Bajaj Auto up on expansion plan

Bajaj Auto shares rose 6.52 per cent to Rs 1,304.5 on the proposed increase in its motorcycle production. Bajaj’s plan to raise domestic motorcycle production by about 25 per cent in August 2009 came as a response to stronger demand in the segment.

However, two-wheeler sales of Bajaj Auto were flat in July at 168,731 units, a drop of 0.72 per cent, as compared to 169,971 units sold in the same month a year ago. The stock opened at Rs 1,220 (the lowest point of the day) and made an intraday high at Rs 1,356. The stock gained 32 per cent in the last one month.