Eight auto stocks rose by 1.04% to 4.08% at 12:55 IST on BSE on hopes demand will pick up for vehicles as diesel price was cut sharply after government's diesel deregulation.
Meanwhile, the BSE Sensex was up 337.47 points, or 1.29%, to 26,444.78.
Among auto stocks, Maruti Suzuki India (up 1.53%), Tata Motors (up 4.08%), Ashok Leyland (up 3.81%), Eicher Motors (up 2.76%), Escorts (up 1.75%), Force Motors (up 1.62%), SML ISUZU (up 1.24%), and Mahindra & Mahindra (M&M) (up 1.04%) gained.
The demand for diesel driven vehicles is expected to pick up in ongoing festival season as diesel price was cut sharply after government's diesel deregulation. Any cut in fuel prices positively influence buying decisions of price sensitive customers.
After a Cabinet meeting on Saturday, 18 October 2014, Finance Minister Arun Jaitley announced that diesel price stood deregulated to allow it to move as per market conditions, just like petrol. Following this, Indian Oil Corporation (IOCL) announced reduction in diesel price by Rs 3.37 per litre (including VAT) in Delhi with corresponding decrease in other States from 19 October 2014.
The movement of prices in international oil market and rupee dollar exchange rate shall continue to be closely monitored and developing trends of the market will be reflected in future price changes in diesel prices, IOCL said.
Powered by Capital Market - Live News
