Auto stocks end higher on bumper sales on first day of Navratri under new GST regime

New Delhi: Auto stocks ended higher on Tuesday after automakers saw bumper sales on the first day of Navratri under the new GST regime.

The sharp spike in bookings for automobiles drove auto stocks higher.

Leading carmakers Maruti Suzuki and Hyundai Motor India on Monday saw bumper sales with buyers queuing up to buy their favourite models at lower price tags under the new GST regime.

Bucking a muted trend in the broader equity market, shares of Ashok Leyland rallied 3.41 per cent, MRF edged higher by 2.08 per cent, Maruti climbed 1.83 per cent, Mahindra & Mahindra went up by 0.89 per cent, Tata Motors edged higher by 0.78 per cent, Eicher Motors (0.57 per cent), Apollo Tyres (0.28 per cent) and Hyundai Motor India (0.08 per cent) on the BSE.

Maruti also hit its 52-week high during the morning trade.

The BSE auto index climbed 0.61 per cent to 61,028.38.

"Sector-wise, auto, metal, and financial gained on signs of robust festive demand post-GST cuts," Vinod Nair, Head of Research at Geojit Investments Limited, said.

Tata Motors on Tuesday said its dealers retailed around 10,000 passenger vehicles on the first day of Navratri.

The Mumbai-based auto major also recorded over 25,000 customer enquiries at its passenger vehicle dealerships across the country.

New lower GST rates kicked in from Monday, resulting in a slashing of prices of as many as 375 items ranging from toothpaste and shampoo to cars and television sets, a move seen as an attempt to boost consumption to cushion an economy facing tariff headwinds.