dkishore
29-02-2008, 07:36 AM
Shares of two-wheeler manufacturers rose on Thursday amid speculation that the finance minister may cut excise duty for two-wheelers on Friday’s Union Budget, a move that is partly expected to lift the sagging fortunes of this segment.
Such a cut is expected to make two-wheelers cheaper for prospective buyers. Bajaj Auto rose 3.2% and Hero Honda gained 3.7% on Thursday. Lowering of personal tax rates and higher-than-expected salary hikes for government employees in the Union Budget could also boost sentiment in these shares, as these moves would result in higher income at disposal.
Two-wheeler shares have been under pressure in the last year due to slowdown in sales, a result of higher interest rates and squeeze in margins on account of stiff competition and rising raw material prices.
Such a cut is expected to make two-wheelers cheaper for prospective buyers. Bajaj Auto rose 3.2% and Hero Honda gained 3.7% on Thursday. Lowering of personal tax rates and higher-than-expected salary hikes for government employees in the Union Budget could also boost sentiment in these shares, as these moves would result in higher income at disposal.
Two-wheeler shares have been under pressure in the last year due to slowdown in sales, a result of higher interest rates and squeeze in margins on account of stiff competition and rising raw material prices.