Mumbai: The auto industry is in general satisfied with the  continuation of CENVAT cuts announced in the Union Budget which has been considered as a good step but lack of incentives for exports has been regretted.

The Fringe Benefit Tax has also been scraped off and the Budget proposes to reduce the additional excise duty on big cars with engine capacities of 2,000 cc and above by Rs 5,000 per unit. It will also cut the duty of petrol-driven trucks to eight per cent from 20 per cent at present.
The BSE Auto index has advanced 3% to 4,588.

Exide Industries has advanced 6.5% to Rs 68. Maruti has advanced 5.5% to Rs 1,092.

Bajaj Auto and Mahindra & Mahindra have gained over 4% each at Rs 995 and Rs 739, respectively.
Hero Honda, Ashok Leyland and Bosch are the other marginal gainers so far.

Tata Motors on the other hand has slipped 3% to Rs 274. Escorts and Bharat Forge are down 1% each.

FMCG stocks rally

The BSE FMCG index has gained smartly in today's trade.

The government's decision to abolish the Fringe Benefit Tax (FBT) and no reversal in excise duty cuts has gone down well with the investors. The sector has also benefitted on hopes of implementation of Goods Service Tax from next year.

The index today opened at 2,333 after ending flat on Budget day. It gained 6% to a high of 2,455, and is now up nearly 5% at 2,426.

Among the FMCG stocks Marico and ITC are the biggest gainers. Marico has added 7.3% to Rs 77. ITC has surged 7% to Rs 212, after no change in excise cuts on cigarettes were announced yesterday.

Hindustan Unilever has advanced 2.5% to Rs 283.

Godrej Consumer, United Spirits and Nestle has added 3-4% each to Rs 170, Rs 866 and Rs 2,000 respectively.

Colgate Palmolive, Tata Tea, Britannia and Dabur India have also moved up.

Source: Business Standard

Union Budget 2009: The complete coverage
More on News