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Major Asian stock markets have opened the day on a positive note with the stock market in Japan is trading higher by 0.7%. Stock markets in Europe too ended their previous session on a positive note. Whereas, benchmark indices in the US ended their previous session trading lower by 0.3%.
The rupee is currently trading at 66.58 per US$.
Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading marginally higher by 68 points (up 0.2%) and NSE Nifty is trading higher by 17 points (up 0.2%). Both, BSE Mid Cap and BSE Small Cap are trading higher by 0.4% and 0.5% respectively.
Major sectoral indices have opened the day in green with stocks from oil & gas sector witnessing maximum buying interest. Whereas, stocks in the banking sector are trading flat ahead of monetary policy.
As per an article in Livemint, two-wheeler manufacturers posted robust volume growth for the month ended September 2016. Companies such as TVS Motors, Bajaj Auto and Hero MotoCorp posted a volume growth of 33%, 23% and 11% respectively during the month as compared to a year ago.
Two-wheeler sales had remained subdued in the preceding two years on the back of two consecutive years of deficit rainfall, which in-turn impacted rural wages and incomes.
Against this backdrop, the start this fiscal has been good for the two-wheeler industry. The management of the top two-wheeler players had indicated that things would pick up in the latter half of the fiscal.
Given that the monsoons have been good and the festive season has started, the numbers for the upcoming months are likely to be better. To add to this, the effect of the seventh pay commission too is expected to boost the volumes of the two-wheeler industry.
The upcoming festival season and the pay commission led demand boost can keep the party going in the short-term. However, what matters is the ability to sustain the momentum after FY17. The stock of Hero MotoCorp is trading higher by 1.6%.
In another news update, the second day of the telecom spectrum auction received muted response from the telecom operators.
The government was expected to raise a sum of Rs 560,000 billion through this spectrum sale. However, until the second day of the auction, the government has just been able to collect Rs 567.9 billion.
Unless things pick up in later rounds, the government may also find it difficult to meet the targeted Rs 989.9 billion from communication services for the fiscal year 2017.
The highly leveraged balance sheet of these telecom operators has led them to not bid aggressively in this auction.
Further, the health of these operators was expected to deteriorate significantly provided they had bid aggressively in the auctions. Hence, it seems to be a prudent decision on their part.
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