6 hours ago
Hyundai shares soar 7% to surpass IPO price, hit new all-time high amid high volumes
Hyundai stock has also surpassed its listing day high of Rs 1,970 recorded on October 22, 2024.
Synopsis The surge in Hyundai Motor India could be attributed to multiple factors, including RBI's repo rate cut, boosting auto demand, the company's gains in India's electric vehicle market, and its investment in renewable energy. Hyundai's EV strategy and macroeconomic tailwinds are seen as key growth drivers. Shares of Hyundai Motor India surged 6.8% on Monday to hit a fresh all-time high of Rs 1,986.60 on the BSE, surpassing its listing day high of Rs 1,970 recorded on October 22, 2024, amid heavy trade volumes.
ADVERTISEMENT Around 12:20 pm today, 90,000 shares of the company were traded on the BSE, with a total turnover of Rs 17.95 crore. At the time, the company's market capitalisation stood at Rs 1.56 lakh crore.
The rally in the stock may also be on the back of a combination of the following factors.
One of the broader macroeconomic factors possibly aiding auto stocks was the recent move by the RBI's Monetary Policy Committee (MPC). On June 6, RBI Governor Sanjay Malhotra announced a 50 basis point cut in the central bank's policy repo rate, which came in above analysts' rate cut is expected to bring down borrowing costs and lower EMIs, potentially boosting demand for vehicles—a sentiment that often reflects positively on auto manufacturers such as terms of sectoral developments, Hyundai's growing traction in the electric vehicle (EV) segment may also be contributing to its momentum. According to a recent note by Equirus Securities, electric car sales in May 2025 saw a 55% year-on-year growth, with Hyundai's e-Creta among the key contributors alongside new model launches from M&M and JSW MG Motors.
ADVERTISEMENT The company has been instrumental in increasing EV penetration, which rose to 4.1% in May 2025 from 2.6% in May is now seen as one of the leading players in India's EV shift, intensifying competition in a segment where Tata Motors had previously dominated.
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Also read: MCX shares rise 4%, hit lifetime high on Sebi's nod for launch of electricity derivativesIn a separate corporate development, Hyundai Motor India on Friday disclosed that it had released Rs 165.8 crore as the first tranche of investment for acquiring a 26.13% stake in FPEL TN Wind Farm Private Ltd, a renewable energy project by Fourth Partner Energy.
ADVERTISEMENT The investment is part of a broader agreement signed in November 2024, under which Hyundai committed to invest Rs 380.5 crore in one or more move signals the company's commitment to sustainable operations and long-term energy cost optimisation, although the company has not yet commented on any direct financial impact.
ADVERTISEMENT Also read: Momentum Alert! June 10–11 to offer big moves, eyes on June 16 for trend shift: Harshubh ShahThis development has been seen as 'neutral to positive' for the company in the short term by domestic brokerage firm SBI Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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