Hero Honda makes a comeback on Dalal Street, up over 2%

Snapping a three-day losing streak, shares of Hero Honda today bounced back on robust August sales numbers and rose over 2 per cent, registering the maximum gain on the 30-share benchmark Sensex.

Shares of the country's largest two-wheeler maker ended with a gain of 2.14 per cent at Rs 1,736.15. During the day, it jumped nearly 3 per cent to touch an intra-day high of Rs 1,747.25.

The scrip had lost over 5 per cent in the last three trading sessions due to selling pressure on reports of a possible breakup of a joint venture with Japanese partner Honda.

Marketmen said the stock recovered on fresh buying by investors which was fuelled by strong sales figures reported by the company.

Hero Honda, yesterday, reported a jump of 2.28 per cent in its sales to 4,24,617 units in August 2010 compared to 4,15,137 units in the corresponding month last year.

On the National Stock Exchange, the scrip finished at Rs 1,739, up 2.55 per cent. In terms of volume, about 14 lakh shares of the company were traded on the two bourses.

Besides, the Hinduja Group flagship firm Ashok Leyland ended nearly 1 per cent higher after hitting a year high in the early trade on strong vehicle sales in August.

Shares of the bus maker settled 1.28 per cent higher at Rs 75.45 per piece on the Bombay Stock Exchange. The scrip opened on a firm note and rallied by 2.41 per cent to touch a 52-week high of Rs 76.30.

Yesterday, Ashok Leyland had posted a 56.35 per cent jump in commercial vehicle sales at 7,480 units in August compared to 4,784 units in the same month last year.

However, shares of the country's largest car maker Maruti Suzuki and auto major Tata Motors erased their early gains to end in the red with a loss of 0.31 per cent and 0.44 per cent, respectively, while Mahindra & Mahindra rose by 0.57 per cent to close at Rs 630.80.

 Meanwhile, the 30-share benchmark sensex closed at 18,221.43, down 16.88 points from previous close.