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After opening the day on a positive note, the Indian stock markets registered some losses and went on to trade near the dotted line. Sectoral indices are trading on a mixed note with stocks from the power, telecom and FMCG sectors leading the gains. IT and realty stocks are trading in the red.
The BSE Sensex is trading up by 56 points (up 0.2%) and the NSE Nifty is trading up by 21 points (up 0.3%). The BSE Mid Cap index and the BSE Small Cap index are also trading positively, up by 0.4% and 0.3% respectively. The rupee is trading at 67.33 to the US$.
As per an article in Economic Times, the government will take call on extending Raghuram Rajan's tenure as Reserve Bank of India (RBI) governor in August. This will be a month before his three-year term ends.
A senior official said that the government acknowledges Rajan's role in heading a strong regulator and forcing banks to crack down on bad loans but it clearly doesn't see his policy as having been accommodative enough.
It was noted that Subramanian Swamy's letter to Prime Minister Narendra Modi complaining about the governor and arguing against an extension won't have any impact on the decision. Swamy recently accused Rajan of an apparently deliberate attempt to wreck the Indian economy.
Vivek Kaul, editor of Vivek Kaul's Diary, has countered this and stated why the arguments made by Subramanian Swamy are silly.
To take a note, Rajan was appointed by the previous United Progressive Alliance (UPA) government for a three-year term beginning September 4, 2013. Back then, India's macro-economic fundamentals were in poor shape. The current account deficit stood at a record high, coupled with rising inflation and concerns about fiscal targets being missed. These indicators are in much healthier shape now.
One of the articles from The Honest Truth states Why two-eyed Rajan is a King!
Stocks in the steel sector are trading on a mixed note with Tata Sponge leading the gains and Adhunik Metaliks leading the losses. In another news update it was reported that Steel Authority of India (SAIL) is targeting sales of 17 million tonnes (MT) in the current fiscal. To achieve this, the company will focus on deriving 70% of the total figure from the northern and eastern regions of the country. Also, it would increase its retail sales to 15% of the total finished steel sales.
Further, the company, which aims to take the sales figure further to 20 MT in 2017-18 fiscal, is also aiming to increase its presence in defence and aerospace sectors. All of these plans will aid the performance of the company going forward.
SAIL is India's largest steel producing company. The company has five integrated steel plants, three special plants, and one subsidiary in different parts of the country. Presently the stock of the company is trading up by 0.5%.
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