Auto Stocks Surge as Navratri Sales Ignite Market Under GST Boost

Auto stocks experienced a significant surge on Tuesday as major automakers reported robust sales on the first day of Navratri. The rise corresponds with the implementation of the new GST regime, which has resulted in reduced vehicle prices, generating increased consumer demand.

Leading car manufacturers, such as Maruti Suzuki and Hyundai Motor India, witnessed substantial sales, with consumers eager to purchase their preferred models at more affordable rates. This spike in sales activity led to a marked increase in auto stock prices, even as the broader equity market displayed weakness.

Shares of Hyundai Motor India rose by 4.69 per cent, Maruti surged by 3.24 per cent, while Mahindra & Mahindra saw an increase of 2.69 per cent. Similarly, TVS Motor Company, Bajaj Auto, and Tata Motors also experienced gains. The BSE auto index itself rose by 0.98 per cent, buoyed by favorable conditions brought on by the GST rate cuts.

(With inputs from agencies.)