Auto stocks surge on record demand on first day of Navratri under new GST regime

New Delhi: Auto stocks surged 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 weak trend in the broader equity market, shares of Hyundai Motor India jumped 4.69 per cent, Maruti climbed 3.24 per cent, Mahindra & Mahindra went up by 2.69 per cent, TVS Motor Company rallied 2 per cent, Bajaj Auto advanced 1.91 per cent, and Tata Motors edged higher by 1.68 per cent on the BSE.

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

The BSE auto index climbed 0.98 per cent to 61,253.50.

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.