India's auto, component stocks gain as govt approves incentive scheme

Gna Axles

15/09/2021 10:58

** Shares of Indian auto and auto ancillary stocks gain
after India's federal cabinet approved about 260 bln Indian
rupees ($3.53 billion) in a production-linked incentive scheme
for the automobile sector
    ** Carmakers must invest 20 bln rupees over 5 years to
qualify for the scheme  urn:newsml:reuters.com:*:nFWN2QH0A2
    ** The Nifty auto index  .NIFTYAUTO  rises 0.8%
    ** Auto component stocks — GNA Axles  GNAA.NS , Motherson
Sumi  MOSS.NS , Varroc Engineering  VARE.NS , Balakrishna
Industries  BLKI.NS  — rise between 1% and 20%
    ** Shares of truck and car makers, including Eicher Motors
 EICH.NS , Tata Mortors  TAMO.NS , Ashok Leyland  ASOK.NS , gain
in the range of 0.8% to 2.8%
    ** Production-linked incentives are part of the country's
effort to create "champion" sectors to attract investment and
comes amid calls by Prime Minister Narendra Modi to be
self-reliant as a nation

($1 = 73.5540 Indian rupees)

 (Reporting by Nallur Sethuraman in Bengaluru)
 ((Sethuraman.NR@thomsonreuters.com; (Within U.S.
1-646-223-8780, Outside U.S. +91 8067496031); Reuters Messaging:
nallur.sethuraman.thomsonreuters.com@reuters.net))