To stop diesel vehicles in the country, recently Union Minister Nitin Gadkari has announced that from now onwards 10 percent more tax will be imposed on diesel vehicles, after which there was a huge fall in the shares of companies.
HR Breaking News, New Delhi : A sharp decline was seen in the shares of many auto companies (Auto Firms Share Fall). From Tata Motors to Mahindra & Mahindra suffered huge losses. The reason behind this was a statement given by Union Road and Transport Minister Nitin Gadkari in which it was said that 10 percent extra GST will be imposed on diesel engine vehicles. However, Union Minister Nitin Gadkari later clarified that at present the government does not have any such proposal, but during this time there was a tsunami in the shares of auto companies.
Statement given in SIAM conference:
First of all let’s talk about the statement given by Union Minister Nitin Gadkari, according to PTI, he spoke on diesel vehicles in the 63rd annual conference of SIYAM (Society of Indian Automobile Manufacturers).
Said to impose additional 10 percent GST. While addressing, he had said that pollution is a serious issue and it is also posing a threat to health. I will meet the Finance Minister this evening and request him to impose additional 10 percent GST on diesel vehicles in the future. Just after this statement of Nitin Gadkari, shares from Tata Motors to Mahindra And Mahindra started falling heavily.
By the end of trading in the Tata Motors
stock market, all these auto companies had suffered huge losses. Talking about Tata Motors, on Tuesday, Tata Motors Stock fell by 2.19 percent and due to this fall, the market cap of the company decreased by Rs 6,344.75 crore. Due to this, Tata Motors MCap decreased to Rs 2,04,493.81 crore.
Mahindra & Mahindra
Shares of Anand Mahindra-led Mahindra & Mahindra company also collapsed due to the adverse impact of this statement and a decline of more than Rs 8000 crore was recorded in the market capitalization of the company on Tuesday.
Even on Wednesday, its effect is visible on the company’s shares and these shares are trading with a decline of 0.22 percent during early trading in the market. Due to the fall in shares due to the statement of imposing 10 percent extra tax on diesel vehicles, the market cap of the company which was Rs 1,96,738.69 crore on Monday, came down to Rs 1,88,145.91 crore on Tuesday.
Ashok Leyland
This statement also affected the shares of Ashok Leyland, another big company in the auto sector, and the shares of the company fell by 1.5 percent on Tuesday. Even during early trading on Wednesday, Ashok Leyland Stock was trading with a decline. Due to share loss, the market capitalization of Ashok Leyland Limited reduced by Rs 2,319.54 crore. It was Rs 54,259.63 crore on Monday, which became Rs 51,940.09 crore on Tuesday.
Eicher Motors
Shares of Eicher Motors also saw a decline and by the end of trading it had fallen by more than 1 percent. However, after Union Minister Nitin Gadkari’s comment on this statement, there has been an improvement in it and on Wednesday it is trading on the green mark with an increase. If we look at the decline recorded in the market cap of Eicher Motors on Tuesday, it decreased from Rs 93,415.56 crore to Rs 91,105.18 crore.
