Auto shares rallied on Tuesday after robust sales on the first day of Navratri under the new GST regime lifted investor mood.
A boost in auto bookings fueled the auto share rally. Maruti Suzuki and Hyundai Motor India saw stupendous sales on Monday as customers queued up to buy their favorite models at cheaper prices under the new GST arrangement.
Ignoring weakness in the general equity market, Hyundai Motor India shares rose 4.69%, Maruti gained 3.24%, Mahindra & Mahindra increased 2.69%, TVS Motor Company went up by 2%, Bajaj Auto gained 1.91%, and Tata Motors rose 1.68% on the BSE. Maruti Suzuki also hit a 52-week high in morning trade.
The BSE auto index gained 0.98% to 61,253.50.
The new rates, introduced on Monday, reduce taxes on up to 375 goods, including cars, televisions, toothpaste, and shampoo. The action will spur consumption and boost support to an economy that's facing pressure from tariffs.
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