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Rediff.com  » Business » Auto stocks in top gear, Tata Motors surges over 5%

Auto stocks in top gear, Tata Motors surges over 5%

September 04, 2013 13:01 IST

CarsTata Motors, Hero MotoCorp, Ashok Leyland, M&M are up 3-6% on BSE.

Shares of auto makers are in focus on the bourses on hopes of a stimulus package from the government to revive the sector.

Tata Motors, Hero MotoCorp, Ashok Leyland, Mahindra and Mahindra and Bajaj Auto are trading higher by 1-6per cent on the Bombay Stock Exchange.

The BSE Auto index was up 2.6 per cent as compared to 1.9 per cent rise in benchmark S&P BSE Sensex at 1137 hours.

Praful Patel says the heavy industries ministry is working to help auto industry get a stimulus package from the government, a PTI report suggests.

The Society of Indian Automobile Manufacturers is looking at a package similar to one given during the 2008-09 downturn, in which excise duty on two-wheelers, small cars and commercial vehicles was reduced to 8 per cent, added report.

Car sales in the country fell for record nine month in a row in July, declining 7.4 per cent, as the economic slowdown and low consumer sentiment hit demand.

Among the individual stocks, Tata Motors has rallied nearly 6 per cent to Rs 314, its highest level since June this year on BSE.

Hero MotoCorp and Ashok Leyland are up 4 per cent each at Rs 1,963 and Rs 12.54 respectively, while M&M gained 3per cent at Rs 789.

SI Reporter in Mumbai
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