An excise duty cut on big cars failed to enthuse the shareholders, paving way for a nosedive in the scripts in sync with the broader market that dropped on fear of widening of the fiscal deficit.
As part of stimulus package, the government had already reduced the excise duties to eight percent on cars that are smaller than four metres.
Once after the budget was presented, the shares of the chief automakers such as Mahindra & Mahindra, Ashok Leyland, and Maruti Suzuki fell into a negative zone on the stock exchanges. The shares of Maruti, on the National Stock Exchange, was at an intra-day low of Rs 991.50 falling over six percent.
The duty on the petrol-driven trucks was twenty percent and this has been cut to eight percent in the Budget. The FM also reduced additional excise duty by Rs 5,000 per unit on those with engine capacities of 2,000cc and above.