PLI scheme for auto sector: Auto ancillary stocks surge - Varroc Engg hits upper circuit, Sundaram Brake up 5%

The majority of the auto components manufacturing (auto ancillary) company stocks soared up to 5 per cent, as the government on Wednesday approved the Rs 26,000 crore Production Linked Incentive (PLI) scheme for the Indian automobile sector.

Individually, the shares of Sundaram Brake jumped most by over 5 per cent to Rs 421.9 per share, followed by JTEKT India grew by over 3 per cent to Rs 106.7 per share at the close on the BSE amid the announcement of PLI scheme for the auto ancillary sector today.

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While other auto parts making companies’ stocks such as Motherson Sumi surged around 3 per cent to 228 per share, Sundram Fasteners gained near 2.5per cent to Rs 919 per share on the BSE today. 

While, Bharat Forge, Rico Auto each gained over 1 per cent, similarly, Amara Raja Batteries, India Nippon, SKF India surge marginally after the announcement. On the other hand, Maharashtra Scooters, followed by Asahi India declined most by around 1 per cent at the market close today.

While, the shares of Varroc Engineering hit an upper circuit of 20 per cent to Rs 313.2 per share on the intraday basis amid the PLI scheme announcement.  Another stock - Pricol also jumped over 6 per cent to Rs 99.5 per share on the BSE.

This is the 10th PLI scheme announcement was made during a cabinet briefing on Wednesday by Union Minister Anurag Thakur, designed to strengthen the domestic auto industry. This scheme will also strengthen the resolve to the government's Make in India and Aatma-Nirbhar Initiatives.