From new record highs for Maruti Suzuki and Ashok Leyland to Hero MotoCorp crossing the ₹5,000 mark on Monday, these auto stocks made new records on the back of hopes for a GST rate cut.
1 / 8The Nifty Auto index ended with gains of over 4% on Monday, August 18, on hopes of potential rationalisation of GST rates, in-line with the Prime Minister Narendra Modi’s Independence Day address, promising next generation reforms on GST by Diwali this year. Most Auto stocks, from Maruti Suzuki, to Ashok Leyland made new highs in today’s session, in reaction to a potential GST rate revision to the downside. Here’s a look at some of the top movers of the day:
2 / 8Maruti Suzuki | Shares of India’s largest passenger car manufacturer gained 9% on Monday, marking the biggest single-day gain in five years. Brokerages like Morgan Stanley and Nomura have highlighted Maruti to be one of the beneficiary in case the GST rates on passenger cars are revised lower. The stock made a record high of ₹14,125 today. More on that here.
3 / 8Ashok Leyland | Another stock that made a record high today was Ashok Leyland. The 8% upmove on Monday was also the biggest since February 2021. Besides the boost from a potential GST cut, Ashok Leyland’s shares were also boosted by some strong management commentary on its earnings call, and most brokerages reiterating their positive stance on the stock.
4 / 8Hyundai Motor India | India’s largest IPO till date gained as much as 10% on Monday, in-line with the moves in other passenger vehicle stocks. The stock made a new post-listing high on Monday, taking their gains from the IPO price now to 25%.
5 / 8TVS Motor Company | The 6.5% surge seen by the two-wheeler manufacture was the biggest single-day gain since October 2021. This was also the fourth session that the stock has gained in the last five. Shares made a new record high today.
6 / 8Hero MotoCorp | Cited as one of the biggest beneficiaries in the two-wheeler space, Hero Moto shares gained 6% on Monday, to cross the ₹5,000 mark intraday. The stock has now extended its year-to-date advance past 20% so far with Monday’s move.
7 / 8Besides the regular names, shares of auto ancillaries also rallied on Monday, including component manufacturers, tractor stocks and tyre stocks.
8 / 8Shares of Escorts Kubota gained 7% on Monday, as did those of Endurance Technologies. Tyre stocks like Apollo Tyres surged over 7.5%, while those of CEAT and MRF gained over 4% each.
