Benchmarks turn negative; 2-wheeler makers in demand

After a positive start, the domestic benchmarks slipped into the negative terrain in morning trade. At 10:28 IST, the barometer index, the S&P BSE Sensex, was down 19.30 points or 0.05% at 38,824.58. The Nifty 50 index was up 4.85 points or 0.04% at 11,477.10.

In the broader market, the S&P BSE Mid-Cap index rose 0.29% while the S&P BSE Small-Cap index was up 0.39%.

The market breadth was strong. On the BSE, 1191 shares rose and 526 shares fell. A total of 71 shares were unchanged.

Earning Today:

Indraprastha Gas (down 0.37%), Gillette India (up 1.36%), Gujarat Mineral Development Corporation (up 1.54%), Dolat Investments (down 0.32%), NACL Industries (up 3.26%) and Sharda Motor Industries (up 2.37%) are among companies which will disclose their June quarter results on Wednesday.

Buzzing Segment:

Shares of two-wheeler manufacturers advanced after the Finance Minister Nirmala Sitharaman reportedly said that two-wheelers merit a GST rate revision.

TVS Motor Company (up 5.82%), Hero Motocorp (up 4.56%) and Bajaj Auto (up 3.88%) advanced.

At an industry interaction on Tuesday, Finance Minister Nirmala Sitharaman said two-wheelers are neither a luxury nor sin goods and so merit a GST rate revision. The FM further reportedly added that a rate revision proposal would be taken up by the GST Council at its next meet. Two-wheelers currently attract 28% GST.

Stocks in Spotlight:

State Bank of India shed 0.77% to Rs 206.40. The credit ratings agency Moody's Investors Service affirmed the banks's long-term local and foreign currency deposit ratings at Baa3. At the same time, the ratings agency has downgraded SBI's Baseline Credit Assessment (BCA) and adjusted BCA to ba2 from ba1. It has maintained SBI's rating outlook, where applicable, as negative, in line with the outlook on India's sovereign rating.

Can Fin Homes jumped 4.20% to Rs 402.20 after the housing finance company posted a 15% rise in net profit to Rs 93.16 crore on 8% increase in total income to Rs 522.50 crore in Q1 June 2020 over Q1 June 2019. c

The housing financier, in accordance with the RBI guidelines relating to COVID-19 Regulatory Package, offered moratorium on the payment of installments falling due between 1 March 2020 to 31 August 2020 to eligible borrowers. As on 30 June 2020, the company said it holds a provision of Rs 72.89 crore, which is more than the requirement as per RBI norms.

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