Auto sector on a roll! These top stocks made you very rich today; here is why
Notably, S&P BSE Auto surged by more than 605 points or 3.03% to trade at 20,565.78. Every major auto stock was in the green!
Investors were quite upbeat in Indian markets today as they drove Sensex up over 400 points so far in Dalal Street today. Almost every stock was witnessing a buying wave. But there was one sector where investments were indeed massive. So much so that many investors in these stocks turned much richer today. Notably, S&P BSE Auto surged by more than 605 points or 3.03% to trade at 20,565.78. Every major auto stock was in the green!
In the sector, at around 1242 hours, HeroMotoCorp took the lead by trading at Rs 3203.05 per piece, up by 5.52%, followed by Motherson Sumi at Rs 157.85 per piece, above by 5.37%, Tata Motors at Rs 165.55 per piece, higher by 4.55%, Balkrishna Industries at Rs 165.40 per piece, up 4.01%, Exide Industries at Rs 259.75 per piece, above by 3.94%.
Other companies like Cummins India, Bajaj Auto, M&M, Ashok Leyland, TVS Motors, Eicher Motors, Maruti Suzuki, MRF, Bharat Forge and Apollo Tyre also gained in the range of 0.47% to 3.50%.
It was only BOSCH company which was in red, however, the decline was gradual.
— Zee Business (@ZeeBusiness) December 12, 2018
So what boosted investors faith in auto stocks?
According to Bloomberg news, progress toward easing the steep tariffs China imposed on U.S. vehicle imports this year lifted carmaker stocks across the globe, as investors wagered on a thawing of tensions that have damaged the world’s biggest automotive market.
It's not just Indian auto stocks, even Toyota Motor Corp. and Hyundai Motor Co. tracked earlier gains as did Daimler AG, General Motors Co. and Tesla Inc.
Reportedly, a proposal to eliminate the 25 percent surcharge slapped onto U.S.-made cars this year has been submitted to China’s cabinet. The plan would be reviewed in coming days, people familiar with the matter said.
Hence, if you have invested in auto stocks, then today you reap fruits of your hard-earned investment.