Morning capsule: Things you should know before market opens
Last week, Indian indices lost its nerve after the issue regarding the Tax Residency Certificate not being enough to prove residency in Mauritius.
March 04, 2013 / 16:01 IST
Last week, Indian indices lost its nerve after the issue regarding the Tax Residency Certificate not being enough to prove residency in Mauritius.
Finance minister P Chidambaram clarified on the tax residency certificates issue. He said the speech had the same paragraph which was read by Pranab Mukherjee in the last budget. Chidambaram said there was no intention to question the residence of a person who produces a TRC.However, Chidambaram also added that Mauritius should not be the preferred way to invest in India and government would like to revise the DTAA.The Sensex ended on Friday up 56.98 points at 18918.52 while the Nifty added 26.65 points to close at 5719.70.Asian markets are trading weak today. At 7: 50 am (IST), China's Shanghai Composite shed 1.54% or 36.39 points at 2,323.12.Hong Kong's Hang Seng slipped 0.92% or 209.87 points at 22,670.35. Japan's Nikkei gained 0.69% or 79.87 points at 11,686.25. Singapore's Straits Times was down 0.47% or 15.36 points at 3,254.14. South Korea's Seoul Composite was down 0.09% or 1.73 points at 2,024.76. Taiwan's Taiwan Weighted shed 0.77% or 61.13 points at 7,903.50.Meanwhile, the US markets on Friday finished in the positive territory on the first trading day of March. President Barrack Obama late Friday instructed federal agencies to begin implementing across-the-board spending cuts, setting in motion a rare budget process that will likely play out for months. The order formalises the so-called Sequester.But the better than expected economic data offset associated worries. The Dow Jones Industrial Average rose 35 points, to close at 14089. This is a fresh five-year high for the Dow. The S&P 500 climbed 3.5 points to end at 1,518 and the Nasdaq advanced 9.55 points to finish at 3,169.For the week, the Dow gained 0.64 percent, the S&P added 0.17 percent, and the Nasdaq rose 0.25 percent.On economic data front, the pace of growth in the US manufacturing sector edged up to 54.2 from 53.1 in January. Consumer sentiment was better-than-expected in February at 77.6. Meanwhile, construction spending declined by 2.1 percent in January to a seasonally adjusted annual rate of USD 883.28 billionEuropean markets edged lower, impacted by weaker bank and mining stocks, and as traders expected equities to stay trapped in a tight range this month. Currency The dollar index is at six-month high, boosted by gains against the euro on growing evidence the u.s. Economy was showing signs of improvement. The euro at 1.30 to the dollarCommoditiesBrent crude price slipped to USD 110 per barrel. Stocks in NewsPetrol prices were hiked by Rs 1.40/litre so in a matter of two weeks, petrol has become costlier by nearly Rs 3/l, with the last upward revision of Rs 1.50 /litre on February 16.IOC says it had to hike petrol prices on account of the rupee depreciating by 72paise to 54.15 against the dollar in the last fortnight. The second reason cited by IOC is the rising international price of petrol.Before the hike, OMCs under recovery on diesel is Rs 11.26 per litre, Rs 33.43 per litre for kerosene and Rs 439 per LPG cylinder. The finance minister also said that economic space is limited for the government to take tougher decisions especially in the decontrol of diesel prices.In February auto sales, overall the numbers were very weak with steep fall seen across segments. Sales recovery lost steam due to weak buyer sentiment. Big drop was seen in enquiries with lower rate of conversion to purchase and increase in fuel prices further affected sentiment. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
