Hyundai share price hits all-time high; other auto stocks rally too after RBI's liquidity boost

Minutes later, the stock was trading at ₹1,941.90, up 4.34%.

Other auto stocks, too, were trading with gains. The NIFTY AUTO index, when last seen, was quoting 0.85% higher at 23,863.20 levels. Out of 15 components, 14 were trading in the green.

Hyundai Motors is not a part of the NIFTY AUTO index yet.

On the auto index, Tata Motors was the biggest gainer (up 1.34%), followed by Motherson, Exide Industries, Maruti Suzuki India (MSIL), and MRF.

The Nifty Auto Index is designed to reflect the behaviour and performance of the Indian automobile sector.

Why are stocks surging?

The rally in automotive stocks is due to the liquidity boost by the RBI announced last Friday (June 6). The monetary policy committee (MPC) of the Reserve Bank of India (RBI), in its latest monetary policy meeting that was held from June 4 to June 6, decided to cut the repo rate by 50 basis points (bps) to 5.5%. RBI Governor Sanjay Malhotra announced the decision on Friday, June 6, in his address to the media.

Further, the MPC also decided to reduce the cash reserve ratio (CRR) to 3% from 4% earlier – a 100 basis point reduction. The cash reserve ratio (CRR) is the percentage of total deposits a bank must have in cash to operate risk-free.

A reduction in CRR means more liquidity in the system. The RBI governor announced that the reduction will be done in a staggered manner.

This reduction in CRR will release ₹2.5 lakh crore of bank funds, the governor added.

With the reduction in four equal tranches ending November 29, 2025, the CRR would come down to 3%. This means that the commercial banks would have to maintain a lower level of 3% in liquid cash form, with the RBI allowing them to have higher funds for lending.