After a firm opening, Indian stock markets rose steadily and gained further momentum in the last two trading hours. All the sectoral indices are trading positive. Metals, realty and banking stocks are the leading gainers.
All the auto stocks are trading positive with TVS Motors and Eicher Motors being the biggest gainers. After a 2% hike in excise duty announced in the Union Budget 2012-13, automobile companies Maruti Suzuki and Tata Power had raised prices of passenger cars. It is now the turn of commercial vehicle manufacturers to pass on the tax hike. As per a leading financial daily, Tata Motors increased prices across its commercial vehicle range by 2-5% amounting to Rs 5,000-60,000. As dealers still have old stocks, the new prices are likely to become effective in four-six weeks time. Tata Motors' stock is up 1.1%.
As per a leading financial daily, Ashok Leyland is planning to enter into aerospace. The company is in talks with foreign players for technological partnerships to make a foray into the segment. It is considering entering both civilian and defence sectors. Once finalized, the company will set up a separate company for the aerospace venture. As per the management, the nature of association (equity partnership or a joint venture) will depend on kind of products the company wants to develop. It will explore synergies with existing group companies for starting operations in specific aerospace sectors. The stock is up 3.3%.