Sensex jumps 4.26% in 4 trading sessions

Key benchmark indices surged as upbeat Chinese exports data for February 2013 suggested increasing demand for Chinese goods and a rebound in the global economy. China is the world's second biggest economy after the United States. The barometer index, the 30-share S&P BSE Sensex, attained its highest closing level in more than 4-1/2 weeks. The 50-unit CNX Nifty attained its highest closing level in more than 4 weeks. The Sensex jumped 269.69 points or 1.39%, off close to 20 points from the day's high and up about 205 points from the day's low. The market breadth was strong. Indian stocks gained for the fourth straight session today, 8 March 2013. The BSE Sensex has risen 805.27 points or 4.26% in four trading days from a recent low of 18,877.96 on 4 March 2013. Indian stocks have surged this week on firm global equities. The Sensex has advanced 821.69 points or 4.35% in this month so far (till 8 March 2013). The Sensex has risen 256.52 points or 1.32% in calendar 2013 so far (till 8 March 2013). From a 52-week high of 20,203.66 on 29 January 2013, the Sensex has declined 520.43 points or 2.57%. From a 52-week low of 15,748.98 on 4 June 2012, the Sensex has surged 3,934.25 points or 24.98%. Coming back to today's trade, index heavyweight Reliance Industries (RIL) edged higher after the telecom department on Thursday, 7 March 2013, cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. Index heavyweight and cigarette maker ITC also moved higher. Metal stocks edged higher as global commodity prices rose. Steel shares rose after the Minister of Steel, Mr. Beni Prasad Verma on Thursday, 7 March 2013, said that the Supreme Court has permitted some mines in Karnataka to reopen. Bank stocks also edged higher. Capital goods stocks extended recent gains. Among Nifty constituents, Asian Paints hit record high. The market edged higher in early trade on firm Asian stocks. The market extended initial gains in morning trade. The Sensex and the 50-unit CNX Nifty, both, hit their highest level in more than two weeks. The market held firm in mid-morning trade. The market continued to hover in positive terrain in early afternoon trade. A bout of volatility was witnessed as key benchmark indices regained strength after paring intraday gains in afternoon trade. The market surged to hit fresh intraday high in mid-afternoon trade as European shares rose in early trade there. The Sensex extended gains to hit fresh intraday high in late trade. The market sentiment was boosted by data showing that foreign funds remained net buyers of Indian stocks on Thursday, 7 March 2013. Foreign institutional investors (FIIs) bought shares worth a net Rs 630.47 crore on Thursday, 7 March 2013, as per provisional data from the stock exchanges. The S&P BSE Sensex jumped 269.69 points or 1.39% to settle at 19,683.23, its highest closing level since 4 February 2013. The index jumped 292.49 points at the day's high of 19,706.03 in late trade. The index rose 64.07 points at the day's low of 19,477.61 in early trade. The CNX Nifty jumped 82.40 points or 1.41% to settle at 5,945.70, its highest closing level since 6 February 2013. The index hit high of 5,952.85 and low of 5,883 in intraday trade. The BSE Mid-Cap index rose 0.72% and the BSE Small-Cap index gained 0.68%. Both these indices underperformed the Sensex. The total turnover on BSE amounted to Rs 2140 crore, higher than Rs 1913 crore on Thursday, 7 March 2013. The market breadth, indicating the overall health of the market, was strong. On BSE, 1,734 shares rose and 1,135 shares fell. A total of 107 shares were unchanged. Among the 30-share Sensex pack, 24 stocks rose while rest of them fell. Index heavyweight Reliance Industries (RIL) edged higher after the telecom department on Thursday, 7 March 2013, cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. The stock was up 1.84% at Rs 851. The scrip hit high of Rs 853.50 and low of Rs 840.05. RIL's telecom unit, Reliance Jio Infocomm, has frequencies to provide broadband Internet across India. Under the new rule, RIL will have to pay about Rs 1658 crore to also provide voice services. The Finance Minister said in his speech while presenting the Union Budget 2013-14 on 28 February 2013 that the oil and gas exploration policy will be reviewed to move from profit sharing to revenue sharing contracts. The natural gas pricing policy will be reviewed and uncertainties regarding pricing will be removed. NELP blocks that were awarded but are stalled will be cleared. A policy to encourage exploration and production of shale gas will be announced. Telecom stocks edged