Auto index outshines all other sectoral indices, zooms over 11%

Nifty posted its biggest single day gain in a decade after Finance Minister Nirmala Sitharaman slashed corporate tax rates.

Nifty Auto propelled over 11 thereby making it the highest gainer among sectoral indices. Auto stocks cheered as most listed auto companies will see a substantial reduction in tax outgo.

The top gainers from the auto space included Ashok Leyland, which zoomed over 16 percent, followed by Maruti Suzuki, Hero MotoCorp and Eicher Motors which jumped 13-14 percent each. Tata Motors spiked 10 percent while MRF, TVS Motor Company, Motherson Sumi Systems, Bajaj Auto and Exide Industries among others.

Short term trend is changed to bullish and we may see Nifty crossing 11,700 soon lead by Auto, Capital Goods, Realty and Infrastructure companies, said Romesh Tiwari, Head of Research at CapitalAim.