Auto stocks end mixed after Budget

Reversing its initial loses,shares of Mamp;M rose by 3.19 per cent to close at Rs 614.10 on the BSE. During the the early session,the stock had slipped by 1.68 per cent.

Market observers opined that the Budget is likely to benefit the auto sector.

8220;Overall,the Union Budget 2011-12 is positive for the automobile sector as the central excise duty has been kept unchanged. Further,special incentives has been announced for companies manufacturing hybrid vehicles in India.

Moreover,broader measures like increased focus on rural and infrastructure spending would support long-term growth of the sector,8221; Angel Broking said in a note.

Further,country8217;s biggest carmaker Maruti Suzuki too ended the day in the positive terrain by gaining 3.07 per cent.

8220;Auto is one of the sector which is expected to benefit from this Budget as the government did not hiked the excise duty,8221; Prabhudas Lilladher VP amp; Head Research Institutional Equities Apurva Shah said.

However,other frontline stocks from the auto pack like Hero Honda,Tata Motors ended the trade in the red.

Extending their losses,Hero Honda,Tata Motors,and Bajaj Auto lost 2.36 per cent,2.11 per cent,and 1.26 per cent,respectively.

Meanwhile,the BSE 30-share key index Sensex settled the day with a gain of 122.49 points at 17,823.40.