Auto stocks were trading mixed in morning trade on August 26, after the Finance Minister Nirmala Sitharaman on August 23 announced a slew of measures to improve investor sentiment and help auto, NBFC and PSB sectors
Around 0930 hours, the BSE Auto index was 0.28 percent up at 15,772 with shares of Ashok Leyland (up 5.73 percent), Mahindra & Mahindra (up 2.64 percent), Bosch (up 1.35 percent), Exide Industries (up 1.24 percent) and Eicher Motors (up 0.87 percent) among the top gainers.
However, Motherson Sumi Systems (down 1.38 percent), Hero MotoCorp (down 1.22 percent), Maruti Suzuki (down 0.60 percent), Bajaj Auto (down 0.57 percent) and TVS Motor (down 0.19 percent) were in the red in the index.
Giving respite to the auto sector, the Finance Minister on August 23 deferred the revision of one-time registration fees till June 2020, which, analysts say, may have a significant impact on short-term demand.
Besides, the rate of depreciation for all vehicles was raised by up to 30 percent for vehicles purchased up to March 2020, which is also expected to give a boost to the CV and PV players.
Global brokerage Macquarie believes the steps will have a small positive impact on the near-term demand and the steps to improve liquidity and lower auto loan rates will benefit all segments.
"Higher depreciation rate and replacement of old vehicles by the government departments will benefit CV and PV," said the brokerage.
However, the two-wheelers will be disappointed by the steps, the brokerage added.
The market benchmarks Sensex and Nifty were in the green however both the key indices pared gains due to weak global sentiment.
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