Benchmarks trade in red in morning deals

Indian equity benchmarks were trading in red in morning deals, due to losses in Utilities, Oil & Gas and Power stocks. Traders got anxious as a report by economic think tank GTRI said India's exports of products like coffee, leather hides and paperboard worth $1.3 billion annually to the European Union will get impacted due to the deforestation regulation adopted by the EU earlier this week. Traders also took a note of report that India and Britain are struggling to make progress in free trade talks due to differences on some key tariff lines and investment protection rules, making a deal unlikely during Prime Minister Narendra Modi's second term ending next year. However, losses remain capped as some support came as S&P Global Ratings affirmed India's sovereign rating at 'BBB-' for the long term and ‘A-3’ for the short term, with a stable outlook, as sound economic fundamentals were expected to underpin growth over the next two to three years. On the global front, Asian markets are trading mostly in green as increased hopes of a deal over the U.S. debt ceiling and strong economic data lifted sentiment.

The BSE Sensex is currently trading at 61362.35, down by 69.39 points or 0.11% after trading in a range of 61273.13 and 61636.82. There were 10 stocks advancing against 20 stocks declining on the index.

The broader indices were trading in red; the BSE Mid cap index fell 0.40%, while Small cap index was down by 0.37%.

The top gaining sectoral indices on the BSE were IT up by 1.18%, TECK up by 0.93% and Realty up by 0.16%, while Utilities down by 1.32%, Oil & Gas down by 1.31%, Power down by 1.12%, Energy down by 0.98% and FMCG down by 0.74% were the losing indices on BSE.

The top gainers on the Sensex were Tech Mahindra up by 2.11%, HCL Technologies up by 1.83%, Infosys up by 1.64%, Wipro up by 0.71% and TCS up by 0.59%. On the flip side, Asian Paints down by 1.05%, Titan Company down by 1.00%, Hindustan Unilever down by 0.86%, Maruti Suzuki down by 0.84% and Bajaj Finserv down by 0.71% were the top losers.

Meanwhile, the Federation of Automobile Dealers Associations (FADA) has sought a cut in Goods and Services Tax (GST) on two-wheelers from 28 per cent to 18 per cent. It strongly asserts that two-wheelers, being essential for millions, should not be categorised as sin goods or luxury items for GST taxation purposes.

The industry body said it has appealed to the finance minister, chair of the GST Council, all GST Council members, the ministry of heavy industries, which supervises the automobile sector, and the ministry of road transport & highways. It noted that this timely and decisive intervention would help in making two-wheelers more affordable, reviving demand and reinvigorating an industry that has seen a significant slump in sales over the past few years. 

FADA stated that two-wheelers play a pivotal role in providing affordable mobility to a large segment of India's population, especially in rural areas where public transportation is sparse. It also said that over the past few years, the prices of various two-wheelers have risen significantly, impacting their affordability for consumers. This surge in prices can be attributed to multiple factors, including the rising cost of raw materials, stricter emission norms and higher taxes and levies.

The CNX Nifty is currently trading at 18099.20, down by 30.75 points or 0.17% after trading in a range of 18066.80 and 18186.15. There were 13 stocks advancing against 37 stocks declining on the index.

The top gainers on Nifty were Tech Mahindra up by 2.07%, HCL Technologies up by 2.05%, Infosys up by 1.75%, Wipro up by 0.80% and TCS up by 0.66%. On the flip side, Tata Consumer Product down by 2.35%, UPL down by 1.69%, Britannia Industries down by 1.63%, Hero MotoCorp down by 1.57% and Asian Paints down by 1.23% were the top losers.

Asian markets are trading mostly in green; Taiwan Weighted added 48.46 points or 0.3% to 16,150.34, KOSPI increased 17.5 points or 0.7% to 2,532.90, Jakarta Composite gained 35.1 points or 0.52% to 6,698.21, Straits Times rose 11.74 points or 0.37% to 3,194.29 and Nikkei 225 surged 229.36 points or 0.75% to 30,803.29.

On the flip side, Hang Seng declined 231.47 points or 1.17% to 19,495.78 and Shanghai Composite weakened 6.21 points or 0.19% to 3,291.11.