Shares of Mercury Ev-Tech surged by more than 9% on Tuesday, reaching an intraday high of ₹39.89 per share on the BSE, according to reports from Live Mint. The small-cap electric vehicle manufacturer's strong performance came despite weak general market sentiment and sideways movement in domestic benchmark indices.
The optimistic investor sentiment was driven by the India-European Union Free Trade Agreement, which will reportedly allow battery electric vehicles to be free from any cuts in import duties for the first five years to protect local business investments, as reported by Live Mint. This development is expected to benefit domestic EV manufacturers like Mercury Ev-Tech by providing them with a competitive advantage during the initial implementation period.
While Mercury Ev-Tech gained, major auto stocks faced pressure on Tuesday due to concerns over heightened competition from the India-EU Free Trade Agreement, according to Live Mint. The agreement is expected to reduce import duties on vehicles from the European Union to between 30% and 35%, representing a significant decrease from current levels of 66% to 110%.
Mercury EV-Tech operates as a manufacturer of electric vehicles including scooters, cars, buses, loaders, and golf carts, as well as renewable energy products, as reported by Live Mint. The company's diverse EV portfolio positions it within the growing electric mobility sector in India.