higher after the telecom department on Thursday, 7 March 2013, cleared a proposal to allow companies with Internet permits to also offer basic mobile telecom services by paying a one-time license-conversion fee. MTNL, Reliance Communications, Idea Cellular and Bharti Airtel rose by 0.83% to 2.69%. Tata Teleservices (Maharashtra) fell 0.11%. Index heavyweight and cigarette major ITC advanced 2.07% to Rs 297.80. The stock hit a high of Rs 298.90 and low of Rs 292.70. The government raised the excise duty on cigarettes by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm in Union Budget 2013-14 which was unveiled on Thursday, 28 February 2013. The Ministry of Health & Family Welfare has suggested to the Department of Revenue, Ministry of Finance to increase taxes on all tobacco products and also to impose 'sin tax' on tobacco products, the proceeds of which can be used for tobacco control. The Ministry of Health & Family Welfare, alongwith WHO Country Office for India, also organized a 'National Consultation on Economics of Tobacco' in December 2012. This information was given by Minister for Health & Family Welfare Shri Ghulam Nabi Azad in written reply to a question in the Lok Sabha today, 8 March 2013. FMCG stocks rose on renewed buying. Britannia Industries, Dabur India, Godrej Consumer Products, Marico, Tata Global Beverages, Hindustan Unilever, Colgate-Palmolive (India) and Nestle India rose by 0.03% to 3.91%. The Ministry of Agriculture on 1 March 2013 said that the total rabi sown area currently stands at 631.67 lakh hectares (LH), higher than 629.86 lakh hectare sown at this time last year and also higher than 619.9 lakh hectare sown on average at this time in the last five years. While wheat has been sown in approximately the same area as last year, there has been improvement in area under coarse cereals, pulses and oilseeds, the Ministry of Agriculture said in a statement. FMCG firms derive substantial revenue from rural India. Metal stocks edged higher as global commodity prices rose. Sterlite Industries, Hindalco Industries and Hindustan Zinc gained 0.15% to 0.33%. Steel shares rose after the Minister of Steel, Mr. Beni Prasad Verma on Thursday, 7 March 2013, said that the Supreme Court has permitted some mines in Karnataka to reopen. JSW Steel, Tata Steel, Steel Authority of India (Sail), Bhushan Steel and Jindal Steel & Power rose by between 0.28% to 5.51%. In a written reply in the Rajya Sabha on Thursday, 7 March 2013, Verma said that some iron and steel companies and industry associations such as Karnataka Iron and Steel Manufacturer's Association had requested Ministry of Steel for intervention in reopening of iron ore mines in Karnataka, which had been closed as per orders of Supreme Court. He said that the Ministry of Steel has informed Supreme Court about the requirement of iron ore of iron and steel industry located in and around Karnataka. The matter was also taken up with the Government of Karnataka. Supreme Court has now permitted some mines in Karnataka to reopen, Verma said. Among iron ore mining firms, Sesa Goa and NMDC gained by 0.27% to 1.24%. Bank stocks advanced. ICICI Bank rose 1.77%. The private sector bank on 5 March 2013 said that it has received aggregate capital repatriation of $100 million from ICICI Bank UK PLC -- its wholly owned banking subsidiary in the United Kingdom. This comprises redemption of $50 million of preference share capital and return of $50 million of equity capital, after receiving requisite approvals. ICICI Bank UK PLC had a capital adequacy ratio of 31.5% as on 31 December 2012. Post the repatriation, the capital base of ICICI Bank UK is $495 million and its capital adequacy ratio continues to be strong, ICICI Bank said in a statement. ICICI Bank already has a strong capital adequacy ratio, and the above return of capital would further improve the same and enhance ICICI Bank's ability to optimise capital deployment and return on equity, ICICI Bank said. HDFC Bank gained 1.42%, with the stock extending Thursday's 1.7% gains. The bank said on Thursday, 7 March 2013, that it has raised $500 million by way of Fixed Rate Senior Unsecured Notes (Notes) under its $1 billion Medium Term Note Programme on 6 March 2013. The Notes carry a coupon of 3% per annum payable semi annually and will mature on 6 March 2018. The Notes will be listed on the Singapore Stock Exchange, HDFC Bank said. PSU Bank stocks gained after the Finance Minister on 28 February 2013 said that the government will provide Rs 14000 crore for capital infusion in public sector banks in FY 2014. State Bank of India rose 0.81%. Among other PSU bank