Shares of automobiles companies are in limelight on the bourses with most of then trading higher by up to 3% after reporting a strong growth in October vehicle sales. The auto makers hope for higher sales ahead of Diwali.
Bajaj Auto and Mahindra and Mahindra (M&M) are quoting at their historic highs after reported highest monthly sales in October, while Maruti Suzuki India is trading nears to its two-year high on the Bombay Stock Exchange (BSE).
Maruti Suzuki India posted an 87% increase in domestic sales at 96,002 units compared with 51,458 cars in the year-ago period. The company expects better sales in coming months as demand picks up in the second half due to festive sentiments and year-end buys.
The BSE auto index, the second highest gainers among the sectoral indices, is up nearly 2% as compared to 1.1% rise in benchmark index Sensex at 1306 hours.
Among the individual stocks, Bajaj Auto is up 3.3% at Rs 1,905, followed by Hero MotoCorp (up 2.4% at Rs 1,950), M&M (up 2.2% at Rs 919) and Maruti Suzuki India (up 1.4% at Rs 1,476).