Auto index at lifetime high
Auto index is up almost 2% at 11,207 points compared to a marginal 0.09% decline in benchmark Sensex at 1214 hours.
Shares of automobile companies are in limelight on the bourses with the BSE Auto index hitting a lifetime high after Tata Motors' UK subsidiary Jaguar Land Rover (JLR) reported strong sales growth in November.
Apart from Tata Motors, Ashok Leyland, Bajaj Auto, Hero MotoCorp and Mahindra and Mahindra are trading higher by 1-5% on the BSE.
Auto index, the largest gainer among the sectoral indices, is up almost 2% at 11,207 points compared to a marginal 0.09% decline in benchmark Sensex at 1214 hours.
Tata Motors has rallied 5% to Rs 290 on reports that its British luxury JLR unit, which accounts for a majority of company’s profits, reported a 14% year-on-year growth in vehicles sales at 29,893 units in the month of November 2012.
Bajaj Auto is trading higher by 2% at Rs 2,096, also its record high on the BSE. The stock has rallied 9% in past six trading session on hopes of higher growth on back of new launches. The recently launched Pulsar 200 NS and Discover ST evinced good response from the market.
“The domestic motorcycle industry remained flat in the April-November 2012 period. The demand is expected to pick-up in FY2014 on an improved economic outlook and a reduction in the interest rates,” analyst at Sharekhan said in recent report.