Asian stock markets are higher today as Japanese and Hong Kong shares show gains. The Nikkei 225 is up 0.2% while the Hang Seng is up 0.7%. The Shanghai Composite is trading down by 0.1%. US stocks closed higher on Friday, with the S&P 500 and the Dow Jones Industrial Average extending gains and the Nasdaq turning positive on reports of progress in tariff disputes between the United States and its trading partners China and Mexico.
Back home, India share markets have opened the day on a strong note. The BSE Sensex is trading up by 221 points while the NSE Nifty is trading up by 50 points. The BSE Mid Cap index opened up by 0.7% while BSE Small Cap index opened the day up by 0.4%.
The rupee is currently trading at 70.23 to the US$.
All sectoral indices have opened the day in green with metal stocks and capital goods stocks witnessing maximum buying interest.
In the news from the economy. As per an article in a leading financial daily, India’s current account deficit (CAD) is expected to widen to 2.8% of gross domestic product (GDP) in this financial year.
With rising oil prices, a depreciating rupee and outflow of foreign portfolio investments, there are concerns that the current account deficit might rise in the current fiscal year.
Overall, the current account deficit is expected to widen to 2.8% of GDP in 2018-19 from 1.9% in 2017-18.
According to official figures India’s trade deficit, or the gap between exports and imports, in July widened to US$18 billion, the most in more than five years. A trade shortfall puts pressure on the current account deficit and is a key vulnerability for the economy.The current account deficit, which is the difference between the inflow and outflow of foreign exchange, jumped to US$48.7 billion, or 1.9% of GDP, in 2017-18. This was higher than US$14.4 billion, or 0.6%, in 2016-17.
