F&O segment activity drives up Hero Honda

DALAL STREET SPIKES

Short covering in the derivatives market led to the Hero Honda counter surging on the bourses on Wednesday.

The counter hit an all-time high of Rs 459.40 on the BSE before closing at Rs 451.30, up by 7.99 per cent. More than 6.15 lakh shares were traded on the BSE.

Players point out that the markets had gone short on the counter in the F&O market but the overall strength led a lot of them short covering in the cash market and cutting their positions in the derivatives segment.

The surge was also attributed to the general sentiment being bullish on the counter on the back of expectations of strong December bike sales. Market talk suggests that a lot of FIIs are also active on the counter.

Analysts watching the sector say the company is expected to do well, riding on a strong rural demand following the good monsoon this year.