EXCLUSIVE: Anil Singhvi reveals what may be a booster shot for Rane (Madras), Bosch shares

In a move that could give a big boost to car airbag manufacturing companies, the government is mulling to make this safety measure mandatory for front seats, said Zee Business Managing Editor Anil Singhvi today.

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Quoting sources, Chetan Bhutani of Zee Business said that Road and Transport ministry has also sent notification to Law Ministry in this regard.  

"Front seat airbag was made mandatory for drivers from 2019 itself, however, this time the government is planning to make it mandatory for co-passengers too from April 1. This proposal is likely to be cleared by the central government in 10 days. Final notification has been sent to Law Ministry by the Ministry of Road Transport and Highways already for final drafting. Now, all new cars will have to be equipped with front air bag for co-passengers from April 1 and the same will come into effect for present car models from June 1, 2021," said Bhutani citing sources. 

He said domestic companies like Rane (Madras), which deal in airbag and related components, will benefit the maximum from this government move if it comes to pass.  

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Domestically entry-level cars can also see rise in prices, he added.  

Meanwhile, buoyed by the development, Rane (Madras) ended the day at Rs 342, a 20% jump from the previous day closing. Rane (Madras) shares gained Rs 57 in Thursday's rally.  

Zee Business Managing Editor said Bosch, which also deals in airbags, may also benefit significantly.  

Talking about its chart pattern, Market expert Sumeet Bagadia said overall trend indicates good momentum in this share and recommended to hold long positions. Fresh buying for immediate target of Rs 15,500 could also be done in this scrip, he said .