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Major Asian stock markets have opened the day on an positive note, with stock markets in Japan (up 2.2%) and Hong Kong (up 2.1%) being the top gainers. Major stock indices in Europe and US ended their previous session on an encouraging note. The rupee is trading at 67.04 per US dollar.
Indian stock markets too have opened the day in green. BSE-Sensex is trading higher by 100 points (up 0.4%) and NSE-Nifty is trading higher by 35 points (up 0.4%). Both BSE Mid Cap and BSE Small Cap have surged upwards and are trading higher by 0.5% and 0.6% respectively. Major sectoral indices have opened on firm footing. Stocks from banking and capital goods sector are in maximum demand.
As per an article in leading financial daily, Supreme Court is likely to take decision to control the alarming level of pollution in the Delhi city. Reportedly, the order could possibly stop the registration of new diesel vehicles having more than 2,000 cubic centimeters (cc) capacity. Further, it is also considering the cancellation of licenses of diesel vehicles which have exceeded the period of 15 years. To add to this, the order may also double the environmental compensation charges on commercial vehicles passing through the city.
Currently it is believed that the dealers have a stock of 6,000 diesel vehicles with them in the city. Any negative decision could impact the sales of Sports Utility Vehicle (SUV) and luxury diesel cars.
Currently, among the various automobile players Mahindra and Mahindra, has sizeable portion of revenues coming from the SUVs and thus could be impacted.
Mahindra & Mahindra is trading down by 4%.
As per an article in leading financial daily, India's merchandise exports contracted in November for the 12th straight month in a row. Indian exports fell by 24.4% YoY in November. In October, exports had contracted by 17.5% YoY. Exports were low mainly on account of a weak global recovery. Further, contraction was owing to sharp fall in exports of petroleum products, engineering products, gems, jewellery.
Imports too fell sharply in the month of November. Non-oil imports fell 25%, reflecting a weak demand in the domestic economy.
Rating agency, Crisil stated that the decline in exports isn't merely cyclical in nature, but that there are structural reasons too.
In a recent article Vivek Kaul, Co-Editor of "The Daily Reckoning" wrote an interesting piece discusiing about implications of falling crude oil prices. Further, he has also explained in-depth about the effects on India's fiscal deficits, imports and exports. Read on to know more...
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