Mumbai: Auto stocks, led by Tata Motors, fell by over 2 percent on the BSE on Friday ahead of the Union Budget as investors feared higher taxes on the sector.

Shares of Tata Motors fell 2.21 percent to an early low of Rs 283 on the BSE, thus becoming the top loser among the Sensex blue-chip firms.

The broader market, however, was trading higher.

Maruti Suzuki was another laggard, shedding 2 percent to a low of Rs 1,338.

Market players said there might be an increase in excise duty, besides a new levy on diesel cars in this Budget.

Bajaj Auto, Hero MotoCorp and Mahindra & Mahindra (M&M) were also reeling under pressure.

Profit-booking dragged Bajaj Auto's shares down by 1.27 percent, while Hero Moto slipped by 1.74 percent and M&M was down 1.38 percent.

Meanwhile, the BSE barometer index Sensex was quoting at 17,765.52, up by 89.67 points, at 1030 hrs.

(Agencies)