After opening the day on a positive note, Indian share markets have continued the momentum and are currently trading in green. Sectoral indices are trading on a mixed note, with stocks in the consumer durables sector and stocks in the auto sector witnessing maximum buying interest. While stocks in the IT sector are trading in red.

The BSE Sensex is trading up 88 points (up 0.3%) and the NSE Nifty is trading up 28 points (up 0.3%). Meanwhile, the BSE Mid Cap index is trading up by 1%, while the BSE Small Cap index is trading up by 1.1%. The rupee is trading at 64.14 to the US$.

In news from the automobile sector. According to an article in a leading financial daily, the automobile industry body Society of Indian Automobile Manufacturers (SIAM), is seeking two tax rates for passenger vehicles under the Goods and Service Tax regime instead of multiple rates levied currently.

Currently, under the GST regime, small petrol cars with engine capacity less than 1200 cc attract 1% cess, while diesel cars with engine capacity of less than 1500 cc attract 3% cess, on top of the 28% tax.

Similarly, cess on hybrid cars, including mid, large and SUVs, remains at 15%, likewise those vehicles used for transport of not more than 13 passengers.

According to the article, SIAM has sought for a special tax rate of 12% for electric and hydrogen fuel cell powered vehicles. Additionally, in the electrical vehicle vertical, the industry has sought extension of custom duty concessions for additional critical components.

Currently, electric vehicle sales are low in India, rising 37.5% to 22,000 units in the year ended 31 March 2016 from 16,000 in 2014-15. Only 2,000 of these were cars and other four-wheelers, according to automobile lobby group SIAM.

The government wants to see 6 million electric and hybrid vehicles on Indian roads by 2020 under the National Electric Mobility Mission Plan 2020.