After opening the day on a flat note, Indian share markets witnessed selling pressure on the back of North Korea tensions. Sectoral indices are trading on a mixed note with stocks from the FMCG sector and the banking sector witnessing maximum selling pressure. Metal stocks are trading in the green.

The BSE Sensex is trading down 145 points (down 0.5%) and the NSE Nifty is trading down 51 points (down 0.5%). Meanwhile, the BSE Mid Cap index is trading down by 0.1%, while the BSE Small Cap index is trading up by 0.1%. The rupee is trading at 65.32 to the US$.

Shares from the power sector are witnessing buying interest today. This comes as Prime Minister Narendra Modi yesterday unveiled a US$2.5 billion 'Saubhagya' scheme to ensure electricity for all households.

Shares of companies such as Thermax, Siemens, Power Grid Corporation of India, etc. are witnessing gains on the back of the above development.

Shoppers Stop share price is in the news today. This comes as the company recently announced that its board approved a proposal to sell 5% equity stake in the company for Rs 1.8 billion to Amazon NV Holdings LLC, the investment arm of the world's largest online retailer Amazon Inc.

As per the news, Amazon.com NV Investment Holdings, a foreign portfolio investor, will subscribe to about 43.95 lakh shares in Shoppers Stop at Rs 407.78 each on a preferential basis.

The above partnership will help Shoppers Stop tap non-metro markets and aid its performance.

In other news, as per an article in the Economic Times, Prime Minister Narendra Modi yesterday reconstituted the Economic Advisory Council (EAC) to guide him on economic issues and appointed economist Bibek Debroy as its chairman.

The formation of above five-member panel is aimed at advising Modi on economic issues as he faces a slew of provincial elections in the coming months and a general election in 2019.

One shall also note that the government is also planning to unveil various measures to speed up economic growth, generate employment, lift exports, and revive investments in infrastructure in the economy.

The above measures come as the government is grappled with a slump in GDP growth which stood at a three-year low of 5.7% in the April-June quarter.

GDP at 3-year Low Post Notebandi and GST

The aftereffects of Notebandi and the Goods and Service Tax (GST) were mainly responsible for the above slowdown. The growth was much lower than analyst estimates of around 6.6%.

Manufacturing growth stunted to 1.2% during the quarter compared to 10.7% a year ago. The transition to the GST regime affected the sector as dealers de-stocked and manufacturers offered discounts before GST took effect.

As we have been saying, GST is a much-needed economic reform. It should eventually expand India's narrow tax base and increase government revenues.

After this decline, the upcoming few quarters will be critical. Growth is expected to normalize as businesses start aligning themselves to the post-GST regime. But only growth will determine how well the Indian economy has adapted to GST.

In the news from commodity markets, crude oil is witnessing buying interest today. Gains are seen as Turkey stated that it would cut crude flows from Iraq's Kurdistan region to the outside world.

As per the news, Turkish President Tayyip Erdogan threatened on Monday to cut off the pipeline that carries oil from northern Iraq to the outside world, intensifying pressure on the Kurdish autonomous region over its independence referendum. The pipeline to Turkey's port of Ceyhan usually pumps between 500,000-600,000 barrels per day (bpd).

The cut off in supply led to optimism of lower supply levels and aided crude oil prices.

Crude oil also witnessed gains last week as OPEC and non-OPEC nations met to discuss a possible extension of oil supply cuts to support prices.

One shall note that the OPEC and non-OPEC producers including Russia have agreed to reduce crude oil output by about 1.8 million barrels per day (bpd) until March in order to reduce global oil inventories and support prices.

The group is now in talks to extend the above expiry in March.

To keep a tab on the movements in crude oil and other commodities, you can read the stock market commentary from the Daily Profit Hunter team. Their commentary tracks the developments in the global economy as well as stock, currency, and commodity markets.