Auto Stocks Rally Up to 6% on GST Cuts, BofA Upgrade

Auto stocks surged on September 8 after leading automakers announced price cuts to pass on benefits from the GST Council’s recent tax reduction on vehicles. The Nifty Auto index rose 2.5% in morning trade to 26,977, making it the top sectoral gainer.

t Forge and Leyland led the rally, rising nearly 6% and over 4% respectively. Tata Motors gained 3% to ₹712 after confirming it will slash prices across cars and SUVs by up to ₹1.55 lakh from September 22. Mahindra & Mahindra also traded higher. Adding to the momentum, Bank of America upgraded several auto stocks, citing stronger demand prospects and upside potential following the tax cuts.