Strong October sales fuel Bajaj Auto

DALAL STREET SPIKES

Two-wheeler major Bajaj Auto ended with strong gains Tuesday on the back of strong October Sales.

The stock ended 2.26 per cent higher at Rs 983.30, after the company announced on Monday that its motorcycle sales in October 2004 rose 34 per cent to 143,491 units, compared with 107,115 units in October 2003.

Its total two- and three-wheeler sales rose 13.4 per cent to 176,693 from 155,783 during the same period.

The counter has witnessed a volatile trading session of late in th advent of rising oil prices. The stock has plunged from its recent high of Rs 1,005.40 on October 19, 2004, to Tuesday's close of Rs 983.30. Analysts say competition is likely to increase in the two-wheeler segment with Honda and Susuki's direct entry into the market.

It may be recalled that only recently Honda Motorcycle & Scooters India - a 100 per cent subsidiary of Honda of Japan - unveiled its first product, a 150-cc bike, Unicorn, with an ex-showroom price of Rs 50,043 in Delhi.