Auto stocks witnessed a steady rise on Wednesday, with industry giants like Tata Motors, Bajaj Auto and Hero MotoCorp experiencing bullish momentum on D-street. The optimism was largely owing to reports signalling that China might ease restrictions on rare earth policy. Multiple reports suggested that the dragon might grant rare earth licenses to Indian OEMs.
At 02:55 pm, the Nifty Auto index was trading at 23,814.70 level mark, up by 55 points. Bajaj Auto shares surged over 1.24%, trading at ₹8,731 price level on the National Stock Exchange.
Hero MotoCorp followed suit and experienced a rise of more than 2% before erasing some gains. Tata Motors and TVS Motors experienced a rise of more than a per cent on Wednesday.
While the regulatory landscape remains uncertain amid geopolitical tensions, any positive developments are likely to impact the share price trajectory of domestic OEMs.
Meanwhile, a Reuters report mentioned that officials from the US and China have agreed on a framework to remove China's restrictions on rare earth exports.
"We have reached a framework to implement the Geneva consensus and the call between the two presidents," US Commerce Secretary Howard Lutnick said recently. "The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework," Lutnick added.
In a separate media briefing, China's Vice Commerce Minister Li Chenggang reportedly said "the two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5th and the consensus reached at the Geneva meeting."
