Auto Scrips Rally

Automobile company shares, led by Hero Honda, made another rally on the Delhi Stock Exchange (DSE) yesterday following sustained buying by speculators and overseas investors coupled with some short covering.

Rumours that Honda Motors might hike its equity stake in the Indian company, Hero Honda Motors triggered buying spree which lifted prices to a new high. The DSE sensitive index improved by 2.25 points to 867.20 points.

Hero Honda Motors registered another strong rally to touch new peak of Rs 871.20, winding up at Rs 855.25, a hefty rise of Rs 59.75, nearly 8 per cent. Bajaj Auto gained Rs 1.50 at Rs 609.50, Escorts edged up Rs 1 at Rs 113.50. RIL dropped partially to close at Rs .406.50, a gain of Rs one. ACC firmed up by Rs 8 at Rs 1,339, while L&T shares went up Rs 1.25 at Rs .231.75.