Automobile company’s shares surge after govt cut excise duty on fuel
ROADS & HIGHWAYS

Automobile company’s shares surge after govt cut excise duty on fuel

Shares of automobile manufacturers got a boost after the government slashed excise duty on fuel and imposed an export duty on steel inputs.

Two-wheelers, in particular, are high on investors' radar as they could profit the most from the government actions.

Hero MotoCorp, Ashok Leyland, and Bajaj Auto are the top choices of analysts' after the government's move.

The Bombay stock exchange (BSE) Auto index acquired the most among sectors on Monday, ending up 1.9% at 25,355.47. The Auto index gains were led by Ashok Leyland, Maruti Suzuki India, and Mahindra & Mahindra (M&M) gained about 4% each. Hero MotoCorp and TVS Motor Company grew by 1.5% each. Tata Motors acquired 0.9% and gained 0.9%, and Eicher Motors ended up 1.3%.

Analysts said the levy of export duties on steel inputs and outputs and reduction of customs duty on inputs is a booster for the sector, which has been encountering input price issues.

This is good for auto inventories because they were reeling under high input price pressures. Steel exports from India may become uncompetitive and domestic costs will come down, which is good for the auto industry as they will be able to maintain margins, and they don't require to raise the cost of the vehicles, said Gaurav Dua, senior VP at Sharekhan by BNP Paribas.

Among two-wheelers, Dua is bullish on Bajaj Auto and Mahindra & Mahindra among four-wheelers.

Petrol and diesel costs have increased 21% and 15%, respectively, in the last year and about 58% each in the last two years. The two-wheeler space has been most impacted by inflation due to the elevation in the total price of ownership over the last three years.

While all the original equipment manufacturers will benefit in uneven proportion, the key beneficiaries of the above steps in the auto sector would be Hero MotoCorp and Ashok Leyland, said Motilal Oswal.

Image Source 


Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

Shares of automobile manufacturers got a boost after the government slashed excise duty on fuel and imposed an export duty on steel inputs. Two-wheelers, in particular, are high on investors' radar as they could profit the most from the government actions. Hero MotoCorp, Ashok Leyland, and Bajaj Auto are the top choices of analysts' after the government's move. The Bombay stock exchange (BSE) Auto index acquired the most among sectors on Monday, ending up 1.9% at 25,355.47. The Auto index gains were led by Ashok Leyland, Maruti Suzuki India, and Mahindra & Mahindra (M&M) gained about 4% each. Hero MotoCorp and TVS Motor Company grew by 1.5% each. Tata Motors acquired 0.9% and gained 0.9%, and Eicher Motors ended up 1.3%. Analysts said the levy of export duties on steel inputs and outputs and reduction of customs duty on inputs is a booster for the sector, which has been encountering input price issues. This is good for auto inventories because they were reeling under high input price pressures. Steel exports from India may become uncompetitive and domestic costs will come down, which is good for the auto industry as they will be able to maintain margins, and they don't require to raise the cost of the vehicles, said Gaurav Dua, senior VP at Sharekhan by BNP Paribas. Among two-wheelers, Dua is bullish on Bajaj Auto and Mahindra & Mahindra among four-wheelers. Petrol and diesel costs have increased 21% and 15%, respectively, in the last year and about 58% each in the last two years. The two-wheeler space has been most impacted by inflation due to the elevation in the total price of ownership over the last three years. While all the original equipment manufacturers will benefit in uneven proportion, the key beneficiaries of the above steps in the auto sector would be Hero MotoCorp and Ashok Leyland, said Motilal Oswal.Image Source  Also read: Auto PLI attracts investment of Rs 74,850 cr for five years

Next Story
Infrastructure Urban

BorgWarner extends transfer case business with North American OEM

BorgWarner, a global product leader in delivering innovative and sustainable mobility solutions, is furthering its business with a major North American OEM by securing extensions on two transfer case contracts for upcoming vehicle launches with new platform requirements. BorgWarner will supply two types of transfer cases, including its active Electro-Mechanical On-Demand 2-Speed (EMOD) and a part-time Electric Shift-on-the-Fly 2-Speed (ESOF) transfer case. Two of the OEM’s combustion and hybrid passenger truck platforms will be equipped with the EMOD and ESOF, while an additional passenger t..

Next Story
Infrastructure Transport

CII partners with Hunch Mobility for Urban Air Mobility Expo 2025

The Confederation of Indian Industry (CII) has announced its partnership with Hunch Mobility to host the upcoming Urban Air Mobility Expo 2025. This significant event aims to showcase advancements in urban air mobility, a rapidly evolving sector that promises to revolutionize urban transportation. Scheduled for 2025, the expo will serve as a platform for industry leaders, innovators, and policymakers to converge and discuss the future of air transport within urban environments. Key topics will include technological innovations, regulatory frameworks, and infrastructure development necessary f..

Next Story
Infrastructure Urban

HCL Tech opens first delivery centre in Kochi

HCL Technologies has officially inaugurated its first delivery centre in Kochi, marking a significant expansion in its operational footprint in India. This new facility aims to enhance the company’s capabilities in delivering a wide range of technology services to its clients. The Kochi delivery centre will focus on various areas, including software development, IT services, and digital solutions, contributing to HCL's commitment to driving innovation and improving service delivery. With this initiative, HCL Tech aims to tap into the region's growing pool of skilled talent, particularly in ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000