The heat generated by the recommendation to impose a hefty levy on diesel-powered cars appears to have cooled off a bit with the auto stocks regaining some ground in today’s trading.
This is despite concern over inflation and possible RBI stance in cutting interest rates.
It was not only two-wheeler stocks but even four-wheeler counters with diesel cars in their product portfolio that seem to have weathered the controversy, at least for the time-being.
In the two-wheeler space, Hero MotoCorp was trading at Rs 1,970, a gain of Rs 11.65. But Bajaj Auto was marginally down by Rs 2.20 to Rs 1,559.
In the four-wheeler space, the response was similarly mixed. Mahindra & Mahindra gained Rs 5.80 to Rs 688.90 and Maruti Suzuki was up by Rs 8.50 to Rs 1,116. But Tata Motors was marginally down by Rs 2.55 at Rs 235.30.
But many auto component stocks were down. Bharat Forge shed Rs 1.15 at Rs 307.05 and Bosch lost Rs 31.80 at Rs 8,710. Cummins India and Exide Industries were down marginally.