stocks, Union Bank of India, Bank of India, Bank of Baroda and Punjab National Bank gained by 0.28% to 1.81%. In Union Budget 2013-14 announced on 28 February 2013, the finance minister (FM) set a target of Rs 7 lakh crore for agricultural credit in FY 2014. He said that the target of Rs 5.75 lakh crore fixed for 2012-13 is likely to be exceeded. The FM said that the interest subvention scheme for short-term crop loans will be continued and a farmer who repays the loan on time will be able to get credit at 4% per annum. The FM proposed to extend the scheme to crop loans borrowed from private sector scheduled commercial banks in respect of loans given within the service area of the branch concerned. So far, the scheme has been applied to loans extended by public sector banks, RRBs and cooperative banks. Rashtriya Chemicals and Fertilizers (RCF) jumped 3.53% to Rs 45.40. Bids were received for a total of 8.89 crore shares at an indicative price of Rs 45.02 per share for the Offer for Sale (OFS) of the company's shares today, 8 March 2013, as per data from the stock exchanges. The Government of India had offered 6.89 crore equity shares of RCF, constituting about 12.5% of the total equity share capital of RCF, through Offer for Sale (OFS) via the stock exchanges mechanism today, 8 March 2013. The OFS began at 9:15 IST and ended at 15:30 IST. The floor price for the OFS was set at Rs 45 per share. Capital goods stocks extended recent gains. Bhel, Siemens, ABB and BEML rose by 0.14% to 0.71%. The finance minister in Union Budget 2013-14 proposed an investment allowance at the rate of 15% to a manufacturing company that invests more than Rs 100 crore in plant and machinery during the period 1 April 2013 to 31 March 2015. L&T rose 2.15%. The company during trading hours today, 8 March 2013, said that its strategic business unit viz. L&T Integrated Engineering Services (L&T IES) recently inaugurated its offshore development centre (ODC) for Calsonic Kansei (CK) at Chennai. This partnership initiative called Calsonic Kansei Engineering Centre India-L&T (CECI-L&T) will extend CK's presence in India by replicating their engineering function to support project development, L&T said in a statement. Over the initial phase of five years, CECI-L&T will focus on expansion and optimisation of activities in this facility. L&T IES' partnership with CK is an enablement of business opportunity in the southern capital of India, giving an immediate prospect for a geographical uplift, L&T said. This strategic initiative will focus closely to support CK's Indian customers. L&T IES will facilitate the ODC with test labs and advance functional areas over the period of time. L&T IES' bilingual engineers are the mainstay feature of this project, L&T said. The progress made in a short span of time has been impressive to establish core function teams at CECI-L&T, including design and analysis, material research, supplier localization and global process standardization, L&T said in a statement. L&T after trading hours on Thursday, 7 March 2013, said that the company as a licensee of CMI Energy, Belgium, has signed an agreement with CMI Energy, Belgium for extension of L&T's license territory to manufacture and supply small heat recovery steam generators (HRSGs) installed behind gas turbines below 80 megawatts (MW) to South East Asia and the Middle East. Under this agreement, L&T will have the exclusive rights to apply CMI technology in these markets for manufacturing and supplying single wide HRSGs installed behind gas turbines below 80 MW. L&T and CMI Energy will jointly develop/improve the existing CMI design to suit the client requirements in the extended territory. This will allow CMI and L&T to improve their competitiveness in the regions, L&T said. HRSGs are used widely in combined cycle power plants and cogeneration applications in process industry. Over the past decade, the market for small HRSGs represents 24% share in terms of number of units sold worldwide, L&T said. This market is poised to grow by 3.5% per year over the next decade, L&T said. CMI Energy and L&T intend to be the key players in this market by attracting a minimum 10% market share, L&T said in a statement. Asian Paints rose 2.01% to Rs 4664. The stock hit record high of Rs 4677 in intraday trade today, 8 March 2013. PSU OMCs rose after the government sought Parliament's approval to spend a net Rs 40960 crore more this fiscal year to mainly provide subsidies on food, fuel and fertilizers. BPCL, and Indian Oil Corporation gained by 1.43% to 3.79%. Of the total additional spending sought, Rs 24770 crore will be given to state-run