Bajaj Auto reverses trend, logs gain on FI buying

DALAL STREET SPIKES

Two-wheeler major Bajaj Auto was among the biggest gainers among the auto stocks as the scrip soared 4.68 per cent on the back of value buying by institutional investors.

Analysts said, the counter was extremely volatile and witnessed aggressive buying after the stock was battered in the past few days.

From a lifetime high of Rs 1,155.60 on December 29, 2003, Bajaj Auto lost 25 per cent to a low of Rs 863.65 on February 23 before witnessing some value buying.

The scrip in Friday's trading touched the day's high of Rs 922, before closing at Rs 906.60, gaining Rs 40 from its previous close of Rs 866.

Auto analyst with a foreign brokerage house said that the monthly sales figure for February are expected to be good in anticipation of which there is buying happening in most auto stocks.

But the rising steel prices are a matter of concern and auto companies will be forced to pass on the hike to the consumers by increasing the prices. The counter witnessed volumes of over 96 thousand shares at the BSE.