Auto Shares Soar In A Subdued Market; Tata Motors, Bajaj Auto Top Gainers
Tata Motors, Maruti Suzuki and Bajaj Auto contributed 82 per cent to gains in the auto index
Auto shares are going strong in an otherwise sideways market session on the back of strength in auto heavyweights such as Tata Motors, Bajaj Auto and Hero Motocorp. At 1:00 pm, the Nifty Auto index, which is a barometer of of auto stocks, was the top sectoral gainer. The index galloped by 1.8 per cent to 8,924.50; with Tata Motors, Maruti Suzuki and Bajaj Auto contributing a total of 82 per cent to the gains in the auto index.
Tata Motors, Maruti Suzuki and Bajaj Auto and Hero Motocorp gained 1 per cent to 3.8 per cent on the BSE, while midcap auto stocks and auto ancillaries such as TVS Motor Company, Amara Raja Batteries and Exide Industries gained upto 4 per cent each.
Tata Motors shares have been on a tear in recent weeks, gaining around 20 per cent in the past 15 days alone to touch Rs 180 in today's trading. CLSA has, in fact, retained a buy call on the auto major with a target price of Rs 220 per share.
Bajaj Auto is trading around 9-month highs at Rs 3224; Morgan Stanley recently suggested that Bajaj Auto is the best placed two-wheeler maker in the country to navigate the post-Covid-19 economic scenario.
But M&M was trading flat, albeit with a positive bias, after its subsidiary Mahindra Holdings agreed to sell its entire 100 per cent stake in Mahindra First Choice Services and Optionally convertible redeemable preference shares in Auto Digitech to TVS Automobile Solutions.
The BSE Sensex was at 44,171.15, lower by 84 points or 0.21 per cent and the NSE Nifty was at 12,965.50, down 21.55 points or 0.17 per cent at the time.