The BSE Sensex rose 251.39 points or 1.66% to 15,411.63 in the week ended 14 August 2009. The S&P CNX Nifty gained 98.65 points or 2.20% to 4580.05 in the week.
The BSE Mid-Cap index jumped 170.56 points or 3.14% to 5,603.81 and the BSE Small-Cap index rose 218.80 points or 3.53% to 6,412.56
India's industrial production expanded 7.8% in June 2009, adding to signs that the economy has been spared from the worst of the global recession and is well on its way to a turnaround. Data released by the government on 12 August 2009, showed that industrial growth was higher than the 5.45% seen in June 2008.
Industrial output expanded at its fastest pace in 16 months in June 2009, beating forecasts by a wide margin, as higher salaries of government employees and stimulus spending boosted consumer demand. The growth was much higher than a revised 2.2% growth in May 2009. The growth in industrial production for May 2009 was revised downwards to 2.2% from 2.7%. Planning commission deputy chairman Montek Singh Ahluwalia said positive trend in industrial output will continue.
The government after trading hours on 12 August 2009, released a brand new Direct Taxes Code that will replace the 1961 Income Tax Act and other direct tax laws, providing a simple tax structure for better compliance. The draft direct tax code proposes a reduction in corporate tax rate to 25% from 30% now. It has also proposed a reduction in taxes on individuals.
The new tax code proposes to phase out profit-linked exemptions for companies and replace them with investment-linked incentives. Business losses will be allowed to be carried forward indefinitely, while rules for capital gains and mergers and acquisitions will be rationalised, according to the draft plan.
The code proposes abolition of STT, which is now levied on purchase of shares and bonds. However, investors will have to pay a capital gains tax on profits earned by them on investments irrespective of the tenure of investments. In other words, there is no distinction between short term and long term capital gains, though gains realised after one year will be eligible for indexation benefits. Currently, short-term capital gains on sale of shares are taxed at 15% and there is no long-term capital gains tax on sale of shares sold after one year. The government is hoping to implement the new code from 2011.
The US Federal Reserve kept interest rates at near zero at its two-day meet that ended on 12 August 2009. The central bank in a statement said US economic activity was leveling out and the financial sector had continued to improve in the last few weeks. The Fed kept its benchmark federal funds rate at a 0-0.25% range and pledged to keep rates low 'for an extended period'.
Foreign funds, which were the key drivers of the recent rally, turned sellers in August 2009 after remaining net buyers in previous five months. FII outflow in August 2009 totaled Rs 522.90 crore (till 12 August 2009). FII inflow in calendar year 2009 totaled Rs 35,646.80 crore.
The monsoon situation remains grim with the country heading into the worst drought year over the last two decades. Monsoon was 56% below normal in week to 12 August 2009 and was 72% below normal in the soyabean growing central region in past one week, India Meteorological Department (IMD) said on 13 August 2009. Monsoon rains were 29% below normal during the period from 1 June 2009 to 12 August 2009.
The progress of monsoon is closely watched as more than two-thirds of the people live in villages and 60% of the farm land depends on the annual rains.
The NHPC initial public offer ended on 12 August 2009 with robust investors response. The IPO was subscribed 23.74 times.
In brief Market has Mnaged to Close in Positive- BSE Sensex rose 251.39 points or 1.66% to 15,411.63 in the week ended 14 August 2009. The S&P CNX Nifty gained 98.65 points or 2.20% to 4580.05 in the week BSE Mid-Cap index jumped 170.56 points or 3.14% to 5,603.81 and the BSE Small-Cap index rose 218.80 points or 3.53% to 6,412.56
No comments:
Post a Comment