SUV maker Mahindra gained on the BSE on a buoyant Thursday after losing almost 5% the previous day reacting to the Supreme Court order banning sale of diesel cars in Delhi from 1 January to 31 March, 2016.
The stock closed at Rs 1,246.90, up 2.30% on Thursday, after touching an intra-day low of Rs 1,193 and high of Rs 1,253. The counter saw hectic trading, with 5.18 lakh shares changing hands as against the two-week average of 74,000 shares.
On the NSE, the stock closed at Rs 1,250, a gain of Rs 31.95, or 2.62%, with 24 lakh shares traded on the exchange.
After the Supreme Court ban, the company in a conference call, said that there will be a 2% impact on its monthly sales as a result of the ban, besides an adverse impact of Rs 100 crore on the inventory lying with dealers in the NCR region.
The company's diesel SUVs include Bolero, Scorpio, XUV500 and SsangYong Rexton.
The company added that the expected revenue loss will be compensated by launching new products, apart from vehicles recently launched.
The SC bench headed by Chief Justice TS Thakur had also directed all taxis in both Delhi and NCR to convert to Compressed Natural Gas (CNG) before March 2016.
The Mahindra stock apparently benefited from the bullish mood prevaling in the stock markets a day after the US Federal Reserve announced a 25 basis point hike in interest rate on Wednesday.
Both the S&P BSE Sensex and NSE Nifty opened higher on Thursday and closed the day on a positive note.
The Sensex closed at 25,803.78, a gain of 309.41 points, or 1.21%, while the Nifty ended at 7,844.35, up 93 points, or 1.21%.
The advance-decline ratio was skewed in favour of 41 advances on the NSE, while 25 scrips gained on the BSE.
The biggest gainers on the BSE were Tata Steel (4.76%), Vedanta (3.75%), Hindalco (3.44%), Reliance (3.10%) and Bajaj Auto (2.96%).
ONGC, Axis Bank, GAIL (India), Lupin and Coal India were losers on the BSE.
TCS, Infosys and Wipro did not react to the proposed US Congress legislation to levy special fee on H-1B and L-1 visas, with all the three companies gaining modestly on the NSE.
The US Congress had proposed a fee of $4,000 on certain categories of H-1B visas and $4,500 on L-1 visas to fund a $1.1 trillion spending package, which will be put to vote in the US House of Representatives on Friday.
