Auto stocks rise, IT slips

Ahead of the expiry of derivative contracts for the month of June, Nifty Auto was up 1.37 per cent, fuelled by a unanimous surge in auto stocks.

Automakers were led by Tata Motors quoting Rs. 166.25 per share, up by 3.20 per cent, Mothersumi was at Rs. 121.45 per share, up by 2.23 per cent, M&M at Rs. 657.10 per share, up by 2.11 per cent, Ashok Leyland at Rs. 87.45 up by 2.04 per cent, Bharat Forge was at Rs. 456.40up by 1.74, while Eicher Motor was at Rs. 19,480.00, up by 1.71 per cent.

Auto stocks were experiencing a downtrend offlate due to contract of demand and NBFC crisis. To add to the pain the government think tank, National Institution for Transforming India (NITI Aayog) proposed that the internal-combustion powered two and three wheelers should be banned by 2023 and 2025, respectively. Automakers complained that these moves by government asking for a quick transition to electronic vehicles is hurting the industry badly.

On the other hand, IT stocks were losing ground. E-commerce company Infibeam was down by 4.44 per cent, quoting Rs. 44.10 per share, Tech Mahindra was down by 2.07 per cent at Rs. 703.25 per share, HCL Tech was trading at Rs. 1,061.45 per share, down by 1.60 per cent, while IT majors Wipro and Infy were down more than 1 per cent at Rs. 282.15 and Rs. 730.15 per share, respectively on Friday.