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 in green. Stocks from banking and capital goods sector are witnessing maximum buying interest.
As per an article in leading financial daily, Supreme Court is likely to pass an order today to cut down the alarming level of pollution in the Delhi city. The order could possibly stop the registration of new diesel vehicles having more than 2000 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, they will double the environmental compensation charges on commercial vehicles passing through the city.
Reportedly, dealers have a stock of 6000 diesel vehicles with them in the city. The fate of the same depends on the Supreme Court decision. The impact of the decision will be maximum on the Sports Utility Vehicle (SUV) and luxury diesel cars.
The possible impact of the order could be faced by Mahindra and Mahindra, Tata Motors and Hyundai.
Mahindra & Mahindra and Tata Motors are trading down by 4% and 1% respectively.
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.
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