Monday's Bull! Nifty Auto outperforms counterparts, rallies over 2%; Hero, Maruti, Tata Motors Bajaj Auto, M-;M drive the index

17 Jan 2022 , 01:38 PM

Nifty Auto index was the top bull of Monday’s trading session with heavyweight stocks becoming the top picks. Auto stocks are in focus amid the government’s push for creating a vibrant ecosystem for Semiconductor Chip Design in the country. Also, automakers are said to announce another price increase in their products with auto major Maruti Suzuki already hiking its prices. Further, corporate earnings are also set to sway sentiments in this sector.

At around 1.31 pm, Nifty Auto was trading at 11,878.05 higher by 235 points or 2.02%. The index has touched an intraday high of 11,914.95.

On the index, 13 scrips advanced while 2 scrips declined. Bharat Forge and TVS Motor were the only bears with a marginal downside.

Among the top-performing stocks, Hero MotoCorp took lead skyrocketing by nearly 6% followed by Exide surging over 5%. Amara Raja Batteries soared 3.5%, while Tata Motors jumped 3%.

Bajaj Auto advanced 2.5%, while Maruti Suzuki zoomed over 2%. Stocks like Bosch, M&M, Eicher Motor and Ashok Leyland gained by more than 1% each. MRF and Balkrishna climbed 0.6% each. Tube Investments was marginally up.

Maruti Suzuki has announced a price increase across its vehicles. The weighted average price increase in ex-showroom Prices (Delhi) across Models is 1.7%. The new prices are effective from today i.e. 15th January 2022.

Other auto companies are expected to follow suit.

On Sunday, the Ministry of Electronics and Information (MeitY) announced that it is seeking applications from 100 domestic companies, start-ups and MSMEs under its Design Linked Incentive (DLI) Scheme. The scheme, which was a part of the Rs76,000cr ($10 billion) package that the government announced in December, aims to nurture at least 20 domestic companies involved in semiconductor design and facilitate them to achieve turnover of more than Rs1500cr in the next 5 years.