Auto stocks on bumpy ride on buzz of additional excise duty on diesel-cars

The auto industry has hit a road bump on petroleum ministry’s recommendation of additional excise duty on diesel-cars. The petroleum ministry has written to the Finance Minister Pranab Mukherjee to levy the said duty which, if accepted, will skyrocket the price of diesel cars by whopping Rs 1.7 lakh and may add Rs 2.55 lakh or more to the prices of medium and larger cars viz., sedans and SUVs. The auto stocks are bumping on this report and Mahindra & Mahindra is the biggest victim to this buzz.

Mahindra & Mahindra is currently trading at Rs. 676.70, down by 18.60 points or 2.68% from its previous closing of Rs. 695.30 on the BSE. The scrip opened at Rs. 691.10 and has touched a high and low of Rs. 692.00 and Rs. 676.05 respectively. So far 51343 shares were traded on the counter.

Maruti Suzuki India is currently trading at Rs. 1107.80, down by 38.50 points or 3.36% from its previous closing of Rs. 1146.30 on the BSE. The scrip opened at Rs. 1141.00 and has touched a high and low of Rs. 1144.65 and Rs. 1102.00 respectively. So far 79301 shares were traded on the counter.

Tata Motors is currently trading at Rs. 238.75, down by 4.20 points or 1.73% from its previous closing of Rs. 242.95 on the BSE. The scrip opened at Rs. 244.00 and has touched a high and low of Rs. 244.05 and Rs. 237.30 respectively. So far 880550 shares were traded on the counter.