After opening the day on a negative note, stock markets in India witnessed buying interest and went on to trade marginally higher. Sectoral indices are trading on a mixed note with stocks in the telecom sector and IT sector witnessing maximum buying interest.
The BSE Sensex is trading up 51 points (up 0.2%) and the NSE Nifty is trading up 10 points (up 0.1%). The BSE Mid Cap index is trading down by 0.3%, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 67.39 to the US$.
As per a leading financial daily, the Reserve Bank of India (RBI) has rejected the government’s demand to relax the guidelines on resolution of stressed assets for power companies, pushing over 20,000 MW projects closer to liquidation.
RBI, in a letter to the power ministry, has expressed its inability to provide any relaxation to power plants saying it does not look into sectoral issues.
The power ministry had written to RBI asking for extension of the 180 days resolution period for power projects to one year.
In the news from global financial markets, US President Donald Trump yesterday pulled the United States out of nuclear deal with Iran.
As per the news, Trump called the Obama-era deal decaying and rotten and an embarrassment to him as a citizen.
In response, Iran said it was preparing to restart uranium enrichment, key for making both nuclear energy and weapons.
The above development has raised the risk of conflict in West Asia, upsetting European allies and casting uncertainty over global oil supplies.
Crude oil prices spiked following the above news, which consequently led to a sell-off in shares of oil marketing companies today.
Note that crude oil prices have been witnessing a rising trend of late. Prices have been escalating due to a pick-up in global demand coupled with supply cuts by the Organisation of the Petroleum Exporting Countries (OPEC) and Russia. Even geopolitical tensions between US, Russia, North Korea and Iran have kept prices on the boil.
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