Auto stocks gain on fuel price cut; Maruti, Ashok Ley, M&M gain up to 5%

Analysts also believe that the government's export duty hike on steel and plastic bodes well for the auto sector due to elevated commodity inflation.

Shares of automobiles companies traded higher by up to 5 per cent on the BSE in Monday’s trade after the Union government slashed excise duty on petrol and diesel by Rs 8/litre and Rs 6/litre, respectively. The government also reduced import duty on key raw materials like steel and plastic, whereas, increased export duty on iron ore and other steel intermediates.

At 10:47 am; the S&P BSE Auto index, the top gainer among sectoral indices, was up 2.3 per cent, as compared to 0.52 per cent rise in the S&P BSE Sensex. Among individual stocks, Ashok Leyland and Maruti