Bajaj Auto gains on BoA upgrade to 'buy'

Bank of America-Merrill Lynch upgraded the auto major's stock to "buy" from "underperform"

Bajaj Auto has gained around 3% after Bank of America-Merrill Lynch upgraded its stocks from "underperform" to "buy", citing higher volume and average selling prices, and increased contribution from dirt-bike making affiliate KTM.

Bajaj Auto, which is going to announce its Q2 earnings later Tuesday, is expected to see its  net profit grow by 3% on an annual basis, according to market analysts.

The stock opened at Rs 2,388 and hit a high of 2,429 on BSE while around 224,000 shares have changed hands on BSE and NSE so far today.