Budget 2024 & Sustainability: With the Budget announcing a series of steps to kickstart the EV industry and the charging infrastructure, shares across the sector made substantial gains in the stock markets
Shares of companies associated with the EV industry rallied sharply following the budgetary announcement to expand the EV ecosystem. The move, aimed at bolstering charging infrastructure and promoting electric buses for public transport networks, resonated positively among investors.
JBM Auto emerged as a top performer, witnessing a 2.48 percent surge to settle at Rs 1,963.20 on the Bombay Stock Exchange (BSE). The stock soared to a 52-week high of Rs 2,010.80, surging by 4.96 percent.
Greaves Cotton also displayed a positive trend, advancing by 0.95 percent to settle at Rs 165.05 after reaching a high of Rs 168.55, up by 3 percent during the session.
However, Olectra Greentech declined marginally by 0.69 percent to Rs 1,729, attributed to profit-taking. Despite this dip, the stock achieved an intraday high of Rs 1,849.25, reflecting a substantial 6.21 percent surge.
The government's commitment to expanding the EV ecosystem, as announced by Finance Minister Nirmala Sitharaman on Thursday, served as a driving force behind the positive market sentiment. Sitharaman, delivering the pre-election budget, emphasised the government's support for manufacturing and charging infrastructure.
"Our government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure," stated Sitharaman, highlighting the encouragement of electric buses for public transport networks.
She outlined plans to incentivise the adoption of electric buses through payment security mechanisms. Additionally, Sitharaman underscored that blending compressed biogas with compressed natural gas for transport and piped natural gas would be mandatory.
Reacting to the budgetary announcements, Subahoo Chordia, President and Head of Real Assets at Edelweiss Alternatives, expressed optimism, stating, "The backing of sustainable technologies, including electric vehicles and charging infrastructure, bodes well for a cleaner future. The budget is expected to lead to sustained economic growth."
Despite the positive momentum in the electric vehicle segment, benchmark equity indices ended lower on Budget Day as investors engaged in profit-taking amid mixed market cues. The 30-share BSE Sensex declined by 106.81 points to 71,645.30, and the Nifty dipped by 28.25 points to 21,697.45.