November data reverses Hero Honda ride

DALAL STREET SPIKES

Hero Honda witnessed sharp correction despite the company announcement that November shipments rose 15.3 per cent. The stock fell by a sharp 4.7 per cent to Rs 469.30 on selling pressure across the board.

The counter witnessed impressive volumes of more than 4.16 lakh shares on BSE alone. Before Wednesday's crash, the stock had appreciated more than 12 per cent in just four trading sessions to Rs 492.65 from a low of Rs 439.05 on strong November sales expectations.

Analysts tracking the sector said, though the company reported a growth in November sales, it fell short of the street expectation.

The company sold 2.35 lakh bikes in November, 15 per cent higher than sales of 2.04 lakh units in November 2003. However, when compared to sales of 2.45 lakh bikes in October 2004, bike sales declined 4 per cent in November 2004.