Stocks of automotive original equipment manufacturers have rallied this morning at the Indian stock exchanges, after the state-run oil marketing fimrs announced the reduction of petrol price by Rs 2.46 a litre, , the second time this month, is the positive step for the sector that is struggling with a demand slump.
Stocks of automotive original equipment manufacturers have rallied this morning at the Indian stock exchanges, after the state-run oil marketing fimrs announced the reduction of petrol price by Rs 2.46 a liter, the second time this month, is the positive step for the sector that is struggling with a demand slump.
According to a BS report, this is the second time that fuel retailers have reduced petrol price since they raised it by Rs 7.50 a litre as early as on May 24 this year. The retailers had last reduced the price by Rs 2 per litre on June 3, 2012.
Indian automobile industry has been reeling under a demand slump as petrol vehicles found lesser buyers due to the high price of the fuel with more and more consumers opting for diesel vehicles.
The Bombay Stock Exchange, auto index has rallied almost two percent or 152 points in opening trades, against 1.5 percent gain in the benchmark Sensex. Tata Motors, Maruti Suzuki and Mahindra and Mahindra are opened higher by two percent each, while Ashok Leyland, Bajaj Auto and Hero MotoCorp are up 1-2 percent on the BSE, added the report.
