Auto ends mixed: M&M, Maruti up while Tata, Bajaj dip

ended on a mixed note in the stock market today even as the budget had a few proposals that investors believe could be detrimental to the sector's fortunes.

Shares of Mahindra & Mahindra (M&M) firmed up settled 2.71% higher at Rs 676.95 over the previous close. also recovered from its early losses and ended the session with a mild 0.52% gain at Rs 1,373.65.

However, others like Tata Motors, and ended the day in the negative zone.

lost 0.93%, shed 0.88% and Hero Moto fell by 0.27%.

Inventure Growth and Securities Research Head Milan Bavishi said, "Auto companies M&M and Maruti traded in green as it is expected that car companies will increase vehicle prices post rise in excise duty and thus pass the entire burden to customers. This clearly shows that these companies are confident that the entire hike will be absorbed as the demand is strong."

Sentiment was poor with the broader market benchmark finishing the day 209.65 points lower at 17,466.20 in a highly choppy trading session.

"Going ahead, budget proposals will be negative for auto sector in view of increase in excise duty," Bonanza Portfolio Senior Vice President Rakesh Goel said.

Finance Minister Pranab Mukherjee today announced raising of excise duty to 12% from 10% at present.

Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24% from 22% and a fixed duty of Rs 15,000.

With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra will hike prices of their vehicles.

image
Business Standard
177 22
Business Standard

Auto ends mixed: M&M, Maruti up while Tata, Bajaj dip

Press Trust of India  |  Mumbai 

ended on a mixed note in the stock market today even as the budget had a few proposals that investors believe could be detrimental to the sector's fortunes.

Shares of Mahindra & Mahindra (M&M) firmed up settled 2.71% higher at Rs 676.95 over the previous close. also recovered from its early losses and ended the session with a mild 0.52% gain at Rs 1,373.65.

However, others like Tata Motors, and ended the day in the negative zone.

lost 0.93%, shed 0.88% and Hero Moto fell by 0.27%.

Inventure Growth and Securities Research Head Milan Bavishi said, "Auto companies M&M and Maruti traded in green as it is expected that car companies will increase vehicle prices post rise in excise duty and thus pass the entire burden to customers. This clearly shows that these companies are confident that the entire hike will be absorbed as the demand is strong."



Sentiment was poor with the broader market benchmark finishing the day 209.65 points lower at 17,466.20 in a highly choppy trading session.

"Going ahead, budget proposals will be negative for auto sector in view of increase in excise duty," Bonanza Portfolio Senior Vice President Rakesh Goel said.

Finance Minister Pranab Mukherjee today announced raising of excise duty to 12% from 10% at present.

Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24% from 22% and a fixed duty of Rs 15,000.

With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra will hike prices of their vehicles.

RECOMMENDED FOR YOU

Auto ends mixed: M&M, Maruti up while Tata, Bajaj dip

Auto stocks ended on a mixed note in the stock market today even as the budget had a few proposals that investors believe could be detrimental to the sector's fortunes.

ended on a mixed note in the stock market today even as the budget had a few proposals that investors believe could be detrimental to the sector's fortunes.

Shares of Mahindra & Mahindra (M&M) firmed up settled 2.71% higher at Rs 676.95 over the previous close. also recovered from its early losses and ended the session with a mild 0.52% gain at Rs 1,373.65.

However, others like Tata Motors, and ended the day in the negative zone.

lost 0.93%, shed 0.88% and Hero Moto fell by 0.27%.

Inventure Growth and Securities Research Head Milan Bavishi said, "Auto companies M&M and Maruti traded in green as it is expected that car companies will increase vehicle prices post rise in excise duty and thus pass the entire burden to customers. This clearly shows that these companies are confident that the entire hike will be absorbed as the demand is strong."

Sentiment was poor with the broader market benchmark finishing the day 209.65 points lower at 17,466.20 in a highly choppy trading session.

"Going ahead, budget proposals will be negative for auto sector in view of increase in excise duty," Bonanza Portfolio Senior Vice President Rakesh Goel said.

Finance Minister Pranab Mukherjee today announced raising of excise duty to 12% from 10% at present.

Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24% from 22% and a fixed duty of Rs 15,000.

With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra will hike prices of their vehicles.

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard