Mahindra and Escorts stocks rise 4% each, riding on higher volumes

Street expects upward revision in growth guidance if trend persists

The stocks of Mahindra & Mahindra (M&M) as well as Escorts were up 4 per cent each on Friday, riding on volume uptick in the tractor segment in August. 

After reporting a decline of 14 per cent in the April-July 2019 period, the positive momentum could indicate a reversal of the trend. Analysts at Emkay Research believe the improvement in tractor volumes was driven by better customer sentiment, uptick in monsoon, and higher Kharif sowing. 

The first half of August saw tractor sales grow 11 per cent over the year-ago period. Growth in August was led by the Gujarat and