Auto stocks ride high as FM announces excise duty cuts

Auto stocks today rose by 4 per cent after Finance Minister P Chidambaram announced in the interim Budget that excise duty on small cars and bikes will be cut to 8 per cent from existing 12 per cent.

Shares of Hero MotoCorp surged 4 per cent, while TVS Motor Company gained 3.86 per cent on the BSE.

Escorts shares were up 3.86 per cent, while Mahindra & Mahindra rose by 2 per cent, Eicher Motors (1.9 per cent) and Maruti Suzuki (1.79 per cent).

The BSE auto index was trading 0.40 per cent higher at 12,015.66 during the afternoon trade.

Excise duty on small cars, motorcycles and SUVs was reduced. Excise duty on SUVs has been cut from 30 per cent to 24 per cent, in large and mid-segment cars, from 27-24 per cent to 24-20 per cent.

Excise duty on small cars, motorcycles and commercial vehicles cut from 12 to 8 per cent and appropriate cut to be done on chassis, trailers.

In the stock market, the benchmark Sensex was trading at 20,411.17, up 44.35 points at 1232 hrs.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • Govt can’t clamp down on voices that ask uneasy questions

    It has hardly been a peaceful annum for Greenpeace’s India arm that has been in and out of trouble over the last one year.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Varun Dutt

<b>Risk Factor:</b> The blame game

In decision-making, the fundamental attribution error (FAE), also known as ...

Zehra Naqvi

Dignity of labour is dignity of life

M Rafi Khan, a retired police IG, used to ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture