Nitin Gadkari assures support to auto industry, stocks jump up to 7.8%

New Delhi : Crisis-hit auto industry received an assurance from union minister Nitin Gadkari on Thursday of all possible support during the tough time, resulting in a stock jump up to 7.8%.

He promised to provide all support including demands of GST reduction with Finance Minister Nirmala Sitharaman. Clearing the air on petrol and diesel vehicle sales, he said that the government has no intention to ban petrol or diesel vehicles to promote e-vehicles.

Shares of Tata Motors zoomed 7.81 percent, Exide Industries 2.83 percent, Bharat Forge 2.80 percent, Motherson Sumi Systems 2.63 percent, Maruti Suzuki India 2.41 percent, on the BSE.

Likewise, Mahindra & Mahindra rose 2.23 percent, Bajaj Auto 1.62 percent, Hero MotoCorp 1.54 percent, TVS Motor Company 1.45 percent, Bosch 0.99 percent, Ashok Leyland 0.80 percent and Eicher Motors 0.72 percent.

The sudden gain in stocks zoomed BSE Auto Index by 2.3% to close at 15,563.90.

With the impending price increase of vehicles and the upcoming of BS-VI norms deadline, "It is your (industry's) demand that there should be a reduction in tax of petrol and diesel vehicles. Your suggestions are good. I will take your message to the finance minister," Gadkari said at annual SIAM convention.