The prolonged conflict in the Gulf may have hit India's stock market hard, but some counters have surged to capitalise on the likely shift in mobility patterns. Shares of JBM Auto Ltd., Olectra Greentech Ltd., Ather Energy Ltd. and Ola Electric Mobility Ltd. rallied on Wednesday.
Electric vehicle makers are expected to be a beneficiary of high crude oil prices that makes petrol and diesel-based transport more expensive. Dearer fuels could increase the appeal of electric alternatives.
Investors expect higher demand for EVs and a targetted government push toward reducing oil dependence. This will improve sales growth outlook for these companies.
JBM Auto and Olectra Greentech manufacture electric buses that are increasingly in favour of government orders. Ather and Ola Electric sell electric two-wheelers.
Intraday, JBM Auto shares hit 20% upper circuit, Olectra gained 19%, Ather popped 7% and Ola Electric gained 6%.
International oil prices have moved 43% higher amid the disruption in supply from the Gulf region. The Iran war started on Feb. 28 and has since hampered oil production at key producing countries.
The government has been pushing incentives to promote EVs to reduce reliance on costly fuel imports.
The government has offered purchase subsidies under the FAME scheme — Faster Adoption and Manufacturing of Electric Vehicles — and applied a 5% GST rate.
Supply-side support followed through production-linked incentives — government schemes that reward incremental output — for EVs, auto components and advanced chemistry cell batteries. Central and state governments also gave capital subsidies for EV manufacturing and charging infrastructure. The policy aim was to lower EV costs and expand supply.
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