Auto stocks gain on reports of a likely cut in GST rate; Tata Motors up 6%

Auto stocks rallied in the afternoon session on Thursday after Transport Minister Nitin Gadkari said the government was considering a cut in the goods and services tax (GST) rate on hybrid vehicle.

The government’s plan comes at a time when the auto sector is grappling with a steep drop in sales due to weak consumer demand, with several top automakers and component manufacuturers cutting production and laying off employees. 

At 01:21 am, Maruti was quoting 2 per cent higher at Rs 5,940.65 apiece while Mahindra & Mahindra (M&M) rallied over 2 per cent to Rs 517.15. The Nifty Auto