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Major Asian stock markets have opened the day on a mixed note with stock market in Japan is trading higher by 0.7%. Whereas, stock market in Indonesia is trading lower by 1%. Stock markets in Europe too ended their previous session on a positive note. Whereas, benchmark indices in US ended their previous session trading lower by 0.5%.
The rupee is currently trading at 66.46 per US$.
Indian stock markets have opened the day on a flattish note. The BSE Sensex is trading marginally higher by 60 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 0.2% and 0.5% respectively.
Major sectoral indices have opened the day in green with stocks from metal sector are witnessing maximum buying interest.
As per an article in Livemint, International Monetary Fund (IMF) has raised its growth forecast projections for India. It expects India's economy to grow by 7.6% in the fiscal year 2017, up from its earlier projections of 7.4%.
IMF sites lower commodity prices and decreasing inflation to benefit the economy. Further, it also expects the important policy action towards the implementation of the goods and service tax (GST) will boost the Gross Domestic Product (GDP).
Further the elimination of poorly targeted subsidies will help to widen the revenue base for the government. This in-turn will provide support to investments in infrastructure space.
IMF also praised the Reserve Bank of India (RBI) for its continued efforts to strengthen bank balance sheets through full recognition of losses.
The 0.25% rate cut in yesterday's monetary policy by the monetary policy committee too will provide some support for the economy to grow at the desired rate as projected by the IMF.
In another news update, India's top three steel firms Tata Steel, Steel Authority of India Ltd and JSW Steel are adding fresh capacities in phases. However, the decision to add capacities comes at a time when these companies are already facing demand issues.
However, these steel makers believe the construction demand will revive by the time fresh steel capacity comes on line in the next two years.
Reportedly, finished steel consumption in India advanced at a mere 1.3% to 33.74 million tonnes (mt) in the five months from April to August. Whereas, the current industry capacity is somewhere around 115 million tonnes.
At present, exports are helping Indian producers and any disruption to that can create an oversupply situation. This in-turn may create immense pressure on the steel prices, which have already been depressed since a while now.
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