The major Asian stock markets have opened the day on a positive note with stock markets in Japan (up 1.9%) and Hong Kong (up 0.8%) leading the gains. The Indian share markets have also opened the day on a firm note. Barring healthcare and FMCG, all sectoral indices have opened in the green with the stocks in the consumer durables and metal space leading the gains.
The Reserve Bank of India (RBI) has eased gold import norms by allowing select trading houses, apart from already permitted banks, to obtain the precious metal to boost exports. It is important to note here that that it was in July last year that the RBI had imposed severe restrictions on gold imports. The step was taken in response to restrict rising current account deficit and rupee depreciation. RBI had also tied imports with exports and prescribed a 20:80 formula. However, only certain banks were allowed to procure the metal. As per a notification, star trading houses/premier trading houses (STH/PTH), which are registered as nominated agencies by the Director General of Foreign Trade (DGFT), are now allowed to import gold under 20:80 scheme. However, they will have to follow certain conditions. The relaxation in imports is in response to representations from jewelers, bullion dealers, banks, and trade bodies. The revised guidelines have come into force with immediate effect. How do you think gold will perform now that the NDA Government has taken charge. Will it continue to shine or lose its sheen? Share your views on Equitymaster Club
Auto stocks have opened mainly in the green with Bajaj Auto Ltd and Maruti Suzuki Ltd leading the gains. As per a leading financial daily, Bajaj Auto is likely to boost exports with the lifting of a three month old ban by Egypt on imports of two-wheelers and two-wheelers. The company is the biggest exporter of three-wheelers to Egypt, which is its second biggest export market, after Sri Lanka. Of the 2,50,000-2,60,000 units of three-wheelers exported in the last financial year (FY14), Egypt's contributed to around 25% to company's overall volumes. The company is the market leader in the three-wheeler space in Egypt, and accounts for around 90% of total volumes. Also, Egypt is one of the growing markets for motorcycle sales for the company. The company has received an order for around 5,500 units of three-wheelers and 3,500 units of two-wheelers for the month of June. The management expects an incremental volume of 25,000 units of three-wheelers and 20,000 units of motorcycles in FY15 from the Egypt market.