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Shares of automobiles companies are on a roll with most of the frontline stocks like Tata Motors, Mahindra and Mahindra (M&M) and Maruti Suzuki India trading at their new lifetime highs on the bourses.
The Bombay Stock Exchange S&P BSE Auto index, the largest gainer among sectoral indices, was up 300 points or 1.8% at 16,908 as against 0.22% or 58 points rise in S&P BSE Sensex at 1410 hours. The auto index hit a new high of 16,948 in intra-day deal.
The index has outperformed the market by surging nearly 9% so far in August compared to 2% gain in the benchmark index.
Auto sales in India rose for the second straight month, according to July sales data released by individual auto makers, suggesting that a recovery may have begun to take hold in the sector after a two-year slump.
Analyst expects the upcoming festive season to set the pace of demand recovery especially in cars/two-wheelers, aided by pent up demand and macro recovery.
Tata Motors has moved higher by 2.6% to Rs 517, extending its previous day’s nearly 4% rally, after Jaguar and Land Rover (JLR) recorded strong sales numbers.
The luxury car business sold 39,467 units in July 2014, up 12.2% as compared to 35,162 units in the same period last fiscal. Cumulative wholesales for JLR for the current fiscal (April-July 2014) were 154,623 vehicles against 125,782 vehicles in the same period last fiscal.
M&M, the top gainer among auto pack, was up 3.5% at Rs 1,373, also its record high on BSE. Bajaj Auto up 1.7% at Rs 2,180, followed by Maruti Suzuki India and Hero MotoCorp are up 1% each at Rs 2,740 and Rs 2,538 respectively.
The Bombay Stock Exchange S&P BSE Auto index, the largest gainer among sectoral indices, was up 300 points or 1.8% at 16,908 as against 0.22% or 58 points rise in S&P BSE Sensex at 1410 hours. The auto index hit a new high of 16,948 in intra-day deal.
The index has outperformed the market by surging nearly 9% so far in August compared to 2% gain in the benchmark index.
Auto sales in India rose for the second straight month, according to July sales data released by individual auto makers, suggesting that a recovery may have begun to take hold in the sector after a two-year slump.
Analyst expects the upcoming festive season to set the pace of demand recovery especially in cars/two-wheelers, aided by pent up demand and macro recovery.
Tata Motors has moved higher by 2.6% to Rs 517, extending its previous day’s nearly 4% rally, after Jaguar and Land Rover (JLR) recorded strong sales numbers.
The luxury car business sold 39,467 units in July 2014, up 12.2% as compared to 35,162 units in the same period last fiscal. Cumulative wholesales for JLR for the current fiscal (April-July 2014) were 154,623 vehicles against 125,782 vehicles in the same period last fiscal.
M&M, the top gainer among auto pack, was up 3.5% at Rs 1,373, also its record high on BSE. Bajaj Auto up 1.7% at Rs 2,180, followed by Maruti Suzuki India and Hero MotoCorp are up 1% each at Rs 2,740 and Rs 2,538 respectively.
