Mumbai: Indian markets on Monday fell nearly 0.5% led by drop in Auto stocks after states opposed cutting tax rates even as central government ready to reduction in GST rate from 28% to 18%. Investors also avoided taking long positions ahead of key macroeconomic data due later this week.
At 9.40 am, benchmark Sensex Index fell 0.49% to 36,800.72 while Nifty index was down 0.45% to 10,896.40.
Auto stocks fell after states opposing cut in tax rate ahead of GST council meeting. While the government is keen to go for a reduction in GST rate cut from 28% to 18% for the auto sector, the move's negative fallout in the form of huge loss in revenue collection and opposition from states has become a hurdle. Tata Motors fell 2.6%, Maruti Suzuki India 1.8%, Bajaj Auto 1.2%, Hero MotoCorp 1.1%, Mahindra & Mahindra 0.8%.
Investors will await consumer price inflation and industrial production data data on 12 September. According to Bloomberg analyst estimates, industrial production for July will be at 2.5% from 2% a month ago. CPI will at 3.35% in August from 3.15% in June.
Investors were also cautious as oil extended gains after Saudi Arabia ousted its long-time energy minister before an OPEC+ committee that monitors compliance with output cuts meets this week in Abu Dhabi.
Equitas Holdings Ltd fell 7% after RBI has turned down a proposal by Equitas Holdings seeking extension of the listing deadline for its subsidiary Equitas Small Finance Bank (ESFB) and ordered freezing of the small finance bank's chief executive’s remuneration at the existing level.
Coffee Day Enterprises Ltd rose 5% after Mint reported that the company has put its Sical Logistics unit on the block as it seeks to pare debt
Fifteen of the 19 sector indices compiled by BSE Ltd. declined, led by BSE Bankex index which has dropped 1.4%. Twenty seven of 31 Sensex constituents and 12 of 50 Nifty stocks rose.