Auto shares edge higher; Maruti Suzuki gains 2% on BofAML upgrade

Bank of America Merrill Lynch upgraded Maruti Suzuki India's stock to 'buy' from 'neutral' and raised the target to Rs 8,650 from Rs 7,450 per share

Auto shares were in focus on Tuesday, with the Nifty Auto index climbing 1.5 per cent in intraday trade on the National Stock Exchange (NSE), led by gain in shares of Maruti Suzuki, Tata Motors, and Eicher Motors.

Among individual stocks, Maruti Suzuki India rose 2 per cent to Rs 7,276.50 on reports that Bank of America Merrill Lynch has upgraded the company's stock to 'buy' from 'neutral' and raised the target price to Rs 8,650 from Rs 7,450 per share.

"It feels that the best place for recovery is in the passenger vehicle segment and expect earnings cycle to