New Delhi: Rail passengers and market investors will be anxiously watching for today's Railways Budget. Expectations are running high on Railways Minister Dinesh Trivedi's big-ticket changes, one of which includes the much needed increase in passenger fares. Will he bite the bullet?
European Markets
European markets closed at the highest level in nearly eight months as investors cheered the solid economic data which came out of the US.
Europe Closing: CAC up 1.7 per cent, DAX up 1.4 per cent; FTSE up 1.1 per cent.
US Markets
It was a historic rally on Wall Street with the Dow closing above 13,000 while the Nasdaq ended above 3,000 on the back of a stronger US economy and recovering banking sector.
Fifteen out of 19 US banks passed the US Fed's stress test. The Federal Reserve said these banks would have satisfactory capital buffers, even if they suffered a financial shock. Meanwhile the Fed struck an optimistic outlook on the economy and employment, choosing to keep rates on hold, largely expected by the market yesterday.
US retail sales recorded their largest gain in five months in February. Total retail sales increased 1.1 per cent.
And as expected the Fed kept its ultra low rates on hold and gave a more optimistic outlook for the US economy. In the accompanying statement, it gave no hint of further monetary easing, in other words no hints of QE3 with some analysts saying the central bank wants to see more evidence of the economy's momentum in terms of recovery before deciding whether or not it needs to offer more stimulus.
US Closing: S&P up 1.8 per cent at 1396; Dow up 1.7 per cent at 13177.7; Nasdaq up 1.9 per cent.
Asian Markets
Asia buoyed by all the optimism, opened in the green as well. Nikkei hit a fresh seven-month high, breaching the 10,000 level.
Asia Today: Nikkei up 1.9 per cent; Taiwan, Kospi up 1.3 per cent; Straits up 1 per cent; Hang Seng up 0.7 per cent; Shanghai up 0.4 per cent.
Commodity and currency corner
In the currency space, the dollar gained versus the euro as the Federal Reserve's policymakers made no mention of quantitative easing. The euro declined 1.30 to the dollar. Crude prices traded near a two-day high on speculation that fuel demand may increase amid signs of an improving US economy.
From the precious metals space, gold prices slipped over 2 per cent on dollar strength to USD 1,675/oz levels.
Indian Market
And back home, strong buying painted Dalal Street green and helped the Nifty soar past the 5,400 level in trade yesterday. The Sensex closed up 1.3 per cent at 17,819.
February inflation numbers will be announced today. A CNBC-TV18 poll sees February inflation rise by 6.75 per cent. The number is crucial for the RBI to determine if any rate action is needed ahead of tomorrow's credit policy.
The Union Railway Budget will be presented in Parliament today. Sources say the railways could impose a safety cess, but will not call it a fare hike. Emphasis this time will be on modernisation, infrastructural overhaul and the dedicated freight corridor.
Stocks to Watch
Azim Premji's trust is set to sell 3.5 crore Wipro shares to fund an expansive non-profit education initiative. The issue will open today at 9:15 am and close at 1:30 pm. Post the issue, the promoter holding will get cut by 1.4 per cent to 78 per cent.
The public announcement for the Patni delisting is expected today. The floor price may be Rs 356 and the delisting could start in the last week of march.
And in a CNBC-TV18 exclusive, sources indicate that HCC plans to sell 26 per cent stake in its Mumbai headquarters.
Focus on Unitech continues as the Company Law Board asks Unitech to buy out Telenor's stake or exit. They have asked Unitech to reply by 10:30 am on March 19.
JBF Industries ' board will meet on March 19 to issue 61.78 shares to Bank of India.
HDIL promoters pledge 38.24 per cent equity with IL&FS (promoter holding at 39.17 per cent).
Schroders will acquire 30 per cent stake in Axis AMC (deal value corresponding to 5 per cent of AUM of Rs 8600 crore).
HCL Tech bags USD 250-300 million outsourcing from Union Bank of Switzerland, reports the Business Standard.
Civil Aviation minister Ajit Singh has said that promoter-Vijay Mallya is confident of roping in an investor into Kingfisher Airlines . He has asked the DGCA to prepare a report on the ailing carrier.
Alok Realty will raise Rs 1,000 crore from its Lower Parel office space in Mumbai, reports the Economic Times.
INOX raises stake in Fame India to 68.3 per cent.
In a CNBC-TV18 exclusive, the I-T department issues notice of recovery to 16 Mutual Fund houses. Sources say accounts of Kotak and UTI have been attached by the tax department. The Bombay High Court meanwhile has told the I-T department not to attach anymore accounts until further hearing.
And in another CNBC-TV18 exclusive, HMSI said its second plant is likely to run on full capacity by April-May 2012.
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