Finance Minister P Chidambaram in his interim Union Budget 2014 in Parliament today announced reduction in excise duty for auto, capital goods and consumer durables.

Commenting on the budget, Surjit Arora, research analyst-institutional equities, Prabhudas Lilladher said, ''In a major relief to the automobile industry, the finance minister in the 'Vote on Account' announced 4% reduction in Excise duty for the automobile sector across all the segments for the period up to June 30, 2014. We expect the excise duty reduction to stimulate demand. This is on the assumption that there will be no roll-back in the excise duty in the final budget which is likely to be presented in June-July'14, post the Lok Sabha elections.''

''We believe Mahindra & Mahindra would be the major beneficiary of the reduction in excise duty as a 6% relief on SUVs is a positive. We continue to prefer two-wheelers and cars over commercial vehicle players. We maintain Hero Motocorp as our top pick in the Auto space,'' he added.

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