Nifty Auto Outlier In Trade; Gains 1%: Here's Why

Nifty Auto amid mixed sectoral performance has stood strong and in fact emerged as the outlier. Of the 11 sectoral indices, it is the top performance with gains of 1 percent as of writing this copy at 11:56 am. Other sectors in the green are FMCG, Realty, Media, pharma and financial service indices.

Of the 15 constituents, within the pack a good number of stocks namely TVS Motor, M&M, Tube Investments, Maruti, Eicher and Bajaj Auto are trading close to their 52-week high. Further, barring Sona and Bharat Forge all are gaining by up to 2.5% as for TVS Motor.

On the previous day i.e. July 14, 20222, the Maharashtra government has reduced the VAT on petrol and diesel sold in the state by Rs. 5/litre & Rs. 3/litre, respectively.

The move is seen as a positive news for the pack. ICICI Direct on the news said, "This is marginally positive for the domestic automobile space and could potentially support sales in the area of personal mobility (primarily two wheelers and passenger vehicles). Maharashtra is an important state for automobile sales with share of sales pegged at around 9% in 2-W space, around 10% in PV category and around 13% in CV domain. It is positive for auto OEMs ike Bajaj Auto and M&M in our cover".

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