Stock markets in India are presently trading near the dotted line with positive bias. Sectoral indices are trading on a mixed note with stocks in the healthcare sector and energy sector witnessing maximum buying interest.

The BSE Sensex is trading up 65 points (up 0.2%) and the NSE Nifty is trading up 7 points (up 0.1%). The BSE Mid Cap index is trading up by 0.4%, while the BSE Small Cap index is trading up by 0.3%. The rupee is trading at 64.00 to the US$.

In the news from global financial markets, data showed Japanese wholesale prices rose at the fastest annual pace in nearly nine years in August.

Wholesale prices rose 2.9% in August from a year earlier. This was the eight-straight month when wholesale prices rose and marked the fastest pace of growth since October 2008.

Also, the rise in the corporate goods price index (CGPI), which measures the price that firms charge each other for their goods and services, was roughly in line with a median market forecast for a 3% increase. The July gain was 2.6%.

Overall final goods prices rose 1.4% from a year earlier.

The above rise was seen on the back of rising import prices for crude oil, scrap metal, and other commodities on robust demand from China.

The data led optimism that consumer inflation will accelerate toward Bank of Japan’s (BoJ) 2% target.

Core consumer prices had risen just 0.5% in July from a year earlier. This was the case because companies remained hesitant to pass along rising labor and raw material costs to households.

Also, the BoJ has pushed back the timing for reaching its price target six times since it deployed its massive stimulus programme in 2013.

The central bank now hopes consumer inflation to hit its 2% target by March 2020, as signs of strength in the economy and a tight job market boost wages and give households more purchasing power, thereby allowing firms to hike prices.

That said, there remain many issues that can hamper Japan’s economic growth. The economy is flooded with excessive money printing, too much debt, too much government intervention, and stock market manipulation.