Nifty Auto Dips After Government Gives Major Boost To Semiconductor Manufacturers; TVS Motor, Eicher, Maruti, Hero, Bajaj Auto register strong sales
Automakers were the center of attention on Thursday after the Union Cabinet approved a comprehensive program for developing a sustainable semiconductor and display ecosystem in the country. Nifty Auto was under pressure with heavyweight stocks digging deep. With the exception of M&M and Balkrishna, all stocks on the index were trading lower.
At around 11:43 am, Nifty Auto was trading at 10,942.45, down 83.55 points or 0.8%. The index touched an intraday high and low of 11,094.75 and 10,916.75 respectively.
On the index, 2 scripts advanced while 13 scripts fell. M&M was the first winner with an increase of almost 1% while Balkrishna followed with a marginal rise in the level of equities.
TVS Motor was the best bear diving almost 5%, followed by Eicher Motor sliding over 2%. Maruti Suzuki and Hero MotoCorp plunged 1.7% each.
Bajaj Auto and Exide lost more than 1% each. Amara Raja Batteries and Bharat Forge lost 0.9% and 0.7%. Bosch and MRF plunged 0.6% each.
Tube Investments fell slightly, while Tata Motors and Ashok Leyland traded flat but in the red.
With the approval of the program for the development of the semiconductor and display manufacturing ecosystem in India with an expenditure of Rs76,000cr (> 10 billion USD), the Indian government announced incentives for each part of the supply chain, including electronic components, sub-assemblies and finished products.
According to the Cabinet, incentive support to the tune of Rs55,392cr (7.5 billion USD) has been approved under the PLI for large-scale electronics manufacturing, the PLI for computer hardware, the SPECS program and the program. of modified electronics manufacturing clusters (EMC 2.0). In addition, PLI incentives in the amount of Rs 98,000 (USD 13 billion) are approved for related sectors including ACC battery, automotive components, telecommunication and grid products, solar PV modules and white goods. .
Overall, the government has pledged to provide support of Rs 2,300,000 (USD 30 billion) to position India as a global electronics manufacturing hub with semiconductors as its core. based.