Auto shares rally on robust October sales numbers

Bajaj Auto and M&M are quoting at their historic highs after reported highest monthly sales in October

Shares of automobiles companies are in limelight on the bourses with most of then trading higher by up to 3% after reporting a strong growth in October vehicle sales. The auto makers hope for higher sales ahead of Diwali.

Bajaj Auto and Mahindra and Mahindra (M&M) are quoting at their historic highs after reported highest monthly sales in October, while Maruti Suzuki India is trading nears to its two-year high on the Bombay Stock Exchange (BSE).

Maruti Suzuki India posted an 87% increase in domestic sales at 96,002 units compared with 51,458 cars in the year-ago period. The company expects better sales in coming months as demand picks up in the second half due to festive sentiments and year-end buys.

The BSE auto index, the second highest gainers among the sectoral indices, is up nearly 2% as compared to 1.1% rise in benchmark index Sensex at 1306 hours.

Among the individual stocks, Bajaj Auto is up 3.3% at Rs 1,905, followed by Hero MotoCorp (up 2.4% at Rs 1,950), M&M (up 2.2% at Rs 919) and Maruti Suzuki India (up 1.4% at Rs 1,476).