Motherson Sumi Systems shares gained more than 2 percent intraday Wednesday as China is planning to provide fresh incentives to boost domestic consumption in auto and home appliances segments.
The move is a part of the world’s second largest economy’s bid to shore up its slowing economy.
“The move is expected to lift automobile sales especially in the mass market segment and would lift global car growth outlook. It is positive for Motherson Sumi Systems as it is leading supplier to global passenger vehicle players,” Sharekhan said.
China plans to introduce policies to boost domestic spending on items such as autos and home appliances this year, state television CCTV quoted a senior state planning official as saying on Tuesday.
Ning Jizhe, vice chairman of National Development and Reform Commission (NDRC), said in an interview with CCTV that the policies will be part of wider efforts to strengthen domestic consumption in China.
Investment in each of those projects could be worth billions of US dollars, he said, adding that the first batch launched in 2018’s fourth quarter comprised seven projects including US carmaker Tesla’s factory in Shanghai and German chemical giant BASF’s agreement with Sinopec Corp to build a steam cracker in China.
China, the world’s biggest car market, expects to sell 28 million vehicles in 2019, roughly level with 2018, the Association of Automobile Manufacturers said in December.
Last year, China imported about 1.03 million cars, down 6.8 percent from 2017, latest figures from the association showed. (With inputs from Reuters)
At 12:10 hours IST, the stock was quoting at Rs 160.20, up Rs 1.75, or 1.10 percent on the BSE.
courtsey By – https://www.moneycontrol.com/news/buzzing-stocks/motherson-sumi-systems-gains-2-as-china-plans-fresh-incentives-to-boost-domestic-consumption_11929361.html