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Barring China, major Asian stock markets have opened the day in red, with stock markets in Japan (down 2.1%) and Hong Kong (down 1.4%) being the top losers. Major stock indices in Europe and US ended their previous session on a dismal note. The benchmark indices in US tumbled by 2.3% on the last trading day of the week gone by. The rupee is trading at 66.78 per US dollar.
Indian stock markets too have too opened the day on a negative note on fears of rate hike in the upcoming Fed meet scheduled on 15 December 2015. BSE-Sensex is trading lower by 115 points (down 0.5%) and NSE-Nifty is trading lower by 30 points (down 0.4%). Both BSE Mid Cap and S&P BSE Small Cap are trading lower by 0.2% and 0.3% respectively. Major sectoral indices have opened in red. Stocks from automobile and information technology sector are witnessing maximum selling pressure.
The economic data was recently released. As reported in a leading financial daily, Index of Industrial Production (IIP) rose 9.8% in the month of October. Reportedly, index rose at the fastest pace in the month of October in the preceding five years. Manufacturing, mining and electricity sector grew by 10.6%, 4.8% and 9% respectively in the month of October. To add to this, 17 out of 22 industries posted a growth in the month.
However, experts stated that the spurt in the numbers was mainly on account of the festive season demand. Mr Subramanian, Chief Economic Advisor, stated that one should not make too much of the monthly data as there was a Diwali effect.
As per an article in leading financial daily, Government of India (GOI) imposed an anti-dumping duty on cold rolled flat products of stainless steels.
The anti-dumping duty is imposed in a range of 5.3-57.4%. The duty is imposed to protect the domestic industry which is currently in a dismal state. GOI has imposed the maximum anti-dumping duty i.e 57.4% on imports from China. Further, a duty of 37% is imposed on imports from South Africa.
To add to this, GOI is also considering a proposal to impose a safeguard duty on hot rolled flat sheets of alloy or non-alloyed steel. The consequences of the suppressed steel industry are already being faced by the banking sector as steel makers account for a big chunk of the bad loans. The poor performance of the banking sector, public sector banks in particular are quite well known.
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