Auto stocks rally on good November Sales, Tata Motors hits 10 month high
Mumbai: Backed by better than expected November Sales, most of the automobile stocks opened the day with a positive note, despite a flat opening of the benchmark indexes.
While Tata Motors opened the day with a gain of 3.03% at 185.20, Maruti Suzuki gained 1.64% at 7218. Similarly, Hero Motocorp opened with a gain of 1.11% at 3144.70, Bajaj Auto gained 1.15% at 3281 and M&M gained 0.68% at 739.55.
At 10 am Tata Motors extended its gain to 3.20% to 185.45, Maruti Suzuki up 1.35% at 7195, Hero Motocorp up 1.41% at 3155.40.
Yesterday most of the leading Automakers reported better than expected Monthly sales figures. While Tata Motors reported 26% rise sales at 47,859 units, M&M reported 27% growth at 42,731 units.
Hero Motocorp, India’s largest seller of two-wheeler vehicles, reported 14.4% sales growth at 5,91,091 units.
Meanwhile, India’s largest car seller Maruti Suzuki has reported a flat growth of 1.7% at 153,223 units in November.
Backed by the festive season and revival of economic activities, Indian Automobile sector has been reporting positive sales growth for the last four months. The industry is likely to continue to revive in the next two-three months also.
“The overall automotive industry to continue to revive in the next two to three months, in line with the improving economic indicators” estimated credit Ratings and research agency IndRa.