Auto stocks continued to remain on buyers' radar on Monday, fuelled by hopes of demand recovery following the recent GST rate cut announcement.
Shares of Bharat Forge jumped 5.73 per cent, Ashok Leyland surged 4.85 per cent, Samvardhana Motherson International climbed 4.22 per cent, Tata Motors rallied 3.97 per cent and Bajaj Auto edged higher by 3.97 per cent on the BSE.
The stock of Mahindra & Mahindra climbed 3.96 per cent, Exide Industries (3.62 per cent), Eicher Motors (3.32 per cent), TVS Motor (3.25 per cent), Sona BLW Precision Forgings (3.16 per cent), Maruti Suzuki India (2.32 per cent), Bosch (1.31 per cent), Hero MotoCorp (1.26 per cent) and Hyundai Motor India (0.42 per cent).
The BSE auto index jumped 3.12 per cent to 60,719.93.
"Auto and ancillary stocks continued to rally on expectations of demand recovery following GST rate cuts," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Gaurav Garg, Analyst, Lemonn Markets Desk, said, "Optimism over GST rate cuts continued to fuel buying interest, especially in autos and consumer durables, as investors bet on a demand surge post September 22 when new rates take effect." Mahindra & Mahindra on Saturday said it has reduced prices of its passenger vehicle range by up to Rs 1.56 lakh with immediate effect to pass on GST rate cut benefit to customers.
The price cut follows the announcement of revamped GST at the 56th GST Council meeting held on September 3, the Mumbai-based auto major said in a statement.
Tata Motors and Renault India have also cut vehicle prices owing to GST rate rationalisation.
