Mumbai: Auto stocks rose by as much as 4 percent on hopes that demand will pick up following the government's move to deregulate diesel prices.
Shares of Tata Motors gained 3.94 per cent, Motherson Sumi Systems rose by 3.78 per cent, Eicher Motors (2.59 per cent), Maruti (2.17 per cent) and Hero MotoCorp (2.08 per cent) on the BSE. Among others, shares of Bosch was up 1.70 per cent, Bharat Forge (1.60 per cent) and Bajaj Auto (1.58 per cent).
In a much-awaited reform, the government has deregulated diesel prices that resulted in a price cut of Rs 3.37 a litre. Retail rates of the fuel will now reflect international movement in oil prices. The broader market was also bullish with the BSE benchmark Sensex gaining 321.32 points to settle at 26,429.85.
