Today Stock market NEWS Tips

The Indian markets suffered sharp slump in last session, the street was fully disappointed with the union budget. Though, Finance Minister stated that UPA government intends to restore financial discipline but the budget lacked concrete plans to do so. There were some announcements that can hurt the corporate India, the effective corporate tax rate for domestic companies stands increased from 32.45% to 33.99%. Also there was increase in surcharge from 2% to 5% for foreign companies where total income exceeds Rs 10 crore. However, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said that this was a well-balanced budget, responding to the critical needs at the moment, which is to bring the macro imbalances under control. Today, the start of the new F&O series is likely to remain cautious and there will be slow reactions to budget proposals. Markets apart from the disappointing budget are also likely to remain under pressure due to slow economic growth. In third quarter economic growth slipped to 4.5 percent, decade's lowest quarterly growth. Also, international rating agencies, Standard & Poor’s and Fitch have said that their sovereign rating on India is unaffected by the Budget and warned that policy execution and controlling subsidies would be the key risks to look out for during the year.

The US markets ended marginally lower on Thursday, there were mixed economic reports that put a halt to the rally of the markets. While, new claims for unemployment benefits fell more than expected last week, the US economy grew 0.1 percent in the fourth quarter, a weaker pace than expected. Asian markets have made a mixed start with some of the indices witnessing modest cut in early trade as $85 billion of US spending cuts are set to begin and after Japan’s consumer prices dropped, while Chinese manufacturing growth slowed.

Back home, the much awaited Union Budget 2013-14 proved to be a depressing one for the stock markets in India with both the frontline indices clobbered out of shape, ending the session with a cut of over a percent. Though, Indian stock markets commenced the day on a promising note with a positive start but, got underpinned soon after the Finance Minster started divulging the details of Union Budget 2012-13. Just when it looked like the benchmark equity indices would spurt to higher levels sailing beyond the psychological 19,300 (Sensex) and 5,850 (Nifty) levels, sentiments got spooked after P Chidambaram said that current account deficit continues to be high due to excessive dependence on oil, coal and gold imports and slowdown in exports and that India does not have choice between welcoming and spurning foreign investment. Sentiments also got clobbered after the budget 2012-13 proposed increasing some corporate and individual taxes and after securities transaction tax was lowered but not eliminated. Sentiments also remain dampened after shares of most of the frontline banking stocks including public and private sector edged lower on the bourses after the Finance Minister proposed to continue the interest subvention scheme for short-term crop loans. Scrips of State Bank of India, ICICI Bank, Punjab National Bank, Bank of Baroda, Axis Bank, Canara Bank and IDBI Bank all tumbled by 3-6 percent. Meanwhile, market registered highest-ever turnover at Rs 4.22 lakh crore breaching its previous record of Rs 4.16 lakh crore. This could be a combination of a lackluster Budget plus February F&O expiry. Investor also shrugged off supportive global cues, all the Asian counters ended in the green. Back home, both the key gauges ended near their intraday low as sentiments got dampened, with the power generation stocks tumbling after the Finance Minister P Chidambaram proposed to levy 2% customs duty on coal imports. Meanwhile, investors booked hefty profits in realty counters as stocks like HDIL, Unitech, D B Realty, Godrej Properties, Peninsula Land and Parsvnath Developers edged lower after the Finance Minister P Chidambaram proposed to levy TDS of 1 percent on the value of the transfer of immovable property where the consideration exceeds Rs 50 lakh. Finally, the BSE Sensex shaved off 290.87 points or 1.52% to settle at 18,861.54, while the CNX Nifty plunged by 103.85 points or 1.79% to end at 5,693.05.

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