fuel companies to compensate them for discounted fuel sales. In Union Budget 2013-14 announced on 28 February 2013, the government raised the petroleum subsidy to Rs 96880 crore from earlier budget estimate of Rs 43580 crore for 2012-13. For 2013-14, the petroleum subsidy is pegged at Rs 64998 crore. PSU OMCs suffer under recoveries on domestic sale of diesel, LPG and kerosene at controlled prices. The government has already freed pricing of petrol. In January 2013, the government allowed PSU OMCs to raise diesel prices in small measures at regular intervals while completely deregulating diesel prices sold to institutional or bulk buyers. PSU OMCs raised petrol price by Rs 1.40 a litre on 1 March 2013. PSU OMCs on 2 March 2013 announced hike in diesel price for bulk consumers such as railways, State Transport Corporations and other bulk consumers by about one rupee a litre (excluding taxes). The PSU OMC cut the price of non-subsidised domestic LPG by almost Rs 38 a cylinder from 1 March 2013. The Ministry of Petroleum & Natural Gas after on 1 March 2013 said that the under-recovery on High Speed Diesel (HSD) applicable for first fortnight of March 2013 has increased to Rs 11.26 per litre from Rs 10.27 for the second fortnight of February 2013. PSU OMCs are currently incurring daily under-recovery of about Rs 432 crore on the sale of Diesel, PDS Kerosene and Domestic LPG. The under-recovery for PDS Kerosene stands at Rs 33.44 per litre for March 2013. In case of Domestic LPG, the under-recovery stands at Rs 439 per cylinder for March 2013. The recovery-recovery for PDS Kerosene and Domestic LPG is calculated on monthly basis whereas the under-recovery for HSD is calculated on fortnightly basis. HPCL rose 2.51%. The company on 6 March 2013 said that the board of directors of the company at its meeting held on 5 March 2013 has considered and recommended the Rajasthan Refinery Project for the approval of Government of India for setting up of State-of-art 9 million tonnes per annum (MMTPA) Grass Root Refinery cum Petrochemical complex in Barmer in Rajasthan utilizing Rajasthan Crude at an estimated cost of about Rs 37000 crore. This refinery will also have capability to process other type of crudes, HPCL said Auto stocks were mixed. Maruti Suzuki India dropped 1.55% to Rs 1,429.05 on reports that the company will suspend production of petrol cars at its factory in Gurgaon in Haryana for one day on Saturday, 9 March 2013, to reduce its stock pile. India's No. 1 car maker by sales produces between 3,000 and 3,200 vehicles a day including its best-selling Alto hatchback at the Gurgaon factory. Besides the Alto, Maruti makes the WagonR, Estilo and the Ritz hatchbacks as well as the Ertiga utility vehicle and minivans at the Gurgaon factory. Mahindra & Mahindra (M&M) rose 1.97%. The company said before market hours today, 8 March 2013, that the tool down strike by employees of the company's Nashik plant which started on 5 March 2013 as well as the proposed strike from 11 March 2013 has been called off. Operation in all shifts is expected to be normal soon, M&M said in a statement. The management and union will continue their ongoing dialogue so as to reach a mutual agreement, M&M said. The management expects the production loss to be made good, M&M said. Tata Motors declined 0.72%. Tata Motors on Wednesday, 6 March 2013, announced a scheme whereby customers can swipe their credit card and drive out in a Tata Nano on the same day. Making the offer irresistible, customers can also convert the entire amount in monthly installments at 0% interest, over a period of 12 months, at an EMI of Rs 8,333 per lakh, Tata Motors said in a statement on 6 March 2013. Mr. Ranjit Yadav, President, Passenger Vehicles Business Unit, Tata Motors, said that this offer will enable customers to own a car in the fastest and hassle free manner. Tata Nano has partnered with five banks -- Axis Bank, HSBC Bank, ICICI Bank, Kotak Mahindra Bank and Standard Chartered Bank -- for this special scheme. Customers in India, who have credit cards belonging to these banks, can avail of this special scheme in 26 cities, across 75 Tata Motors Dealerships, Tata Motors said in a statement. Jaguar Land Rover (JLR), the UK's largest premium automotive manufacturer, on 5 March 2013 said it will reinforce its commitment to manufacturing in the UK by increasing the investment in its new Engine Manufacturing Centre to more than £500 million. In addition, JLR will invest £2.75 billion in product creation in 2013 to support its ambitious growth plans that will see the business introduce eight new or refreshed products