Shares of Hero MotoCorp Ltd. rose by nearly 12% to touch a day’s high of Rs 5,658.55 on 23 July after FM Nirmala Sitharaman announced the budgetary allocation of Rs 2.66 lakh crores for rural development, including spending on rural infrastructure.

The increase in rural allocation is positive for the rural economy, likely benefiting M&M and Hero MotoCorp shares.

FM Sitharaman announced a rural allocation of Rs 2.66 lakh crore in her seventh Union Budget, a 12% increase from FY24 estimates. This allocation will also be used to develop rural infrastructure.

Increased rural consumption or a revival of the rural economy is beneficial for two-wheeler manufacturers like Hero and Bajaj Auto, boosting sales of entry-level bikes.

Hero MotoCorp saw strong performance in June, with 5.03 lakh units sold. This represents a 15% increase in sales compared to June of the previous year.

The growth reflects rising demand among the aspirational middle class. Hero MotoCorp’s strong June sales position it well in the market.

Hero MotoCorp won the Platinum A’ Design Award in the Vehicle, Mobility, and Transportation Design category for its Surge S32 mobility solution.

The award highlights Surge S32 as a pioneering design that is in line with current industry trends.

The A’ Design Award is a prestigious recognition celebrating innovation and societal benefit in vehicle design.

At 12:35 PM, the shares of Hero MotoCorp were trading 0.74% lower at Rs 5,423.80 on BSE.

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