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

Tata 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 (M&M) and Bajaj Auto are trading higher by 1-6% on the Bombay Stock Exchange (BSE). The BSE Auto index was up 2.6% as compared to 1.9% 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 (SIAM) 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%, added report.

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

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

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