Market Overview and Corporate Announcement

Market Overview 

Indian equity markets tumbled during the week on weak global cues. The sentiment was adversely hit by expectations that the US Fed may raise interest rates sooner than previously thought which would result in funds moving away from the emerging markets. The IIP increased to 2.6% in January 2015. However market witness minor positive trigger from India's CAD data which narrowed to $8.2 billion or 1.6% GDP and RBI’s rate cut.

A broad based decline was witnessed on the bourses after the latest data showed acceleration in February CPI from 5.11% to 5.37%, which raised concerns about interest rate cuts and sent bond yields surging. The rise in inflation was mainly due to a spike in food inflation 6.7%. The Sensex and Nifty both lost 1.4% to settle in red. On BSE, 2,022 shares fell and 853 shares rose. A total of 98 shares were unchanged. Thus, indicating negative sentiments of investors in the market.

Market Outlook

Domestic and global macro economic data, trend in global markets and FIIs and DIIs movement will dictate trend on the bourses.

Developments in the ongoing budget session of Parliament will be closely watched. The budget session commenced on 23 February 2015 and concludes on 8 May 2015. Corporate advance tax payment for the fourth and final installment which is due by Sunday could provide clues on Q4 March 2015 corporate earnings.

On the macro front, the government will unveil data on inflation based on the WPI for February 2015 on Monday. Wind power solutions provider Inox Wind is hitting the capital

market next week to raise up to Rs 700 crore through an initial public offering (IPO) to fund expansion and meet other requirements. The issue opens on 18 March 2015 and closes on 20 March 2015. The price band has been fixed between Rs 315 to Rs 325 per share. A discount of Rs 15 per equity share to the issue price is being offered to retail individual bidders and eligible employees in the issue.

Among global events, US industrial production data for the month of February 2015 is due on Monday, 16 March 2015. A two-day meeting of the FOMC to review US monetary policy is scheduled on 17-18 March 2015. Also Bank of Japan's (BoJ) two day monetary policy review is scheduled on Tuesday, 17 March 2015 and Wednesday, 18 March 2015. In China, the HSBC Manufacturing PMI data for March 2015 is due on Friday. 

Corporate Announcement 

Mahindra First Choice Services (MFCS) plans to invest Rs 250 crore in creating basic infrastructure and expand its network across the country.

India's exports contracted last month by over 15 percent to USD 21.54 billion, while imports also fell by as much leaving a lower trade deficit of USD 6.84 billion. The SAT quashed Sebi order against DLF’s three-year ban from capital markets. The ban has now been reduced to six months.

Gulf Oil Lubricants India is looking at increasing its capacity at the Silvassa facility from 75000 mt to 90000 mt annually and invests capex of around Rs 150 crore. 

Cairn India Ltd, the petroleum arm of London headquartered Vedanta Resources Plc received a tax notice of Rs 20495 crore from Income Tax Department for failing to deduct withholding tax on alleged capital gains by its erstwhile promoter, Cairn UK Holdings Ltd (CUHL), a subsidiary of Edinburgh-based Cairn Energy Plc. 

The State Bank of India (SBI) is likely to turn down a $1- billion loan request from Adani Enterprises for a $7- billion coal project in Australia, scrapping a preliminary deal signed last year.

Natco Pharma Limited has received approval for the generichepatitis C medicine sofosbuvir tablets of 400 mg from the Drugs Controller General-India (DCGI).

ITC will soon increase prices of cigarette brands like Classic and Gold Flake Kings by up to 15 per cent per pack following the hike in excise duty on cigarettes in the Budget 2015-16.

SC gave conglomerate Sahara a final chance to raise funds against its properties in order to reimburse investors in the company’s bond programme that was ruled illegal.

Leading e-commerce company Snapdeal is set to spend about $1 billion on a series of acquisitions this year.