiations for sale of its wind turbines in Rajasthan (34 MW), Tamil Nadu (33 MW) and Karnataka (11 MW).

To accommodate further lending to debt-laden Kingfisher Airlines, its group holding firm United Breweries (Holdings) is hiking its loan limit for the ailing carrier from Rs 300 crore to Rs 750 crore. UB Holdings has sought approval from its shareholders to revise the lending limit for Kingfisher and to authorize its board of directors to take necessary actions in this regard. Shareholders of UB Holdings in September 2008 had approved lending funds to Kingfisher to the tune of a maximum amount of Rs 1,500 crore. Later in 2010, the company got approval of shareholders for a revision within this overall limit, pursuant to which the loans for Kingfisher were capped at Rs 300 crore and investments at Rs 1,200 crore. The revision was done to facilitate the conversion of loans given to Kingfisher into convertible/no-convertible securities, as required by the debt recast agreement between the airline and a consortium of its lenders.

Essar Oil believes that with the completion of its Vadinar refinery expansion, the company is poised to match its old rival Reliance Industries' enviable margins from its Jamnagar refinery. In the quarter-ended December, Essar Oil reported current price gross refining margin (GRM) of $9.75 per barrel, as against $2.82 a year ago, compared with Reliance Industries' (RIL) GRM of $9.6 per barrel in the quarter. Essar Oil, a part of the energy conglomerate controlled by billionaire brothers Shashi Ruia and Ravi Ruia, completed the expansion and up-gradation of its refinery last year. The refinery capacity stands expanded to 405,000 barrels per day from 300,000 previously and its complexity has increased to 11.8 from 6.1. Mukesh Ambani-led RIL operates the Jamnagar refinery, which has a capacity of 660,000 barrels per day and complexity of 11.3, as defined by the Nelson Complexity Index.

Tata Motors is planning to introduce a sub Rs 10 lakh version of its Aria utility vehicle to compete with the likes of Mahindra XUV500 and Toyota Innova and to increase its market share in the fast-growing utility vehicle market. There are many new vehicles and models planned by Tata Motors in order to have a dominant position in the Indian utility vehicle market. The utility vehicle market is growing the fastest, rising 57 percent to 4.51 lakh units in the first 10-months of the fiscal. Tata Motors sold 38,000 utility vehicles across brands such as Safari, Sumo and Aria. Slipping sales of Aria has been a cause of concern for the company in a fiscal year in which its overall sales have fallen 5 percent to 271,000 units.

Wipro's India and Middle East IT Business unit - Wipro Infotech has bagged a 10-year contract from Mumbai International Airport (MIAL). As per the contract, the company will provide IT services for the new integrated terminal T2. This partnership will significantly enhance customer experience and satisfaction through the use of IT. Further, the company will be responsible for providing managed services across the entire IT landscape at MIAL and delivering high availability and operational efficiency across all the critical airport processes. With regards to T2, the company will assist in the preparation of IT blueprint and also work closely with MIAL during the testing and trial phase of the IT systems prior to managing all the IT services for the new terminal. MIAL is currently implementing a master plan to build an integrated terminal with a vision and framework to modernize the airport as one of the best airports in the world. After modernization, the new integrated T2 will be able to accommodate 40 million passengers per annum.

Tata Power's 50.4 MW wind energy plant in Gujarat has been registered under the United Nations Clean Development Mechanism (CDM), making it the company's third project to be part of this framework. Located in Samana, the project will come under Clean Development Mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). The Samana project would help in reducing an annual average of 96,821 tons of carbon dioxide equivalent. Another wind project is in advanced stages of CDM registration. At present, Tata Power has 376 MW wind and 28 MW solar energy generation capacities.

Public sector Canara Bank will launch a new version of gold loan that would be as easy as getting a jewel loan from any pawn broker or private finance firms. Besides, there is also a plan to launch new version of property mortgage loans. The two new versions of the loans are pending for approval and endorsement from the risk management team. The bank also has plans to recruit 5,000 staff in the coming years. The staffs are being recruited as the bank planned to increase its number of branches to 5,000 from the present 3,676. Special thrust would be given to the Northeast where 140 more branches would be opened. The number of ATMs also would be increased from 6,000 to 10,000 in the next couple of years. The bank's customer base is 4.6 crore and by March next it would touch five crore. The bank has allocated Rs 32,000 crore to facilitate lending for micro small and medium enterprises.