M&M accelerates on bonus news

DALAL STREET SPIKES

Mahindra & Mahindra (M&M) ended positive in a volatile trading after the company announced a 1:1 bonus. The stock in intra-day trades hit a high of Rs 557.4, before closing at Rs 548.60, up 0.42 per cent from its previous close. More than 5.4 lakh shares changed hands at the counter on BSE on Tuesday.

The stock had witnessed a sharp surge ahead of the company's announcement that it would consider a bonus issue. M&M also announced that it will form a joint venture with US-based International Truck and Engine Corporation (ITEC) to make trucks and buses in India.

M&M will hold a majority 51 per cent stake in the venture. The project cost is estimated at $92 million.