Auto stocks fall up to 5% as FM proposes infra cess

Auto stocks fell by up to 5 per cent today after Finance Minister Arun Jaitley proposed to levy an infrastructure cess of up to 4 per cent on various categories of vehicles.
Shares of Maruti Suzuki India fell by 4.76 per cent to Rs 3,246.55 -- its 52-week low on BSE.
Among others, Tata Motors went down by 3.88 per cent and Mahindra & Mahindra fell by 1 per cent.
In the Budget for 2016-17, the finance minister proposed a cess of 1 per cent on small petrol, LPG and CNG cars, 2.5 per cent on diesel cars of certain capacity and 4 per cent on other high-powered vehicles and SUVs.

Jaitley also proposed "to collect tax at source at the rate of 1 per cent on purchase of luxury cars exceeding value of Rs 10 lakh and purchase of goods and services in cash exceeding Rs 2 lakh."
"The pollution and traffic situation in Indian cities is a matter of concern," Jaitley said while unveiling the Budget 2016-17 in Lok Sabha today.

(Reopens DCM79)
Among realty stocks, Unitech surged 7.85 per cent, DLF was up 7.83 per cent, Housing Development and Infrastructure Ltd (3.01 per cent) and Sobha (2.83 per cent).
Omaxe rose by 1.89 per cent, Indiabulls Real Estate (1.48 per cent), Godrej Properties (1.16 per cent) and Oberoi Realty (1.03 per cent).

The BSE realty index went up by 3.15 per cent to settle at 1,497.06.