Analysts bullish on auto stocks amid govt. measures on fuel, steel price

At the operational level, Nomura sees margin benefit for companies in the backdrop of a cut in steel prices

Analysts have turned bullish on auto stocks amid government’s measures to cut excise duty on petrol and diesel. That apart, tweaks in the import duty of raw material for steel manufacture, they believe, will aid demand recovery and lower the cost of vehicle ownership going ahead.

In the past two trading sessions, the BSE Auto index has moved up nearly 2 per cent given the development. In comparison, the S&P BSE Sensex has remained choppy with a negative bias.

Over the weekend, the government