Auto and consumer durables shares ended the day on a positive note today, surging as much as 9 per cent, in the wake of the government deciding to enhance capital infusion into PSU banks to enable them to provide cheaper retail loans.
Shares of TVS Motor surged 8.81 per cent, while Tata Motors gained 1.44 per cent, Maruti Suzuki (1.10 per cent), Mahindra & Mahindra (0.93 per cent) and Hero Motocorp (0.13 per cent). Tracking gains in these stocks, the BSE auto index ended the day at 11,466.75, up 0.94 per cent.
From consumer durables stocks, PC Jeweller rallied 4.19 per cent, while Whirlpool went up by 0.86 per cent, Titan (0.35 per cent) and TTK Prestige (0.29 per cent). The consumer durables index ended the day 0.35 per cent higher at 5,912.77. Ahead of the festival season, public sector banks will provide cheaper loans for auto and consumer goods purchases with a view to stimulating demand.
Banks would lower lending rates as the government yesterday decided to provide additional funds to the PSU banks to enable them financing of auto and consumer goods purchases. The decision to increase the quantum of capital infusion to the banks was taken at a meeting between Finance Minister P Chidambaram, RBI Governor Raghuram Rajan and Economic Affairs Secretary Arvind Mayaram in New Delhi yesterday.
Meanwhile, surrendering its early gains, Jet Airways closed with losses of over 1 per cent on the National Stock Exchange due to profit booking in an overall flat market on Friday. At the National Stock Exchange, shares closed down by 1.19 per cent at Rs 382. On the BSE, the stock had surged by 7.26 per cent to Rs 414.70 in early trade, but finally ended the day at Rs 384.50, down 0.54 per cent.