Stock markets in India are presently trading marginally higher. Sectoral indices are trading on a mixed note with stocks in the energy sector and telecom sector witnessing maximum buying interest.
The BSE Sensex is trading up 12 points (up 0.1%) and the NSE Nifty is trading up 18 points (up 0.2%). The BSE Mid Cap index is trading up by 0.7%, while the BSE Small Cap index is trading up by 0.4%. The rupee is trading at 64.51 to the US$.
In other news, as per an article in the Economic Times, India is looking to impose restrictions and standards on products where imports have replaced domestic production. The move is aimed to give a push to the Modi governments ‘Make in India’ initiative.
Under the development, the commerce department has instructed various ministries to analyse data and compile lists of products which are being produced domestically but are losing market share to exports.
The measures are also in line with the government’s aim to control trade deficit in India. Products such as medical devices, toys, ceramics, solar cells, plastic wares, etc. may be subjected to mandatory standards in the future as the government attempts to curb India’s large trade deficit.
While trade deficit has come down lately, the situation is worrisome on the exports front. Most of the brunt here was seen after the government announced notebandi. The export growth nosedived in the month following demonetisation, as can be seen from the chart below:
Impact of Demonetisation on India’s Exports
In the news from IPO space, market participants are tracking the IPO of Salasar Techno Engineering Ltd which has started accepting bids from today.
The issue is going to follow fixed price IPO wherein the issue price is fixed at Rs 108 per share. The company is raising funds to meet the working capital requirements of the company including margin money, for general corporate purpose and to meet the issue expenses.
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