MUMBAI, Feb. 1 -- Shares of MSTC Ltd hit the 10% upper circuit, while automobile stocks rose after the Centre proposed a voluntary scrappage policy for vehicles.

Mahindra & Mahindra gained 2.7%, Tata Motors 1.4%, Maruti Suzuki India 1.2%, and Ashok Leyland 1.1%.

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Finance minister Nirmala Sitharaman on Monday, while presenting the Union Budget for 2021-22, announced the much-awaited voluntary vehicle scrappage policy to phase out unfit, pollution-causing vehicles.

The policy will help reduce vehicular pollution and cut oil import bill. Vehicles will undergo fitness test in automated centres. Age of the vehicles will be 15 years in case of commercial vehicles and 20 years in case of perso...