Stock markets in India are trading flat as the rupee stabilized after hitting a record low of Rs 72.91 against US dollar amid weak global markets. Losses are largely seen in realty stocks and energy stocks.
The BSE Sensex is trading up by 8 points and the NSE Nifty is trading down by 4 points. Meanwhile, the BSE Mid Cap index is trading down by 0.6% while the BSE Small Cap index is trading down by 1%. The rupee is trading at 72.77 to the US dollar.
Automobile stocks are trading on a mixed note with Tata Motors & M&M being among the top losers. Mahindra and Mahindra (M&M) share price fell as much as 2.9% in the early trade after a US regulator announced a probe into a complaint filed by Fiat Chrysler.
The stock touched an intraday high of Rs 951 and an intraday low of Rs 914.
The US International Trade Commission (ITC) on September 11 said it will investigate the patent of M&M’s ROXOR vehicle following Fiat Chrysler’s complaint.
Reportedly, Fiat Chrysler Automobiles NV has filed a complaint alleging that M&M infringed upon the intellectual property rights of its Jeep design.
The regulator has said it will complete the probe within 45 days.
To know more about the company, you can access to M&M’s Q1FY19 result analysis and M&M’s 2017-18 Annual Report Analysis on our website.
Moving on to the news from the economy. As per the State Bank of India (SBI)‘s Eco-wrap report, the recent rise in petrol and diesel prices coupled with continuing plunge in the Indian rupee is likely to give state governments a windfall gain of around Rs 227 billion over and above the budget estimates for current fiscal.
It said the windfall gain is due to the value-added tax (VAT) levied by the state governments on petrol and diesel.
As per the report, this windfall gain will have positive impact on state finances, which might push down the states’ fiscal deficit by 15-20 bps, other things remaining unchanged.
