Share market update: Auto shares slip as FM proposes special cess on fuel

Source: economictimes.indiatimes.com

NEW DELHI: Auto shares were trading in the negative zone in Friday’s afternoon session after the FM in the Budget speech proposed a special cess on both petrol and diesel.

This will result in the cost of ownership of vehicles to further go up which is a negative for the auto majors. The cess would be applicable in the financial year 2019-20, Sitharaman said, adding that it would be utilised for infrastructure development purpose.

The Nifty Auto index was trading 1.23 per cent down at 7978.05 around 01:23 pm.

Shares of Mahindra & Mahindra (down 2.15 per cent), Ashok LeylandNSE -3.22 % (down 2.11 per cent), Hero MotoCorp (down 2.10 per cent) and Bharat Forge (down 2.09 per cent) were trading lower.

Motherson Sumi Systems (down 1.81 per cent), Bosch (down 1.27 per cent), Tata Motors (down 0.99 per cent) and Maruti Suzuki India (down 0.92 per cent) were among the top losers in the index.

Benchmark NSE Nifty50 index was down 107.10 points at 11,839.65 while the BSE Sensex was down 339.62 points at 39,568.44.

Among the 50 stocks in the Nifty index, 9 were trading in the green, while 41 were in the red.

Shares of YES Bank, Vodafone Idea, GMR Infra, Bank of Baroda, PNB, SBI, SAIL, Indiabulls Housing Finance, L&T Fin Holding and ITC were among the most traded shares on the NSE.