Car makers gain in an otherwise flat market

Shares of car makers Maruti Suzuki and Tata Motors have gained in an otherwise flat market

Shares of Maruti Suzuki India have climbed over 1% during the noon trades after Maruti chairman said that double-digit sales growth is expected this current year.

 

"We will surely have a double-digit growth rate this year," Maruti's Chairman R.C. Bhargava said.

 

He also added that sales have grown at an average of 16% in the past five months.

 

The stock opened at Rs 2928, touched a high of Rs 2959 and a low of Rs 2925 on the BSE. A total of 23,198 shares have been exchanged on the BSE so far.

 

Index heavyweight Tata Motors has inched up more than half a percent and is currently quoting at Rs 517 after Macquarie raised the price target for the stock to Rs 700 from Rs 540 rupees and says it expects Tata's earnings to double over three years from FY2014 to FY2017.

 

The stock opened at Rs 514.50, touched a high of Rs 519 and a low of Rs 514 on the BSE. A total of 126,635 shares have been exchanged on the BSE so far.

Meanwhile, at 1 PM, the 30-share Sensex is up 6  points at 27,001 and the 50-share Nifty is down 1 point at 8,085.
 

Further, the government had cut excise duty on cars, SUVs and two-wheelers as well as consumer durables in the Interim Budget in February 2014 to help the industry tide over a demand slump.