Mumbai: Trailing on the news of GST revision, auto-stocks saw momentum in trading session on Monday.
On the Bombay Stock Exchange, auto counters saw a jump. The BSE Auto index (up by 3.12 percent) and Consumer Discretionary index (up by 1.13 percent) were two sectoral indices that traded in the green during the session.
Comparatively, the BSE Sensex saw a marginal uptick - up by 0.09 percent to settle at 80,787.30.
On auto-counters, stocks of Tata Motors (up by 3.97 percent), Samvardhana Motherson (up by 4.22 percent), Mahindra & Mahindra (up by 3.96 percent), Bajaj Auto (up by 3.97 percent), and Maruti (up by 2.32 percent) rallied, taking the index higher.
Leading automobile brands such as Tata, Mahindra, Bajaj and Maruti had already indicated plans of a price-cut in their product offerings - following the announcement from Finance Minister Nirmala Sitharaman about revision in GST rates.
On the NSE, the Nifty Auto saw a cumulative volume of 12.87 crores - the index closing 3.30 percent upwards or by 868.60 points at 27.189.20.
Analysts believe auto stocks to post new highs. Securities analysts at JM Financials Institutional Securities, ICICI Securities, and Kotak Institutional Securities state that initiatives such as GST cuts and price revision in passenger-vehicles is likely to benefit auto stocks, OEM (original equipment manufacturers), and the auto supply-chain in India.
Disclaimer: This article is solely for information and should not be construed as investment advice.
