Two-wheeler makers edge higher after cut in petrol price

Shares of three two-wheeler makers rose 0.61% to 3.08% at 12:02 IST on BSE after state-run oil marketing companies cut petrol price by Re 1 per litre, excluding value added tax, with effective from midnight Monday.

Reduction in petrol price may boost two-wheeler sales.

Hero MotoCorp (up 3.08% to Rs 1,481.50), TVS Motor Company (up 0.99% to Rs 35.65), and Bajaj Auto (up 0.61% to Rs 1,736.50) edged higher.

The S&P BSE Sensex was up 223.74 points or 1.22% at 18,581.54.

Hero MotoCorp had underperformed the market over the past one month till 15 April 2013, sliding 14.61% compared with the Sensex's 5.51% fall. The scrip had also underperformed the market in past one quarter, declining 22.09% as against Sensex's 8.15% fall.

TVS Motor Company had outperformed the market over the past one month till 15 April 2013, rising 2.02% compared with the Sensex's 5.51% fall. The scrip had, however, underperformed the market in past one quarter, sliding 25.53% as against Sensex's 8.15% fall.

Bajaj Auto had underperformed the market over the past one month till 15 April 2013, sliding 6.83% compared with the Sensex's 5.51% fall. The scrip had also underperformed the market in past one quarter, declining 18.41% as against Sensex's 8.15% fall.

The recent cut in petrol price comes on the back of 85 paise a litre reduction in rates on 2 April 2013 and Rs 2 a litre decrease effected on 16 March 2013.

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