Benchmarks trade flat in morning deals

Indian equity benchmarks erased opening gains and were trading flat in morning deals, as traders restrained from taking any long position ahead of upcoming macro-economic data. The last leg of the corporate earnings season remained in focus in the Indian share market, with the major ones Dr Reddy's Labs, Godrej Consumer Products, Larsen & Toubro and Bosch are slated to report their numbers later in the day. Some concern came as Automobile dealers' body the Federation of Automobile Dealers Associations (FADA) raised the issue of unauthorised multi-brand outlets (MBOs) in the two-wheeler industry, which are not certified as bona fide dealers and sell unregistered vehicles without any trade certificates or after-sales services. This has caused many legitimate two-wheeler dealerships to shut down, making their businesses unviable. However, traders took some support with report that the free trade agreement between India and the UAE has transformed the partnership between the two countries by promoting two-way commerce at a healthy rate. On the global front, Asian markets are trading mostly in red as traders remained on sidelines ahead of a key US inflation reading due later in the day that could offer more clarity on the future course of interest rates in the world's largest economy. 

The BSE Sensex is currently trading at 61764.71, up by 3.38 points or 0.01% after trading in a range of 61572.93 and 61965.56. There were 14 stocks advancing against 16 stocks declining on the index.

The broader indices were trading mixed; the BSE Mid cap index fell 0.01%, while Small cap index was up by 0.10%.

The top gaining sectoral indices on the BSE were FMCG up by 0.45%, Oil & Gas up by 0.28%, Realty up by 0.24%, Energy up by 0.24% and Capital Goods up by 0.22%, while PSU down by 0.36%, Healthcare down by 0.29%, TECK down by 0.24%, IT down by 0.17% and Telecom down by 0.17% were the top losing indices on BSE.

The top gainers on the Sensex were Indusind Bank up by 1.72%, Power Grid Corp up by 0.92%, Hindustan Unilever up by 0.66%, Ultratech Cement up by 0.66% and Tata Motors up by 0.56%. On the flip side, SBI down by 0.95%, Mahindra & Mahindra down by 0.74%, Tech Mahindra down by 0.60%, NTPC down by 0.48% and Infosys down by 0.40% were the top losers.

Meanwhile, Automobile dealers' body the Federation of Automobile Dealers Associations (FADA) has raised the issue of unauthorised multi-brand outlets (MBOs) in the two-wheeler industry, which are not certified as bona fide dealers and sell unregistered vehicles without any trade certificates or after-sales services. This has caused many legitimate two-wheeler dealerships to shut down, making their businesses unviable.

FADA has approached various authorities to take strict action against the practice. It said the MBOs are acquiring unregistered vehicles in bulk from dealers and reselling them to customers at discounted rates, higher than the prices offered by original equipment manufacturers (OEMs) through authorised dealers, without any commitment to after-sales service. This has not only impacted the legitimate dealerships but has also shaken customers' confidence in the brand and dealer partners. Furthermore, it stated that the outlets indulge in evasion of GST, income tax, issuance of fake/ undervalued insurance policies, delivery of vehicles without registration/ HSRP and helmets, resulting in revenue loss on various fronts.

The industry body said the dealership business is dynamic and contributes consistently to the economic development of the nation, generating significant employment opportunities in the sector. Illegal practices such as this cause massive losses to the government and society and lead to significant loss of motivation among dealers, leading to greater loss of employment opportunities.

The CNX Nifty is currently trading at 18264.35, down by 1.60 points or 0.01% after trading in a range of 18211.95 and 18323.15. There were 24 stocks advancing against 26 stocks declining on the index.

The top gainers on Nifty were Indusind Bank up by 1.71%, HDFC Life Insurance up by 1.69%, Britannia Industries up by 1.08%, Power Grid Corporation up by 0.88% and Adani Enterprises up by 0.86%. On the flip side, UPL down by 1.69%, Dr. Reddy's Lab down by 1.23%, SBI down by 1.05%, Mahindra & Mahindra down by 0.77% and Divi's Lab down by 0.75% were the top losers.

Asian markets are trading mostly in red; Taiwan Weighted lost 122.14 points or 0.78% to 15,605.56, Hang Seng declined 143.72 points or 0.73% to 19,723.86, Shanghai Composite weakened 46.91 points or 1.42% to 3,310.76, KOSPI dropped 8.39 points or 0.33% to 2,501.67 and Nikkei 225 slipped 108.38 points or 0.37% to 29,134.44.

On the flip side, Jakarta Composite gained 24.91 points or 0.37% to 6,804.89 and Straits Times rose 3.18 points or 0.1% to 3,246.13.