New Delhi: Shares in automobiles companies gained ground Friday as petrol price was cut by Rs 2.46 per litre, the second reduction this month. The reduction in rates follows a Rs 2.02 a litre cut in prices from June 3.
Shares in Maruti Suzuki, India’s biggest car manufacturer, jumped 3.71 per cent to Rs 1,160 on the BSE. It was the top gainer on the 30-share Sensex.
Mahindra and Mahindra traded up 2.91 per cent, Hero MotoCorp gained 2.12 per cent, Tata Motors rose 2.06 per cent, Bajaj Auto advanced 1.76 per cent, and Ashok Leyland traded 1.21 per cent higher.
Following the rally in these stocks, the BSE auto index gained 2.14 per cent to trade at 9,453.63.
Rising petrol prices had turned away investors and led to inventory pile ups, analysts said. The automobile industry has been reeling under a demand slump as petrol vehicles found fewer buyers and more consumers opting for diesel vehicles.
Shares in Maruti Suzuki, India’s biggest car manufacturer, jumped 3.71 per cent to Rs 1,160 on the BSE. It was the top gainer on the 30-share Sensex.
Mahindra and Mahindra traded up 2.91 per cent, Hero MotoCorp gained 2.12 per cent, Tata Motors rose 2.06 per cent, Bajaj Auto advanced 1.76 per cent, and Ashok Leyland traded 1.21 per cent higher.
Following the rally in these stocks, the BSE auto index gained 2.14 per cent to trade at 9,453.63.
Rising petrol prices had turned away investors and led to inventory pile ups, analysts said. The automobile industry has been reeling under a demand slump as petrol vehicles found fewer buyers and more consumers opting for diesel vehicles.