during the year, JLR said in a statement. JLR's new Engine Manufacturing Centre in the UK is essential to support the company's long-term strategic growth plans and will be the home for a new generation of technologically advanced, lightweight 4-cylinder low emission diesel and petrol engines, the company said. The new Engine Manufacturing Centre will open later this year with the first engines coming off the production line in 2015. Tata Motors on 5 March 2013 said it has reduced the Tata Manza Club Class prices and the Manza range now starts at Rs 5.99 lakh (ex-showroom in New Delhi). The company also announced 'Club Class Buyback Assurance', scheme. With the Club Class Buyback Assurance, Tata Motors offers its customers 60% of the purchase price after 3 years, Tata Motors said. Two wheeler makers rose. Hero MotoCorp gained 1.73%. Hero MotoCorp on 1 March 2013 said total sales declined 4.23% to 5.01 lakh units in February 2013 over February 2012. Hero MotoCorp's scooters -- Pleasure and Maestro -- clocked close to 54,000 unit sales in February 2013. The company is now scaling up its scooter production to over 60,000 units a month. Bajaj Auto gained 1.1%. The company on 4 March 2013 said its total sales fell 3% to 3.32 lakh units in February 2013 over February 2012. Motorcycles sales fell 4% to 2.91 lakh units February 2013 over February 2012. Sales of three wheelers declined 2% to 41,090 units in February 2013 over February 2012. The company's total exports rose 10% to 1.35 lakh units in February 2013 over February 2012. Wockhardt rose 1.55% to Rs 2,064.50. The stock hit record high of Rs 2,090 in intraday today, 8 March 2013. Aviation shares rose as the government has decided to replace the present Director General of Civil Aviation with more powerful Civil Aviation Authority. Kingfisher Airlines (up 4.81%), Jet Airways (India) (up 9.93%) and SpiceJet (up 2.78%), edged higher The Minister of State for Civil Aviation, Mr. K. C. Venugopal informed Rajya Sabha on Thursday, 7 March 2013, that the government has decided to replace the present Director General of Civil Aviation (DGCA) with more powerful Civil Aviation Authority (CAA). The proposed Civil Aviation Authority (CAA) will have adequate financial and administrative flexibility to meet functional requirements for an effective safety oversight capabilities over air transport service operators, air service navigation operators and operators of other civil aviation facilities, development and standardization of civil aircraft and aeronautics, matters relating to financial stress on safety of operations, consumer protection and environment regulation in civil aviation sector and for matters connected therewith and thereto. The proposal to form CAA is in the stage of inter-Ministerial consultations, the minister said. Realty stocks extended their recent gains. HDIL, Sobha Developers, Unitech and D B Realty rose by 0.73% to 2.81%. The finance minister proposed levy of TDS at the rate of one percent on the value of the transfer of immovable property where the consideration exceeds Rs 50 lakh in Union Budget 2013-14, which was unveiled on 28 February 2013. Service tax abatement on homes and flats with a carpet area of 2000 square feel or more or of a value of Rs 1 crore or more has been reduced from 75% to 70%. However the existing exemptions from service tax for low cost housing and single residential units will continue. A person taking a loan for his first home from a bank or a housing finance corporation upto Rs 25 lakh during the period from 1 April 2013 to 31 March 2014 will be entitled to an additional deduction of interest of upto Rs 1,00,000 in 2013-14, provided the value of the residential property is not more than Rs 40 lakh. If the limit is not exhausted, the balance deduction can be claimed in 2014-15. This deduction will be over and above the deduction of Rs 1,50,000 allowed for self-occupied properties under section 24 of the Income-tax Act. Plans for seven new cities have been finalised on Delhi Mumbai Industrial Corridor (DMIC) and work on two new smart industrial cities at Dholera, Gujarat and Shendra Bidkin, Maharashtra will start during 2013-14. DMIC will be provided additional funds during 2013-14 within the share of the Government of India in the overall outlay, if required. Chennai Bengaluru Industrial Corridor will be developed. DLF fell 0.55% on profit taking after recent rally. The company on 6 March 2013 said that the board of directors of the company has approved offering of equity shares by way of Institutional Placement Programme (IPP) and/or any other method prescribed and approved by Sebi