After opening weak, the Indian indices are trading flat in the morning session. Sectoral indices are trading mixed today. The buying interest is the highest in engineering stocks and the selling pressure is the highest in software stocks.
The BSE-Sensex is trading up 10 points and the NSE-Nifty is trading up 4 points. The BSE Mid Cap index is trading up 0.4% and the BSE Small Cap index is trading up 0.3%. The rupee is trading at 62.12 to the US dollar.
Auto stocks are trading mixed today. While TVS Motors and Tube Investments are leading the gainers, Force Motors and Escorts are leading the losers. India's second largest motorcycle company, Bajaj Auto, has begun marketing its new Quadricycle, the RE60. The new vehicle has been positioned as a replacement for the three-wheeler auto rickshaws. It is expected to be priced between an auto rickshaw and a hatchback at about Rs 200,000. The RE60 weighs about 400 Kilograms and has a top speed of 70 Kmph. Bajaj has spent about Rs 5.5 bn to develop the vehicle. The safety features of the vehicle are significantly better than an auto rickshaw but not as good as a car. The Indian government is expected to allow the use of Quadricycles on Indian roads from 1st October 2014. Bajaj Auto is trading up 0.4% today.
Most hotel stocks are trading higher today. Indian Hotels and TAJ GVK Hotels are among the stocks leading the gainers. Indian Hotels has announced its 3QFY14 results. The company has reported 3.6% YoY growth in sales on account of subdued revenues per available room. The oversupply situation has led to occupancy rates falling across the country. The occupancy rates in the US however, picked up to come in at 75% for the quarter. The operating margin was flat for the quarter at 28% largely on account of higher cost of goods and staff costs (as percentage of sales). Poor operating performance along with a higher tax rate, led to a muted growth in the bottomline of just 1.4% YoY. Indian Hotels is trading up 2% today.