Bajaj Auto surges on reported forecast for motorcycle demand

Reuters Market Eye - Shares of Bajaj Auto Ltd gain 5.1 percent after the motorcycle maker's management issues a better-than-expected outlook in a conference call with analysts.

"Management expects the domestic motorcycle industry to recover to 8 percent growth in FY15 with the stable (BJP) government," Credit Suisse wrote in a report on Wednesday after the call.

The projected growth would be much higher than in the previous two years, analysts say.

A Bajaj spokesman was not immediately reachable for comment.

Gains were also boosted as investors shed short positions, leading them to buy the futures contract: the motorcycle maker's May contract shed 30,000 shares in outstanding positions, sending it up 4.8 percent.

 

(Reporting by Abhishek Vishnoi)