to achieve the minimum public shareholding. The board has formed an "Equity Issuance Committee" to take all actions/steps in this regard. The promoters currently hold 78.58% stake in DLF (as per the shareholding pattern as on 31 December 2012). As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013. IT stocks fell on a firm rupee. The rupee was trading at 54.31 against the dollar, higher than its previous close of 54.56/57 on Thursday. A firm rupee adversely affects operating profit margins of IT firms as the sector derives a lion's share of revenue from exports. TCS fell 0.4% to Rs 1,584.15. The stock had hit record high of Rs 1,598 in intraday trade Thursday, 7 March 2013. The company on 4 March 2013 said that it has added $1.179 billion in brand value over 2012, growing by 28.9% annually to reach the $5 billion brand value mark as per the brand valuation carried out by Brand Finance, the world's leading brand valuation firm. India's third largest software services exporter by revenues Wipro declined 0.91% to Rs 445.05. The stock reversed direction after hitting 52-week high of Rs 455.80 in intraday trade today, 8 March 2013. Infosys declined 1.15% to Rs 2970.20. The stock had hit 52-week high of Rs 3,009.90 in intraday trade Thursday, 7 March 2013. The company on Thursday, 7 March 2013, said that Accor, the world's leading hotel operator and market leader in Europe, has deployed the Infosys' CommerceEdge platform to provide its customers with a social travel shopping experience. HCL Technologies rose 0.19% to Rs 773.25. The stock hit record high of Rs 782.90 in intraday trade today, 8 March 2013. Data on advance tax payment for the final installment of the current fiscal year which is 15 March 2013, could provide cues on the likely Q4 March 2013 corporate earnings. Reduction of promoter stake to meet the Securities & Exchange Board of India (Sebi) mandated minimum public shareholding of 25% for private companies and 10% for state-run firms will result in supply of equity in the market over the next few months. As per the Sebi mandated minimum public shareholding rule, private-sector companies must cut founders' stake to adhere to the rules by 13 June 2013, while the deadline for state-run firms is 13 August 2013. PSU divestment will also add to share sale glut in FY 2014. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014. The Central Statistics Office (CSO) will unveil data on industrial production for January 2013 and also data on the combined consumer price index for rural and urban India for February 2013 on 12 March 2013. The CSO will unveil data on inflation based on the wholesale price index for February 2013 on 14 March 2013. The Reserve Bank of India (RBI) on 5 March 2013 said that companies which are being investigated by law enforcement agencies no longer need to get its approval to raise money overseas. Previously, companies being investigated by the Directorate of Enforcement, for instance, needed to get their external commercial borrowing proposals cleared by the RBI. The finance ministry on 1 March 2013 said that the Tax Residency Certificate (TRC) produced by a resident of a contracting state will be accepted as evidence that he is a resident of that contracting state and the Income Tax Authorities in India will not go behind the TRC and question his resident status. The finance ministry issued this clarification on 1 March 2013 after it said that concern has been expressed regarding the clause in the Finance Bill, 2013 that amends section 90 of the Income-tax Act that deals with Double Taxation Avoidance Agreements (DTAA). Since a concern has been expressed about the language of sub-section (5) of section 90, this concern will be addressed suitably when the Finance Bill is taken up for consideration, the finance ministry said. In the case of Mauritius, circular no. 789 dated 13 April 2000 continues to be in force, pending ongoing discussions between India and Mauritius, the finance ministry said. Under the double taxation avoidance agreement India has with Mauritius, investors sending money into India can't be taxed by India if they pay capital-gains tax in Mauritius. Many foreign investors route their investments in India through Mauritius. The Ministry of Finance and Economic Development, Mauritius on Tuesday, 5 March 2013, said that although there are still some prevailing uncertainties regarding how the GAAR will be implemented in 2016-17, the post budget declarations from the Indian Ministry of Finance contain some positive elements. It is with satisfaction that we note that the Indian Ministry of Finance has acted promptly to clarify