Two-wheeler makers gain on petrol price cut

Three two-wheeler makers rose by 0.16% to 1.11% at 11:15 IST on BSE as petrol price was cut by Re 1 a litre with effect from 15 October 2014 excluding local sales tax or VAT.

Meanwhile, the BSE Sensex was down 16.07 points, or 0.06%, to 26,333.26.

Hero MotoCorp gained 1.05% ahead of its Q2 results today, 16 October 2014.

TVS Motor Company gained 1.11%.

Bajaj Auto rose 0.16% to Rs 2,414 in volatile trade. The stock hit high of Rs 2,440 and low of Rs 2,366 so far during the day. The company's net profit fell 29.41% to Rs 590.90 crore on 14.67% rise in total income to Rs 6076.70 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Tuesday, 14 October 2014.

Bajaj Auto said that the Q2 September 2014 net profit was weighed by an exceptional item of Rs 340.29 crore of National Calamity Contingency Duty (NCCD). Excluding exceptional item, profit after tax, would have rose 1.91% to Rs 853 crore in Q2 September 2014 over Q2 September 2013, Bajaj Auto said.

Meanwhile, petrol price in Delhi will come down by Rs 1.21 a litre (including VAT) to Rs 66.65 a litre with effect from 15 October 2014.

Since last price change, international petrol prices have continued to show a downward trend. However, the rupee-dollar exchange rate has depreciated. Despite rupee depreciation against the dollar, the fall in international oil prices warrant a decrease in selling price of petrol in the domestic market, Indian Oil Corporation said in a statement.

Fall in petrol prices augur well for two-wheeler companies as it positively influences buying decision of consumers. The market participants also expect demand to pick up for two-wheelers in ongoing festive season.

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