Auto shares gain on excise duty cut

M&M, Eicher Motors, Maruti Suzuki, Hero MotoCorp, Bajaj Auto and Tata Motors are up 1-2% on the BSE.

Shares of automobiles companies have moved higher after the finance minister P Chidambaram proposed to reduce excise duty for small cars, two-wheelers from to 8% from 12%. The excise duty on SUV cut to 24% from 30% earlier, while for large and mid-segment cars cut to 20%.

Mahindra and Mahindra, Eicher Motors, Maruti Suzuki (India), Hero MotoCorp, Bajaj Auto and Tata Motors have moved higher between 1-2% on the Bombay Stock Exchange (BSE).

The BSE auto index is up nearly 1% as compared to 0.45% rise in benchmark S&P BSE Sensex at 1205 hours.