the situation regarding the validity of the TRC, the Ministry of Finance and Economic Development, Mauritius said in a statement. Mauritius said it is committed and willing to collaborate fully to address the concerns of the Indian side on the DTAA while ensuring that the treaty remains commercially viable. "We are optimistic that both sides can conclude a mutually acceptable package that would yield a win‐win solution", the Ministry of Finance and Economic Development, Mauritius said. The India-Mauritius Joint Working Group (JWG) met in December 2011 and again in August 2012 to discuss concerns on the operation of the India-Mauritius DTAA. Mauritius has agreed with India on a Tax information Exchange Agreement, which incorporates provisions on assistance in the collection of taxes. Finance Minister P. Chidambaram on Monday, 4 March 2013, said that the government will soon announce more measures -- including sops for exporters -- to boost economic growth. Some of these steps will be announced in parliament during the debate on the Budget, Chidambaram told industry representatives at a customary address held on Monday, 4 March 2013, after the budget announcement on 28 February 2013. The finance minister said that the fiscal deficit could turn out to be lower than the projected 5.2% of gross domestic product for the current fiscal year ending 31 March 2013. The government aims to reduce the fiscal deficit to 4.8% of GDP in the year ending 31 March 2014. The finance ministry in October 2012 announced a five-year plan to cut fiscal deficit. The government hopes to reduce the fiscal deficit to 3% by March 2017. The Budget Session of the Parliament which began on 21 February 2013 will conclude on 10 May 2013. In order to enable the Standing Committees to consider the Demands for Grants of Ministries/Departments and prepare their Reports, the two Houses will adjourn for recess on 22 March 2013 to meet again on 22 April 2013. The government has lined up a number of key bills for consideration and passing during the ongoing Budget session of the parliament, which include The Forward Contracts (Regulation) Amendment Bill, 2010, The Pension Fund Regulator and Development Authority Bill, 2011, The Land Acquisition, Rehabilitation and Resettlement Bill, 2011, The National Food Security Bill, 2011 and The Insurance Laws (Amendment) Bill, 2008. Finance Minister P Chidambaram in Budget 2013-14 announced on Thursday, 28 February 2013, raised the surcharge on corporate tax to 10% from 5% for domestic companies, whose taxable income exceeds Rs 10 crore per year, and raised the surcharge on dividend distribution tax 10% from 5%, with increases in both applicable for the Financial Year 2013-14. The increase in surcharge on corporate tax and the increase in the surcharge on dividend distribution tax is also applicable only for one year i.e. Financial Year 2013-14. In the case of foreign companies, who pay the higher rate of corporate tax, the surcharge on corporate tax will increase from 2% to 5% which is applicable only for one year i.e. Financial Year 2013-14. There was no change in the peak rate of basic customs duty of 10% for non-agricultural products. There was no change in the normal rate of excise duty of 12% and the normal rate of service tax of 12%. The finance minister proposed an investment allowance at the rate of 15% to a manufacturing company that invests more than Rs 100 crore in plant and machinery during the period 1 April 2013 to 31 March 2015. The finance minister (FM) has cut the Securities Transaction Tax (STT) on equity futures trades to 0.01% from current 0.017%. The STT on redemption of mutual fund (MF) units/exchange traded funds (ETF) at fund counters has been cut to 0.001% from 0.25%. The STT on sale of MF/ETF units via the stocks exchanges has been cut to 0.001% from 0.1%. In a major step to rationalize taxation on goods and services, the Budget has earmarked Rs 9000 crore towards the first installment of the balance of CST compensation. The Finance Minister said that overwhelming majority States have agreed that there is a need for Constitutional amendment to pass the Goods and Services Tax (GST) law. It will be drafted by the State Finance Ministers and the GST Council, the Finance Minister added. The government has set a target of Rs 40000 crore from divestment of government stake in state-run firms and Rs 14000 crore from divestment of stake in non-government companies for FY 2014. The target of divestment of government stake in state-run firms has been reduced to Rs 24000 crore for FY 2013 from the initial Rs 30000 crore. The government expects to mop up Rs 40847 crore from the sale of telecom bandwidth and fees in FY 2014. The government has substantially pruned the expected mop up from the sale of telecom bandwidth and fees to Rs 19440 crore from an initial target of Rs 58217 crore for FY 2013. The Reserve Bank of India (RBI) undertakes mid-quarter review of Monetary Policy 2012-13 on 19 March 2013. The central bank on 29 January 2013 signaled after a monetary policy review that there is less room for aggressive policy rate cuts amid any negative surprise emanating from inflation and the twin deficits viz. the current account deficit and the fiscal deficit. RBI said on 29 January 2013 that a staggered increase in diesel prices will percolate through to overall costs and inflation. However, these price pressures will dissipate over time, and the consequent reduction entailed in the fiscal deficit will bring about an enduring reduction in inflation and inflation expectations, the central bank said at that time. European stocks edged higher on Friday, 8 March 2013, as better-than-expected Chinese export data fueled trading optimism, with investors now awaiting key US nonfarm-payroll data due later in the global day. Key benchmark indices in France, Germany and UK were up 0.36% to 0.83%. The European Central Bank (ECB) kept interest rates steady on Thursday, 7 March 2013. At its monthly policy meeting, the ECB held its main refinancing rate at a record-low 0.75%. ECB cut its forecasts for the euro zone economy for this year and next but kept its forecasts for inflation broadly unchanged. In a new outlook given after its monthly policy meeting, the ECB foresaw gross domestic product (GDP) declining by between 0.9% and 0.1% in 2013, lowering the top end of the forecast which had held out some hope of growth this year. It also cut its forecast for growth next year to 0% and 2% from between 0.2% and 2.2% in its previous forecast. The Bank of England decided to keep its benchmark interest rate unchanged on Thursday, 7 March 2013, amid doubts about the strength of Britain's economic recovery. The central bank left its interest rate at 0.5%, a record low, and also held its program of economic stimulus unchanged at £375 billion, or about $560 billion. Asian stocks edged higher on Friday, 8 March 2013, as Japan's economy returned to growth and jobless claims in the US dropped, adding to signs the global economy is recovering. Key benchmark indices in Indonesia, Hong Kong Japan, Taiwan and South Korea rose by 0.08% to 2.64%. Key benchmark indices in China and Singapore fell by 0.24% to 0.27%. Trade data out from China on Friday, 8 March 2013, showed that the country recorded a surprise $15.3 billion trade surplus in February 2013, confounding expectations the economy would swing to a trade deficit due to seasonal weakness from the weeklong Chinese Lunar New Year holiday last month. February's exports were 21.8% higher than a year earlier, when the Lunar New Year fell in January, while imports were 15.2% lower than the year-earlier month. Japan's economy pulled out of its 2012 downturn faster than previously estimated, according to revised GDP data released on Friday, 8 March 2013, providing a tailwind to the government's pro-growth policies. The government said GDP rose at a price-adjusted 0.2% in annualized terms in the fourth quarter, up from the previous reading of a 0.4% contraction. That follows annualized declines in the April-June and July-September periods. The revision was due largely to a smaller drop in corporate capital expenditures than initially reported, as well as to a small increase in private consumption. Other data released on Friday, 8 March 2013, showed the third straight month of shortfall in Japan's current account as the country's trade balance deteriorated. The current account deficit came to 364.8 billion yen in January 2013 before seasonal adjustments, the government said, after a 264.1 billion yen deficit in December 2012. The current account is the broadest measure of what Japan earns from trade and cross-border investment. Trading in US index futures indicated that the Dow could gain 45 points at the opening bell on Friday, 8 March 2013. US stocks edged higher on Thursday, 7 March 2013, after a six-week low for jobless claims added to optimism over the US employment picture ahead of the key February nonfarm payrolls due out later on Friday, 8 March 2013. The influential US non-farm payroll data for February 2013 is due later in the global day today, 8 March 2013. The Federal Open Market Committee (FOMC) holds a two-day meeting on the interest rates in the United States on 19 and 20 March 2013.