M&M shares remained under pressure on Wednesday after SC ordered to ban registering diesel vehicles with an engine capacity of over 2000 CC in Delhi to curb air pollution. (Photo: Reuters)
The Supreme Court on Wednesday banned registration of diesel-run SUVs and cars having engine capacity beyond 2000 cc in Delhi and National Capital Region till March 31, next year to curb the alarming rise in pollution levels.
The apex court made it clear that commercial vehicles registered prior to 2005 will not be allowed to enter Delhi and also ordered 100 per cent hike of the Environment Compensation Charge (ECC) being levied on light and heavy trucks using Delhi roads.
The bench, in one of its directions also made it clear that only CNG-run taxis would be permitted to ply in Delhi and NCR.
Reacting to the news, stocks of Everest Kanto, Indraprastha Gas Limited and Ashok Leyland surged, whereas shares of Mahindra and Mahindra slid.
1) Everest Kanto Cylinder: Everest Kanto share price hit a new 52-week high of Rs 15.45 on Wednesday after the Supreme Court ruling that only CNG-run taxis will be allowed to ply in Delhi and NCR. The company is engaged in the business of manufacturing industrial and CNG cylinders. The share price of the company closed 14.06 per cent up at Rs 15.01.
2) Mahindra and Mahindra (M&M): The share price of M&M remained under pressure on Wednesday after the Supreme Court ordered to ban registering diesel SUVs and luxury cars with an engine capacity of over 2000 CC in Delhi to curb air pollution. The share price of the auto major fell as much as 6 per cent intra-day on Wednesday. The scrip closed 5.44 per cent down at Rs 1,218.90 on BSE.
3) Indraprastha Gas Limited: Shares of the gas distribution company surged over 8 per cent intra-day after the Supreme Court ruling on diesel vehicles. According to Nomura, the decision will benefit IGL the most. The brokerage house has a ‘Buy’ rating on IGL shares with a target price of Rs 600. The share price of IGL closed 6.79 per cent up at Rs 500.35.
4) Ashok Leyland: The share price of Ashok Leyland were trading around 1 per cent up in the afternoon trade after the court banned entry of diesel commercial vehicles, registered before 2005, in Delhi. According to market analysts, the order may give a push to replacement demand as old vehicles are discarded. Ashok Leyland settled 0.69 per cent up at Rs 87.95.
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