Auto Stocks Soar on Potential Tariff Exemption

Auto stocks surged after US President Trump suggested a temporary exemption of tariffs on the industry. Significant gains were observed in leading Indian automotive companies, contributing to a strong rise in Indian stock indices. The BSE auto index rose by 3.43%, propelled by gains in major companies.

Auto stocks experienced a significant rally on Tuesday in the wake of US President Donald Trump's comments about potentially exempting the industry from tariffs he had earlier imposed. This development provided a boost to market sentiment and pushed several auto stocks into positive territory.

Leading the charge in the Indian market were Motherson, which jumped over 8%, Bharat Forge with nearly 6% gains, Tata Motors rising by 4.70%, and Mahindra & Mahindra climbing 4% on the BSE. Other notable performers included TVS Motor, Bajaj Auto, Hero MotoCorp, Ashok Leyland, Maruti, and Eicher Motors, which all posted gains.

The BSE auto index rose by 3.43% to 47,634.47, reflecting the enthusiastic response from investors. This bolstered the 30-share BSE benchmark Sensex and the NSE Nifty, which both saw significant gains. Vikas Jain, Head of Research at Reliance Securities, emphasized the positive sentiment surrounding Trump's announcement and the potential tariff exemptions for imported vehicles and auto parts.

(With inputs from agencies.)