The Indian stock market is trading flat with Sensex down 16.26 points or 0.04 percent at 38827.62, and the Nifty gained 9.20 points or 0.08 percent at 11481.50.
Among the sectors, the auto index gained over a percent led largely by 2-wheeler stocks.
Two-wheeler manufacturers are in focus after Finance Minister Nirmala Sitharaman hinted at a goods and services tax (GST) rate revision for the sector.
Two-wheelers are neither a luxury nor sin goods and so merit a GST rate revision, Sitharaman said at an industry interaction on August 24.
Share price of Hero MotoCorp jumped over 4 percent hitting new 52-week high of Rs 3124.95 per share on BSE. It also witnessed spurt in volume by more than 1.20 times and was trading with volumes of 74,539 shares, compared to its five day average of 45,023 shares, an increase of 65.56 percent.
The other gainers included Baja Auto which added 2 percent followed by TVS Motor Company, Atul Auto and Scooters India.
Tata Motors jumped 5 percent followed by Mahindra & Mahindra, Eicher Motors and Ashok Leyland are the other stocks which gained in the afternoon session.
Share price of Tata Motors have risen for the second consequtive day after N Chandrasekaran, Chairman of the Tata Group, said the company had a net automotive debt of Rs 48,000 crore and was targeting to reduce it to near-zero levels in three years, CNBC-TV18 reported.
Technical Analyst Mitessh Thakkar of mitesshthakkar.com suggests a buy on Tata Motors with a stop loss of Rs 122, target at Rs 135.
Shitij Gandhi, Senior Technical Analyst at SMC Global Securities has a buy on Atul Auto with target of Rs 211 per share. At the current juncture, the stock has given a consolidation breakout with positive divergences on the secondary oscillators along with a rise in price and volume, he said.
According to Jyoti Roy, DVP- Equity Strategy, Angel Broking, there is an increasing likelihood that the GST council may take up the issues of cutting GST rate on two wheelers from 28 percent. The finance minister in a CII meeting acknowledged the fact that two wheelers is neither a sin good nor a luxury good. Given that the 28 percent GST bracket has specifically been created for luxury and sin goods there is likelihood that the Government may take up the issue in the next GST council meeting which will have to take the decision.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.