Mahindra & Mahindra rose 0.49% to Rs 1,384.65 at 15:15 IST on BSE after India's weather office today, 8 June 2016, announced the onset of southwest monsoon rains in Kerala.
Meanwhile, the S&P BSE Sensex was up 26.98 points or 0.1% at 27,036.65.
On BSE, so far 75,000 shares were traded in the counter as against average daily volume of 1.55 lakh shares in the past two weeks. The stock rose as much as 1.38% at the day's high of Rs 1,397 so far during the day. The stock rose 0.15% at the day's low of Rs 1,380 so far during the day. The stock had hit a record high of Rs 1,441.45 on 7 August 2015. The stock had hit a 52-week low of Rs 1,092 on 12 February 2016.
Shares of Mahindra & Mahindra (M&M) have risen 3.38% in the preceding three trading sessions to settle at Rs 1,377.85 yesterday, 7 June 2016, from its close of Rs 1,332.70 on 2 June 2016, on hopes of good monsoon rains. Good rains may boost demand for tractors. M&M is the largest tractor maker in India in terms of market share.
There has been delay in the onset of the monsoon rains in Kerala this year from the normal onset date which is 1 June. The arrival of the rains at the Kerala coast marks the onset of the June-September southwest monsoon season in India.
Quantitatively, monsoon season rainfall for the country as a whole is likely to be 106% of the long period average (LPA) with a model error of plus/minus 4%, the IMD said after trading hours on 2 June 2016. In its first stage forecast issued on 12 April 2016, the IMD had forecast rainfall to be 106% of the LPA with a model error of plus/minus 5%.
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M&M's net profit rose 6% to Rs 583.73 crore on 14.8% growth in net sales to Rs 10666.43 crore in Q4 March 2016 over Q4 March 2015.
The Mahindra Group enjoys a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two-wheeler industries.
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