Revival in tractor industry props M&M

DALAL STREET SPIKES

Tractor and utility vehicles major, Mahindra and Mahindra gianed over three per cent in a subdued market on renewed buying after yesterday's free fall.

The stock almost recovered yesterday's losses as the scrip closed at Rs 479.15 after touching the day's high of Rs 482.55. The counter witnessed volumes of more than 5.56 lakh shares at the BSE.

Market analysts said that the auto sector is witnessing fund based buying and investors bought M&M at lower levels after yesterday's fall of over four per cent. The M&M counter has been volatile in the past two months moving in the range of Rs 422 to today's close of Rs 479. Analysts say the revival in the tractor industry is resulting in renewed buying in M&M "� which is the largest tractor maker in India.

However, the concern for the auto sector has been rising with increasing steel prices which would put pressure on profit margins.