The major Asian stock markets have opened the day on a disappointing note. Stock markets in Japan, Hong Kong and China are down by 2.6%, 2.1% and 0.9% respectively. The major stock indices in the European markets ended their previous session in green. However the benchmark indices in the US closed their previous session down by 1.2%. The rupee is trading at 66.68 per US dollar.
As per an article in Livemint, the cabinet has approved the gold monetization scheme. The government intends to monetize gold by offering interest on gold deposits made with banks. This interest will be exempt from income-tax and capital gains tax. In the scheme, the deposits can be short term (1-3 years), medium term (5-7 years) and long term (12-15 years). The interest rates on short-term deposits will be decided by banks and will be denominated in grams of gold. However the interest rate on medium- and long-term deposits will be decided by the government in consultation with the Reserve Bank of India and will be payable in cash only. At present, holdings of gold are estimated at 20,000 tonnes and most of the same are private holdings.
Stocks in the FMCG sector have opened the day on a negative note. As per an article in Economic Times, ITC Ltd is keen on making investment of about Rs 25bn in Tamil Nadu. The investment is in relation to food processing and hotel business. Reportedly, the chairman of the company stated that they are planning to manufacture Bingo Chips, Yippee noodles, Be Natural and ghee in the state. Further the company is also looking forward to expand their hotel business in places like Coimbatore. Stock of ITC is trading down by 0.6%