Auto sector-related stocks witness heavy demand on bourses

Shares of companies related to the auto sector were in demand on Wednesday after the Union Cabinet approved a Rs 26,058 crore-Production Linked Incentive (PLI) scheme for auto, auto-components and drone industries.

The scrip of Varroc Engineering zoomed 20 per cent, Jamna Auto Industries rose 6.25 per cent, Pricol Ltd jumped 3.52 per cent and G N A Axles Ltd gained 2.87 per cent on the BSE.

Motherson Sumi Systems rose 2.84 per cent, Sona BLW Precision Forgings went up 1.84 per cent and Minda Industries inched up 0.26 per cent.

Shares of Ashok Leyland gained 2.80 per cent, Tata Motors climbed 1.93 per cent, Bajaj Auto rose 0.78 per cent and Mahindra & Mahindra marginally rose 0.61 per cent.

''The Rs 26,058 crore PLI scheme for auto, auto components and drones is a major initiative to attract advanced auto technology and supply chains into India. This is a timely policy when global supply chains are looking for markets outside China for shifting supply chains. The PLI scheme's goal of investment of Rs 42,500 cr in 5 years is ambitious but achievable. In brief, bold reforms,'' V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.

Santosh Meena, Head of Research at Swastika Investmart Ltd, said stocks such as Jamna Auto, Varroc Engineering, GNA Axles, Pricol, Sona BLW, Motherson Sumi, and Minda Industries are likely to be the beneficiaries. ''The scheme looks to be a welcome move by the government as the electric vehicles and alternate fuel vehicle is likely to be eco friendly whereas, advanced technologies will enhance the safety and customer experience''.

On Wednesday, the Union Cabinet approved a Rs 26,058 crore-PLI scheme for auto, auto-components and drone industries to enhance India's manufacturing capabilities.

The scheme will incentivise the emergence of advanced automotive technologies' global supply chain in India.

It is estimated that over a period of five years, the PLI scheme for the automobile and auto components industry will lead to fresh investment of over Rs 42,500 crore, incremental production of over Rs 2.3 lakh crore and will create additional employment opportunities of over 7.5 lakh jobs, Union minister Anurag Thakur said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)