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Barring Taiwan, major Asian stock markets have opened the day on a positive note. Stock markets in Singapore and Indonesia are trading higher by 0.4% and 0.3% respectively. Benchmark indices in Europe and US ended their previous session on a disappointing note with stock markets in Germany and US ending the day lower by 2.7% and 0.8% respectively. The rupee is trading at 66.32 per US$.
Indian stock markets have opened the day on a firm note. The BSE Sensex is trading higher by 60 points (up 0.2%) and NSE Nifty is trading higher by 15 points (up 0.2%). BSE Mid Cap and BSE Small Cap are trading higher by 0.3% and 0.4% respectively. Barring metal stocks, major sectoral indices have opened the day in green with stocks from automobile and telecommunication sectors witnessing buying interest.
As per an article in Livemint, weather scientists have spotted signs of a normal rainy season this year. Indian Institute of Tropical Meteorology, under the ministry of earth sciences, has signaled a better than normal monsoon in the June-September monsoon season. The institute stated that there is a 54% probability that rainfall during the monsoon season this year will be 10 mm-per-day more than normal.
Provided the estimates are accurate, this seems to be a positive development considering that India has faced two consecutive years of drought. As the south-west monsoon accounts for more than 70% of the annual rainfall in India, better than normal rainfall will boost agriculture productivity.
Further, a normal monsoon will also aid in reviving the rural demand. Rural demand has remained subdued for a while now. A normal monsoon will lead to higher disposable income, which in-turn will boost the rural consumption. To add to this, a normal monsoon will also help to keep the inflation at low levels. The possibility of a good monsoon would also increase the chances of the country's central bank retaining its easy money policy. All eyes are now on the much awaited Indian Meteorological Departments (IMD) monsoon forecast, which is scheduled to be out by the end of this month.
In another news update, Welspun Renewable, a part of the Welspun Group plans to sell its portfolio of 1.1 gigawatts (GW) of renewable power assets. The likes of Tata Power and Greenko Group Plc have shown interest in acquiring this portfolio.
Further, Welspun is seeking an enterprise valuation of Rs.95-100 billion for these assets. Reportedly, out of the portfolio of 1.1 GW, about 600 MW is currently operational and remaining 500MW is expected to become operational before the end of the year. The sale proceeds will help Welspun Renewables free up its capital for its future projects.
Prime Minister Narendra Modi is banking on renewables to fight climate change and has set an ambitious target of increasing India's clean energy capacity by more than fivefold to 175 GW by 2022. This is an ambitious target. However, looking at the investment the renewable sector is witnessing, it may be a possibility that the target is achieved.
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