Indian auto shares at 10-month high after media report on small car tax cut proposal
auto stocks
jumped 4% to their highest level in 10 months on Monday, after Reuters reported that the government has proposed lowering the
goods and services tax
on small cars as part of sweeping
consumption tax cuts
.
Auto shares were the top sectoral gainers on the benchmark
Nifty 50
, which rose 1.3%.
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The government has proposed lowering the goods and services tax on small petrol and diesel cars to 18% from 28%, Reuters reported citing a government source.
India's
finance ministry
did not reply to an e-mail seeking comment.
All 15 stocks on the auto index rose. Motorcycle maker
Hero MotoCorp
jumped 7%, followed by top carmaker
Maruti Suzuki
's 6.6% rise.
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