The News International Team
12:55pm Market Expert
Dhananjay Sinha, Emkay Global Financial Services says market needs to be looked at from the context of what was reported in the third quarter earnings and the recent political developments pertaining to Delhi election outcome and Bihar, which impinges on the positivity of the current government.
The market has been running up significantly higher implying that has become expensive just on the basis of downgrades. Therefore, one needs to be a bit circumspect of what the market is currently pricing and what can be evolved going forward with Budget in prime focus.
“Ahead of the Budget session there has been certain amount disquiet with respect to the land acquisition ordinance that the government had brought in earlier and there it needs to be passed in the parliament. There does seem to be a certain kind of dissatisfaction with respect to the farming community and there are political ramifications out of that. So, the government will have to mellow down some of these amendments,” feels Sinha.
12:30pm Monnet Ispat shares in demand
Monnet Ispat & Energy bagged one coal block in Chhattisgarh on the last day of the auction, bringing down the curtains on the first phase of coal auctions that will fetch the states over Rs 1 lakh crore.
“Monnet Ispat, highest bidder at Rs 2,619 (per tonne) for Gare Palma IV/7 (coal mine),” Coal Secretary Anil Swarup tweeted. In another tweet, he said, “Coal block auction releases a value of more than Rs 1.5 lakh crore.
Includes the benefit of around Rs 37,000 crore of tariff reduction.” And further tweeted that “Rs 1.09 lakh crore of e-auction amount and Rs 12,800 crore to go to states in the next 30 years”.
The government was successful in selling all the 19 mines in the first lot of auction which began on February 14. The companies that have bagged 19 blocks include Reliance Cement, GMR Chhattisgarh, Hindalco, Sunflag Iron and Steel, Jaiprakash Associates, Jaiprakash Power Ventures, OCL Iron and Steel, Bharat Aluminium, Essar Power MP, Jindal Power and UltraTech Cement.
The second round of auction in which government has put on sale 21 mines will begin from February 25.
12:00pm Market Check
The market started the Budget week on a flat note as the Nifty traded near the 8,850 mark. The broader markets marginally outperformed benchmarks.
JSPL and DLF fell 1-1.5 percent on account of the Nifty index changes that were announced on Friday. Both stocks will be excluded from the Nifty with effect from March 27 while Idea Cellular and YES Bank will be included.
Titagarh Wagons, UltraTech Cement, MCX India, Tata Elxsi, IIFL Holdings, Lupin, HDFC, L&T and Wockhardt were the most active shares on exchanges.
The Budget session of the parliament kicked off today. President Pranab Mukherjee addressed a joint session of both the houses. PM Modi says the government will try to discuss all the important bills and he expects the opposition to allow a constructive debate on all issues.
In the oil ministry espionage case, the custody of the first set of 5 accused ends today. Their custody was extended on Saturday to question and probe involvement and complicity of other senior executives. The accused will be produced in the court tomorrow.
Global cues were firm with the Nikkei trading at fresh 15-year high as Greece got an extension of its bailout program by 4 months.