Todays Market from Equitymaster http://www.equitymaster.com/tm.asp The happenings in the stock markets, including a pre-open and closing commentary. Todays Market from Equitymaster http://www.equitymaster.com/icons/eqtm_small1.gif http://www.equitymaster.com/tm.asp http://blogs.law.harvard.edu/tech/rss Markets rally on basket buying http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Markets-rally-on-basket-buying
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After trading firm during post noon trading session, the Indian equity markets rallied further in the last hour of trade and closed the day in the green. While the BSE-Sensex today closed higher by 479 points, the NSE-Nifty closed higher by 150 points. Midcaps and Smallcaps too closed with strong gains today. While the S&P BSE Midcap index was up by 1.3%, the S&P BSE Smallcap index closed higher by 2%. Oil and gas and Realty stocks were the biggest gainers today with all the sectoral indices closing in the green.

As regards global markets, Asian pack closed mixed today. The rupee was trading at Rs 63.42 odd levels to the dollar at the time of writing.

Oil & gas stocks have ended the day on a strong note. Shares of upstream oil companies like ONGC and Oil India rose sharply in intraday trade today over reports that the government has decided to scrap the subsidy sharing mechanism formula. Instead, the entire subsidy for oil marketing companies will be borne by the exchequer itself for FY16. This is definitely a positive for the bottom line of upstream oil companies that are required to bear a part of the subsidy burden of OMCs. In addition, relinquishment of subsidy burden would also speed up the divestment process in companies like ONGC as this was one area where investors required more clarity.

Retail stocks ended strong today. Aditya Birla Nuvo, a fashion retailing group, owned by Birla's is likely to be merged with Pantaloon's Retail. The shareholders of Aditya Birla Nuvo shall get 26 equity shares of Pantaloon's Retail for every 5 shares held in the company. The merged entity is likely to be valued at Rs 120 bn making it the largest branded apparel player in India.

This article (Markets rally on basket buying) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Mon, 4 May 2015 10:30:00 GMT http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Markets-rally-on-basket-buying
Realty & energy, major gainers http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Realty--energy-major-gainers
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After opening firm, Indian share markets continued to surge in the post-noon trading session. All the sectoral indices are trading in the green. Realty and oil and gas stocks are the biggest gainers today.

BSE-Sensex is up 334 points and NSE-Nifty is trading 101 points up. S&P BSE Midcap is trading 0.9% up and S&P BSE Smallcap index is trading up by 1.7%. The rupee is trading at 63.65 to the US dollar.

Majority of the food & tobacco stocks are trading firm led by Sterling Biotech and United Spirits. As per a leading financial daily, Nestle is planning file an appeal against Madras High Court's interim order in favour of ITC. In 2013, ITC had filed a case against Nestle for infringing on the intellectual property rights after the latter launched 'Maggi Magical Masala' piggybacking on the success of ITC's 'Yippee Magic Masala'. Reportedly, Nestle is the market leader in the instant noodle market with a 72% volume market share whereas ITC has a market share of 18%. Such a favourable ruling may provide ITC headroom to grab additional market share in the instant noodle market. Both ITC and Nestle stocks are trading up by more than 2%.

Barring Tata Motors, all the automobile stocks are trading in the green with TVS Motors and Mahindra & Mahindra being the biggest gainers. As per a leading financial daily, Ashok Leyland has registered a 43% YoY jump in sale volumes to 8,435 units in the month of April. While the sales of its heavy and medium commercial vehicles grew by 45% YoY to 6,549 units, the offtake of light commercial vehicles were also up by 32% YoY to 1,886 units in April. Ashok Leyland stock is trading up by 2.4%.

This article (Realty & energy, major gainers) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Mon, 4 May 2015 08:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Realty--energy-major-gainers
Indian share markets open firm http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Indian-share-markets-open-firm
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Barring Singapore stock market (down 0.2%), all major Asian indices have opened the day on a firm note with stock markets in China (up 0.9%) and Hong Kong (up 0.4%) leading the gains. The Indian share markets have opened the day on a firm note as well. All the sectoral indices have opened in green with consumer durables and healthcare stocks witnessing maximum buying interest.

