Shares of auto majors Hero MotoCorp and Mahindra & Mahindra gained on Tuesday after the Finance Minister Arun Jaitley on Monday presented the Union Budget with a focus on reviving rural demand.
At 1.46 pm, Hero MotoCorp was trading 6.79 per cent up at Rs 2669.50, while Mahindra & Mahindra (M&M) shares were trading 3.11 per cent up at Rs 1,265. The BSE Sensex was trading 670 points, or 6.77 per cent, up at 23,672. Share price of Hero MotoCorp and Mahindra and Mahindra closed 6.07 per cent and 3.22 per cent up at Rs 2651.50 and Rs 1266.25, respectively.
According to Prabhudas Lilladher, continued allocation under MGNREGA and infrastructure focus are positive for the auto sector. The biggest beneficiaries would be M&M and Hero MotoCorp on rural side.
According to Ambit Capital, M&M and Hero MotoCorp to be key indirect beneficiaries of increased spend for agriculture and rural development.