Sona BLW, Amara Raja Energy and Minda Corp shares rise in trade; here is why
The upward movement in the Sona BLW Precision Forgings Ltd., Amara Raja Energy & Mobility Ltd., and Minda Corporation came after Bloomberg reported that India was closing in on an agreement with Tesla that would allow the US automaker to ship its electric cars to the country.
Shares of auto component makers Sona BLW Precision Forgings Ltd., Amara Raja Energy & Mobility Ltd., and Minda Corporation rose over 2 per cent in the afternoon deals on Tuesday, November 21.
The upward movement in the stocks came after Bloomberg reported that India was closing in on an agreement with Tesla that would allow the US automaker to ship its electric cars to the country starting next year and set up a factory within two years.
At around 12:24 p.m., shares of Sona BLW Precision Forgings Ltd were up 2.56 per cent on the BSE at Rs 594.2 apiece, Amara Raja Energy & Mobility Ltd shares were up 2.46 per cent at Rs 656.25 apiece, and Minda Corporation shares were up 2.55 per cent at Rs 349.5 apiece.
According to the report, Tesla would commit an initial minimum investment in any plant of around $2 billion and would look to increase purchases of auto parts from the nation to as much as $15 billion. The US automaker would also seek to make some batteries in India to bring down costs, the report added.
Recently, in September, Trade Minister Piyush Goyal, who visited Tesla’s plant in Fremont, California, said that Tesla was planning to almost double purchases of auto parts from India to $1.9 billion this year. The electric carmaker sourced parts worth $1 billion from the nation last year, he said at an event in New Delhi at the time.
Further, the report stated that India is now said to be considering lowering import taxes for international EV manufacturers for five years if those firms eventually commit to setting up local factories.
Sona BLW, Amara Raja Energy and Minda Corporation share price: Past performance
Since January, Sona BLW Precision Forgings shares have gained over 41 per cent, Amara Raja Energy and Mobility Ltd shares have surged over 13 per cent and Minda Corporation shares have risen over 71 per cent against the Nifty50's rise of over 8 per cent.
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