Auto shares in focus; Tata Motors surges over 5%

Ashok Leyland, Bajaj Auto, M&M, Hero MotoCorp and Eicher Motors are up 1-3% on the NSE

Auto stocks are in focus with most of the frontline stocks such as Tata Motors, Ashok Leyland, Bajaj Auto, Mahindra & Mahindra (M&M), Hero MotoCorp and Eicher Motors trading higher between 1-5% on the National Stock Exchange (NSE).

At 11:06 AM, the CNX Auto index, the largest gainer among sectoral indices, was up 1.7% as compared to 0.23% rise in the benchmark CNX Nifty.

Tata Motors, the largest gainer among auto shares, has rallied 6% to Rs 404 on reports that its subsidiary Jaguar Land Rover (JLR) reported strong sales growth in the US market. JLR, its luxury vehicle business, accounts for 83% of the consolidated revenue.

According to media reports, October JLR sales in US surged 76.1% at 8,187 units from 4,650 Units in year-ago period.

The stock hit an intra-day high of Rs 406 and surged 46% from its 52-week low of Rs 279 touched on September 29, 2015.

Tata Motors' global sales of all passenger vehicles in September, including JLR, jumped 40% to 63,334 units in September against the same month last year.

Meanwhile, General Motors Company said on Tuesday, the US auto industry is on track for a record year of annual sales, the Reuters report suggests. CLICK HERE TO READ FULL REPORT.

Among the other individual stocks, M&M was up 1.5% at Rs 1,251, extending its 4% gain in past two trading sessions, after it reported 20% year on year growth in total sales of 51,383 units in the month of October 2015. It had sold 42,780 units in the same month year ago.

The company had said it quite hopeful of this positive growth momentum continuing for the rest of the year.