Auto stocks extended Budget Day gains after the Finance Minister Nirmala Sitharaman announced scrappage policy. Extending the gains of the previous session, the BSE Auto index soared 3 per cent at 23,750.46 in early trading. Among individual auto stocks, Tata Motors zoomed 6.5 per cent to Rs 298, while M&M, Maruti Suzuki and Bajaj Auto gained 2-3 per cent each.
Finance minister Nirmala Sitharaman stated in her Budget speech that under the voluntary vehicle scrapping policy, personal vehicles would undergo a fitness test after 20 years, whereas commercial vehicles would need to take it after completing 15 years. The finance minister further added that this measure will promote fuel-efficient and environment-friendly vehicles and help the government slash India's massive import bills.
Ms Sitharaman also announced a capital investment of Rs 5.54 lakh crore in developing infrastructure around the country, which is expected to boost the demand for heavy and medium commercial vehicles.
The benchmark indices build on the momentum of Budget day, with the BSE Sensex rallying 1,290.55 points or 2.68 per cent at 49,928.55 and the NSE Nifty adding 386.60 points or 2.69 per cent at 14,675.