The Sensex today is up by around 217 points (0.8%), while the NSE-Nifty is up by about 60 points (0.73%). Mid and small cap stocks have also opened on a positive note with the S&P BSE Midcap and S&P BSE Smallcap indices up by around 0.6% and 1.2% respectively. The rupee is currently trading at Rs 63.57 to the US dollar.

The unabated rise in the non performing assets (NPAs) of the Indian PSU banks is increasingly becoming a cause of concern. As per a financial daily, three PSU banks viz., Bank of India, Union Bank of India and Allahabad Bank have sought exemption from the payment of dividend due to rising NPAs. These banks are looking to improve capital adequacy and thus are looking to plough back the profits. Such instances can impact the government's revenues. As per the Budget Estimates 2015-16, the projections from 'dividend and profit' from public sector companies and banks has been pegged at about Rs 1,006 bn. The revised estimate for the last fiscal was Rs 887 bn.

Power stocks have opened in the green, with Jaiprakash Power and KSK Energy being the leading gainers in the pack. As per a leading financial daily, Jharkhand government and National Thermal Power Corporation (NTPC) have recently, signed an MoU (Memorandum of Understanding) for expansion of Patratu Thermal station in Ramgarh district. The Jharkhand government and NTPC have formed a joint venture for adding upto 4,000 MW capacity. As part of the joint venture, NTPC will hold 74% share in the new holding company, while the Jharkhand government will have 26%. The state government would provide land, water and coal for the plant.

This article (Indian share markets open firm) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Mon, 4 May 2015 04:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Indian-share-markets-open-firm
Will this curb the black money menace? http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Will-this-curb-the-black-money-menace
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In simple words, black money means unaccounted money which generally has no trail of its origination. Evasion of tax is the primary reason for the origin of a black money transactions. Ofcourse, if the source in acquiring such money itself is illegal the motive is to conceal the income from such source. These transactions increase the amount of black money that floats in the system and are thus distorts the entire economy.

Hence, bringing back the black money into the country has been one of the key promises made by the Modi government at the time of elections, however this has been delayed and has is under flak since then.

The recent Budget speech by Mr Arun Jaitley too had proposed to introduce legislations to deal with the issue of domestic black money. In accordance to this proposal, the government is looking forward to introduce - The Benami transaction Bill.

A 'benami transaction' refers to any such transactions in which property is transferred to one person while consideration is paid by another. It includes all transactions which are done to conceal such facts.

As reported in the Financial Express, the proposed Benami Bill will act as a major deterrent for curbing generation of black money. This would include various transactions in real estate, which is one of the major avenues for Black money. These transactions involve huge sum of unaccounted cash and can be parked easily. This is because as most transactions happen off record. Infact, such transactions have also been one of the prime reasons for inflated asset prices.

The Bill is expected to give details for confiscation of benami property and prosecution of the doer of such transactions, which are in violation of the law. The finance ministry might also apportion the task "Appellate Tribunal" for dealing with the benami transaction cases to ensure their speedy process.

The saga of black money transactions is since ages. The only thing required is the political will. The government seems to be taking such steps, which can discourage the activity of those who are pouring their money into the real estate. But, considering the builder-politician nexus, the question is whether the government will oblige and implement such proposals is something we will look forward to.

This article (Will this curb the black money menace?) is authored by Equitymaster.

Equitymaster is a leading 'independent' equity research initiative focused on providing well-researched and unbiased opinions on stocks listed on the Bombay Stock Exchange.]]>
Mon, 4 May 2015 03:00:00 GMT http://www.equitymaster.com/tm/tm.asp?date=5/4/2015&title=Will-this-curb-the-black-money-menace